The global solar tracker market was valued at approximately USD 4.41 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 26.2% from 2023 to 2030. Increasing concerns regarding energy conservation and the shift from non-renewable to renewable energy sources are expected to significantly boost the demand for solar energy, and consequently for solar trackers, over the forecast period worldwide. Solar trackers employ various electrical components, including actuators, motors, and sensors, to adjust the position of solar cells, allowing them to concentrate sunlight and maximize energy capture. The solar radiation collected is then converted into electricity, which is used across different end-user segments. The growing adoption of solar power as a viable source for commercial energy generation has gained traction, driven by the declining costs of solar photovoltaic (PV) panels, which is anticipated to further propel the growth of the solar tracker market.
In the United States, solar PV technology has emerged as one of the fastest-growing renewable energy sources in recent years. The government’s increased focus on renewable energy has facilitated the development of PV cells, establishing them as a sustainable and reliable energy generation option. Additionally, the expansion of capacity across the U.S. has contributed to a decrease in the levelized cost of electricity (LCOE), making solar PV competitive with traditional forms of energy within the country. Supportive policies from the U.S. government have been significant drivers of the widespread implementation of solar energy.
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Furthermore, technological advancements focused on developing innovative tracking systems by companies such as NEXTracker, Array Technologies, AllEarth Renewables, and Solaria are expected to fuel market growth throughout the forecast period. The solar tracker market is characterized by price competition, requiring manufacturers to be operationally efficient and strategically adept to succeed in this dynamic environment.
Type Segmentation Insights
In 2022, dual-axis trackers captured the largest market share, exceeding 50.83% in terms of revenue, and are anticipated to experience the highest compound annual growth rate (CAGR) during the forecast period. These dual-axis trackers are designed to optimize the absorption of sunlight due to their capability to follow the sun's movement both horizontally and vertically. As a result, they can generate 8% to 10% more energy compared to single-axis trackers.
However, dual-axis trackers also present certain challenges. Their higher land requirements and more complex technology, along with significant maintenance needs for motors and control systems, lead to elevated operation and maintenance (O&M) costs. This aspect serves as a key limitation to the broader adoption of dual-axis trackers.
On the other hand, single-axis systems are engineered to track the sun’s rays along a single axis, which can enhance system performance by 20% or more compared to fixed solar photovoltaic (PV) cells, particularly in areas with high solar insolation. While single-axis solar trackers can increase energy output, they require more land than fixed solar panels, as their movement can create shadows that may negatively impact the efficiency of adjacent panels. Although the use of single-axis trackers maximizes potential energy production, it also entails higher capital expenditures (capex) and operating expenditures (opex).
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