Middle East & Africa Solar Photovoltaic Market: Powering a Sun-Rich Region Toward a Cleaner Future
The Middle East & Africa Solar Photovoltaic Market is emerging as one of the most promising renewable energy growth stories globally, driven by abundant sunlight, ambitious national energy targets, and a decisive shift away from fossil-fuel dependency. As governments across the region look to diversify their energy mix and meet rising electricity demand, solar photovoltaic (PV) technology has become a central pillar of long-term energy strategy. The region's unique combination of high solar irradiance, growing urbanization, and supportive policy frameworks is positioning it as a significant contributor to the global clean energy transition in the years ahead.
Market Size and Growth Trajectory
The scale of this transformation is reflected in the numbers. According to Fortune Business Insight, the Middle East & Africa solar photovoltaic market was valued at USD 5.00 billion in 2022, and is expected to grow from USD 6.93 billion in 2023 to reach USD 37.71 billion by 2030. This translates into a robust compound annual growth rate (CAGR) of 27.4% during the forecast period, according to Fortune Business Insight, signaling strong and sustained momentum in solar adoption across the region. Such rapid expansion underscores how quickly solar energy is moving from a niche alternative to a mainstream power source in Middle Eastern and African economies.
The Pandemic's Temporary Setback
Like nearly every industry, the solar PV sector in the region felt the disruptive impact of the COVID-19 pandemic. According to Fortune Business Insight, the Middle East's solar energy industry is heavily reliant on imports and technical labor supplied largely by EPC contractors, and pandemic-era lockdowns led to workforce shortages and extended delivery timelines for ongoing solar projects. Energy investments across the broader MENA region were also expected to decline sharply, falling by an estimated USD 73 billion between 2020 and 2024, according to Fortune Business Insight, citing data from the Arab Petroleum Investments Corporation. Despite this temporary contraction, the underlying growth drivers for solar remained intact, setting the stage for a strong recovery.
Renewable Energy Targets Fueling Investment
A major force propelling the market forward is the wave of renewable energy targets being adopted across the region. The United Arab Emirates, in particular, stands out as a regional leader in solar installations and has an extensive pipeline of PV projects. According to Fortune Business Insight, the UAE's solar energy capacity is expected to grow fourfold by the end of 2025 compared to current installed capacity, building on a 2020 renewable energy base of 2.3 GW, of which roughly 91% came from solar PV. This kind of aggressive capacity expansion illustrates how national governments are treating solar not just as an environmental initiative, but as a core energy security strategy.
Other countries are following similar paths. According to Fortune Business Insight, Algeria has set a target of producing 22 GW of power from renewable sources by 2030, with more than 13 GW expected to come from solar PV alone. Saudi Arabia, meanwhile, has significantly revised its renewable ambitions. According to Fortune Business Insight, the Kingdom raised its 2023 renewables target from 9.5 GW to 27.3 GW, and further increased its 2030 target to 58.7 GW, which includes 40 GW of solar PV, 16 GW of wind, and 2.7 GW of concentrating solar power.
Government Policy and Incentive Structures
Policy support has played a critical role in accelerating adoption at both the utility and individual levels. Many governments in the region are rolling out incentive programs to encourage residential and commercial solar uptake. According to Fortune Business Insight, Abu Dhabi's small-scale solar PV Energy Netting Regulation, passed in 2017, requires that owners of solar PV systems be credited for any surplus electricity production beyond their own usage. Such regulatory frameworks are designed to make solar ownership financially attractive, further reinforcing the long-term growth outlook for the market.
Segment-Level Trends
The market can be examined through several important lenses. By technology, the multicrystalline silicon segment holds a leading position due to its high efficiency and long operational lifespan, though monocrystalline silicon and thin-film technologies continue to see ongoing research and development aimed at improving performance. By installation type, ground-mounted systems dominate, largely because many of the region's flagship projects—such as the Mohammed Bin Rashid Al Maktoum Solar Park—require large open spaces to generate power at scale, while rooftop installations remain more common for individual and community-level use.
In terms of grid type, on-grid systems currently lead the market, as most large-scale PV projects are connected directly to national grid infrastructure to serve broad customer bases. However, growing rooftop adoption is expected to support steady growth in the off-grid segment as well. By application, the utility segment leads the way, driven by the region's focus on increasing renewables' share of the overall power mix, while residential and non-residential segments are also expected to see healthy expansion.
Country-Level Momentum
The market spans a wide range of countries, including the UAE, South Africa, Egypt, Saudi Arabia, Iraq, Oman, Ghana, Namibia, Tunisia, Algeria, and Nigeria. Among these, the UAE, South Africa, Algeria, and Egypt have emerged as frontrunners in solar PV project development. According to Fortune Business Insight, Saudi Arabia issued tenders in January 2020 inviting companies to bid for 1.2 GW of solar generation capacity under its National Renewable Energy Program. More recently, in April 2021, Saudi Arabia signed power purchase agreements for seven new solar projects with a combined capacity of around 3,600 MW, expected to supply electricity to approximately 600,000 households, according to Fortune Business Insight.
Electricity access gaps also present a significant growth opportunity. According to Fortune Business Insight, World Bank data from July 2020 showed that only 56.5% of Nigeria's population and 75% of Kenya's population had access to electricity in 2018, highlighting substantial untapped potential for solar deployment to close this gap.
Competitive Landscape
The market features a mix of established global manufacturers and regional players working to expand their footprint. According to Fortune Business Insight, key companies operating in the space include Jetion Solar, Seraphim Solar, and Asunim Solar, alongside regional participants such as A.R.E Group, Aton Enerji, Copex Solar, DuSol Industries, and Sinetech. Recent developments—such as Oman's award of over USD 700 million in solar energy contracts in March 2023 and Miral and Masdar-EDF JV Emerge's large-scale rooftop solar project in the UAE—reflect the accelerating pace of investment and project execution across the region.
Outlook
With strong government backing, ambitious renewable targets, and a natural resource advantage in solar irradiance, the Middle East & Africa solar photovoltaic market is poised for sustained expansion through 2030. While challenges such as high capital investment and land constraints remain, the long-term trajectory points toward solar becoming an increasingly central pillar of the region's energy landscape.
Source:https://www.fortunebusinessinsights.com/middle-east-africa-solar-photovoltaic-pv-market-105691
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