The global solar panel recycling market revenue stood at $80.7 million in 2017 and it is predicted to surge to $269.8 million by 2023. According to the estimates of the market research company, P&S Intelligence, the market will advance at a CAGR of 22% from 2018 to 2023. The major factors driving the advancement of the market are the growing use of solar energy as an energy source and the implementation of favorable government policies regarding sustainable development in several countries. Solar panels are basically systems that deliver solar energy-based power for various commercial and residential applications.
They are usually made from aluminum, glass, silicon, synthetic materials, and various other metals, which can be easily separated via the process of recycling, after the lifecycle of the panel comes to an end. Due to the escalating pollution levels and the increasing concerns being raised over the environmental degradation, many governments are increasingly focusing on promoting sustainable energy sources, such as renewable energy sources. Moreover, they are enacting regulations for promoting the use of these energy sources.
For instance, the European Waste Electrical and Electronic Equipment (WEEE) Directive was implemented for laying down the effective ways in which the waste generated from solar panels can be managed and reused. These directives and regulations are being announced by the governments and governing bodies of many countries for encouraging green projects. Additionally, many governments are providing tax benefits and subsidies to service providers in order to boost the deployment of renewable energy projects, which is, in turn, fueling the expansion of the solar panel recycling market.
Furthermore, the increasing requirement for the recycling of solar panels is also driving the growth of the market. The average lifespan of solar panels is 30 years, but some of these panels may get damaged or break down before, which usually results in the generation of large amounts of e-waste that contains environmentally harmful and toxic substances. Owing to this reason, the recycling of solar panels is becoming necessary, as it assists in maintaining the environmental balance and mitigating the emission of several hazardous substances.
Depending on the method of recycling, the solar panel recycling market is divided into mechanical, laser, and thermal categories. Amongst these, the mechanical category dominated the market during the last few years. The category held over 55.0% share in the market in 2017. This was because of the environment-friendly and economical nature of the process. When solar panel type is taken into consideration, the market is classified into thin film, polycrystalline, and monocrystalline.
Out of these, the monocrystalline category held the largest share in the solar panel recycling market in 2017. The high public preference for monocrystalline solar panels is due to their various beneficial traits, such as higher efficiency, relatively greater space efficiency, superior grade material, excellent heat resistance, and longer shelf life, than other solar panels. Geographically, Europe dominated the market in the years gone by. However, in the coming years, the market is predicted to register the fastest growth in the Asia-Pacific (APAC) region, on account of the enactment of strict regulations by the governments of regional countries regarding solar panel waste management.
Hence, it can be safely said that the market will grow rapidly in the coming years, mainly because of the soaring popularity of solar energy and the increasing requirement for solar panel waste management and recycling methods all over the world.
