Apr 2, 2026

Solar Power Dominated Global Renewable Capacity Growth in 2025

According to the International Renewable Energy Agency’s Renewable Capacity Statistics 2026, solar photovoltaic capacity saw the largest annual increase of any electricity generation source last year, with 510 gigawatts added. The global total for renewable energy capacity surpassed 5,000 gigawatts by the end of 2025, reaching 5,149 gigawatts.

Solar power constitutes the largest share of this operational renewable capacity, at 2,391 gigawatts, which is nearly double the 1,291 gigawatts from wind. Renewables broadly dominated new capacity installations, representing 85.6 percent of all new energy capacity built in 2025. Solar power alone was responsible for 75 percent of the 692 gigawatts of new renewable capacity added during the year.

The report’s foreword states that consistent growth demonstrates the economic strength and competitive resilience of renewable power, which has seen record additions for many years. Despite this global growth, deployment remains highly concentrated, with China, the United States, and the European Union together accounting for 79.5 percent of new renewable capacity installed in 2025. China held half of the world’s operational solar capacity at the end of last year.

Other regions showed notable progress, however. The Middle East increased its renewable energy additions by 28.9 percent from the previous year, adding over 12 gigawatts of new solar capacity between 2024 and 2025. This represents the largest annual solar increase ever recorded for the region and has expanded its operational solar capacity by nearly 24 times since 2016.

Saudi Arabia has been a significant contributor to this regional growth, with cumulative operational solar capacity reaching 11.9 gigawatts after adding more than 5 gigawatts in 2024. Recent developments in the country include the commissioning of a 349 megawatt solar photovoltaic project and agreements with international companies and governments.

This report provides a comprehensive view of the solar cells and light-emitting diodes industry in Middle East, tracking demand, supply, and trade flows across the regional value chain. It explains how demand across key channels and end-use segments shapes consumption patterns, while also mapping the role of input availability, production efficiency, and regulatory standards on supply.

Beyond headline metrics, the study benchmarks prices, margins, and trade routes so you can see where value is created and how it moves between exporters and importers within Middle East. The analysis is designed to support strategic planning, market entry, portfolio prioritization, and risk management in the solar cells and light-emitting diodes landscape in Middle East.

Quick navigation

Key findings

• Regional demand is shaped by both household and industrial usage, with trade flows linking supply hubs to import-reliant countries.
• Pricing dynamics reflect unit values, freight costs, exchange rates, and regulatory shifts that affect sourcing decisions.
• Supply depends on input availability and production efficiency, creating distinct cost curves across Middle East.
• Market concentration varies by country, creating different competitive landscapes and entry barriers.
• The 2035 outlook highlights where capacity investment and demand growth are most aligned within the region.

Report scope

The report combines market sizing with trade intelligence and price analytics for Middle East. It covers both historical performance and the forward outlook to 2035, allowing you to compare cycles, structural shifts, and policy impacts across countries and sub-regions.

• Market size and growth in value and volume terms
• Consumption structure by end-use segments and countries
• Production capacity, output, and cost dynamics
• Regional trade flows, exporters, importers, and balances
• Price benchmarks, unit values, and margin signals
• Competitive context and market entry conditions

Product coverage

• Prodcom 26112220 — Semiconductor light emitting diodes (LEDs)
• Prodcom 26112240 — Photosensitive semiconductor devices, solar cells, photodiodes, p hoto-transistors, etc.

Country coverage

Country profiles and benchmarks

For the regional report, country profiles provide a consistent view of market size, trade balance, prices, and per-capita indicators across Middle East. The profiles highlight the largest consuming and producing markets and allow direct benchmarking across peers.

Methodology

The analysis is built on a multi-source framework that combines official statistics, trade records, company disclosures, and expert validation. Data are standardized, reconciled, and cross-checked to ensure consistency across time series.

• International trade data (exports, imports, and mirror statistics)
• National production and consumption statistics
• Company-level information from financial filings and public releases
• Price series and unit value benchmarks
• Analyst review, outlier checks, and time-series validation

All data are normalized to a common product definition and mapped to a consistent set of codes. This ensures that comparisons across time are aligned and actionable.

Forecasts to 2035

The forecast horizon extends to 2035 and is based on a structured model that links solar cells and light-emitting diodes demand and supply to macroeconomic indicators, trade patterns, and sector-specific drivers. The model captures both cyclical and structural factors and reflects known policy and technology shifts within Middle East.

• Historical baseline: 2012-2025
• Forecast horizon: 2026-2035
• Scenario-based sensitivity to income growth, substitution, and regulation
• Capacity and investment outlook for major producing countries

Each country projection is built from its own historical pattern and the regional context, allowing the report to show where growth is concentrated and where risks are elevated.

Price analysis and trade dynamics

Prices are analyzed in detail, including export and import unit values, regional spreads, and changes in trade costs. The report highlights how seasonality, freight rates, exchange rates, and supply disruptions influence pricing and margins.

• Price benchmarks by country and sub-region
• Export and import unit value trends
• Seasonality and calendar effects in trade flows
• Price outlook to 2035 under baseline assumptions

Profiles of market participants

Key producers, exporters, and distributors are profiled with a focus on their operational scale, geographic footprint, product mix, and market positioning. This helps identify competitive pressure points, partnership opportunities, and routes to differentiation.

• Business focus and production capabilities
• Geographic reach and distribution networks
• Cost structure and pricing strategy indicators
• Compliance, certification, and sustainability context

How to use this report

• Quantify regional demand and identify the most attractive country markets
• Evaluate export opportunities and prioritize target destinations
• Track price dynamics and protect margins
• Benchmark performance against regional competitors
• Build evidence-based forecasts for investment decisions

This report is designed for manufacturers, distributors, importers, wholesalers, investors, and advisors who need a clear, data-driven picture of solar cells and light-emitting diodes dynamics in Middle East.

FAQ

What is included in the solar cells and light-emitting diodes market in Middle East?

The market size aggregates consumption and trade data at country and sub-regional levels, presented in both value and volume terms.

How are the forecasts to 2035 built?

The projections combine historical trends with macroeconomic indicators, trade dynamics, and sector-specific drivers.

Does the report cover prices and margins?

Yes, it includes export and import unit values, regional spreads, and a pricing outlook to 2035.

Which countries are profiled in detail?

The report provides profiles for the largest consuming and producing countries in Middle East.

Can this report support market entry decisions?

Yes, it highlights demand hotspots, trade routes, pricing trends, and competitive context.