Concentrated Photovoltaic Market Analysis By Product (Reflector, Refractor), By Application (Utility, Commercial), By Concentration Level (High, Low), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global concentrated photovoltaic market size was estimated at USD 2.67 billion in 2016. Growing demand for grid-connected electricity, coupled with awareness regarding the use of renewable resources for power generation, is expected to boost the adoption of CPV technology in a wide array of applications.

A rapid decrease in the price of conventional PV modules has resulted in increased demand for CPV and other silicon-based solar technologies. Moreover, CPV requires a relatively smaller area for installation, which, in turn, is anticipated to boost its demand in the near future. Solar technology is chiefly deployed in areas with direct sunlight. The industry is still at a nascent stage, owing to which, it is mostly used for special purposes. Performance, cost, reliability, and trade-offs are major factors taken into consideration by manufacturers in the global market for concentrated photovoltaics.

The U.S. is a rapidly growing market on account of increasing power demand and stringent government regulations pertaining to the use of limited natural resources. This is expected to trigger the growth of renewable energy resources over the forecast period. Concentrated photovoltaic accounts for over 93.0% of the installed capacity in North America. Augmenting CPV installations in public places such as educational institutions is expected to boost the market over the forecast period.

Low-cost and large-scale applications act as major drivers for CPV technology. Previously, the high cost of CPV systems compared to PV systems was a major barrier for the CPV industry. In recent years, however, declining prices of silicon PV and continuous improvements in design and technology have had a positive impact on the market.

However, falling prices of silicon PV drove a few players to exit the industry. The manufacturing capacity took a major hit in 2015 after France-based Soitec and China-based Suncore decided to stop manufacturing concentrated photovoltaic. The growing popularity of PV modules and rapid decrease in prices of CPV modules has resulted in manufacturers abandoning the production of CPV. The low popularity of CPV in the industry can also be attributed to its late introduction in an arena that was majorly dominated by PV.

Product Insights

In CPV technology, an optical concentrator is recognized as the principal component as it focuses sunlight on the solar cell. Refractors and reflectors are the major product segments.

Refractors dominate the concentrated photovoltaic market due to the rising preference for Fresnel lenses. Fresnel lenses and high concentration photovoltaic systems together provide maximum efficiency, owing to which, their demand is expected to remain high over the forecast period. The ability of refractors to exhibit tolerance toward misalignment of solar cells and perform in areas involving variable light intensity are strong aspects estimated to drive its demand.

Level of Concentration Insights

The concentration ratio is directly proportional to output power. The CPV market has been segmented on the basis of concentration into high concentration and low concentration photovoltaic. High concentration photovoltaic emerged as the largest segment, with a volume-based share of 83.8% in 2016.

High concentration photovoltaic is expected to witness high demand over the forecast period owing to the increased efficiency of the module. High-efficiency results in the reduction of the size of the solar module, which, in turn, improves overall cost efficiency. Growing demand for high-efficiency and low-cost modules among manufacturers is expected to positively impact the market penetration of high concentration photovoltaics.

Application Insights

Governments across nations are undertaking efforts to increase the amount of electricity generated by solar energy. Commercial and utility are the major application segments where concentrated photovoltaic technology is employed.

The utility application segment dominated the industry with a volume-based share of 85.9% in 2016. On the backdrop of revised low prices of CPV, manufacturers are opting for CPV over PV. Investments associated with building massive project pipelines are expected to boost demand.

The growth of this application segment is expected to be high in major economies such as India, China, and North America. This can be primarily attributed to the fact that they experience high irradiance. The increasing number of power purchase agreements between electricity boards and private sector companies is expected to bolster concentrated photovoltaic installations in the utility segment.

Regional Insights

By volume, Asia Pacific was the largest regional market with a share of just over 50.0% in 2016. The demand in the region is especially driven by China, which is expected to increase its concentrated photovoltaic capacity at a CAGR of 12.2% from 2017 to 2025. The 13th Five Year Plan adopted by the government of China aims at reducing carbon footprint and this is driving CPV installations in the country. Furthermore, the direct normal irradiance over China is also high, which, in turn, is likely to boost the market.

The Middle East and Africa are expected to be the second-fastest-growing region, with demand majorly driven by rising installations in South Africa. Areas covered in sand dunes receive maximum sunlight in terms of surface area and this significantly boosts the installation of CPV. Upcoming solar projects in Morocco and Jordan are expected to further promote demand for concentrated photovoltaics over the forecast period.

The CPV market in North America is expected to register a CAGR of 10.9% from 2017 to 2025 in terms of volume. Favorable state and federal policies in U.S. and Canada are primarily driving demand for this technology. Legislative mandates and financial incentives are expected to drive CPV installations over the forecast period.

Competitive Insights

The global concentrated photovoltaic market is highly concentrated in nature. Key industry participants include MagPowerSystems; Zytech Solar; Solar Junction; SunPower Corporation; and Morgan Solar, Inc. Mergers and acquisitions and new product development are some of the strategic initiatives adopted by these players. The introduction of the multijunction solar cell has resulted in many companies adopting the technology to manufacture solar cells. The acquisition of Soitec solar CPV technology by Saint-Augustin Canada Electric (STACE) is one of the most significant M&As in 2017.

Manufacturers are currently struggling in terms of profitability due to scaling issues. The market for concentrated photovoltaics is still in a nascent stage, due to which manufacturers are working on increasing their regional presence. In June 2009, Zytech Solar announced its plans to focus on New Zealand and Australian markets against the backdrop of favorable environmental conditions and government support.

Report Scope

Segments covered in the report

This report forecasts revenue growth at the regional level and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the concentrated photovoltaic market on the basis of product, application, level of concentration, and region:

• Product Outlook (Volume, MW; Revenue, USD Million, 2014 - 2025)

  • Reflector

  • Refractor

• Application Outlook (Volume, MW; Revenue, USD Million, 2014 - 2025)

  • Utility

  • Commercial

• Concentration Level Outlook (Volume, MW; Revenue, USD Million, 2014 - 2025)

  • High concentration photovoltaic

  • Low concentration photovoltaic

• Regional Outlook (Volume, MW; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa