Photovoltaic (PV) Materials Market Analysis By Materials (Polycrystalline Silicon, Monocrystalline Silicon, CIGS), By Product, By Application, By Region, And Segment Forecast, 2018 - 2025

Industry Insights

The global photovoltaic materials market size was valued at USD 14.07 billion in 2016 and is expected to witness rapid growth owing to increasing solar photovoltaic installations globally. The growing emphasis on clean energy and concerns regarding emissions from fossil fuel-based energy generation is expected to have a positive impact on market demand.

Photovoltaic materials are gaining a lot of attention due to the growing manufacturing of solar cell modules. The growing popularity of dye-sensitized solar cells and organic photovoltaic is expected to have a positive impact. The government initiatives aimed at increasing the share of renewable energy in the total power generated annually is expected to drive market growth.

Germany photovoltaic (PV) materials market, by material, 2014 - 2025 (USD Million)

Germany is one of the major markets in Europe. The demand for PV materials in this country is driven by the growing price difference between electricity generated by solar energy and retail electricity. The low prices are boosting research on photovoltaic materials aimed at developing solar cells with improved efficiency. The government funding to more than 70 organizations for research on photovoltaic materials is expected to boost demand.

Solar PV technology has been one of the fastest-growing renewable sources of energy over the past few years. These systems are employed in residential, commercial, and utility applications on account of various factors including decreasing cost and high efficiency. Cost cuts on account of technology improvement and economies of scale coupled with improved reliability are key characteristics of solar PV responsible for market growth.

Supportive government regulations in various regions are anticipated to have a positive impact on the global photovoltaic material market. Incentives offered by governments, especially promoting the use of solar panels as it generates power through renewable sources, are expected to have a positive impact on demand.

High capital cost as a result of high technology prices is a primary barrier to the penetration of photovoltaic materials. High initial costs hinder potential market players from entering the competition. Installation costs of solar PV system depend upon the type of infrastructure needed. These systems are priced on the higher side owing to the high cost of solar panels, acquisition, space, installation, and maintenance.

Material Insights

Major photovoltaic material segments are polycrystalline silicon, monocrystalline silicon, copper indium gallium selenide, and cadmium telluride. Polycrystalline silicon and monocrystalline silicon are the major segments. The easy manufacturing processes of these materials coupled with high efficiencies and abundant availability are driving market demand.

The demand for other materials such as Copper Indium Gallium Selenide (CIGS) and Cadmium Telluride is expected to grow rapidly over the forecast period owing to the rising popularity of thin film-based solar cells. Cadmium Telluride is the only material that provides efficiency equal to crystalline silicon variants. The market share of CIGS and cadmium telluride is expected to remain low over the forecast period owing to industry participants preferring silicon wafer technology.

The other material segment comprises perovskites, quantum dots, and other silicon derivatives. Perovskites are showing huge potential for the future owing to the high efficiency exhibited by these materials.

Product Insights

The products in the market comprise the front sheet, encapsulant, back sheet, and other parts. The demand for the back sheet is expected to remain high over the forecast period owing to the increasing popularity of mounted solar panels.

Back sheets are a critical dielectric component in improving the solar cell module performance. The growing importance of dielectrics in the construction of a solar cell is responsible for the high market share of these products.

Encapsulants and front sheets are anticipated to experience high demand over the forecast period owing to the growing popularity of technologies such as dye-sensitized solar cells and organic photovoltaics.

The demand for encapsulants is driven by the absence of other replaceable technology. The growing popularity of thin film-based solar technology is expected to drive the market demand for the front sheet.

Application Insights

The applications of photovoltaic materials include utility, residential, and non-residential. The utility application segment had the largest share of over 68% in 2016 and is expected to increase over the forecast period.

The growing focus on renewable energy and governments committing to reduce carbon emissions is responsible for rising demand. The utility segment is expected to lose market share over the forecast period on account of the rising number of residential and commercial solar installations.

Global photovoltaic materials market, by application, 2016 (%)

Residential is the fastest-growing application segment owing to government incentives offered on installations. The demand is driven by incentives provided by electricity boards for the usage of solar power. The solar heating demand in residential applications is one of the major drivers responsible for rapidly growing market demand. However, high installation costs are expected to hamper market penetration. The increasing disposable income of consumers in most parts of the Asia Pacific and the Middle East is expected to boost solar PV installations.

Regional Insights

The Asia Pacific is the largest regional market with a share of over 60% in 2016. The presence of a large number of PV module manufacturers in China and India is responsible for a high market share.

The growing export of PV modules to North America and Europe is driving the consumption of photovoltaic materials. The future consumption in the region is driven by the rise in domestic demand for solar PV modules.

North America market is driven by growing PV installations in countries such as the U.S. and Canada. The innovation of materials used in the manufacturing of solar cells is expected to be a major driving factor. The growing number of companies engaged in the manufacturing of photovoltaic materials is expected to further augment market growth.

Competitor Insights

The industry is highly fragmented owing to the presence of a large number of small and large manufacturers. The major industry participants are Wacker Chemie, Du Pont, Merck, Honeywell, Coveme, and Mitsubishi Materials. The other participants include Topray Solar, Hangzhou First Applied Material, Ferrotec Corporation (USA), Hangzhou First Applied Material, Novaled, Targray, NovoPolymers NV, and American Elements.

Research & Development and new product development are the major strategies adopted by industry participants. The growing demand for these products has led to increased manufacturers' focus on products and the purposes served. Companies are targeting specific areas in a solar cell module and developing products by understanding the needs of the end-user.

Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the photovoltaic materials market based on material, product, application, and region:

• Material Outlook (Revenue, USD Million, 2014 - 2025)

  • Polycrystalline Silicon

  • Monocrystalline Silicon

  • Cadmium Telluride

  • Copper Indium Gallium Selenide (CIGS)

  • Others

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

  • Front Sheet

  • Encapsulant

  • Back Sheet

  • Others

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

  • Utility

  • Residential

  • Non-residential

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

  • North America

    • The U.S.

  • Europe

    • Germany

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South Africa

    • Brazil

  • Middle East & Africa