The global solar cells and modules market is gearing up for an incredible leap, with an estimated worth of USD 163.7 billion in 2023. FMI forecasts that the market revenue could skyrocket, surpassing an incredible USD 360.8 billion by 2033. Between 2023 and 2023, the market is likely to exhibit a CAGR of 8.2%.
Solar PV modules and cells have emerged as the dominant force in the renewable energy market lately. The ability of solar power to achieve grid parity with conventional energy sources has contributed to its dominance. Advancements in technology have played a crucial role in harnessing sunlight as an energy source. This market, as a result, is likely to illuminate the path toward a brighter and greener future.
Key Drivers Boosting the Demand for Solar Cells and Modules:
Challenges for Market Players in the Solar Cells and Modules Industry:
Key Trends in the Solar Cells and Modules Market:
| Attributes | Details |
|---|---|
| Current Year Value (2023) | USD 163.7 billion |
| Expected Forecast Value (2033) | USD 360.8 billion |
| Projected CAGR (2023 to 2033) | 8.2% |
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The solar cells and modules market size reached USD 150.2 billion in 2022, where it exhibited a CAGR of 9.4%. The solar market has experienced significant growth in recent years. The demand for solar cells is driven by the increasing installation of renewable energy sources for power generation worldwide. This growth in installations boosts the demand for solar panel module systems, which in turn drives the demand for solar cells.
Consumer awareness of solar panels is on the rise. This increase in awareness is attributed to government regulations. The regulations aim to promote renewable energy production. They also aim to reduce dependence on fossil fuels and minimize pollutant emissions. The industry demand for solar PV is anticipated to rise due to declining prices and improvements in conversion efficiencies
Companies like Walmart, Apple, Target, and Amazon are driving the demand for solar cells and modules through their adoption of clean energy. The PV cells and modules market includes on-site solar installations for businesses, non-profit organizations, and government entities. In August 2021, Walmart partnered with Nexamp to support 129 megawatts of community solar projects to achieve zero emissions globally by 2040.
Between 2023 and 2033, the market is poised to witness a substantial upswing, generating abundant growth opportunities. Analysts indicate a remarkable growth of 2.2X its current size. Governments worldwide are supporting solar energy projects through various programs and initiatives aimed at providing subsidized solar power. These efforts aim to make solar energy more accessible and affordable for consumers.
Countries like the United States, China, and Europe are implementing policies such as Feed-in Tariffs, investment tax credits, and capital subsidies to incentivize solar energy installations. Moreover, solar energy becomes a more attractive and cost-effective alternative with the rising price of fossil fuel. These factors are likely to open up growth opportunities for the solar PV module market.
Solar Cells and Modules Market Opportunities
| Countries | Projected Market Value (2033) |
|---|---|
| United States | USD 72.5 billion |
| United Kingdom | USD 14.1 billion |
| China | USD 90.1 billion |
| Japan | USD 54.9 billion |
| South Korea | USD 17.6 billion |
The China solar cells and modules market is experiencing remarkable growth. It has established itself as one of the leading markets globally. In 2019, China's solar photovoltaic power installations accounted for a remarkable 204 GW of energy.
China is planning to construct 450 GW of solar and wind power generation capacity. Furthermore, China is focusing to reach a minimum total wind and solar capacity of 1,200 GW. It has also imposed a cap on its carbon emissions by 2030.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| China | 8.1% |
According to the General Administration of Customs in China, China-based module manufacturers exported a total of 29.67 GW of panels in the first two months of this year. This indicates a significant volume of exports from China's solar module industry.
In November 2022, Solarspace, a solar module manufacturer, inaugurated a factory in China specifically dedicated to the production of tunnel oxide passivated contacts solar cells. This highlights the company's commitment to expanding its manufacturing capabilities and adopting advanced technologies in China.
The United States solar cells and modules market has witnessed substantial growth. Increasing awareness about climate change has spurred the demand for solar cells and modules in the country. Favorable government measures and incentives have promoted the adoption of renewable technologies. The United States federal government offers a tax credit of up to 26% for the expenses incurred in the installation of solar energy systems.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| United States | 8.2% |
Key manufacturers are implementing strategies like partnerships and collaborations to cater to evolving customer demands. In March 2023, Longi Solar, a panel maker from China, and Invenergy, a United States solar project developer, formed a partnership to establish a solar panel factory in Ohio. The joint venture, called Illuminate USA, plans to construct a photovoltaic panel factory with a capacity of 5 GW.
The Japan solar cells and modules market is likely to emerge as a key market during the forecast period. In 2022, the government of Japan initiated multiple renewable power initiatives. In parallel, the Tokyo Metropolitan Government commenced the establishment of a system that mandates housing companies to incorporate photovoltaic panels in newly constructed homes. This measure aims to advance de-carbonization efforts and mitigate electricity shortages.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| Japan | 8.1% |
Market players continue to invest in research and development to stay competitive in the market. Solar Frontier, a Japan-based copper/indium/selenium (CIS) thin-film PV module manufacturer and a subsidiary of Idemitsu Kosan Co Ltd, revealed its inaugural monocrystalline solar module in November 2021. Additionally, the company aims to become an OEM panel manufacturer.
The South Korea solar cells and modules market is experiencing moderate growth. Favorable government policies have played a significant role in driving the sales of solar cells and modules. In December 2020, South Korea unveiled its 9th Basic Plan which aligns with the country’s commitment to achieve carbon neutrality by 2050. The level of environmental concern among customers has also significantly increased. This further contributes to the demand for solar energy solutions.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| South Korea | 8.0% |
Manufacturers are actively expanding their product portfolios and collaborating with industry stakeholders. A revolutionary bifacial module series named the SunDay 10+ modules was launched by SDN. A South Korea-based producer of PV module systems, in March 2023. These modules have impressive power outputs of up to 595 W. These modules are equipped with 144 monocrystalline half-cut solar cells.
The United Kingdom solar cells and modules market has witnessed significant growth in recent years. The country has been actively promoting renewable energy sources to achieve its sustainability targets. In 2023, the United Kingdom government assigned USD 4.31 billion through the ECO4 Scheme. The aim is to support the widespread adoption of solar panels and heat pumps.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 8.1% |
Market players play a crucial role in meeting the demand for solar products. For instance, UKSOL made headlines in March 2023 with the introduction of its groundbreaking product, the 700W N-Type bifacial solar PV module. By capturing sunlight from both sides, this module significantly enhances energy output. Its remarkable performance sets a new standard for solar PV modules in the industry.
| Segment | Technology |
|---|---|
| Top Sub-segment | Thin Film |
| Forecasted CAGR (2023 to 2033) | 7.8% |
| Segment | Application |
|---|---|
| Top Sub-segment | Industrial |
| Forecasted CAGR (2023 to 2033) | 7.9% |
One of the key elements used in the production of the solar cell module is the polycrystalline silicon or thin-film solar cell. The dominant market share of thin film solar PV panels in 2022 can be attributed to their enhanced durability and compact design. Additionally, their flexibility and lightweight nature make them highly desirable.
Thin film solar cells can be produced using various scalable manufacturing processes. These processes include roll-to-roll printing, sputtering, and chemical vapor deposition. The scalability of these manufacturing processes allows for high-volume production. This scalability is crucial in meeting the increasing demand for solar energy.
Thin film solar PV panels serve as cost-effective alternatives to crystalline silicon-based solar PV panels. Thin film solar cells can be deposited on diverse substrates such as glass, plastic, and metal foils. The ability to adapt to various surfaces and form factors expands the potential market for solar energy. Consequently, this drives the prevalence and dominance of thin film technology in the industry.
Industrial application dominates the market since this sector often requires large-scale power generation to meet their energy demands. Over the years, the cost of solar cells and modules has significantly declined. As a result, many industries have adopted solar power as a cost-effective alternative to traditional energy sources.
The global increase in industrialization and the depletion of fossil fuel resources have resulted in a growing demand for the industrial application of solar panels. Pairing utility-scale solar with energy storage allows for managing energy fluctuations during the evenings, providing backup power, and more. The diverse range of industrial applications of solar cell panels is anticipated to create abundant market opportunities.
The rising demand for clean energy is expected to accelerate the development of utility projects. This increase in utility projects, in turn, is likely to drive market expansion in the industrial sector. In the United States, there were 6,000 solar utility projects with a combined capacity of 182 GW as of 2022, according to the Solar Energy Industries Association.
Leading global solar cell and module manufacturers have established a substantial market presence. They have a diverse product portfolio, including mono-perc solar panels, half-cut solar panels, bifacial solar panels, and half-cell solar panels. They also have extensive manufacturing capacities and distribution networks to cater to global demand.
Ascent Solar Technologies, Inc.: This United States-based company specializes in the creation of highly effective, flexible, and lightweight solar panels. It is dedicated to leveraging its unique technology to develop pioneering solar solutions for different sectors.
| Recent Developments | Ascent Solar Technologies, Inc. revealed in April 2023 their plan to introduce a fresh collection of Space Hardware Development Kits (HDKs). These HDKs are developed through collaborations with NASA and JAXA. They aim to simplify the process of designing and integrating solar power generation. |
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BYD Co., Ltd.: It is a China-based business that manufactures automobiles, rechargeable batteries, and renewable energy products. It has expanded its operations globally and has established production facilities in multiple countries.
| Recent Developments | In August 2021, BYD Co., Ltd. disclosed its plans to ramp up solar panel manufacturing in Brazil, with the introduction of innovative 450-W models. The versatile nature of this new equipment allows for its utilization in residential systems, agribusiness solutions, commercial settings, and off-grid power generation. |
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Canadian Solar, Inc.: This Canada-based company is a leading manufacturer of solar photovoltaic (PV) modules and a provider of solar energy solutions. It designs, develops, and manufactures solar PV modules, which convert sunlight into electricity.
| Recent Developments | In March 2022, Canadian Solar Inc. stated that it has commenced mass production of new 54-cell format modules. These modules feature 182 mm cells and are intended for rooftop solar systems in residential, commercial, and industrial applications. The recent module type in the HiKu6 series is known as CS6R-MS. It boasts a power output of up to 420 W. |
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The market is valued at USD 163.7 billion in 2023.
Key market players are DURA, Kei Industry, and Sterlite Technology Limited.
The utility industry is the banking, financial services, and insurance (BFSI) industry.
The market is estimated to reach USD 360.8 billion by 2033.
The market is forecast to register a CAGR of 8.2% through 2033.
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Solar Cells and Module Market
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