Solar Cell Market

Solar Cell Market Size and Share:

The global solar cell market size was valued at USD 136.03 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 466.31 Billion by 2033, exhibiting a CAGR of 13.20% during 2025-2033. Asia Pacific currently dominates the market, holding a significant market share of over 48.6% in 2024. The rising demand for increased efficiency and performance, growing concerns for environmental sustainability to reduce carbon emissions, and encouraging government initiatives in promoting renewable sources of energy are some of the major growth drivers for the market.

Some of the key drivers facilitating the solar cell market growth include soaring energy demand, government incentives, and reduced the photovoltaic technology cost. Advancements in efficiency and manufacturing processes along with increasing investments in renewable energy support growth. According to the report published by India Brand Equity Foundation, India's renewable energy capacity has surpassed 200 GW comprising 46.3% of total installed capacity with solar power accounting for 90.76 GW (45.1%). The country targets net zero by 2070. The rising demand is primarily because of environmental considerations and the policies that aim to achieve the transition to clean energy. Rising usage of technology in residential, commercial, and industrial sectors and storage solutions for renewable energy makes the market very attractive. Asia Pacific forms an important region in this regard, particularly due to rapid urbanization and industrialization.

The US solar cell market is driven by federal tax incentives, state level mandates pertaining to renewable energy and declining solar panel costs. Increased focus on reducing carbon emissions and attaining energy independence boosts adoption. Rapid advancements in technology, supportive net metering policies and corporate commitments to sustainability are amplifying demand. Driven by favorable financing options, utility scale projects and residential installations are expanding across the country. Industry reports suggest that utility scale U.S. solar installations are expected to increase up to more than 32 GW in 2024, however this is anticipated to decline by 16% to around 27 GW in 2025. The American Clean Power Association expects recovery by 2027.

Solar Cell Market Trends:

Rising focus on environmental sustainability and emission reduction

The heightened focus on environmental sustainability and the urgent need to cut carbon emissions are propelling market growth. Consumers are increasingly seeking cleaner energy solutions due to their concerns about climate change. Governments and private organizations worldwide are prioritizing the integration of renewable energy sources within their electricity generation frameworks. In this scenario solar cells provide a renewable energy alternative that produces electricity without emitting greenhouse gases (GHG). For instance, greenhouse gas (GHG) emissions have increased by 51.5% from 1990 to 2023, with carbon dioxide (CO2) adding approximately 81% of this rise. The increasing awareness regarding the detrimental impacts of fossil fuel-based energy production is driving market expansion.

Favorable government initiatives

The rising awareness of solar energy's role in enhancing energy security and addressing environmental issues is fueling market growth. For example, the Indian Government has assigned 39600 MW of solar PV module manufacturing capacity to 11 companies with an investment of around USD 1.69 billion through the Production Linked Incentive Scheme. Regulatory bodies in several countries are facilitating the adoption of solar power by instituting stringent regulations on environmental pollution. They are also providing various incentives such as feed-in tariffs and tax credits and grants which help reduce the initial costs of solar system installations contributing to a favorable market outlook. Renewable portfolio standards which require a specific percentage of a region's energy mix to come from renewable sources are further positively impacting the market. These supportive regulatory frameworks promote solar installations in both residential and commercial sectors.

Increasing demand for enhanced efficiency and performance

There is a rising demand for more efficient energy sources across diverse industries globally. For instance, global electricity demand is projected to rise by 6% by 2035. Manufacturers are continuously advancing solar cell technology to achieve greater efficiency and performance. They are enhancing materials, design, and manufacturing processes to increase energy conversion rates enabling solar panels to generate more electricity from the equal amount of sunlight. Improved efficiency not only maximizes energy output but also optimizes the use of available space making solar installations more viable for various applications. The introduction of new types of solar cells such as thin film and perovskite cells which offer greater efficiency is contributing to a positive market outlook.

Declining Costs of Solar Cell

The global solar cell market is expanding as the cost of solar technology continues to fall, making solar energy more affordable and competitive. Advances in manufacturing, economies of scale, and improvements in photovoltaic efficiency are significantly reducing the price per watt of solar cells. This cost decline is increasing the accessibility of solar power for residential, commercial, and utility-scale applications, driving widespread adoption. Lower prices make solar energy a viable alternative to fossil fuels, encouraging governments and private entities to invest in large-scale solar projects. As solar technology becomes more cost-effective, the shift toward renewable energy sources intensifies, positioning solar power as a key component of global energy transition strategies. In 2024, Singapore launched a $77 million solar research lab at NUS, in collaboration with Seris and REC Solar, to develop high-efficiency tandem solar cells. The goal is to achieve 30% efficiency in large-scale solar cells by 2026 while improving cost-effectiveness and durability. This initiative supports Singapore’s renewable energy targets under the Green Plan.

Solar Cell Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global solar cell market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on type and installation type.

Analysis by Type:

• Silicon Wafer
  • Monocrystalline
  • Multicrystalline
• Thin Film 
  • Cadmium Telluride (CdTe)
  • Amorphorus Silica (a-Si)
  • Copper Indium Gallium Selenide (CIGS)

Silicon wafers dominates the solar cell market by type. They are mainly classified into two subtypes such as monocrystalline and multicrystalline. The monocrystalline solar cells are made from single crystal structures and offer higher efficiency due to their uniform composition. They have a distinctive black color and are known for their sleek appearance and higher power output per square foot. Multicrystalline solar cells belong to the broad category of silicon wafer technologies that provide effective energy solutions. These cells include multiple crystals. They are effective in balancing between efficiency and price which also makes them ideal for residential as well as for commercial installations.

Analysis by Installation Type:

• Residential
• Commercial
• Utility-Scale

Utility scale leads the market with around 64.8% of market share in 2024. Utility scale solar installations involve large-scale solar farms to generate electricity at a utility level. These installations may cover extensive land areas and can have thousands of solar panels. They often have strategic locations in areas with high solar intensity and may form part of a diversified energy portfolio for utilities. These systems allow to achieve rising energy demands at relatively lower carbon emissions. They are designed to supply electricity directly to the grid contributing to energy security and supporting the transition toward cleaner and renewable energy sources. As per the solar cell market forecast, advancements in photovoltaic technology and increasing investments in large-scale solar projects are expected to further drive the expansion of utility-scale solar installations globally.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, Asia Pacific accounted for the largest market share of over 48.6%. Asia Pacific held the biggest market share due to the increasing production of solar panels and components at an affordable price. The rising demand for energy is impelling the growth of the market in the region. In addition to this, the greater adoption of sustainable energy sources in various industries is enhancing the growth of the market. Favorable government initiatives to reduce environmental pollution are supporting the growth of the market in the region. The region also gains from abundant sunlight, making it a principle location for large-scale solar installations. Increasing industrialization and urbanization in developing economies are further driving the adoption of solar energy solutions.

Key Regional Takeaways:

North America Solar Cell Market Analysis

The adoption of solar cells in North America is growing rapidly as the region focuses on renewable energy to meet the increasing electricity demands. The United States and Canada are the main drivers of this growth, supported by favorable policies, tax incentives and increasing investments in sustainable energy projects. Advancements in technology and decreased installation costs make solar energy increasingly part of the energy mix not only for residential but also for commercial and industrial applications. Increasing environmental awareness and the push to reduce reliance on fossil fuels have accelerated the shift toward solar power. The region’s abundant solar resources and efforts to achieve energy independence position North America as a significant player in the global solar energy market. This shift is paving the way for a cleaner and a more sustainable energy future.

United States Solar Cell Market Analysis

In 2024, the United States captured 87.20% of revenue in the North American market. The adoption of solar cells in the United States is surging with increased electricity demand. The U.S. Energy Information Administration, reported that commercial electricity demand in the 10 states experiencing the highest growth surged by 42 BkWh from 2019 to 2023, reflecting a 10 percent increase in demand over the four-year period. The need for energy grows with the growing population across the United States. Dependence on the traditional source of energy can no longer be supported due to the increasing energy demands for the residential, commercial and industrial sectors cannot be fulfilled without turning to an alternative. It has been considered feasible that more dependence be put on solar energy for these requirements due to improved technological developments and lowering costs in its installation for companies and houses alike. Various incentives and government policies are propelling the shift toward renewable energy sources. As electricity demands continue to rise the push toward adopting solar solutions becomes more imperative for ensuring a reliable and sustainable power grid.

Europe Solar Cell Market Analysis

Solar cells have gained the highest adoption rates in Europe with notable investments made in renewable energy. Governments, as well as the private sector, is making heavy investments in green energy projects where solar power forms a critical part of the energy strategy. For example, the cumulative installed solar PV capacity of the EU-27 Member States stood at 269 GW by 2023, indicating that there has been a substantial growth in investments in solar energy throughout the region. These investments target the efficiency of solar technologies, cost reduction, and ease of integration of renewable sources into the national grid. With a higher level of consciousness regarding climate change, European countries are working toward achieving ambitious sustainability targets and solar power is contributing significantly in achieving these targets. The region is quickening its switch toward a more sustainable energy future by expanding energy bases and reducing reliance on fossil fuels thereby making solar power increasingly popular and accessible.

Latin America Solar Cell Market Analysis

In Latin America, the implementation of solar cells is gaining significant traction as the emphasis on reducing greenhouse gas emissions increases. For example, Brazil is considered to be the biggest emitter of greenhouse gasses due to land use changes with a total amount of more than 800,000 metric tons of CO2 equivalent. As alarms about climate change strengthen the need for alternative low-emission energy sources have become more pressing. The packaging of solar energy solutions is becoming prominent as it enables easier distribution and installation in remote areas. The push towards solar energy is aligned with global efforts to combat environmental degradation leading to widespread adoption across the region.

Middle East and Africa Solar Cell Market Analysis

In the Middle East and Africa, the adoption of solar cells is significantly influenced by the region’s favourable weather conditions. The abundance of sunlight throughout the year makes solar energy an ideal renewable source particularly in countries that experience long sunny days. For instance, MENA expanded its solar capacity in 2023 by 23% on an yearly basis with nations, such as Egypt, Saudi Arabia, Turkey, UAE, and Israel, accounting for the majority of the region’s installed capacity. As the region faces growing energy demands and seeks to diversify its energy mix solar power is becoming a sustainable and cost-effective solution. The high solar potential in the area is encouraging investments in solar projects helping to reduce dependence on traditional and non-renewable energy sources. As technology advances and solar cell prices decrease the adoption of solar energy in this region continues to grow paving the way for a cleaner and more sustainable energy future.

Competitive Landscape:

The solar cell market is highly competitive with a blend of established players and emerging companies competing for solar cell market share. Intense competition drives innovation, as companies focus on improving the efficiency, cost-effectiveness, and durability of solar cells to gain a competitive edge. Manufacturers are widely adopting advanced technologies, such as bifacial cells and thin film modules to make their offerings distinctive. For example, in June 2024, Vadodara, India based GB Solar Technologies has announced its expansion plans to boost its PV module production capacity up to 2 GW. The new fully automated facility will manufacture advanced n-type TOPCon, mono bifacial, and mono PERC modules. Strategic collaborations, partnerships and investments in research and development are common enabling players to stay ahead in a rapidly evolving market. Companies are expanding their global presence by tapping into areas with high solar potential. This competitive environment fosters continuous advancements contributing to the market's growth and enabling the widespread adoption of solar energy solutions.

The report provides a comprehensive analysis of the competitive landscape in the solar cell market with detailed profiles of all major companies, including:

• Alps Technology Inc.
• GreenBrilliance Renewable Energy LLP
• Hevel Energy Group
• Indosolar Limited (Waaree Group)
• JinkoSolar Holding Co., Ltd.
• Kaneka Corporation
• Sharp Corporation
• Suniva Inc.
• Tata Power Solar Systems Ltd. (Tata Group)

Latest News and Developments:

• January 2025: Trinasolar announced that it has set a new solar cell efficiency record of 27.08 percent for its n-type TOPAS solar cell, thus marking the highest efficiency for front and back contact silicon cells. The achievement verified by German researchers reinforces Trinasolar's leadership in solar innovation. This breakthrough highlights the company's advancements in next-generation photovoltaic technology.
• December 2024: Sekisui Chemical plans to begin mass production of next-generation perovskite solar cells (PSCs) by 2027. These thin, flexible and lightweight solar cells present a low-cost alternative to traditional silicon cells. Their compact design could reduce the space required for solar panels enhancing efficiency in solar power generation.
• December 2024: INOXGFL Group is venturing into the solar cell and module sector with a capital expenditure of approximately USD 180 Million over the next two years. Inox Solar a privately held entity will establish its first solar module manufacturing unit in Gujarat with an initial capacity of 1.2 GW set to begin operations by March next year.
• December 2024: The Ministry of New and Renewable Energy (MNRE) has set a deadline of June 2026 for solar companies to adopt India-made solar cells in their panels for government procurement programs. Currently India has a solar-module manufacturing capacity of 63 GW and solar cell manufacturing capacity of 5.8 GW. This move aims to reduce reliance on foreign imports for solar panel components. The policy encourages domestic production and strengthens the solar manufacturing sector in India.
• December 2024: LONGi has launched the Hi-MO X10 in Thailand introducing a revolutionary solar cell technology. The new HPBC 2.0 design enhances conversion efficiency per unit area marking a significant milestone. This innovation reflects LONGi's commitment to advancing solar energy technology. The Hi-MO X10 promises to shape the future of sustainable energy solutions.

Solar Cell Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the solar cell market from 2019-2033.
• The solar cell market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the solar cell industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.