Solar Cell Market

Market Overview:

The global solar cell market size reached US$ 118.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 406.7 Billion by 2032, exhibiting a growth rate (CAGR) of 14.67% during 2024-2032. The growing demand for enhanced efficiency and performance, rising focus on environmental sustainability to reduce carbon emissions, and favorable government initiatives to promote renewable sources of energy are some of the major factors propelling the market.

A solar cell, also known as a photovoltaic (PV) cell, is a semiconductor device that converts sunlight directly into electricity. It operates on the mechanism of the photovoltaic effect, where photons of light excite electrons in the semiconductor material and generate a flow of electric current. It plays an essential role in employing renewable energy from the sun. It is an efficient and cost-effective source of energy and has a longer life span. As it is a cleaner and more environmentally friendly energy solution, the demand for solar cells is increasing around the world.

At present, the rising popularity of renewable sources of energy across the globe is supporting the growth of the market. Besides this, technological advancements in solar cell technology to increase energy production is strengthening the growth of the market. In line with this, the growing demand for electricity for performing several tasks in various sectors around the world is positively influencing the market. Apart from this, increasing improvements in energy storage solutions, along with the decreasing cost of solar panels, are offering lucrative growth opportunities to industry investors. In addition, the rising focus on reducing dependency on fossil fuels and enhancing energy security is bolstering the growth of the market. Furthermore, the increasing adoption of solar energy in corporate offices to reduce electricity bills is contributing to the growth of the market.

Solar Cell Market Trends/Drivers:

Rising focus on environmental sustainability and emission reduction

The rising focus on environmental sustainability and the urgent need to curb carbon emissions is contributing to the growth of the market. In addition, consumers are rapidly seeking cleaner energy alternatives due to concerns about climate change. Apart from this, governing agencies and private organizations of various countries are focusing on incorporating renewable energy sources in their electricity generation systems. In line with this, solar cells provide a renewable energy source that produces electricity without emitting greenhouse gases (GHG). Furthermore, the rising awareness to mitigate the harmful impacts of fossil fuel-based energy generation is supporting the growth of the market.

Favorable government initiatives

The increasing awareness about the importance of solar energy in addressing energy security and environmental concerns is bolstering the growth of the market. Besides this, governing agencies of numerous countries are promoting the adoption of solar power by implementing stringent rules and regulations for environmental pollution. They are also offering several incentives, such as feed-in tariffs, tax credits, and grants, that lower the upfront costs of installing solar systems, which is offering a positive market outlook. In addition, the renewable portfolio standards mandate that a certain percentage of the energy mix of a region must come from renewable sources, which is positively influencing the market. These supportive regulatory frameworks encourage solar installations in both residential and commercial areas.

Increasing demand for enhanced efficiency and performance

There is a rise in the demand for enhanced sources of energy in various industries across the globe. In line with this, manufacturers are continuously advancing their solar cell technology to offer improved efficiency and performance. They are also advancing materials, design, and manufacturing processes to offer higher energy conversion rates and enable solar panels to generate more electricity from the same amount of sunlight. Apart from this, enhanced efficiency not only maximizes energy output but also optimizes the utilization of available space, which makes solar installations more practical for various applications. Moreover, the emergence of new types of solar cells, such as thin-film and perovskite cells, that offer enhanced efficiency is offering a positive market outlook.

Solar Cell Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global solar cell market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type and installation type.

Breakup by Type:

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

Silicon wafer represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the type. This includes silicon wafer (monocrystalline and multicrystalline) and thin film [cadmium telluride (CdTe), amorphorus silica (a-Si), and copper indium gallium selenide (CIGS)]. According to the report, silicon wafer represented the largest segment. Silicon wafers are the traditional and most widely used type of solar cell. They are primarily categorized 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. On the other hand, multicrystalline solar cells are subtype of silicon wafer technology that offers cost-effective energy solutions. These cells are composed of multiple crystals that balance efficiency and affordability and make them a popular choice for residential and commercial installations.

Thin films are an alternative technology that involves depositing thin layers of semiconductor materials onto substrates, such as glass, plastic, or metal. These are known for their flexibility and potential for lower manufacturing costs and are categorized into several subtypes, such as cadmium telluride, amorphorus silica (a-Si), and copper indium gallium selenide (CIGS). Cadmium Telluride cells are rapidly gaining popularity due to their high absorption coefficient and potential for cost-effectiveness. Besides this, amorphous silicon (a-Si) cells use non-crystalline silicon and can be produced at a lower cost, but they generally have lower efficiency as compared to crystalline silicon cells. Moreover, the copper indium gallium selenide (CIGS) cells offer a good balance of efficiency and flexibility. They are considered one of the most promising thin film technologies due to their potential for higher efficiency levels.

Breakup by Installation Type:

• Residential
• Commercial
• Utility-Scale
   

Utility-scale accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the installation type. This includes residential, commercial, and utility-scale. According to the report, utility-scale represented the largest segment. Utility-scale solar installations involve large-scale solar farms for generating electricity on a utility level. These installations can cover vast areas of land and consist of thousands of solar panels. Moreover, they are often strategically located in regions with abundant sunlight and can be an integral part of a diversified energy portfolio for utilities.

Residential solar installations involve placing solar panels on rooftops or properties owned by individual homeowners. In addition, residential installations are often smaller in scale as compared to commercial and utility-scale projects. They provide homeowners with the opportunity to generate their own electricity, reduce energy bills, and contribute to environmental sustainability.

Commercial solar installations refer to solar panels deployed on businesses, institutions, and industrial facilities. These installations cater to a wide range of commercial entities, such as office buildings, warehouses, schools, hospitals, and shopping centers. Commercial installations are larger than residential and can help businesses offset their energy costs, enhance their green image, and meet sustainability goals. The larger available roof space on commercial buildings often makes them suitable for accommodating larger arrays of solar panels.

Breakup by Region:

• 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
   

Asia Pacific exhibits a clear dominance, accounting for the largest solar cell market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific held the biggest market share due to the increasing production of solar panels and components at an affordable price. In line with this, the rising demand for energy is impelling the growth of the market in the region. Apart from this, the increasing adoption of sustainable energy sources in various industries is contributing to the growth of the market. In addition, favorable government initiatives to reduce environmental pollution are supporting the growth of the market in the region.

Competitive Landscape:

Major players are investing in research and development (R&D) activities to enhance the efficiency, durability, and cost-effectiveness of their products. They are exploring new materials, innovative manufacturing processes, and advanced designs to improve overall performance. In addition, they are focusing on innovative solar technologies, such as bifacial solar panels, tandem solar cells, and perovskite solar cells. These technologies aim to increase energy generation, improve aesthetics, and expand the range of applications for solar panels. Apart from this, various companies are integrating energy storage solutions, such as batteries, to store excess energy generated during peak sunlight hours. This allows for enhanced management of energy supply, improved grid stability, and enables consistent power availability.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• 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)
   

Solar Cell Market Report Scope:

Key Questions Answered in This Report:

• How has the global solar cell market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global solar cell market?
• What is the impact of each driver, restraint, and opportunity on the global solar cell market?
• What are the key regional markets?
• Which countries represent the most attractive solar cell market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the solar cell market?
• What is the breakup of the market based on the installation type?
• Which is the most attractive installation type in the solar cell market?
• What is the competitive structure of the global solar cell market?
• Who are the key players/companies in the global solar cell market?

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 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global solar cell 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.