The photovoltaic material market was valued at US$20.721 billion in 2020 and is expected to grow at a CAGR of 10.23% over the forecast period to reach a total market size of US$40.979 billion by 2027.
Solar energy can be converted directly into electricity by photovoltaic materials made up of semiconductor material. Photovoltaics have arisen as an incredible renewable energy source and a viable substitute for fossil fuels in recent years. Furthermore, growing environmental concerns such as climate change and global warming are propelling the growth of solar and wind energy. Solar energy's sustainability and unlimited potential, coupled with technological advancements, make it a sustainable and viable energy source to meet our growing energy demands in the future. Also, recent advances in raw materials and technology have spurred the solar industry, driving up interest in photovoltaic materials. By 2050, solar PV will be the world's second-largest power source, behind wind power, and will revolutionize the world's electricity sector. Globally, solar PV would produce a quarter of the world’s electricity needs (25% by 2050), making it an important source in the future. Over the next ten years, solar PV capacity is expected to increase almost sixfold, peaking at 480 GW in 2018 and falling to 2 840 GW by 2030, followed by 8 519 GW by 2050 – or almost 18 times the amount produced in 2018. In 2050, solar PV power would be dominant in Asia (mostly China), with more than 50% of the global installed capacity, followed by North America (20%) and Europe (10%). Renewable technologies such as solar PV have been pioneered, over the centuries. . As of 2018, solar PV systems had reached 480 GW globally, ranked second behind wind as a source of electrical energy. According to these estimates, such projects are expected to have a booming impact on the photovoltaic material market.
The photovoltaic materials market is mainly driven by the increasing focus on cleaner energy technologies. Furthermore, a stringent government policy against fossil fuel emissions as well as encouraging government policies to boost renewable energy is encouraging an increase in PV material demand. Solar energy has unlimited potential for growth, and continuous technological advancements will foster growth in the industry. Currently, almost 12,000 large-scale solar projects are listed, generating more than 166 GW of energy in the United States. To support smart renewable energy and grid modernization projects, the Government of Canada has launched a $964 million program in 2021.
Various governments around the world are constantly formulating policies to make grid connections convenient for photovoltaic projects. Chinese, Canadian, American and French companies are encouraging the use of solar energy. In July 2018, Canada, for example, launched the Climate Action Incentive Fund (CAIF), a 150 million Canadian dollar incentive programme aimed at combating climate change. The program allows businesses to receive grants for renewable energy projects, including solar projects, up to 25% of project costs, and grants range from $20k to $250k. The PV material market is expected to grow due to initiatives and government policies in the forecast period. According to the Institute for Energy Economics and Financial Analysis (IEEFA) of the University of California, Irvine, India has five of the world's top 10 upcoming solar projects.
Further, China accounted for 32% of the world's total investments, trailed by Europe at 21%, the United States at 17%, and Asia-Pacific (other than China and India) at 15 %. The Middle East and Africa had a 5% share of the smaller regions, the Americas (excluding the United States) had a 3% share, and Brazil had a 1% share. (Source: unep.org). PV cells are being used by private companies in the region to boost their efficiency. The Dutch construction company Vorm, for instance, is building a solar module factory with 300 MW of capacity. In Denmark, the Spanish energy firm Powertis SA is planning to develop more than 150 MW of solar photovoltaic (PV) projects. Therefore, there are numerous solar power projects being planned and built, that are expected to positively influence the photovoltaic materials market outlook.
There is a great diversity of professional roles within photovoltaic installations, ranging from R & D scientists working at Ph.D. levels to technicians who must be fully certified and trained to a host of other professionals who support all aspects of the industry. This new technology cannot be implemented in the industry without enough experienced installers. In the PV sector, one of the most prominent challenges has been finding appropriately skilled labor. While the technology is being developed, the end-users need acknowledged standards, quality assurance, and skills certification throughout the development process.
COVID-19 is expected to have a negative impact on the photovoltaic market in 2020. Several major governments have declared lockdowns to stop COVID-19 from spreading. The lockdown has significantly affected manufacturing activities. The Chinese government, for example, announced a COVID-19 lockdown in 2020. Due to the majority of PV modules being produced in China, the production and supply chain have been greatly affected. Chinese manufacturing capacity had been severely disrupted by the lockdown, as major shipping companies had stopped dispatching containers from Chinese ports and transporting goods abroad.
|Market size value in 2020||US$20.721 billion|
|Market size value in 2027||US$40.979 billion|
|Growth Rate||CAGR of 10.23% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Material Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Targray, Topsil GlobalWafers A/S, SILICOR MATERIALS, DuPont, Wacker Chemie AG, Hemlock Semiconductor Operations LLC, Shin-Etsu Chemical Co., Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the photovoltaic material market by 2027?
A1. The photovoltaic material market is expected to reach a market size of US$40.979 billion in 2027.
Q2. What is the size of the photovoltaic (PV) material market?
A2. Photovoltaic (PV) Materials Market was valued at US$20.721 billion in 2020.
Q3. What are the growth prospects for the photovoltaic material market?
A3. The global photovoltaic material market is expected to grow at a CAGR of 10.23% over the forecast period.
Q4. How is the global photovoltaic material market segmented?
A4. The photovoltaic (PV) material market has been segmented by material type, application, and geography.
Q5. What factors are anticipated to drive the photovoltaic material market growth?
A5. The photovoltaic materials market is mainly driven by the increasing focus on cleaner energy technologies.
Topsil GlobalWafers A/S
Wacker Chemie AG
Hemlock Semiconductor Operations LLC
Shin-Etsu Chemical Co., Ltd.
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