Photovoltaic (PV) Materials Market - Strategic Insights and Forecasts (2026-2031)

The photovoltaic (PV) materials market is expected to grow from USD 45.5 billion in 2026 to USD 78.1 billion by 2031, at a CAGR of 11.4%.

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. 

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 growth potential, 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 launched a $964 million program in 2021.

Photovoltaic (PV) Materials Market Growth Drivers:

• Increasing use of solar PVs.

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 will 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 will 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.

• Supportive government policies and initiatives.

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. 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, numerous solar power projects are being planned and built, which are expected to positively influence the photovoltaic materials market outlook.

Photovoltaic (PV) Materials Market Restraints:

• Lack of highly skilled professionals.

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.

Photovoltaic (PV) Materials Market Geographical Outlook:

• The North American photovoltaic (PV) materials market is anticipated to grow significantly.

Several important reasons that are driving the expansion of the solar energy industry are driving the photovoltaic (PV) materials market in North America. One of the main drivers is the growing focus on renewable energy sources, which is accompanied by policies and incentives from the government encouraging the use of solar power. The industry is being pushed by an increasing need for carbon neutrality and sustainable energy solutions due to environmental concerns. Furthermore, the market is growing due to improvements in PV technology and a decline in the cost of solar components, which increases the economic viability of solar energy.

Photovoltaic (PV) Materials Market Key Developments:

• December 2025: RenewSys signed an agreement with Kosol Energie to supply high-performance POE encapsulant materials for approximately 1.1 GW of solar modules, strengthening advanced encapsulation material adoption in photovoltaic manufacturing.

• December 2025: T1 Energy confirmed the construction of a new solar cell processing plant in Austin, expanding production of U.S.-made photovoltaic cells and modules used in large-scale solar energy systems.

• September 2025: Canadian Solar announced the introduction of low-carbon photovoltaic modules using advanced wafer innovations and heterojunction cell technology to reduce lifecycle carbon footprint while maintaining high-efficiency solar performance.

• August 2025: Corning Incorporated signed a strategic agreement with T1 Energy to supply solar wafers manufactured in Michigan, strengthening domestic PV material supply chains and supporting large-scale solar cell manufacturing in the United States.

• February 2025: RenewSys announced the launch of Anti-Acid EVA encapsulant technology designed to improve reliability and durability of photovoltaic modules by reducing acid formation and enhancing the long-term performance of solar panel materials. 

Photovoltaic (PV) Materials Market Scope: