Thin-film Photovoltaic Market
Industry: Industrial Automation
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 191
Report ID: PMRREP35019
The thin-film photovoltaic market is estimated to increase from US$ 6.67 Bn in 2024 to US$ 18.62 Bn by 2031. The market is projected to record a CAGR of 15.8% during the forecast period from 2024 to 2031.
Continuous improvements in thin-film technologies are enhancing efficiency, durability, and versatility. These are enabling applications beyond traditional installations, such as Building-Integrated Photovoltaics (BIPV) and flexible solar panels.
Recent innovations have enabled thin-film solar cells to achieve efficiencies up to 23.5% for Copper Indium Selenide (CIS) technologies. Flexible thin-film solar cells based on Copper Indium Gallium Diselenide (CIGS) have reached efficiencies of 22.2%, eventually driving the attention of potential customers to the market.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Thin-film Photovoltaic Market Size (2024E) |
US$ 6.67 Bn |
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Projected Market Value (2031F) |
US$ 18.62 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
15.8% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
10.7% |
Asia Pacific is projected to lead the global thin-film photovoltaic (PV) industry, driven by favorable government policies and increasing adoption of solar power in countries like China and India. The region is likely to experience a CAGR of around 11% between 2024 and 2031. It is set to hold a robust share of 35% in 2024.
One of the key factors driving Asia Pacific's dominance is the availability of government subsidies, tax incentives, and tariff reductions aimed at promoting solar energy adoption. Policies like China's Feed-in Tariff (FiT) for solar energy and India's Jawaharlal Nehru National Solar Mission have significantly accelerated the installation of solar systems, including thin-film photovoltaics.
Regional governments have encouraged private investments and research initiatives to boost the technological capabilities of thin-film PV systems. It is further enhancing their efficiency and affordability. Technological developments also play a crucial role in Asia Pacific's leadership in the thin-film PV sector.
The region is home to several manufacturing hubs that produce novel solar technologies, such as Copper Indium Gallium Selenide (CIGS) and Cadmium Telluride (CdTe) thin-film solar cells. Such innovations have resulted in high efficiency rates and reduced production costs.
They are making thin-film photovoltaics an increasingly viable option for residential, commercial, and utility-scale solar projects. The widespread application of thin-film PV technology in large-scale solar farms and Building-Integrated Photovoltaics (BIPV) further drives market expansion.
Based on material, the market is divided into cadmium telluride, copper indium gallium selenide, and amorphous silicon. Among these, the cadmium telluride (CdTe) material dominates the market due to its high efficiency, established manufacturing processes, and cost-effectiveness compared to other thin-film technologies.
CdTe is estimated to hold most of the thin-film photovoltaic market share, accounting for nearly 52% of the global installations. This dominance stems from its well-established supply chain, mature manufacturing processes, and extensive adoption by key players like First Solar, one of the leading manufacturers of CdTe panels.
Depending on installation location, CdTe has the shortest energy payback time among all photovoltaic technologies, ranging from 8 to 12 months. Utilizing thin layers of cadmium and tellurium materials reduces material costs compared to other thin-film options. It often requires rare and expensive materials like indium and gallium.
Based on the type of photovoltaic thin-films, the market is divided into rigid and flexible. Out of these, the rigid type dominates the market due to its durability, mechanical stability, and suitability for large-scale installations. The segment will likely hold a share of 68% in 2024.
Rigid films are favored in utility-scale projects and commercial applications, contributing to their substantial market presence. Constructed on solid substrates like glass, rigid films offer enhanced mechanical stability and longevity compared to flexible counterparts.
Rigid films often achieve better efficiency rates due to the use of stable substrates that support optimal thin-film deposition processes. The established manufacturing processes for rigid films contribute to lower production costs, making them economically viable for large installations. Their robustness and efficiency also make these films ideal for utility-scale solar farms and commercial rooftops.
A thin-film solar cell, or photovoltaic (PV) cell, is a device that generates electrical energy from light or solar energy. It comprises several layers affixed to a substrate to facilitate effective energy generation across diverse applications.
The tiny solutions have various advantages, including secure handling, reduced size, cost-effectiveness, and greater flexibility compared to conventional alternatives. The market for thin film photovoltaics is rising due to increased knowledge of the benefits of renewable energy, particularly solar energy, which is clean, sustainable, and safe.
The thin-film photovoltaic market is driven by national initiatives to reduce greenhouse gas emissions and lower carbon footprints through increased integration of renewable energy sources into their energy portfolios. It stimulates the market for solar photovoltaic systems, including conventional crystalline silicon and thin-film technologies.
Despite the relatively smaller market share of thin film photovoltaics compared to conventional crystalline silicon photovoltaics due to their diminished efficiency, extensive research and development efforts are underway. These aim to enhance the efficiency and deploy ability of thin film photovoltaics. For example,
During the historical period from 2019 to 2023, the thin-film photovoltaic market experienced steady growth at a CAGR of 10.7%. It was driven by developments in solar technologies and rising awareness of renewable energy benefits.
Its adoption could have been improved compared to crystalline silicon photovoltaics due to lower efficiency levels and limited production capacity. Key players such as First Solar and Ascent Solar focused on improving the performance of materials like Cadmium Telluride (CdTe) and Copper Indium Gallium Selenide (CIGS).
Over the forecast period, the global market is projected to rise at a substantial CAGR. This growth is anticipated to be fueled by constant efficiency improvements, rising applications in Building-Integrated Photovoltaics (BIPV) and flexible solar modules, as well as increasing demand for lightweight, versatile solutions.
Government mandates to reduce carbon footprints and invest in renewable energy further accelerate market expansion. Asia Pacific is set to maintain its dominance, driven by large-scale deployments and technological innovations.
Rising Demand for Renewable Energy Spurs Market Growth
The global transition toward renewable energy sources is a leading growth driver for the thin-film PV industry. Countries worldwide are implementing policies to reduce greenhouse gas emissions and combat climate change.
As a clean, sustainable, and abundant resource, solar energy has emerged as a preferred choice for achieving these goals. Thin-film photovoltaics, with their lightweight and flexible nature, are increasingly integrated into solar farms, residential rooftops, and off-grid solutions.
Asia Pacific, particularly China and India, has shown significant adoption, driven by government incentives and large-scale installations. This high demand for renewable energy accelerates thin-film PV deployment and fosters investments in research and development, further enhancing the market’s growth trajectory.
Supportive Government Policies and Incentives Act as a Key Market Driver
Governments globally are promoting renewable energy adoption through favorable policies and financial incentives, which significantly drive the thin-film PV industry. Subsidies, tax breaks, and feed-in tariffs make renewable energy projects more attractive to investors and consumers.
Initiatives like India's National Solar Mission and China's subsidies for solar energy projects have propelled the adoption of thin-film PV systems. These policies also encourage investments in infrastructure development and manufacturing capabilities, particularly in regions aiming to meet ambitious carbon reduction targets.
Mandates for renewable energy integration into national grids and the rising emphasis on energy security are spurring development of large-scale solar installations, including those using thin-film technologies. These measures ensure a robust growth environment for the market, fostering long-term adoption and innovation. For example,
Lower Efficiency Compared to Crystalline Silicon PV May Restrict Growth
One of the significant growth restraints for the thin-film photovoltaic industry is the comparatively lower efficiency of thin-film technologies compared to conventional crystalline silicon PV systems. Innovations have improved efficiency rates for thin-film materials such as Cadmium Telluride (CdTe) and Copper Indium Gallium Selenide (CIGS).
They, however, still lag behind the 22 to 24% efficiency achieved by crystalline silicon panels. This gap limits the adoption of thin-film PV in applications where space efficiency is critical, such as residential rooftops.
Lower efficiency translates to a higher cost per watt for installation, making thin-film PV less attractive for cost-sensitive projects. Despite its advantages, such as flexibility and lightweight properties, the efficiency disparity remains a significant barrier to its widespread adoption, particularly in competitive solar energy markets.
Growth of Building-integrated Photovoltaics is Set to Shape the Market
One of the most significant trends in the thin-film photovoltaic industry is the rising adoption of Building-Integrated Photovoltaics (BIPV). Thin-film PV technologies, with their lightweight, flexible, and customizable features, are particularly well-suited for integration into building materials such as windows, facades, and roofs.
Unlike traditional solar panels, BIPV solutions seamlessly blend into a building's architecture, serving both aesthetic and functional purposes. This trend is gaining momentum as governments enforce strict energy efficiency regulations and green building standards worldwide. The European Union's push for zero-energy buildings by 2030 has encouraged widespread adoption of integrated solar solutions, including thin-film PV.
The technology's ability to generate clean energy while reducing reliance on external power grids makes it highly attractive for urban environments where space is limited. As more architects and developers incorporate sustainable energy solutions into their designs, demand for BIPV systems is set to drive growth in the thin-film PV industry. For instance,
The thin-film photovoltaic (PV) industry is highly competitive, driven by technological developments and rising applications. Key players such as First Solar, Ascent Solar Technologies, Solar Frontier, and Mitsubishi Electric dominate the market. They are leveraging expertise in Cadmium Telluride (CdTe), Copper Indium Gallium Selenide (CIGS), and Amorphous Silicon (a-Si) technologies.
Emerging players are investing in research and development to enhance efficiency and reduce costs. Asia Pacific, led by China, dominates production, while North America and Europe focus on integration into renewable energy policies.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2024 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
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