Photovoltaic Materials Market By Product Type (Solar Panels, Solar Cells, Encapsulation Materials, Backsheet Materials, Glass, Conductive Paste, Anti-Reflective Coatings, Other), By Material (Silicon-Based Materials {Monocrystalline Silicon, Polycrystalline Silicon, Amorphous Silicon}, Thin-Film Materials, Perovskite Materials, Dye-Sensitized Solar Cells Materials, Quantum Dots & Nanomaterials), By Technology (Crystalline Silicon Photovoltaics, Thin-Film Photovoltaics, Multijunction Solar Cells, Perovskite Solar Cells, Organic Photovoltaics, Concentrated Photovoltaics, Hybrid Photovoltaics), By End-user (Energy & Power, Automotive & Transportation, Electronics & Electrical, Construction & Infrastructure, Aerospace & Defense), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Photovoltaic Materials Market accounted for USD 67.85 Billion in 2024 and is expected to reach USD 155.0 Billion by 2035, growing at a CAGR of around 7.8% between 2025 and 2035. The Photovoltaic Materials Market is based on materials used in solar power and generation, namely silicon, thin-film compounds, perovskite, and advanced nanomaterials. These are important as they are widely used in the making of solar cells, solar panels, encapsulation, and conductive layers. The factors that are specifically responsible for the market's growth are an increase in renewable energy consumption, government support, and technologies that make it more efficient and economical.

Further growth is driven by a rising need for renewable power for both residential, commercial, and utility-scale purposes. Perovskite and tandem solar cells are in the pipeline as future solutions to take long strides in the industry. Production and installations today and in the future are heightened in the Asia-Pacific region, especially in China and India. The market size of PV materials is expected to grow, especially due to two major primary reasons, namely the governments’ push for energy transition and achieving higher efficiency in silicon-based PV applications.

Report Scope:

Market Dynamics

Rising global shift towards sustainable energy to reduce carbon emissions.

The increase in the demand for sustainable energy is as a result of the increase in the global consciousness towards change in climate and cutting down on greenhouse gases. Hitherto, fossil-based energies are being substituted with green energies such as solar energy, wind energy, and hydro energy by governments, organizations, and consumers. The technologies have favored the optimization of renewable energy and thus increased the adoption of renewable energy across the globe. There are also other supporting measures in place, like subsidies and taxation incentives for the new generation and clean energy targets for emissions. Companies leading product and service organizations, utility providers, and other institutions are attaining sustainable goals to buy cleaner energy to lower emission rates.

The high costs of manufacturing solar panels and the usage of effective storage systems have been costly, but with the dropping prices in the market, the usage of renewable energy sources is possible. Another reason for the adoption of renewables is the utilization of renewable sources to cater to the increasing global electricity demand in emerging economies. Today, it is easier and better to streamline the integration of renewable energy due to improved grid modernization and smart energy solutions. The change to green energy sources is equally having a positive impact on the employment rate and the generation of income sources. In the future, the growing availability of power generated from renewable sources indicates that renewable energy will be the main source of electricity.

Advancements in battery technologies enhance solar energy reliability and grid stability.

The most important feature affecting solar energy storage is the technological progress of batteries at the moment. At present, some types of batteries include lithium-ion and solid-state batteries, which facilitate the storage of solar power and can be used during times when the sunlight is not as abundant. This helps in improving the stability of the grid since the rate of supply and demand is controlled without overly depending on fossil resources. They make it possible to generate, store, and use electricity from renewable resources to meet requirements independently, thus reducing the electricity bills of a household or commercial business. Well-integrated battery systems into smart grids minimize power interruption, hence reducing blackouts.

Some of the new technologies in battery chemistry are increasing the battery’s shelf life while decreasing degradation, making solar energy more sustainable. This led to a decrease in costs, making corporations, commercial buildings, and households integrate batteries into their systems. Power storage systems help utility companies to cater to the surge in demands for consumption. Currently, the governments of various countries, as well as investment companies, are investing in research to come up with batteries with high energy density. These measures are rather significant for the future non-carbonized power system.

Expensive manufacturing and installation hinder large-scale adoption of photovoltaic materials.

The biggest challenge to continuing to prevent the widespread use of photovoltaic (PV) materials is the high cost of manufacturing and installation of the systems. Most efficient photovoltaic devices are made using reverse engineering, top-quality fabrication, and successful control of the whole fabrication process, which, in the end, increases the costs since most of the materials, such as silicon, CdTe, and CIGS, are very expensive. There are also costs of installation of the unit, mounting structures, labor, and electricity costs, which are considered additional to the normal charges by the consumer or any business. Despite improvements over the years and up to the point where the cost of overall systems has lowered, the initial costs are still high when compared to other forms of energy. However, due to high costs, most of these regions can hardly afford the solutions, leading to adoption limitations.

Hearing aid subsidies and incentives exist to reduce costs for consumers; however, the vagaries of policies in a particular country can negatively affect the development of the market in the long run. The initial costs to install the system remain the biggest challenge, preventing residential as well as small commercial users from using solar energy. Thus, maintenance expenses, albeit slightly inferior to those of conventional power sources, contribute to the financial aspect. The development of new materials that are cheap and easier to install is of great importance in exploring the market. Overcoming the barriers of integrating PV into the grid to make its cost equal to fossil fuels has remained a challenge for the extensive use of solar energy.

Innovations in perovskite and tandem cells enhance solar efficiency and durability.

Perovskite and tandem improvements are currently reshaping the photovoltaic industry by increasing the efficiency and stability of solar cells. The cells developed by perovskite solar cells demonstrate some of the highest PCEs, greater than 25% and at a lower cost than silicon. They granted the benefits of flexibility, lightweight, and compatibility with low light absorption for prospects of the next generations of solar cell technology. Nonetheless, stability and degradation issues mean that researchers are now looking at lead-free as well as hybrid perovskites for applications that have a better lifespan. Tandem solar cells where perovskite is combined with silicon or some other semiconductor materials perform better, as their light absorption is wider.

These structures can exceed an efficiency of 30%, which means that they are very suitable for more advanced plans for solar panels. Such research fields as roll-to-roll printing and inkjet deposition of solar cells are bringing commercialization closer. Further, advanced technologies for encapsulation are in the process of being perfected to improve the products’ ability to resist moisture and heat. When governments and corporations are pursuing the development of the next generation of solar solutions, perovskite and tandem cells will be critical enablers of the global renewable energy scenarios.

Decreasing manufacturing costs make solar energy more affordable and competitive globally.

Cost reduction and technological advances introduced into the manufacturing of solar modules make photovoltaic energy ever cheaper and more competitive on a global level. Cheaper automation, better materials, and retail production have overall made solar power cheaper advertisement per wattage. Technological advancements in the reduction of wafer thickness, enhancement in solar cell productivity, and utilization of perovskite are also advancing cost-cutting. Some of the factors that make it cost-effective are the falling cost of silicon, which is the main component in PV panels, advances in thin film, and tandem technology. Regional and especially Asian production has also seen the cost of production reduced from the economies of scale, especially produced in China and India.

Moreover, cleaning up, recycling, and improving the way material is reused is also helping to reduce waste and the amount of material that has to be bought. Successfully, tax relief, as well as patronization of subsidies, is still enhancing solar affordability and hence adoption at lower prices from the government aspect. This has been evident in residential, commercial, and utility-scale solar systems, where the demand continues to increase thanks to such costs. Concerns With the development of technology and the increase in the efficiency of the conversion of solar energy, the cost of this power is closing in on conventional power sources, such as fossil energy sources. This trend is effectively advancing the shift to a low-carbon future energy system across the globe.

Industry Experts Opinion

“Canadian Solar is transforming from a solar module provider into a global energy solutions leader, integrating solar, battery storage, and even wind energy.”

• Dr. Shawn Qu, CEO of Canadian Solar

Segment Analysis

Based on the Product Type, the Photovoltaic Materials Market is classified into solar panels or modules, solar cells, encapsulation materials, back sheet materials, conductive paste, glass, and anti-reflective coatings. As the solar power demand rises, residential, commercial, and utility-scale are leading the solar panel market. Of these, the monocrystalline, polycrystalline, and thin film type cells are especially important towards the overall goal of efficiency. These features include encapsulation and back sheet material that makes it more durable and weather resistant to serve for more years. Conductive pastes enhance the electrical conductivity, while the solar glass and anti-reflective layers enhance the light capture or the sunlight absorption. Perovskite, which is a new upcoming generation photovoltaic material, and bifacial panels are also influential to the market dynamics. Hence, the market demand increases with the growing trend towards deploying efficient and cheap solar solutions.

Based on the Technology, the Photovoltaic Materials Market is classified into crystalline silicon photovoltaic, thin-film photovoltaic, perovskite, organic photovoltaic, multi-junction photovoltaic, innovative, and CPV photovoltaic. As a result, monocrystalline as well as polycrystalline silicon technology is preferred in the PV industry due to its technology of high efficiency at competitive costs. The thin-film technologies include cadmium telluride (CdTe) and copper indium gallium selenide (CIGS), which are flexible, lightweight, cheap, and perfect when it comes to building integrated applications and portability. Perovskite solar cells are known to have high efficiency presently, which is expected to be used for production at lower costs. Currently, multijunction and CPV technologies lie predominantly in high-efficiency applications and include space PVIC and CSP systems. This has put much pressure on giving advances in all these segments to meet the demand for high-efficiency and low-cost solar technologies.

Regional Analysis

North America is one of the oldest and largest Photovoltaic Materials Markets due to good government policies, technological changes, and rising use of solar energy. The strongest nation in the region is the United States, which is backed by federal tax credits, state incentives, and corporate investments in renewable energy. Canada and Mexico have also increased utility-scale and residential solar project installation within the country. This is supported by a strong R&D environment of the region that contributed to the advancement of high efficiency of solar cells, perovskite technology, and integration of energy storage.

The increase in electricity usage, energy transition towards clean energy, and net-zero emission targets are factors that drive solar technology. It represents a major advantage to have today's important solar manufacturers and investors that also contribute to the improvement of the market. Therefore, North America will also continue to be active on the global level within the PV materials market due to the constant policy support and advancements in technologies.

The Asia-Pacific region, especially, has the highest growth rate of demand for photovoltaic materials because of the rapid industrialization, urbanization, and support from the governments for renewable energy resources. China holds the longest terms in terms of the installed capacity of the solar farm, manufacturing, and R&D criteria and is followed by India, which has embarked on the National Solar Mission in a big way and has attracted more foreign investment. Japan, South Korea, and Australia, with intentions to increase their RE capacities, are directing their investments towards residential and commercial consumers as well as large utility-scale consumers.

The area has low manufacturing costs to scale economies and upgraded forms of solar technology such as bifacial panels as well as perovskite solar cells. Market forces such as increasing energy consumption and energy policies are adding to the existing forces that are advancing the use of solar energy. Consequently, Asia-Pacific is projected to maintain its status as the largest consumer market for PV materials as more companies embark on new and massive installations.

Competitive Landscape

The Photovoltaic Materials Market is quite fragmented, with the key players concentrating on the ongoing technological development and reduction of costs while improving the efficiency of the PV materials. These firms are First Solar, JA Solar, JinkoSolar, Trina Solar, and LONGi Green Energy, among others, driven by large-scale production and product development. The silicon-based solar manufacturers have an overall higher market share, which is followed closely by new entrants of perovskite and tandem solar cells. Key players are focusing on spending on research, development, strategic partnership mergers, and mergers to strengthen the market standing. China, India, and South Korea are some of the principal producers of automobiles in the Asia-Pacific region that are near shipping places and benefit from scale economies as well as governmental advantages.

North American and European participants are interested in the efficiency and utilization of solar technologies and sustainable practices. The competition in the market is shifting towards next-generation technologies, such as thin film, perovskite, and organic photovoltaic technologies. Moreover, the integration of battery storage and offering integrated solar solutions are some of the other activities being implemented by manufacturers for fortifying the present portfolios. As this demand increases, you will observe that competition will surely increase, causing more advancements and better prices for solar energy.

Photovoltaic Materials Market, Company Shares Analysis, 2024

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Recent Developments:

• In July 2024, Jinko Solar announced that it had become the largest solar panel supplier for a solar energy project in India developed by Adani Green Energy Ltd (AGEL) in the Kutch region in the state of Gujarat. The company has delivered about 2381 MW of solar panels to this project, which includes the Tiger Neo Bifacial (1370 MW) and Tiger Pro Bifacial modules (1011 MW). These deliveries started in August 2023 and were completely fulfilled by January 2024.
• In June 2024, DuPont introduced its latest Tedlar frontsheet at the 2024 SNEC International Photovoltaic Power Generation and Smart Energy Exhibition event held in Shanghai, China. The new front offers enhanced protection to the solar panel surface and can be used in various applications, including emergency power supply, mobile charging, and recreational vehicles. The frontsheet includes features such as better service life, easy handling, and adaptability to milder environments.

Report Coverage:

By Product Type

• Solar Panels
• Solar Cells
• Encapsulation Materials
• Backsheet Materials
• Glass
• Conductive Paste
• Anti-Reflective Coatings
• Other

By Material Type

• Silicon-Based Materials
  • Monocrystalline Silicon
  • Polycrystalline Silicon
  • Amorphous Silicon
• Thin-Film Materials
• Perovskite Materials
• Dye-Sensitized Solar Cells Materials
• Quantum Dots & Nanomaterials

By Technology

• Crystalline Silicon Photovoltaics
• Thin-Film Photovoltaics
• Multijunction Solar Cells
• Perovskite Solar Cells
• Organic Photovoltaics
• Concentrated Photovoltaics
• Hybrid Photovoltaics

By End-User

• Energy & Power
• Automotive & Transportation
• Electronics & Electrical
• Construction & Infrastructure
• Aerospace & Defense

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• American Elements
• COVEME s.p.a.
• DuPont de Nemours Inc.
• Ferrotec Holdings Corporation
• Honeywell International Inc.
• KYOCERA Corporation
• Merck KGaA
• Mitsubishi Materials Corporation
• Novaled GmbH
• Targray Technology International Inc.
• Tata Power Solar Systems Limited
• Wacker Chemie AG
• Jinko Solar
• SunPower Corporation
• Wacker Chemie AG

Frequently Asked Questions (FAQs)