Solar Cell Market Expected to Reach $367.23 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Solar Cell Market," The solar cell market size was valued at $84.91 billion in 2021, and solar cell industry is estimated to reach $367.23 billion by 2031, growing at a CAGR of 15.8% from 2022 to 2031.

Solar cell technology converts energy from solar radiation directly into electricity using semiconductor materials. It has no mechanical moving parts, thus, it has a prolonged service life, requiring minimal maintenance. Solar cell technology is used in renewable energy systems range from small-scale systems for lighting and pumping to large-scale systems for whole buildings and utility-scale solar farms.

Continuous supply of energy and comparatively lower expenses of solar energy than conventional energy sources have made PV technology lucrative for application in industrial sectors such as telecommunication, aerospace & defense, agriculture, and automotive. This factor is expected to escalate the market growth during the forecast period. In addition, increase in popularity of solar technology owing to its employment in electricity generation, to provide electricity for residential buildings at a low cost is expected to drive the growth of the solar cell market.

The growth of the global solar cell market growth is driven by adoption of renewable electricity generation methods along with focus on carbon emission reduction. In addition, rise in concern from governments across the globe on increased global warming issues is expected to augment the demand for solar farms. Governments across different countries are offering new rebate and incentive schemes on installation of solar farms. Such tax incentive programs are expected to encourage commercial as well as industrial end users to install solar farms, thereby contributing toward the growth of the global solar cell market opportunities.

The use of solar energy by commercial buildings such as offices, malls, and airports helps reduce the load on traditional fossil fuel power plants and further decreases the carbon footprint. With growth in use of solar photovoltaic, the use of solar farm is expected to rise to generate electricity in an efficient way, owing to surge in use of solar photovoltaic.

The global solar cell market is segmented on the basis of type, installation type and region. On the basis of type, it is segmented into thin film solar cell which is further segmented into CdTe, a-Si, CIGS; and crystalline solar cell which is further segmented into multi-Si, mono-Si; and others. On the basis of installation type, the market is classified into residential, commercial, and utility-scale.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America and Europe. Asia-Pacific has emerged as a global leader in the solar cell market, due to surge in energy demand in the developing economies such as India, China, and Thailand, owing to decrease in dependency on conventional energy sources, including coal & crude oil, and increase in urbanization. In addition, development of rural electrification activities in countries such as India, China, and Thailand and rise in government initiatives to promote the use of renewable energy are anticipated to boost the growth of the global solar cell market from 2022 to 2030.

The major companies profiled in this report include Abengoa SA, Acciona SA, Borg Inc., Canadian Solar Inc., First Solar, Green Brilliance, Indosolar Limited, JA Solar Holdings Co. Ltd., Jinkosolar Holdings Co. Ltd., Kaneka Corporation, LG Electronics, LONGi, Solarworld AG, Sharp Corporation, Sunedison Inc., Sunpower Corporation, Tata Power System Limited, Trina Solar, Wuxi Suntech Power Co., Ltd. and Yingli Solar Due to rapidly development of industrialization, modernization and spread of information through internet led to the development of tourism industry which in-turn has fueled the demand for solar cell. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the solar energy application have led to the development in the global solar cell market trends.

Key findings of the study:

• The crystalline segment accounted for 89.5% solar cell market share in 2021, and is anticipated to grow at a rate of 15.7% in terms of revenue, increasing its share in the global solar cell market during the forecast period.
• As per solar cell market analysis, the residential segment is the fastest-growing installation type segment in the global solar cell market, and is expected to grow at a CAGR of 16.6% during 2022–2031.
• In 2021, Asia-Pacific region dominated the global solar cell market with more than 55.5% of the share, in terms of revenue.

COVID-19 analysis:

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies and caused lockdown in many countries, which has limited the growth of the market. The shutdown of industrial manufacturers led to decline in demand for solar related equipment in most of the countries across the world. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the solar cell market forecast.

After the global vaccination, the governments of various countries have taken initiatives to improve the national energy security during these kinds of pandemic situations through increase in investment in the renewable energy related industries, especially solar and wind power systems.  Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market during the forecast period.