Thin-Film Photovoltaic Market Size, Share, Trends

Updated on : September 12, 2024

Thin-Film Photovoltaic Market Size & Share

[214 Pages Report] The thin-film photovoltaic market size is projected to grow from USD 6.2 billion in 2024 and is expected to reach USD 12.4 billion by 2029, growing at a CAGR of 15.1% from 2024 to 2029. Increased investment in renewable energy is one of the major driving factors for the market. Renewable energy sources are gaining popularity, and investments in new renewable power projects have grown significantly in the past few years. The costs for solar energy is already below retail electricity prices in countries like China, and the cost is likely to further fall by 15-35% until 2024 that may trigger demand for PV systems. This gives renewable energy investments a positive environment that makes both governments and businesses commit their resources to renewable energy projects, which eventually benefits the thin-film photovoltaic market. Several governments across the world have started to initiate a decrease in the share of renewable energy such as the Paris Climate Agreement.

The objective of the report is to define, describe, and forecast the thin-film photovoltaic market based on material, type, component, end use, and region.

AI Impact in thin-film photovoltaic market

The players in thin-film photovoltaic ecosystem are leveraging artificial intelligence in various applications such as using AI Simulation for performance modeling, 3D modeling for process optimization, predictive maintenance, and efficiency enhancement. Advanced usage of AI is making it possible to precisely measure and analyze the different factors that affect the performance of thin-film photovoltaics. These variables include temperature, functionality, adaptability, monitoring, shading effects, and incident light intensity. Analysis and forecasting from data derived from PV's can give insight into how to improve energy production while reducing costs using Al. For instance, First Solar (US) uses standard simulation software such as PVSyst, and proprietary simulation software to estimate the performance of its PV's. Similarly, Intellico (Italy) uses Al to provide effective solutions in monitoring production parameters to detect malfunctioning in components like inverters or operation conditions like soiling earlier in the process. Moreover, AI assists in identifying defects beforehand and proper diagnoses of PV's issues allow for faster and more effective maintenance.

AI in thin-film photovoltaic market

Thin-Film Photovoltaic Market Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

Thin-film photovoltaic Market Trends & Dynamics

Drivers: Growing adoption of thin-film solar cells in residential sector

The residential sector is among the major end users and early adopters of PV systems and products. There is a significant demand for these products from this sector. The number of residential solar rooftop installations has also increased substantially globally. For instance, in April 2024, according to an article released by the magazine Photovoltaics Markets and Technology, India is seeing record demand for rooftop solar both from residential and industrial consumers. While the recently announced Pradhan Mantri Suryodaya Yojana (PMSY) Scheme is driving adoption among residential consumers, industries seek to add clean energy to meet climate goals amid falling panel prices. The residential sector has a large demand for the installation of solar systems, primarily due to an increasing willingness of end-users toward adopting energy-efficient means. Further, large market share companies in PV products used in residential applications, such as First Solar, Miasole, and Xunlight, are also increasing their presence in this market. Further, the development of various technologies for thin-film solar cells in the recent past, relevant to residential applications, has also driven this market. For example, copper indium gallium selenide or CIGS thin-film solar cells have manifested high efficiency and stability. R&D efforts aim to achieve ongoing process optimizations in manufacturing, cost reductions, and improvement in scalabilities of CIGS technology in residential installations.

Restraint:Growing privacy concerns owing to collection and analysis of data related to individuals

Thin-film photovoltaics faces competition, due to presence of other renewable energy sources, such as wind power, hydropower and traditional fossil fuel. Hydropower is very efficient and dependable for large-scale operations since it can generate considerable electricity over a long period. On the other hand, wind power is the energy harnessed by the wind, due to the highly scalable nature and used both on small and large scales in forms such as individual homes and wind farms to generate electricity.

Also, thin-film photovoltaic technology generally has lower conversion efficiencies than crystalline silicon solar cells. Improving efficiency while maintaining cost-effectiveness is a major restraint for market growth. In addition, some thin-film photovoltaic technologies rely on rare or expensive materials, which could present limitations in terms of scalability and cost reduction. Thus, the availability of substitutes for solar renewable resources is restraining the market growth.

Opportunity: Integration of thin-film solar cells into windows, facades, and roofs

The integration of thin-film solar cells into windows, facades, and roofs offers a significant opportunity for the thin-film photovoltaic market. Thin-film solar cells can be integrated easily into materials used for buildings to generate energy surfaces. This enhances space utility  and adds to the appeal of the building's architecture. Thin-film solar technologies have different colors and are transparent to allow fitting into any cosmetic location. This makes them suitable for architects and designers to incorporate renewable energy without along with visual design.

Challenge: Growing popularity of traditional crystalline silicon solar cells in large-scale solar installations

The growing popularity of crystalline silicon solar cells, particularly in large farms, creates a significant challenge for the thin-film photovoltaic industry. Most crystalline silicon solar cells have a higher energy conversion efficiency than thin films. This, therefore, creates more interest in large-scale applications where maximum output is desired. Moreover, the cost of crystalline silicon solar panels has come down drastically because of improved manufacturing techniques and better economies of scale. This will make them very competitive against thin-film alternatives, especially for larger projects.

Thin-film photovoltaic Map/Ecosystem:

Thin-Film Photovoltaic Market Segmentation

Rigid type segment is expected to hold the largest market share in the thin-film photovoltaic market during the forecast period.

Rigid thin-film photovoltaics are fabricated on glass or other strong substrates. This makes them durable, solid, stable, and more efficient compared to the flexible thin-films. Generally, these panels have higher mechanical stability and durability compared to their flexible thin-films. Rigid thin-film cells can be fabricated efficiently by roll-to-roll processing and are therefore suitable for large solar farms. This allows for faster and more cost-effective production of large quantities of solar panels. Moreover, rigid thin-film solar cells use less semiconductor material compared to conventional silicon solar cells; hence, their material costs will be lower.

Commercial and Industrial in the end use segment is expected to witness highest growth rate in the thin-film photovoltaic market during the forecast period.

Businesses are actively investing in renewable sources of energy in order to reduce their carbon footprint and energy costs. One of the main strengths is associated with installation of thin-film solar panels as these are relatively flexibility and light favoring diverse applications for building material integration into facade and roofing parts. Moreover, improvements in thin-film technology are continually improving efficiency and durability, making the panels more effective against traditional solar technologies. These are the developments that continue to fuel the adoption in the commercial and industrial segments.

Modules in the component segment are expected to witness highest growth rate in the thin-film photovoltaic market during the forecast period.

Solar PV modules are interconnected PV cells that augment their power output. The modules are key component and accounts for the major cost of the overall system. For example, in June 2023, First Solar stated that it had started the run production of first-of-its-kind bifacial solar panels using advanced thin-film semiconductors. A fully functional version of the Series 6 Plus Bifacial photovoltaic module was developed at Intersolar Europe in Munich, Germany.

Thin-Film Photovoltaic Market Regional Analysis

Asia Pacific is expected to hold largest share in the thin-film photovoltaic market during the forecast period.

The Asia Pacific thin-film photovoltaics market share is projected to hold the largest share during the forecast period. Global market players from Asia Pacific countries like China, Japan, India, and South Korea are experiencing increased demand for solar cells. Favorable government policies in these countries contribute to the growth of the thin-film photovoltaics market size in Asia Pacific. Governments of countries such as China, India, and Australia have taken various initiatives in the past few years to increase the adoption of solar energy. This is leading to rise in demand for traditional as well as thin-film photovoltaics in the region.

Thin-Film Photovoltaic Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Top Thin-Film Photovoltaic Companies - Key Market Players:

Major vendors in the thin-film photovoltaic companies include First Solar (US), KANEKA CORPORATION (Japan), Ascent Solar Technologies, Inc. (US), Oxford Photovoltaics Ltd. (UK),  Hanwha Qcells (South Korea), SHARP CORPORATION (Japan), JA SOLAR Technology Co., Ltd. (China), MiaSole. (US), AVANCIS GmbH (Germany),  Solbian (Italy), SOLARA (Germany), Custom Solar BIPV Panels – MetSolar (Lithuania), Enecom S.r.l. (Italy), TRONY  (China),   NanoPV Solar Inc. (New Jersey), QS SOLAR (China), Heliatek (Germany), Wuxi Suntech Power Co., Ltd. (China), Jinko Solar (China), Trinasolar (China), Panasonic Holdings Corporation (Japan), Sol Voltaics (Sweden), Tandem PV, Inc. (US), SOLAR FRONTIER K.K. (Japan), and REC Solar Holdings AS (Norway), among others.

Thin-Film Photovoltaic Report Scope : 

Thin-Film Photovoltaic Market Trends & Highlights

This research report categorizes the thin-film photovoltaic market based on by material, type, component, end use and Region

Recent Developments in Thin Film Photovoltaics Industry :

• In March 2024, JA SOLAR Technology Co., Ltd. (China) signed agreements with Pakistani firms Garibsons, SM Solar, and Wasiq Traders to supply PV modules totaling a capacity of 600 MW. This agreement will promote sustainable and low-carbon energy solutions in Pakistan.
• In April 2023, Ascent Solar Technologies, Inc. (US) launched a new, easy-to-integrate space hardware development kit (HDK) at the Space Foundation (Colorado). It is designed for missions, including CubeSat, smallsat, and electric propulsion-optimized arrays that provide both vehicle mass savings and improved performance.
• In March 2023, KANEKA CORPORATION (Japan) collaborated with the Tokyo Bureau of Environment to start power generation under the Renewable Energy Visualization Model Project for Tokyo-owned Facilities.
• In April 2023, Hanwha Qcells (South Korea) announced its pledge to 1t.org, the World Economic Forum’s Trillion Trees Platform, to create 20 forests worldwide by 2030. This initiative aims to deliver tangible and practical solutions for individuals, society, and the planet. The company also unveiled its 10th Hanwha Solar Forest, a carbon-neutral forest initiative that focuses on ecosystem restoration and biodiversity, benefiting both local economies and environments.

Critical questions answered by this report:

To speak to our analyst for a discussion on the above findings, click Speak to Analyst