Silicon Solar Cells Market Size (2024– 2030)

The market for Silicon Solar Cells, valued at USD 2.49 billion, is forecasted to reach USD 4.29 billion by 2030, with an anticipated growth rate of 8.1% during the period of 2024-2030.

INDUSTRY OVERVIEW

The Photovoltaic (PV) cell manufacturing reached its peak in 2008, exceeding 7.9 GWp, with an average annual growth rate of over 40% in the preceding decade. Despite this growth, PV systems contribute less than 0.1% to the world's total electricity production. However, there is an expectation of continued expansion in PV cell output. Crystalline silicon PV cells, which have been manufactured for over 60 years, constitute the majority of solar cells produced, accounting for up to 90% of them. Silicon, comprising 26% of the Earth's crust, stands as one of the most abundant and environmentally friendly resources globally. Given its availability and safety, silicon solar cells hold a significant position in the PV industry. The capability for mass production positions silicon PV cells as the most promising solution to meet increasing demand, with a global annual PV cell output of 100 GWp anticipated by approximately 2022.

Among the various silicon-based semiconductor products, crystalline silicon PV cells are prominent. They function as diodes with semiconductor structures, with early solar cell production witnessing diverse approaches to crystalline silicon cells based on silicon semiconductor devices. Advancements in large-scale integrated circuits and other silicon-based semiconductor applications, coupled with the cross-pollination of equipment and technologies developed for PV cells, have propelled progress in both fields. Technological innovations such as photolithography for increased energy conversion efficiency and mass-production techniques like wire-saw slicing of silicon ingots have facilitated advancements in solar cell manufacturing. However, the value of PV cells per unit area remains substantially lower than other silicon-based semiconductor devices, necessitating the development of cost-effective manufacturing processes like silver-paste screen printing and fire for contact creation to enhance the output of crystalline silicon solar cells. Achieving higher solar cell efficiencies is crucial for attaining "grid parity" with current mains grid energy rates, emphasizing the importance of reducing material and production costs. A significant technological challenge faced by solar cell manufacturers is producing high-efficiency solar cells at low process costs, with efforts focused on reducing the price of high-purity crystalline silicon substrate production.

Despite the longstanding demand for renewable energy, the solar cell market has faced challenges due to economic weaknesses and an oversupply of subpar cells, resulting in a temporary plateau. Addressing this predicament involves reducing manufacturing costs and enhancing cell conversion efficiency. Research into new materials such as compound semiconductor thin films aims to lower manufacturing costs, while structural alterations seek to improve cell efficiency. Although thin silicon films and PERL-structured silicon solar cells have achieved notable efficiency records, mass production remains costly. Crystalline and amorphous silicon solar cells continue to dominate the solar industry, accounting for over half of the market share and retaining significance in the future photovoltaic (PV) market landscape.

IMPACT OF COVID-19 ON THE SILICON SOLAR CELLS MARKET

The COVID-19 pandemic is expected to result in a decline in the photovoltaic market, primarily due to government-imposed lockdowns aimed at curbing the virus's spread. Lockdown measures, such as those enacted by the Chinese government in January 2020, severely disrupted manufacturing operations, impacting production and supply chains. China, a major producer of PV modules, experienced significant disruptions, affecting global industrial capacity and leading to supply chain interruptions in March and April 2020. Additionally, manpower shortages and supply chain delays in the PV industry were compounded by lockdown measures implemented in other countries. Despite these challenges, the industry anticipates recovery starting in 2021, with full restoration projected by 2022.

MARKET DRIVERS:

Government initiatives and regulatory support are driving market expansion.

Various governments worldwide are enacting legislation to facilitate grid connections for solar installations, actively promoting solar energy adoption. Initiatives such as the Climate Action Incentive Fund (CAIF) in Canada aim to support renewable energy projects through financial incentives, contributing to the anticipated growth of the photovoltaic market during the forecast period.

Technological advancements in solar cell production are positively influencing market growth.

Recent years have witnessed significant technological advancements in the solar industry, including the development of perovskite, a solar material with superior light absorption properties. Perovskite cells outperform traditional PV cells, offering higher conversion efficiencies even in low lighting conditions. The affordability and abundance of perovskite make it a promising material for inexpensive solar electricity generation, with applications ranging from building integrated photovoltaics to flexible panel designs.

MARKET RESTRAINTS:

Insufficiently qualified labor for PV installation and maintenance may hinder market development.

The PV industry requires a diverse range of skilled personnel, from researchers to technicians, yet faces a shortage of adequately trained individuals. The lack of skilled installers and support specialists poses challenges to the adoption and implementation of PV installations, highlighting the need for recognized standards and certification processes throughout the industry.

Scarcity of operational land may impede market growth.

Utility-scale PV systems necessitate large land tracts for installation, raising concerns about habitat loss and land degradation. The increasing demand for usable land for solar projects, particularly in emerging markets like China and India, presents challenges for the expansion of the PV market.

SILICON SOLAR CELLS MARKET – BY PRODUCT

• Monocrystalline
• Multicrystalline

Categorized by product, the silicon solar cells comprise Monocrystalline and Multicrystalline. Projections indicate that from 2023 to 2030, Multicrystalline silicon cells will experience the most rapid growth, exceeding 25.0 percent. This expansion is expected to be driven by the simplicity of technological manufacturing processes, resulting in lower production costs compared to competitors. Additionally, increased demand for these cells is foreseen throughout the forecast period due to reduced initial costs and higher efficiency in residential and commercial applications. Industry participants are focusing on micro features such as crystallization and individual solar cell production procedures to mitigate solar cell efficiency loss. Fraunhofer ISE, a German research organization, has achieved notable efficiency in Multicrystalline solar cells, converting 22.3% of incident solar energy into electricity.

SILICON SOLAR CELLS MARKET - BY END-USE

• Utility-Scale
• Commercial
• Residential

Segmented by end-use, the silicon solar cells consist of Utility-Scale, Commercial, and Residential applications. The residential application market is projected to witness the highest Compound Annual Growth Rate (CAGR) during the forecast period. This is attributed to the recent decline in the price of PV systems. PV systems deployed on rooftops or other suitable locations where there is sufficient sunlight to meet household electrical demands are prominent in residential applications. Various governments, including those in India, China, and the US, offer financial incentives and tax breaks to homeowners installing PV systems, which is expected to propel the market for these systems in residential applications throughout the forecast period.

SILICON SOLAR CELLS MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Regionally, the Silicon Solar Cells Market encompasses North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. In 2021, Europe accounted for over 45% of the global installed capacity for solar cells. Growth is expected to be driven by the availability of favorable government regulations and incentives related to PV installations. Rising demand for these cells in the commercial and utility sectors is anticipated to further boost the market. Declining PV prices over the forecast period are expected to expand the market for crystalline silicon modules. Additionally, technical advancements aimed at enhancing operational efficiency are anticipated to drive the demand for thin-film solar cells in residential and commercial applications.

North America's solar cell demand exceeded 20 GW in 2021. The industry is poised to benefit from an increase in PV installations driven by consumers' growing awareness of the financial benefits of renewable energy systems in the region. However, a decrease in federal incentives and subsidies after 2020 is expected to result in fewer installations from the residential and commercial sectors, thereby impeding growth.

China's photovoltaic industry received investments totaling 80.8 billion yuan in the previous year, supporting forecasts for the sector. Chinese PV companies are aggressively entering emerging markets by acquiring international manufacturers and establishing factories abroad, positively impacting the size of the solar cell industry. By 2022, the Indian government aims to generate 50 GW of electricity using solar technology. Increased government programs and investments in sustainable energy are expected to increase market share.

SILICON SOLAR CELLS MARKET - BY COMPANIES

Key players in the Silicon Solar Cells Market include:

1. HANWHA Q CELLS CO., LTD.
2. SOLARWORLD AG
3. JA SOLAR HOLDINGS CO., LTD.
4. YINGLI SOLAR
5. SHARP CORPORATION
6. JINKO SOLAR
7. CANADIAN SOLAR INC.
8. CHINA SUNERGY
9. TRINA SOLAR LIMITED
10. SUNPOWER CORPORATION

NOTABLE DEVELOPMENTS IN THE SILICON SOLAR CELLS MARKET

PARTNERSHIP - In April 2020, LONGi and Swedish distributor Senergia entered into a contract for the sale of 9.2 MW of its Hi-MO4 modules. According to the agreement, there will be approximately 25,000 PV modules in total, comprising 23,400 370 W and 1,320 440 W units.

PRODUCT LAUNCH - JA Solar launched new Ga-doped wafer-based PV modules in March 2020. Ga-doped silicon wafer technology is expected to enhance stability and power generation capabilities.