Next-Generation Solar Cell Market by Material Type (Cadmium Telluride (CdTe), Copper Indium Gallium Selenide (CIGS), Amorphous Silicon, Gallium-Arsenide, Others), Installation (On-Grid, Off-Grid), End User and Geography - Global Forecast to 2028
[191 Pages Report] The next-generation solar cell market is valued at USD 3.0 billion in 2023 and is projected to reach USD 7.4 billion by 2028, growing at a CAGR of 19.5% from 2023 to 2028. High installation cost is a major restraint on the market's growth. One of the major challenges for the market is supply chain. The supply chain requires collaborating with industry stakeholders, material suppliers, manufacturers, and research institutes.
Next-Generation Solar Cell Market Forecast to 2028
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Market Dynamics:
Driver: Technological advancements in next-generation solar cells
The solar cell has different generations based on development. The first-generation solar cell includes solar cells based on crystalline silicon material. The second-generation solar cells are thin film solar cells which is the primary focus of this report. It includes materials cadmium telluride (CdTe), amorphous silicon (a-Si), copper indium gallium selenide (CIGS), and Gallium Arsenide (GaAs). The third generation of solar cells is new in the market; some are not yet commercialized. Third-generation solar cells in organic solar cells, dye-sensitized solar cells, and perovskite solar cells have been included in other sections. Technological advancements such as the development of Thin-Film technology are making it possible to create solar cells that are more efficient, cost-effective, and durable while using less material. For instance, In June 2022, researchers at Princeton University developed the first commercially viable perovskite solar cells, which can be manufactured at room temperature and requires less energy to produce than any other solar cell, such as silicon-based solar cells.
Overall, the empowerment and development of new and improved solar cell technologies are helping to make solar energy more cost-effective and practical for a broader range of applications. As solar power technologies continue to evolve and mature, they are expected to grow during the forecast period.
Restraint: High installation costs
Solar energy is cost competitive compared to traditional fossil fuels, but the installation costs of solar cells are relatively high, which is a significant barrier for homeowners and businesses, especially with limited financial resources. The permits and inspection costs from local authorities depend highly on locations and the installed system type. In some cases, additional equipment such as inverters, batteries, and monitoring systems costs can add up. Labor costs can also be a significant factor in solar installation costs. Highly skilled workers are often required to install solar panels and related equipment, and these workers may charge higher wages. Other factors, such as site preparation for solar installation, can also be costly, particularly in cases where the ground needs to be leveled or other site preparation is required.
Opportunity: Surging demand for renewable energy
In the past few years, the demand for renewable energy has surged. With governments worldwide coming together for initiatives such as the Paris Climate Agreement, the demand for renewable energy, such as solar, is set to rise in the coming years. According to a 2018 report by the International Energy Agency, renewables will have the fastest growth in the electricity sector, catering to almost 30% of the power demand by 2023. During this period, renewables are forecast to account for more than 70% of global electricity generation, led by solar PV. Moreover, according to a March 2020 report by the International Renewable Energy Agency, solar and wind energy continued to dominate renewable capacity expansion, jointly accounting for 90% of all net renewable additions in 2019. Solar energy prices are already below retail electricity prices in major countries such as China. Besides, the cost of solar power is anticipated to decline by 15–35% by 2024, which is expected to spur the demand for solar cells and create growth opportunities for the next-generation solar cell market players.
Challenge: Supply chain issues in the next-generation solar cell market
Although there are many promising advantages of next-generation solar cells over traditional solar cells, some challenges need to be addressed before next-generation solar cells are widely adopted. Some of these challenges are the manufacturing costs of next-generation solar cells. The cost is generally higher than that of traditional solar cells. As the next-generation solar cells are not widely adopted, and their efficiency is still under research, they are manufactured in scale, so the cost is usually high. As the next-generation solar cells are still in the early stages of development, scaling up their production needs for large-scale energy systems will be challenging. New manufacturing techniques and supply chains will need to be developed to support their mass production.
Along with this, toxicity is one of the major concerns. Some next-generation solar cells, such as those based on cadmium, contain toxic materials that can pose health and environmental risks. Finding safe and sustainable materials for use in these cells will be an essential consideration for their widespread adoption. Thus, the harmful effects of these toxic materials are expected to hamper their demand and market growth challenges.
Next-Generation Solar Cell Market Ecosystem:
Perovskites solar cells, organic solar cells, and dye-sensitized solar cells materials to hold the highest CAGR during the forecast period
Other material includes perovskites solar cells, organic solar cell, and dye-sensitized solar cells. Perovskite-structured materials used in solar cells are generally hybrid organic-inorganic lead or tin-halide materials, such as methylammonium lead halide. The fabrication of these materials is simple and inexpensive as they are solution-processed. Hybrid metal halide perovskite solar cells (PSCs) have garnered great attention due to their low price, thinner design, low-temperature processing, and excellent light absorption properties (good performance under low and diffuse light).
Aerospace & defense and portable electronic devices end-user industries segment to dominate the market during the forecast period
Other end-user industries include aerospace & defense and portable electronic devices. In the aerospace & defense vertical, solar panels are used in drones and high-altitude pseudo satellites (HAPS). Aerospace & defense vertical companies are constantly developing solar energy-based products to meet the cost and energy demands while maximizing the aerodynamic efficiency to perform missions efficiently. Solar cell-powered aircraft fly at higher elevations for long periods but with relatively limited applications, such as a tiny wing loading for cargo.
Asia Pacific region is expected to exhibit the highest CAGR during the forecast period
Asia Pacific is expected to continue to dominate the next-generation solar cell market from 2023 to 2028. The growing adoption of PV modules in countries such as China, Japan, and India is fueling the regional market's growth. Next-generation solar cells have higher efficiency and excellent natural and artificial light performance than silicon-based cells. The thickness of a next-generation solar cell is under one micron and can be manufactured at low temperatures using low-cost technologies, such as printing.
Next-Generation Solar Cell Market by Region
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Key Market Players
First Solar (US), Hanwha Q CELLS (South Korea), Ascent Solar Technologies (US), Oxford PV (UK), Kaneka Solar Energy (Japan), Flisom (Switzerland), Solactron (US), Mitsubishi Chemical Group (Japan), MiaSole (US), and Hanergy thin film power group (China), are some key players operating in the Next-Generation Solar Cell Companies.
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Report Metric |
Details |
Market size available for years |
2019–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion) |
Segments Covered |
Material Type, Installation, End-User Industry, and Region. |
Regions covered |
North America, Asia Pacific, Europe, and RoW |
Companies covered |
First Solar (US), Hanwha Q CELLS (South Korea), Ascent Solar Technologies (US), Oxford PV (UK), Kaneka Solar Energy (Japan), Flisom (Switzerland), Solactron (US), Mitsubishi Chemical Group (Japan), MiaSole (US), and Hanergy thin film power group (China), Heliatek (Germany), Polysolar Technology (US), NanoPV technologies(US), 3D-Micromac(Germany), Suntech Power Holdings (China), Sharp Corporation(Japan), Trina Solar (China), Panasonic Corporation(Japan), Sol Voltaics(Sweden), Geo Green Power(England), Jinko Solar (China), Canadian Solar(Canada), Sunpower Corporation(US), Yingli Solar(China), REC Group(Norway) are the key players operating in the next-generation solar cell market. |
Next-Generation Solar Cell Market Highlights
This research report categorizes the next-generation solar cell market based on material type, installation, end-user industry, and region.
Segment |
Subsegment |
By Material Type |
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By Installation |
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By End User Industry |
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By Region |
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Recent developments
- In July 2022, Hanwha Q CELLS acquired 66% of LYNQTECH GmbH, a subsidiary of enercity AG, to further its focus as a full-service provider of clean energy solutions for residential and commercial end-users.
- In April 2022, First Solar announced that its responsibly produced photovoltaic (PV) solar module technology would power 17% of the annual energy needs of Nevada Gold Mines (NGM), the single largest gold-producing complex in the world. NGM is a joint venture between Barrick Gold Corporation and Newmont Corporation operated by Barrick.
- In January 2022, Ascent Solar Technologies partnered with Momentus, a developer and manufacturer of novel 'last mile space solutions, to produce customized, flexible CIGS PV modules to provide power to a demonstration deployable PV array to fly on an upcoming Vigoride spacecraft—scheduled for flight in 2022.
Frequently Asked Questions (FAQ):
What are the key strategies adopted by key companies in the next-generation solar cell market?
Product launches, acquisitions, and collaborations have been and continue to be some of the major strategies adopted by the key players to grow in the next-generation solar cell market.
Which is the potential market for the end use application?
The Asia Pacific region will dominate the next-generation solar cell market.
What end-user industry dominates the next-generation solar cell market?
Utilities are expected to dominate the next-generation solar cell market.
Which material type dominates the next-generation solar cell market?
Cadmium Telluride (CdTe) is expected to have the largest market size during the forecast period.
Who are the major companies in the next-generation solar cell market?
First Solar (US), Hanwha Q CELLS (South Korea), Ascent Solar Technologies (US), Oxford PV (UK), Kaneka Solar Energy (Japan).
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The study involved four major activities in estimating the current size of the next-generation solar cell market—exhaustive secondary research collected information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Various secondary sources have been referred to in the secondary research process for identifying and collecting information important for this study. These secondary sources include next-generation solar cell technology journals and magazines, annual reports, press releases, investor presentations of companies, white papers, certified publications and articles from recognized authors, and directories and databases such as Factiva, Hoovers, and OneSource.
Primary Research
Various primary sources from both supply and demand sides have been interviewed in the primary research process to obtain qualitative and quantitative information important for this report. The primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related executives from key companies and organizations operating in the next-generation solar cell market. After complete market engineering (including calculations regarding market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information as well as to verify and validate the critical numbers arrived at.
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Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the next-generation solar cell market and other dependent submarkets listed in this report.
- Extensive secondary research has identified key players in the industry and market.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Next-Generation Solar Cell Market: Bottom-Up Approach
Next-Generation Solar Cell Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the global market has been split into several segments and subsegments. Market breakdown and data triangulation procedures have been employed wherever applicable to complete the overall market engineering process and arrive at exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends identified from both the demand and supply sides.
Market Definition
The Solar Energy Industries Association (SEIA) defines a solar cell as a device that converts light into electricity using the photoelectric effect. Specifically, a solar cell is made of semiconductor material, such as silicon, that absorbs photons of light and releases electrons. These electrons can then be captured as an electrical current, which can be used to power a wide variety of devices and applications, from small electronics to large power grids. Solar cells are often combined into modules or panels to create larger systems that can generate significant amounts of clean, renewable energy from the sun.The solar cell has different generations based on development. The first-generation solar cell includes solar cells based on crystalline silicon material. The second-generation solar cell solar cells are thin film solar cells which is the major focus of this report. It includes materials cadmium telluride (CdTe), amorphous silicon (a-Si), copper indium gallium selenide (CIGS), and Gallium Arsenide (GaAs). The third generation of solar cells is very new in the market; some are not yet commercialized. In other sections, third-generation solar cells that are in organic solar cells, dye-sensitized solar cells, and perovskite solar cells have been included.
Key Stakeholders
- Solar cell manufacturers
- Solar module manufacturers
- Energy Companies
- Raw materials and manufacturing equipment suppliers
- Solar market technical consultants
- Technology standards organizations, forums, alliances, and associations
- Governments, financial institutions, and investment communities
- Research organizations
- Analysts and strategic business planners
- Venture capitalists, private equity firms, and start-up companies
- Distributors
Report Objectives
The following are the primary objectives of the study.
- To describe, segment, and forecast the next-generation solar cell market based on type and end-user industry in terms of value.
- To describe and forecast the market for four key regions: North America, Europe, Asia Pacific, and the Rest of the World (RoW), in terms of value.
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the next-generation solar cell market
- To provide a detailed overview of the supply chain and ecosystem pertaining to the next-generation solar cell market and the average selling price of PV modules.
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 about individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of the market.
- To analyze competitive developments such as product launches and developments, expansions, partnerships, collaborations, contracts, and mergers and acquisitions in the next-generation solar cell market
- To strategically profile the key players in the next-generation solar cell market and comprehensively analyze their market ranking and core competencies2.
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Next-Generation Solar Cell Market