PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877446
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877446
The Photovoltaic Materials Market size was valued at US$ 62,345.23 Million in 2024, expanding at a CAGR of 8.0% from 2025 to 2032.
Photovoltaic (PV) materials are substances used to convert sunlight into electricity in solar cells. Increasing deployment of solar farms and rooftop installations has stimulated demand, with over 120 GW of solar capacity added globally in 2024. High initial costs, material degradation under extreme conditions, and limited availability of rare elements continue to challenge widespread adoption. However, innovations in perovskite, multi-junction, and bifacial PV materials are improving efficiency and durability, while government incentives for renewable energy and corporate sustainability commitments create opportunities for expanded usage across commercial, residential, and utility-scale applications.
Photovoltaic Materials Market- Market Dynamics
Innovations in Perovskite and Multi-Junction Materials Propel Photovoltaic Market Expansion
In 2024, advancements in photovoltaic materials have significantly enhanced solar cell efficiency. Researchers at the University of Hong Kong developed a perovskite-based tandem solar cell achieving 26.4% efficiency, marking a substantial improvement in energy conversion rates. Additionally, bifacial perovskite solar cells have demonstrated efficiencies exceeding 20%, capturing sunlight from both sides to increase overall performance. These developments are paving the way for more efficient and cost-effective solar energy solutions, contributing to the growing adoption of renewable energy technologies worldwide.
The Global Photovoltaic Materials Market is segmented on the basis of Material Type, Product Type, Technology, End-User, and Region.
The market is divided into five categories based on Material Type: Crystalline Silicon, Copper Indium Gallium Selenide (CIGS), Cadmium Telluride (CdTe), Organic Photovoltaic Materials, and Perovskite Materials. Crystalline silicon leads the market due to high efficiency and widespread adoption. Perovskite materials follow, offering lightweight and flexible options. Organic photovoltaics rank next for niche applications, while CIGS and CdTe hold smaller shares, mainly used in thin-film and specialized modules.
The market is divided into three categories based on Product Type: Front Sheet, Encapsulant, and Back Sheet. Front sheets dominate the market as they protect solar cells while maximizing light transmission. Encapsulants follow, enhancing module durability and performance. Back sheets rank third, providing insulation and weather resistance, while other components, including junction boxes and adhesives, hold smaller shares in photovoltaic module construction.
Photovoltaic Materials Market- Geographical Insights
The photovoltaic materials market shows strong regional dynamics driven by technological capabilities and government policies. In Asia-Pacific, China dominates with Tongwei and JinkoSolar expanding polysilicon and module capacities, while Japan's Panasonic and Sharp focus on high-efficiency perovskite and silicon tandem cells. Europe leads with strategic collaborations like Italy's Bee Solar partnering with China's Huasun Energy to establish a PV production hub, and Germany's Wacker Chemie AG investing in high-purity silicon production for local solar cell manufacturing. North America is supported by the U.S. Department of Energy's MORE PV initiative, funding projects to enhance the recycling and sustainability of photovoltaic materials, reflecting a global emphasis on innovation and supply security.
Photovoltaic Materials Market- Country Insights
India is rapidly emerging as a global leader in photovoltaic (PV) materials manufacturing, driven by substantial investments and strategic initiatives. In 2024, the country added 25.3 GW of solar modules and 11.6 GW of cell manufacturing capacity, bringing the total to 90.9 GW and 37.2 GW, respectively. Gujarat, Tamil Nadu, and Telangana are key manufacturing hubs, with Gujarat alone accounting for 42% of module and 37% of cell production capacity. Notably, Avaada Electro's Butibori plant in Maharashtra became the first in India to produce 720 Wp TOPCon solar modules, with plans to scale up to 7 GW by July 2025. Additionally, Tata Power inaugurated a 4.3 GW solar module and cell manufacturing facility in Tamil Nadu, focusing on catering to the domestic market despite the growing export opportunities. These developments underscore India's commitment to enhancing its solar manufacturing capabilities and reducing reliance on imports.
The photovoltaic materials market is characterized by intense competition among global and regional players. Leading companies such as Wacker Chemie AG, DuPont, Honeywell International Inc., and Mitsubishi Materials Corporation are at the forefront, offering a range of materials including silicon-based, thin-film, and perovskite components. These firms are investing heavily in research and development to enhance the efficiency and durability of photovoltaic materials. For instance, Wacker Chemie AG has been focusing on producing high-purity silicon materials essential for solar cell manufacturing. Similarly, DuPont has been innovating in encapsulant materials to improve the longevity of solar modules. In Asia, companies like Tongwei and JinkoSolar are significant players, with Tongwei being the largest producer of high-purity polysilicon and solar cells globally. Despite China's dominance, European companies are striving to strengthen their positions through strategic collaborations and technological advancement.
In June 2025, Halocell Energy launched Australian-made Halocell Ambient perovskite PV modules for low-light conditions below 500 lux, suitable for indoor applications. The modules are 98% recyclable, and the company partnered with Sofab Inks to enhance performance.
In June 2024, Canon developed a high-performance material for perovskite solar cells, enhancing durability and stability. Coatable at 100-200 nm, it improves resistance to water, heat, and oxygen, with mass production planned in 2025 to boost adoption.