PUBLISHER: IMARC | PRODUCT CODE: 1754020
PUBLISHER: IMARC | PRODUCT CODE: 1754020
The global thin film solar cell market size reached USD 17.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 44.2 Billion by 2033, exhibiting a growth rate (CAGR) of 10.2% during 2025-2033. The increasing adoption of renewable energy sources due to the rising environmental concerns among the masses is primarily driving the market.
Increasing Initiatives by Government Authorities
The thin film solar cell market is witnessing significant growth, owing to the rising adoption of renewable energy as a primary fuel. In addition to this, government authorities of various nations are taking initiatives to minimize greenhouse emissions and increase environmental benefits in the long run, which is creating a positive outlook for the global thin film solar cell market. For instance, in February 2024, the Government of India launched the Rooftop Solar/PM Surya Ghar Muft Bijli Yojana. Under the Rooftop Solar Scheme, the government will provide subsidies for installing solar panels for up to 2 kW - Rs. 30,000 per kW and additional capacity up to 3 kW - Rs. 18,000 per kW. This installation will decrease reliance on grid-connected electricity, leading to cost savings. Similarly, in September 2023, the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) released the advancing U.S. thin-film solar photovoltaics funding opportunity, which awarded US$ 36 Million for R&D activities and demonstration projects on two major thin-film photovoltaic (PV) technologies. These policies and incentives are bolstering the adoption of solar panels and increasing the thin film solar cell market share.
Integration of Thin Film Solar Cells into Building Materials
The emerging trend towards the integration of thin-film solar cells into building materials, also known as building-integrated photovoltaics (BIPV), is further catalyzing the growth of the market. These films are increasingly being utilized in building materials, such as windows, facades, and roofs. Thin film solar cells offer design flexibility and can seamlessly integrate with various building materials and even with transparent surfaces of the building. Moreover, building accounts for almost 40% of global energy consumption, so in order to minimize this, BIPVs are widely being adopted, which is anticipated to offer significant growth opportunities to the overall market. Additionally, various government authorities of numerous developing nations are investing extensively in the development of sustainable and smart cities which will further propel the application of thin film solar cells.
Numerous Technological Advancements
Numerous innovations, such as advancements in the efficiency of solar panels, which enable more electricity to be generated from the same amount of sunlight, are acting as other significant growth-inducing factors. Various key market players are extensively investing in the production of advanced solar cells, which is positively impacting the market growth. For instance, Verde Technologies, a U.S.-based spinoff of the University of Vermont, developing lightweight and flexible perovskite solar modules, has made progress with its thin film coating technology in a pilot with Verico Technology, a contract manufacturer located in Connecticut. Moreover, Copper indium gallium selenide (CIGS), a type of semiconductor used to manufacture thin-film solar cells, has reached 21.7% efficiency in laboratory settings and 18.7% efficiency in the field, making CIGS a leader among alternative cell materials and a promising semiconducting material in thin-film technologies. Such innovations are anticipated to further drive the thin film solar cell market growth in the coming years.
Cadmium telluride accounts for the majority of the global market share
Cadmium Telluride (CdTe) thin film solar cells are manufactured at low costs, as cadmium can be generated as a byproduct of mining, smelting, and refining of zinc, lead, and copper. Among all solar energy technologies, cadmium telluride requires the least amount of water for production. CdTe thin-film PV solar cells have higher cell efficiencies up to 16.7% than other thin-film technologies. Moreover, the National Renewable Energy Laboratory (NREL) in the United States has been at the forefront of research and development (R&D) in this area.
On-grid currently exhibits a clear dominance in the market
On-grid systems are gaining traction, owing to their cost-effectiveness, simplicity, and the ability to use the grid as a virtual battery, thereby eliminating the need for energy storage in batteries. Consequently, government bodies are also encouraging the use of on-grid thin film solar cells, which is augmenting the market growth in this segment.
Currently, the utility sector holds the largest market share
Based on the end user, the global thin film solar cell market can be bifurcated into residential, commercial, and utility. Currently, the utility sector holds the largest market share.
The utility sector can be further categorized into military, power plant applications, defense, and industrial applications. Thin film solar cells are widely used in the utility sector, owing to their higher electricity generation at a lower cost. Thin film solar cells are widely adopted to build large-scale solar farms, where vast areas are covered with solar panels to generate electricity. These solar farms can be connected to the utility grid to provide electricity to various industries.
Asia-Pacific currently dominates the global market
On a regional level, the market has been classified into North America (United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia and Others), Europe (Germany, France, United Kingdom, Italy, Spain, Russia and Others), Latin America (Brazil, Mexico and Others), and Middle East and Africa. According to the report, Asia-Pacific currently dominates the global market.
Asia-Pacific dominated the market across the world with the majority of the demand coming from the countries, such as China and Japan. This can be attributed to the increasing deployment of solar panels in utility-scale, commercial, and residential applications.
In 2018, China's National Development and Reform Commission (NDRC) had written a draft policy that would increase the renewable energy target from 20% to 35%, by 2030. This, in turn, will augment the demand for thin film solar cells in the country. Around 40 GW of new renewable capacity was connected to the grid in 2019, with around 50% of the new capacity expected to come from large-scale solar plants. With factors, such as the upcoming utility-scale project, along with supportive policies and subsidies, the thin-film solar PV market in the Asia Pacific is expected to witness significant growth over the forecasted period.
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include: