Next-Generation Solar Cell Market Size, Share and Growth

Updated on : October 22, 2024

Next-Generation Solar Cell Market Size

The next-generation solar cell market size 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% during the forecast period 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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Next-Generation Solar Cell Market Trends and 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 next-generation solar cell 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:

Next-Generation Solar Cell Market Segmentation

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.

Next-Generation Solar Cell Industry Regional Analysis

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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Top Next-Generation Solar Cell Companies - 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),
• Hanergy thin film power group (China) are some key players operating in the Next-Generation Solar Cell Companies.

Next-Generation Solar Cell Market Report Scope

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.

Recent developments in Next-Generation Solar Cell Industry

• 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.

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