Thin-Film - Fast Developing Solar PV Technology Market

Friday 13 January 2012, Amsterdam

The global solar Photovoltaics (PV) market is dominated by silicon-based technology. Thin-film technology evolved from the early 2000s, but production remained marginal until 2006. Further, the crystalline silicon PV supply experienced a polysilicon shortage and became prohibitively expensive, thereby shifting the focus of solar PV module manufacturers towards thin-film module technology. Thin-film modules, benefiting from advancing technologies, have since experienced increased market presence in the solar PV market, growing from 8% in 2006 to 17% in 2010.


Global Thin-Film Market Volume to be More Than 15GW by 2020

The growth of the global thin-film market over the past five years has been remarkable. Production grew at a Compounded Annual Growth Rate (CAGR) of 105% from 2006 to 2010. This growth was due to various market drivers such as, a contraction in Crystalline Silicon (c-Si) modules supply due to polysilicon shortage, the development of favorable policies by federal governments and thin-film technology advancements. Many new players arrived on the scene and established crystalline module manufacturers increased their profits, mitigated risks and expanded their product portfolios. By 2010, thin-film production reached 3,627 Megawatts (MW), capturing 17% of the global solar PV market.  With the technological advancements towards the development of efficient and cost effective thin-film modules, the market is expected to grow at a CAGR of 16% over the period 2010-2020, reaching 15,895 MW of market volume by 2020.


Germany and the US are Key Countries for the Industry

The major thin-film countries globally are Germany, the US, China, Japan and Taiwan. These countries collectively accounted for 69% of the market share of the thin-film market in 2010. Germany is the biggest thin-film market globally with a market share of 19% in 2010. The US is the second largest thin-film market with a market share of 16% in 2010. China, Japan and Taiwan are the main thin-film countries in the Asia-Pacific region. These countries accounted for 12%, 12% and 10% respectively of the global thin-film market in 2010. Other emerging countries active in thin-film market development are Malaysia, India, the Netherlands, Italy and the South Korea.


The Global CdTe Technology Market Accounted for 40% of Production in 2010

In 2010, around 80% of production in the global thin-film market was through the development of Cadmium Telluride (CdTe) and Amorphous Silicon (a-Si) technology markets. With high efficiencies and low manufacturing costs, CdTe technology will have high growth potential in the next 10 years. Copper Indium Gallium Selenide/Copper Indium Diselenide (CIGS/CIS) is still the emerging technology in the thin-film market. However, with further technological advancements to improve efficiencies, the a-Si market can also increase due to lower silicon prices. Below mentioned figure provides a comparison across the three technologies based on efficiencies, manufacturing costs and production in 2010, where size of the bubble represents production.