PV Module BOM Materials Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030
Page: 215 | Report Code: EP240424 | Research Suite: Report (PDF) & Market Data (Excel)
The bill of materials (BOM) for photovoltaic (PV)
modules encompasses the various materials essential for solar panel
manufacturing. These materials are largely dictated by factors such as the
specific solar cell technology employed (e.g., monocrystalline,
polycrystalline, and thin-film), manufacturing processes, and individual
manufacturer requirements. Serving as the foundational elements of a
photovoltaic module, the selection and quality of these components
significantly impact the efficiency, durability, and cost-effectiveness of the
final solar panel.
PV Module BOM Materials Market
With a compound annual growth rate (CAGR) of 8.6%
from 2023 to 2030, the global market for BOM materials for PV modules is
projected to be worth around USD 180.0 billion in 2022. Technology developments
targeted at improving sustainability and efficiency, as well as rising
competitiveness about traditional energy sources, are the main factors
propelling the market. Global solar energy installations are also spreading
around the globe. Concerns about sustainability and environmental restrictions
drive demand for eco-friendly materials and processes, while supply chain
characteristics, such as raw material cost and availability, play a major
impact. Sunlight demand is mostly driven by government policies like feed-in
tariffs and subsidies. Asia Pacific, with China as the primary production and
consumer, is the largest and fastest-growing market.
PV Module BOM Materials Market Growth Drivers:
Because PV technology is becoming more affordable,
solar energy has grown significantly and is now more competitive with
traditional sources of electricity. As a result, solar installations across
utility-scale projects, household projects, and commercial projects have
rapidly increased globally. Growth prospects for manufacturers and suppliers in
the PV module BOM materials market are brought about by the commensurate rise
in the use of these materials that comes with the deployment of additional
solar panels.
The goal of ongoing innovation in PV module
materials is to increase the cost-effectiveness, longevity, and efficiency of
solar panels. For instance, improvements in silicon wafer technology have
produced smaller wafers and greater conversion efficiencies, which have
increased the efficiency of solar cells. Furthermore, the creation of novel
materials for thin-film solar cells, such as perovskite, holds promise for
further efficiency improvements and cost reductions in the future.
The demand for solar energy and, by extension, PV
module materials is largely driven by government policies and incentives. To
promote the use of solar electricity, several governments across the world have
put in place favorable laws including net metering plans, feed-in tariffs, tax
credits, and objectives for renewable energy. These regulations encourage
companies, homes, and utilities to install solar panels by fostering an
atmosphere that is conducive to investment in solar projects.
A greater emphasis on sustainability has been seen
in many businesses, including the solar energy sector, as a result of growing
environmental consciousness and worries about climate change. The PV sector is
seeing a rise in demand for environmentally friendly materials and production
techniques as a result. Producers are implementing strategies to lower the
carbon footprint of solar panels and limit environmental effects throughout the
manufacturing process.
PV Module BOM Materials Market Segmentation:
·
By Material Type: Semiconductor, Encapsulation Material, Backsheets, Glass, Assembly
Materials, Other Materials
·
By Distribution Channel: Direct OEM Sales, Distributors, Online Retailers, Specialty Stores
·
By End-User Sector: Residential Sector, Commercial & Industrial Sector, Utility Sector,
Agriculture Sector, Transportation Sector, Military & Defense Sector, Other
End-User Sectors
·
By Region: North America, Europe, Asia-Pacific, Latin America, Middle East &
Africa
PV Module BOM Materials Market Material Type Segment Review
The fundamental part of solar cells in
photovoltaic modules are silicon wafers. Usually, silicon, either
monocrystalline or polycrystalline, is used to make them. Although they operate
better in low light and have higher efficiency, monocrystalline silicon wafers
are often more expensive to create. PV modules' front and rear glass are joined
to the solar cells by encapsulants like ethylene-vinyl acetate (EVA). The
creation of multi-layer backsheets with improved thermal stability and UV
radiation resistance is one example of how advances in back sheet technology
have extended the life of solar panels. Because of their simplicity of
production, lightweight nature, and resistance to corrosion, aluminum and steel
frames are frequently utilized.
PV Module BOM Materials Market Distribution Channel Segment Review
producers who engage in direct sales to solar
panel producers or integrators supply the BOM materials for PV modules. When
direct connection between suppliers and consumers is crucial, they are
frequently used for bulk purchases or bespoke solutions. Digital channels for
buying PV module BOM materials include online platforms, such as e-commerce
websites and online marketplaces. To satisfy client demands, distributors and
wholesalers provide extra services including inventory management, logistics,
and technical assistance.
PV Module BOM Materials Market End-User Sector Segment Review
Residential PV installations supply clean energy
for lighting, heating, cooling, and domestic appliances. They usually range
from rooftop solar systems to ground-mounted arrays. This market is expected to
increase as a result of households installing more solar energy systems due to
factors including rising power costs and greater environmental consciousness.
Financial incentives that lower the initial cost of solar systems and increase
return on investment, such as net metering, tax credits, and rebates, are
frequently advantageous to homeowners and small companies. Solar energy is
becoming more and more popular as a strategic investment since businesses in
the C&I industry may benefit from cost savings, energy independence, and
corporate sustainability programs.
PV Module BOM Materials Market Regional Synopsis:
With a substantial portion of production and
consumption, APAC, driven by China, leads the world market for PV module
manufacturing. From 2023 to 2030, the region is expected to develop at a
compound annual growth rate of XX.X%. The nations in Asia-Pacific region serve as
centers for solar energy technical innovation, promoting breakthroughs in
material research, production techniques, and module efficiency. India is one
of the biggest nations in the area. The national wind-solar hybrid policy of
India, as stated by the Ministry of New and Renewable Energy (MNRE), is a
framework for encouraging big grid-connected wind-solar PV hybrid systems. With increasing investments and ambitions for
renewable energy, Asian nations including Vietnam, Thailand, and Indonesia are
becoming important markets for PV module materials.
The market for solar energy in Europe is
well-established, with feed-in tariffs, renewable energy targets, and
established laws encouraging the broad use of PV modules. Consolidation is a
defining feature, as top firms increase their market share through partnerships
and acquisitions. In PV module materials, the markets place a premium on
sustainability, quality, and dependability, which fuels consumer demand for
high-performing green products.
The market environment in North America is varied,
with the US leading the way in solar installations, followed by Canada and
Mexico. The US Census Bureau reports that the semiconductor and other
electronic component business in the US generated USD 100.08 billion in sales
in 2019 and is projected to grow to USD 105.16 billion by 2023. Adoption of
technology is prioritized by the markets, which results in the use of
sophisticated PV module materials and systems including energy storage
solutions, smart inverters, and bifacial modules. In the North American PV
module materials industry, trade dynamics - such as taxes on imported solar
components - have an impact on supply chain resilience and material sourcing
methods.
The deployment of solar energy is encouraged by
the implementation of laws, auctions, and incentives by the governments of
nations like Brazil, Chile, and Mexico, which raises demand for the materials
used in PV modules. Requirements for local content are implemented in several
Latin American nations to encourage local production and assembly of PV
components and modules.
Large-scale solar project investments are made by
Gulf Cooperation Council (GCC) nations including Saudi Arabia and the United
Arab Emirates, which increases demand for PV module materials and technologies.
Off-grid solar solutions are becoming more and more popular in MEA markets,
especially in sub-Saharan Africa. This is opening up new markets for
decentralized PV module materials and systems.
PV Module BOM Materials Market Key Challenges:
Variations in raw material pricing and
accessibility significantly impact businesses' profit margins and production
costs. Silicon, crucial for solar cell manufacturing, faces disruptions or
price fluctuations affecting the entire PV module supply chain. Metals like
copper and silver, used in busbars and interconnects, also face price changes
due to market demand and economic factors. Geopolitical unrest, trade disputes,
and supply chain disruptions exacerbate raw material challenges, leading to
shortages and higher prices for PV module producers.
The evolution of solar cell technologies, such as
tandem, bifacial, and PERC, increases demand for innovative materials enhancing
PV module performance and reliability. Developments like solar-powered vehicles
and building-integrated photovoltaics (BIPV) pose additional demands for
materials with specific qualities like flexibility, transparency, and
lightweight.
Ensuring the long-term reliability of solar panels
requires adherence to strict quality standards and performance requirements for
PV module materials. Issues like deterioration, delamination, or material flaws
lead to recalls, warranty claims, and reputational damage. Supply chain
interruptions from natural disasters or geopolitical events further affect customer
relations and market competitiveness by disrupting material procurement and
manufacturing schedules.
PV Module BOM Materials Market Key Global Players:
The competitive landscape of the PV module BOM
materials market is shaped by several factors, including:
·
Continuous innovation in materials
science and manufacturing processes is key in the PV module BOM materials
market, driving competition. Manufacturers investing in research and
development to enhance material performance, efficiency, durability, and cost-effectiveness
gain a competitive edge.
·
Cost competitiveness is significantly
vital with companies focusing on reducing production costs and offering
competitive pricing. Optimization of material usage, improved manufacturing
efficiency, and leveraging economies of scale contribute to gaining a
competitive advantage, especially in emerging economies.
·
Companies adhering to stringent
quality control standards, certification requirements, and reliability testing
procedures differentiate themselves by offering high-quality, dependable
materials.
·
Effective supply chain management is
critical for timely sourcing, production, and delivery of materials. Companies
maintaining strong supplier relationships, efficient inventory management, and
risk mitigation strategies are better positioned to meet customer demands and
navigate market fluctuations.
Numerous players are vying for market share and
investing in new technologies and product development to stay ahead of the
curve in the market. Several key global players in the PV module BOM materials
market include:
·
DuPont
·
Dow
·
Wacker Chemie
·
Coveme S.P.A.
·
3M
·
Saint-Gobain
·
Trina Solar
·
Hangzhou First Applied Material Co.,
Ltd.
·
JA Solar Technology Co.
·
AGC Inc.
·
Xinyi Solar Holdings Ltd.
·
TE Connectivity Ltd.
·
Ulbrich Stainless Steels &
Special Metals, Inc.
·
Henkel AG & Co. KGaA
·
H.B. Fuller
·
Other Players
The report on the PV module BOM materials market
covers the following aspects:
·
Market Overview: A general overview
of the global PV module BOM materials market, including its current size and
growth projections for the future.
·
Market Segmentation: A market
breakdown by material type, distribution channel, end-user sector, and
geographic regions.
·
Market Dynamics: An analysis of the
key drivers, challenges, and trends affecting the growth of the PV module BOM
materials market.
·
Competitive Landscape: A
comprehensive analysis of the leading players in the PV module BOM materials
market, including their market share, product offerings, and key strategies.
·
Regional Analysis: A detailed
analysis of the PV module BOM materials market by geographic region, including
market size, growth projections, and key trends for each region.
·
Company Profiles: In-depth profiles
of key players in the PV module BOM materials market, including their business
overview, product offerings, financial performance, and recent developments.
· Market Forecast: Projections for the future growth of the PV module BOM materials market, including market size, growth rate, and key trends for the next five to ten years.
Attributes |
Details |
Base Year |
2022 |
Trend Period |
2020 – 2022 |
Forecast Period |
2023 – 2030 |
Pages |
215 |
By Material Type Segment |
Semiconductor,
Encapsulation Material, Backsheets, Glass, Assembly Materials, Other
Materials |
By Distribution Channel Segment |
Direct
OEM Sales, Distributors, Online Retailers, Specialty Stores |
By End-User Sector Segment |
Residential
Sector, Commercial & Industrial Sector, Utility Sector, Agriculture
Sector, Transportation Sector, Military & Defense Sector, Other End-User
Sectors |
Company Profiles |
DuPont, Dow, Wacker
Chemie, Coveme S.P.A., 3M, Saint-Gobain, Trina Solar, Hangzhou First Applied
Material Co., Ltd., JA Solar Technology Co., AGC Inc., Xinyi Solar Holdings
Ltd., TE Connectivity Ltd., Ulbrich Stainless Steels & Special Metals,
Inc., Henkel AG & Co. KGaA, H.B. Fuller, and Other Players |
Edition |
4th edition |
Publication |
April 2024 |