Global photovoltaic materials market to grow 9% annually through 2018: Lux Research

Despite massive oversupply and downward price pressure, photovoltaic materials market is showing strong growth. “Massive oversupply and downward price pressure have created the misconception that the solar industry suffered from industry-wide commoditisation. But not all solar modules are created equal, and profit margins can rise to double-digits for select enabling materials – even as overall materials sales volumes grow at a compound annual growth rate (CAGR) of 9.2% through 2018,” said Lux Research, a provider of strategic advice and ongoing intelligence for emerging technologies.
 
While materials such as frontsheet glass, polysilicon and ethylene vinyl acetate have the lowest profit margins, certain gases, metals, polymers, and process chemicals and solvents maintain double-digit margins. In fact, since mid-2009 solar materials have seen steadily increasing profit margins, with the exception of glass and polysilicon.
 
ALSO READ: FMCG companies banking on specialty chemicals to achieve sustainability

“While certain solar materials are commodities, many others still offer opportunity for differentiation and high margins through added performance,” said Fatima Toor, Lux Research Analyst and the lead author of the report titled, ‘Photovoltaic materials opportunities beyond commoditisation’. “Innovations in high-performance encapsulants, backsheets and metallisation pastes enable higher profitability by allowing module makers to improve efficiency and command higher prices,” she added.
 
According Lux Research report, innovative solar materials can have a dramatic effect on module efficiency. For example, high-performance encapsulants can enhance module efficiency by up to 1% absolute, while innovative backsheets can improve module efficiency by up to 3.5% absolute and improved metallisation pastes by 3% absolute.
 
In the Lux Research analysis of solar materials IP, DuPont leads in IP for solar encapsulants with 87 granted or applied patents. Dow Corning, LG Chem and Dai Nippon Printing lead in silicone-based encapsulants; Dow Chemical holds IP for liquid acrylic encapsulants; BASF’s key IP is on UV stabilisers for EVA- and non-EVA based encapsulants.