Organic Solar Cells Market Size, Share and COVID-19 Impact Analysis, By Application (Building Integrated Photovoltaic {BIPV}, Portable Electronics, Defense Application, Conventional Solar, and Others), and Regional Forecast, 2020-2027

The global organic solar cells market size was USD 55.63 million in 2019. The global impact of COVID-19 has been unprecedented and staggering, with clear aligners witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global organic solar cells market will exhibit a huge decline of -19.2% in 2020. The market is projected to grow from USD 44.9 million in 2020 to USD 101.29 million in 2027 at a CAGR of 12.30% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Organic solar cells are a third-generation photovoltaic technology using organic materials to harvest energy from light, outdoor, as well as indoor. An organic cell, also called a plastic solar cell, utilizes organic electrons. These are a branch of electronics that deals with conductive organic polymers, or small organic modules, for light absorption and charge transport. This is done so that electricity can be produced from sunlight via the photovoltaic effect. The increasing dependency on renewable energy sources for power generation and subsidies & tax benefits by respective governments for power generation will positively influence market growth.

Disruption in Supply Chain Due to COVID-19 Pandemic to Affect Solar Projects Severely

The COVID-19 pandemic has created economic turmoil across industries and businesses worldwide. The lockdowns & social distancing restrictions in the wake of the pandemic have crippled economic activities, thereby disrupting supply chains, delaying projects, creating a shortage of labor, and causing demand for goods and services to tumble. Governments across the globe are taking multiple efforts to lessen the suffering caused by this pandemic. The global renewable sector is generally dependent on imports from other regions.

As per the Government of India, around 80% of solar cells and modules in India imports from China along with other equipment such as inverters. Several solar projects in India and worldwide are getting delayed due to the initial slowdown of manufacturing activities in China, followed by lockdown restrictions in various countries across the globe. Moreover, key solar equipment suppliers have also observed production delays due to COVID-19, resulting in a huge backlog for fulfilling orders.

LATEST TRENDS

Rising Demand for Electricity is a Prominent Trend

The speedy growth of population, flourishing industrial sector and high growth in infrastructure development are set to lead to a significant rise in the demand for electricity. As the demand is rising, countries are expanding their power generation capacities by increasing the capacity of the existing ones or installing new plants. Stringent government rules are enforcing companies to incline towards the use of renewable energy sources for power generation and particularly towards solar and wind energy. This is expected to push the organic solar cells market growth during the forecast period.

DRIVING FACTORS

Surging Demand for BIPV to Drive Growth of the Market

Building-integrated photovoltaics (BIPV) products offer added functionalities to a building, unlike traditional construction materials. The use of this technology converts buildings from energy consumers into energy producers. To achieve this, the construction technology is required to be merged with BIPV technology. BIPVs protect buildings from climatic conditions and noise. Moreover, they offer thermal insulation. This technology decreases the total building material and mounting costs, as BIPVs do not require brackets and rails. Henceforth, their popularity has been growing constantly. Designers and architects use BIPV products with innovative methods, whereas manufacturers continue to develop new products to meet the rising demand.

Favorable Government Initiatives and Policies to Fuel Growth

To address various challenges associated with climate change, several regions are developing policies to move toward ultra-low-energy buildings. The European Union (EU) Energy Performance of Buildings Directive (EPBD) requires all new buildings to be nearly-zero-energy buildings (nZEB) in every EU member country by the end of 2020. The U.S., Japan, and South Korea have also formulated ZEB policies and set specific goals. For example, the State of California has set the ambitious goal that states “all new residential buildings in the state would be zero net energy (ZNE) by 2020 and all new commercial buildings would be ZNE by 2030.” Such supportive policies are expected to drive the growth of the global market.

RESTRAINING FACTORS

Higher Cost of BIPV Systems and Lack of Awareness to Hinder Growth

The use of building-integrated photovoltaic technology can convert buildings from energy consumers into energy producers. In order to achieve this, construction technology is required to be merged with BIPV technology. The organic photovoltaic (OPV) technology is new and expensive for curtain walls and other aspects of buildings. Moreover, the lack of awareness and inadequate marketing of BIPV products in Vietnam, the Philippines, and certain other countries in Africa are likely to hamper the global market during the forecast period. 

SEGMENTATION

By Application Analysis

Building-integrated Photovoltaic (BIPV) Segment to Grow at the Highest Rate during 2020-2027

Based on the application, the market is segmented into building-integrated photovoltaic (BIPV), portable electronics, defense applications, conventional solar, and others. The BIPV segment held a dominant organic solar cells market share in 2019. Encouraging government policies and guidelines regarding enhanced renewable installations are projected to strengthen the building-integrated photovoltaic (BIPV) installations over the forecast period. It offers an effective and sustainable solution for retrofitting structure exterior while providing an aesthetic appeal to the building. It also improves the building's energy efficiency by delivering significant savings on conventional electricity consumption. Portable electronics is another major segment of the market and is expected to grow significantly during the forecast period owing to the high demand in Europe and North America.

REGIONAL INSIGHTS

Europe is anticipated to lead the global market for organic solar cells over the forecast period. Large investments in R&D for organic solar cells technology by countries, including Germany, France, and the U.K., would contribute to the region’s large market share. The BIPV technology in Europe is in a transition period and is being positively impacted by the regulatory framework. The Directive on Energy Performance in Buildings (EPBD) and the Renewable Energy Directive were set up by the European Union (EU), paving the way for near-zero energy buildings.

Asia Pacific is anticipated to exhibit significant growth during the forecast period due to the increasing investments by major companies, particularly in China and Japan. China and India are set to be a potential market owing to government regulations that support power generation by renewable resources. The demand for BIPV products in Asia Pacific is increasing continuously as these products are adding unique visual elegance and architectural beauty to buildings. North America held the second-largest share of the market owing to the presence of small scale manufacturers in the region. However, Latin America and the Middle East and Africa held the least share of the market.

KEY INDUSTRY PLAYERS

Key Participants Focus on Product Innovation to Diversify Their Portfolios and Expand Sales Horizons

The global market is consolidated owing to the limited number of players operating in the market. Currently, Heliatek, ARMOR, infinityPV ApS, and Solarmer Energy, Inc. are leading the market. They accounted for a dominant share in 2019.

Major players in the market are employing several strategies to consolidate their positions in this market. One of the preferred strategies is the development of novel solutions that will help them to diversify their product portfolios and expand their sales horizons. Additionally, many academic institutes are conducting ground-breaking research, exploring the possible applications of OPVCs. For instance, in December 2019, the Fraunhofer Institute for Laser Technology-led EffiLayers project in the North Rhine-Westphalian region in Germany is researching the development of thin-film organic PVs that are flexible and printable. The research would enable manufacturers in the region to develop newer technologies in the market.

LIST OF KEY COMPANIES PROFILED:

• Heliatek (Germany)


• ARMOR (France)


• infinityPV ApS (Denmark)


• Solarmer Energy, Inc. (U.S.)


• NanoFlex Power Corporation (U.S.)


• Optodot (U.S.)


• Eni (Italy)


• New Energy Technologies Inc. (U.S.)


• Novaled GmbH (Germany)


• Brite Solar (Greece)

KEY INDUSTRY DEVELOPMENTS:

• In January 2020, Aarhus University in Denmark led a research venture that resulted in the birth of the microscopic organic PV technology. This technology can be used to develop light-based, neural-stimulating scaffolds inside the human body.


• In November 2017, Heliatek installed the ‘world’s largest building-integrated organic photovoltaic’ (BIOPV) system on top of a school in La Rochelle, France. 

REPORT COVERAGE

The organic solar cells market research report includes a detailed solar power industry analysis and focuses on key aspects such as leading companies and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION