The solar backsheet market is expected to grow significantly with the rising focus on renewable power capacity, which is expected to expand over the period of 2020 - 2025, led by solar photovoltaic (PV).
- - Along with the growing solar PV market, the solar backsheet market is expected to grow at a CAGR of more than 20% during the forecast period. The major driving factors for the market is the rising installation of solar panel in residential, commercial, and utility sectors due to the decrease in solar panel price over the years. However, decreasing solar panel prices, along with the slowdown of subsidies and incentives from various governments, are expected to reduce the quality standards of the panels, which is expected to hinder the market for growth during the forecast period.
- - The fluoropolymer backsheet is one of the prominent segments that has the highest market share and is costlier than the non-fluoropolymer. It gives better resistance to environmental damage, such as ultra-violate radiation, and humidity and vapor penetration.
- - With the targets to reduce greenhouse emissions in the coming years, countries across the globe are adopting various targets to mitigate climate change. For instance, California is one of the prominent states in the United States, that has targeted to reduce greenhouse gas emissions to 40% by 2030. Moreover, it is expected that by 2030, the demand for electricity would be near 36 thousand terra watts hours. The demands for electricity and the targets for GHG are expected to create an opportunity for the solar PV market, along with the solar backsheet market.
- - Asia-Pacific is expected to dominate the market with various upcoming solar panel installation projects. During 2018, China, Japan, and India dominated the solar backsheet market, with 54% of the global solar photovoltaic (PV) installed capacity.
Key Market Trends
Fluoropolymer as a Significant Segment
- - Fluoropolymer solar backsheet consists of three layers: inner, middle, and outer layer, which is attached to the outermost layer of a solar panel. The inner and outer layer of the solar backsheet is primarily made of Polyvinyl fluoride (PVF) or polyvinylidene fluoride (PVDF). In contrast, the middle layer is consists of Polyethylene terephthalate (PET or polyester).
- - During the year 2018, fluoropolymer backsheet was estimated to have a majority market share. With its additional safety features like proven hydrolytic stability and excellent resistance to weathering effects in various conditions with PVF or PVDF layer, the fluoropolyme backsheet is costlier than non-fluoropolymer.
- - As of December 2019, the United States had approximately 10.4 GW of utility-scale under-construction projects and 8.1 GW of proposed projects at the end of the year 2019, which is estimated to have an opportunity for the fluoropolymer backsheet industry. Moreover, it has been expected that the robust demand for utility-scale solar projects would drive the future market of fluoropolymer backsheet in the country.
Asia-Pacific to Dominate the Market
- - Asia-Pacific is expected to dominate the market with the highest installed capacity of solar PV, in 2019. During 2018, the region had nearly 274 gigawatts (GW) of installed capacity, with China, Japan, and India as the Key Players.
- - China is estimated to be the major country in the region with approximately 175 GW of solar PV installations and is expected to double its installation capacity by 2025, which is expected to grow the backsheet market during the forecasting period.
- - Tengger Desert Solar Park, China (1,547MW), Yanchi Ningxia Solar Park, China (1,000MW), Datong Solar Power Top Runner Base, China (1,070MW), Kurnool Ultra Mega Solar Park, India (1,000MW), Longyangxia Dam Solar Park, China (850MW), and Kamuthi Solar Power Station, India (648MW) are the major existing key projects in the region that have high uses of backsheet in the region.
- - As per the National Energy Administration (NEA), China allocated three billion yuan of subsidiaries for solar projects during 2019. Out of the total, nearly CNY 750 million is expected to allocate to the rooftop solar power projects. Subsidiaries allocated are expected to boost the upcoming solar panel projects, along with the solar backsheet market during the upcoming years.
The solar backsheet market is fragmented. The key players in the market include DuPont de Nemours Inc., Isovoltaic AG, Coveme SpA, Arkema SA, 3M Co., Toyo Aluminium K.K, Madico In.c, Taiflex Scientific Co. Ltd, Krempel GmbH, and Targray Technology International Inc., among others.
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