2025 Thin-Film Photovoltaic Manufacturing Market Report: Growth Drivers, Technology Innovations, and Global Forecasts. Explore Key Trends, Regional Dynamics, and Strategic Opportunities Shaping the Industry.
- Executive Summary & Market Overview
- Key Technology Trends in Thin-Film Photovoltaics
- Competitive Landscape and Leading Manufacturers
- Market Growth Forecasts and CAGR Analysis (2025–2030)
- Regional Market Analysis: Opportunities and Demand Hotspots
- Future Outlook: Innovations and Emerging Applications
- Challenges, Risks, and Strategic Opportunities
- Sources & References
Executive Summary & Market Overview
Thin-film photovoltaic (PV) manufacturing represents a dynamic segment within the global solar energy industry, characterized by the production of lightweight, flexible, and cost-effective solar cells using materials such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si). Unlike traditional crystalline silicon PV, thin-film technologies offer advantages in terms of material usage, adaptability to various substrates, and potential for lower manufacturing costs. As of 2025, the thin-film PV market is experiencing renewed momentum, driven by technological advancements, supply chain diversification, and the global push for decarbonization.
According to Wood Mackenzie, thin-film PV accounted for approximately 10% of global solar module shipments in 2024, with CdTe technology—led by First Solar—dominating the segment. The market is projected to grow at a compound annual growth rate (CAGR) of 7-9% through 2028, outpacing some segments of the conventional silicon PV market due to its suitability for utility-scale projects and emerging applications such as building-integrated photovoltaics (BIPV) and agrivoltaics.
Key drivers for thin-film PV manufacturing in 2025 include:
- Supply Chain Resilience: Geopolitical tensions and trade restrictions have prompted manufacturers to diversify supply chains and invest in domestic production, particularly in the United States and Europe. The U.S. Inflation Reduction Act and the European Green Deal are catalyzing new investments in thin-film manufacturing capacity.
- Technological Innovation: Advances in deposition techniques, module efficiency, and encapsulation are narrowing the performance gap with crystalline silicon, while maintaining cost advantages in certain applications.
- Sustainability: Thin-film modules generally have a lower carbon footprint and energy payback time compared to silicon-based modules, aligning with the sustainability goals of governments and corporations.
Challenges persist, including competition from increasingly efficient and low-cost crystalline silicon modules, as well as the need for further improvements in thin-film module durability and recycling. However, with major players such as First Solar, Solar Frontier, and Heliatek expanding their manufacturing footprints, the thin-film PV sector is poised for robust growth and innovation in 2025 and beyond.
Key Technology Trends in Thin-Film Photovoltaics
Thin-film photovoltaic (PV) manufacturing in 2025 is characterized by rapid technological advancements aimed at improving efficiency, reducing costs, and scaling up production. The sector is witnessing a shift from traditional silicon-based processes to more innovative materials and deposition techniques, driven by the need for lightweight, flexible, and high-performance solar modules.
One of the most significant trends is the adoption of advanced materials such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and perovskites. CdTe remains the most commercially successful thin-film technology, with companies like First Solar leading large-scale production and continuous efficiency improvements. CIGS technology, while more complex to manufacture, is gaining traction due to its high absorption coefficient and potential for flexible applications. Meanwhile, perovskite solar cells are moving from laboratory-scale breakthroughs to pilot manufacturing lines, with firms such as Oxford PV and Saule Technologies investing in scalable roll-to-roll and inkjet printing processes.
Manufacturing process innovations are central to these advancements. Techniques such as sputtering, chemical vapor deposition (CVD), and atomic layer deposition (ALD) are being refined to enable uniform, high-quality thin films at lower temperatures and faster throughput. Roll-to-roll manufacturing, in particular, is emerging as a game-changer for flexible thin-film PV, allowing continuous production on polymer substrates and significantly reducing costs per watt. This approach is being adopted by several industry players to address the growing demand for building-integrated photovoltaics (BIPV) and portable solar solutions.
Automation and digitalization are also transforming thin-film PV manufacturing. The integration of artificial intelligence (AI) and machine learning for process control, defect detection, and yield optimization is becoming standard practice in leading facilities. This not only enhances product quality but also improves operational efficiency and scalability.
Finally, sustainability considerations are influencing manufacturing choices. Companies are increasingly focused on reducing the use of toxic materials, recycling end-of-life modules, and minimizing energy consumption during production. Regulatory pressures and consumer demand for greener products are accelerating the adoption of closed-loop manufacturing and eco-friendly materials, as highlighted in recent analyses by the International Energy Agency and Wood Mackenzie.
Competitive Landscape and Leading Manufacturers
The competitive landscape of thin-film photovoltaic (PV) manufacturing in 2025 is characterized by a mix of established global players, innovative startups, and regionally focused manufacturers. Thin-film PV technologies—including cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si)—have carved out a significant niche in the solar market, particularly for applications where flexibility, lightweight modules, and lower manufacturing costs are prioritized over maximum efficiency.
Leading Manufacturers
- First Solar, Inc. remains the dominant force in the thin-film PV sector, leveraging its proprietary CdTe technology. The company’s large-scale manufacturing capacity, vertical integration, and ongoing investments in R&D have enabled it to maintain cost leadership and expand its global footprint, particularly in utility-scale solar projects. In 2025, First Solar continues to ramp up production at its new facilities in the United States and India, reinforcing its position as the world’s largest thin-film module producer (First Solar, Inc.).
- Hanergy Thin Film Power Group, based in China, is a key player in CIGS and a-Si technologies. Despite facing financial and operational challenges in recent years, Hanergy has maintained a significant presence in the building-integrated photovoltaics (BIPV) and portable solar device markets, leveraging its flexible thin-film modules (Hanergy Thin Film Power Group).
- Solar Frontier K.K., a subsidiary of Showa Shell Sekiyu (now part of Idemitsu Kosan), is the world’s leading CIGS thin-film manufacturer. The company’s focus on high-volume production and module reliability has secured its position in both domestic Japanese and international markets, with a particular emphasis on residential and commercial rooftop installations (Solar Frontier K.K.).
- Heliatek GmbH and Oxford PV represent the wave of European innovation in organic and perovskite-based thin-film technologies. While not yet at the scale of CdTe or CIGS leaders, these companies are driving advancements in efficiency and new applications, such as transparent and flexible solar films for integration into windows and facades (Heliatek GmbH, Oxford PV).
Overall, the thin-film PV manufacturing sector in 2025 is marked by consolidation among established players, increased investment in next-generation materials, and a growing focus on specialized applications where thin-film’s unique properties offer a competitive edge over crystalline silicon technologies (Wood Mackenzie).
Market Growth Forecasts and CAGR Analysis (2025–2030)
The thin-film photovoltaic (PV) manufacturing sector is poised for robust growth between 2025 and 2030, driven by technological advancements, declining production costs, and increasing global demand for renewable energy. According to projections by MarketsandMarkets, the global thin-film PV market is expected to register a compound annual growth rate (CAGR) of approximately 8–10% during this period. This growth is underpinned by the rising adoption of thin-film technologies such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si), which offer advantages in flexibility, weight, and performance under low-light conditions compared to traditional crystalline silicon panels.
Regionally, Asia-Pacific is anticipated to maintain its dominance in thin-film PV manufacturing, with China, Japan, and South Korea leading investments in both production capacity and research and development. The region’s growth is further supported by favorable government policies, ambitious solar installation targets, and the presence of major manufacturers such as First Solar and Hanwha Q CELLS. North America and Europe are also expected to witness significant expansion, particularly as the European Union intensifies its push for energy independence and the United States implements incentives under the Inflation Reduction Act.
- Technological Innovation: Continuous improvements in cell efficiency and module durability are expected to lower the levelized cost of electricity (LCOE) for thin-film PV, making it increasingly competitive with conventional solar technologies.
- Market Drivers: The sector’s growth is propelled by the demand for lightweight, flexible solar solutions suitable for building-integrated photovoltaics (BIPV), portable applications, and utility-scale projects in challenging environments.
- Challenges: Despite positive forecasts, the market faces challenges such as supply chain constraints for critical materials (e.g., tellurium, indium) and competition from rapidly advancing crystalline silicon technologies.
By 2030, the thin-film PV manufacturing market is projected to reach a value exceeding USD 20 billion, with annual installed capacity expected to surpass 15 GW globally, according to Wood Mackenzie. The sector’s CAGR and growth trajectory will be closely tied to ongoing innovation, policy support, and the ability to address material supply risks.
Regional Market Analysis: Opportunities and Demand Hotspots
The global thin-film photovoltaic (PV) manufacturing market in 2025 is characterized by pronounced regional disparities in both opportunities and demand hotspots, shaped by policy frameworks, energy transition goals, and local manufacturing capabilities. Asia-Pacific remains the dominant region, driven by aggressive renewable energy targets and robust government incentives. China, in particular, continues to lead thin-film PV production, leveraging its established supply chain, cost advantages, and strong domestic demand. The Chinese government’s ongoing support for solar manufacturing, including thin-film technologies, is expected to sustain its position as a global manufacturing hub, with companies like Hanergy and Solargiga Energy Holdings expanding capacity and R&D investments.
India is emerging as a significant opportunity zone, propelled by the government’s “Make in India” initiative and ambitious solar installation targets. The country’s focus on reducing import dependence and fostering local manufacturing is attracting both domestic and international investments in thin-film PV production facilities. Southeast Asian nations, particularly Vietnam and Malaysia, are also capitalizing on trade tensions and supply chain diversification, offering competitive labor costs and favorable export conditions to North American and European markets.
In North America, the United States is witnessing renewed interest in thin-film PV manufacturing, spurred by the Inflation Reduction Act and other federal incentives that prioritize domestic clean energy production. Companies such as First Solar are expanding their manufacturing footprint, with new facilities planned or under construction to meet both domestic and export demand. The U.S. market is particularly receptive to cadmium telluride (CdTe) and copper indium gallium selenide (CIGS) thin-film modules, which offer competitive efficiency and performance in utility-scale projects.
Europe’s thin-film PV manufacturing landscape is shaped by the European Union’s Green Deal and REPowerEU initiatives, which emphasize energy security and local supply chain resilience. Germany, France, and Italy are leading the charge, with increased funding for R&D and pilot manufacturing lines. The region’s focus on sustainability and circular economy principles is also driving demand for thin-film technologies with lower carbon footprints and recyclability.
Overall, the 2025 thin-film PV manufacturing market is marked by strong regional growth in Asia-Pacific, strategic policy-driven expansion in North America and Europe, and emerging opportunities in India and Southeast Asia. These demand hotspots are expected to shape the competitive landscape and investment flows in the coming years, as manufacturers seek to align with local content requirements and evolving market preferences.
Future Outlook: Innovations and Emerging Applications
The future outlook for thin-film photovoltaic (PV) manufacturing in 2025 is shaped by a wave of innovations and the emergence of new application areas, driven by the global push for decarbonization and the need for flexible, lightweight solar solutions. As traditional crystalline silicon PV technologies approach their theoretical efficiency limits, thin-film PV—encompassing materials such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and perovskites—is gaining momentum due to its potential for lower production costs, versatility, and integration into non-traditional surfaces.
One of the most significant innovations expected in 2025 is the commercialization of tandem and multi-junction thin-film cells, particularly those combining perovskite layers with established thin-film materials. These tandem structures are projected to surpass 25% efficiency in mass production, narrowing the gap with high-end silicon cells while maintaining the advantages of thin-film manufacturing, such as roll-to-roll processing and low-temperature deposition National Renewable Energy Laboratory. Additionally, advances in encapsulation and barrier technologies are addressing the historical stability challenges of perovskite and CIGS modules, paving the way for longer lifespans and broader adoption in harsh environments.
Emerging applications are set to redefine the market landscape. Building-integrated photovoltaics (BIPV) and vehicle-integrated photovoltaics (VIPV) are poised for rapid growth, leveraging the lightweight and flexible nature of thin-film modules. In 2025, major automotive and construction companies are expected to announce new partnerships and pilot projects that integrate thin-film PV into car roofs, facades, and windows, expanding the addressable market beyond traditional utility-scale and rooftop installations International Energy Agency. Furthermore, the proliferation of off-grid and portable solar solutions—such as solar-powered wearables, backpacks, and tents—will be underpinned by thin-film’s adaptability and aesthetic integration.
- Continued investment in automated, high-throughput manufacturing lines is anticipated to reduce costs and improve scalability, particularly in Asia and Europe Wood Mackenzie.
- Recycling and circular economy initiatives are gaining traction, with new processes for recovering rare materials from end-of-life thin-film modules expected to be piloted in 2025 First Solar.
Overall, 2025 is set to be a pivotal year for thin-film PV manufacturing, marked by technological breakthroughs, expanded applications, and a stronger alignment with global sustainability goals.
Challenges, Risks, and Strategic Opportunities
The thin-film photovoltaic (PV) manufacturing sector in 2025 faces a complex landscape of challenges, risks, and strategic opportunities as it seeks to expand its share in the global solar market. One of the primary challenges is the intense competition from crystalline silicon (c-Si) technologies, which continue to dominate due to their higher efficiencies and rapidly declining costs. Thin-film PV, including cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si), must overcome persistent efficiency gaps and scale manufacturing to achieve cost parity with c-Si modules International Energy Agency.
Supply chain risks are also significant. Thin-film technologies often rely on critical raw materials such as indium, tellurium, and gallium, which are subject to price volatility and geopolitical supply constraints. For example, the limited availability of tellurium and indium can create bottlenecks, impacting both production costs and long-term scalability International Renewable Energy Agency. Additionally, environmental and regulatory pressures regarding the use of toxic elements like cadmium in CdTe modules pose reputational and compliance risks for manufacturers.
On the strategic opportunity front, thin-film PV offers unique advantages in terms of flexibility, lightweight design, and superior performance under low-light and high-temperature conditions. These attributes open up new markets such as building-integrated photovoltaics (BIPV), portable solar solutions, and applications on unconventional surfaces where traditional c-Si panels are less suitable National Renewable Energy Laboratory. Furthermore, ongoing research into tandem and perovskite-thin-film hybrid cells presents a pathway to leapfrog current efficiency limitations, potentially enabling thin-film technologies to capture a larger market share.
Strategically, manufacturers are investing in automation, advanced deposition techniques, and recycling processes to reduce costs and improve sustainability. Partnerships with construction, automotive, and consumer electronics sectors are also emerging as key growth drivers. However, to capitalize on these opportunities, thin-film PV companies must navigate intellectual property challenges, secure stable supply chains, and address end-of-life recycling and circularity concerns to meet evolving regulatory and customer expectations Wood Mackenzie.
Sources & References
- Wood Mackenzie
- First Solar
- Oxford PV
- Saule Technologies
- International Energy Agency
- Solar Frontier K.K.
- Heliatek GmbH
- MarketsandMarkets
- National Renewable Energy Laboratory
