The implementation of the Jawaharlal Nehru National Solar Mission (JNNSM) by the Government of India (GoI) is driving growth in the solar industry, specifically, the manufacturing of cells and modules. This will drive growth in related upstream chemicals and materials markets.
New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Insight on the Indian Market for Chemicals and Materials Used in Photovoltaics, finds that the market was worth $1.05 billion in 2012 and estimates this to reach $2.05 billion in 2015. The research covers chemicals and materials used to manufacture solar cells (polysilicon, metal paste and wet process chemicals) and solar modules (frontsheet, backsheet and encapsulants).
"With high peak power deficit, erratic crude oil prices, coal shortages and uncertainty of nuclear power, renewable energy sources such as solar power will be the future of sustainable power generation," noted Frost & Sullivan Analyst. "New opportunities to explore in the market for chemicals and materials used in solar cells and modules are presented with the JNNSM mandating indigenization of solar cells and modules."
JNNSM aims to develop 20,000 MW of grid-connected solar power by 2022. Additionally, plans to promote India as a manufacturing hub for solar products with mandatory indigenization of solar cells and modules are being implemented. The scheme offers new opportunities to invest in the market for chemicals and materials used in the manufacture of solar products in India. The demand for chemicals and materials used in solar cells and modules is estimated to grow at a CAGR of 22.2 percent till 2015, with the growth for module components estimated at over 25 percent CAGR for the same time period.
With government mandates on indigenization and benefits such as competitive price and quicker lead times, there is a strong case supporting local manufacture of chemicals and materials used in solar photovoltaic products.
While the market is poised for growth, a key challenge remains low-cost imports of finished cells and modules from China. Backed by state-sponsored loans by the Chinese government, Chinese companies have rapidly built large-scale manufacturing units for cells/modules and other components at lower production costs. This, coupled with monopolized access to certain critical raw materials, such as fluorspar that is used in the manufacture of backsheets, offers an advantageous position to Chinese companies that threaten closure of competitors even in developed economies.
"Investment in products, such as encapsulants that benefit from smaller lead times, backed by government support through JNNSM will aid in overcoming competition from China," advised the analyst. "Continuous innovation to reduce costs and upgrade efficiency will further sustain market expansion."
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Ravinder Kaur / Priya George, Corporate Communications, at ravinder.kaur[.]frost.com / priyag[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
Strategic Insight on the Indian Market for Chemicals and Materials Used in Photovoltaics is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan’s related research services include: Indian Solar Photovoltaic Market and Electronic Chemicals Market in India. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Strategic Insight on the Indian Market for Chemicals and Materials Used in Photovoltaics / P5C6-39
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