Solar Backsheet Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Solar Backsheet Market is Segmented By Type(Fluoropolymer, Non-Fluoropolymer), By Installation Technique(Flat Roof Solar, Pitch Roof Solar, Ground Roof Solar, Others), By Thickness(Less than 100mm, 100−500mm, Greater than 500mm), By Application(Residential, Commercial, Industrial, Utilities),  and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Solar Backsheet Market Overview

[150 Pages Report] The Global Solar Backsheet Market size is growing at a high CAGR of 7% during the forecast period (2023-2030). Solar back sheets are sheets made from polymer or a combination of polymers to support the photovoltaic module. The primary function of the back sheet is to provide isolation of the electrical circuitry from the environment since damage to the circuitry can create a safety hazard. It also protects the module from moisture and UV radiation. Solar back sheets are typically made from fluoropolymers and non-fluoropolymer plastics.

Solar Backsheet Market Scope and Summary

Solar Backsheet Market Dynamics and Trends

The solar back sheet is mainly driven by the increasing global energy consumption. It is the most important driver for the market. The operational drawbacks of solar back sheets are a key factor in limiting the growth of this market.

Increasing global investment in renewable energy

The repercussions of man-made climate change are putting humanity in jeopardy. It has caused ecological disturbance, altered weather patterns, and global warming. An urgent campaign to decarbonize global energy is underway to mitigate the worst effects of man-made climate change. At the COP26 conference in November 2021, world governments announced a historic commitment to achieve carbon neutrality by 2050.

Massive investments in renewable energy must be made to meet the pledge of reaching carbon neutrality within the agreed-upon timeline. The assets are also considered an economic stimulus to help boost national economies following the downturn caused by the pandemic. Several world governments have set aside significant funds to develop renewable energy.

The Build Back Better (BBB) plan is a broad-based economic stimulus package for the United States. The plan allows US$ 180 billion for renewable energy research, development, and implementation, as well as climate impact studies. India aims to generate 175 GW of renewable energy by 2030. In 2022, India's renewable energy sector is estimated to receive up to US$ 15 billion in funding. In the future years, financing is projected to expand significantly. The European Commission (EC), the EU's main governing body, has set a goal of investing more than US$ 100 billion in renewable energy per year until 2030 to reach a 32 percent renewable energy share within that timeframe. The ongoing investment in renewable energy is expected to provide impetus to the wider adoption of solar energy globally. It will be a key driver for the growth of the global solar back sheet market.

High costs involved in solar energy

Solar energy has various tangible advantages, not least as a clean energy source. The cost of solar electricity has also dropped by more than 90% in the last decade, from nearly US$359 per GW to less than US$ 40 per GW. The decline in cost has largely been due to economics of scale, continued investment in renewable energy, and significant technological advances. However, solar energy still entails higher costs due to other factors.

Modern solar panels have an average efficiency of 17-19%, depending on type and technology. Therefore, many solar panels are required to obtain a significant power output. Solar power plants take up vast amounts of land, which drives up costs since land acquisition is extremely expensive. Furthermore, even for residential solar projects, rooftop mounting of solar panels is expensive due to the cost of solar panels and the high cost of the installation process since a skilled technician is required for installation. The high costs involved in solar energy limit its adoption and is a key challenge for the growth of the global solar back sheet market.

COVID-19 impact on Solar Backsheet Market

The global solar back sheet market experienced severe impacts on production and deployment in 2020 due to the COVID-19 pandemic. Lockdowns and other movement restrictions imposed by governments halted manufacturing activities. Only minor and major maintenance activities were taking place during the initial phase of the pandemic.

The various components required for solar back sheets are outsourced by manufacturers to overseas subcontractors. The supply chain spans the globe, entailing various small, medium, and large enterprises. Therefore, the supply chain is fragile and highly vulnerable to external shocks. The global pandemic has caused massive shocks to the global supply chain and logistics, thereby affecting the construction of solar backsheets. The backlog in construction is not expected to be cleared before the end of 2021. Many new solar energy projects are currently on hold due to the material shortages caused by the supply chain and logistical problems.

The impact of the COVID-19 pandemic in the short term has been relatively severe for the solar back sheet market. Major cuts to capital expenditures and new investments in response to the pandemic's economic downturn halted new projects. The pandemic will have a negligible impact on the long-term growth of the global solar back sheet market since governments prioritize investment in the energy sector to ensure energy security. The investment is also seen as a way to stimulate the national economies after the downturn brought on by the pandemic. The demand for solar backsheets remains strong and is expected to grow gradually in the coming years.

Solar Backsheet Market Segmentation Analysis

The global solar back sheet market is segmented into type, installation technique, thickness, application, and region. The solar backsheet market is segmented into fluoropolymer and non-fluoropolymer based on Type. Non-fluoropolymer is leading in this segmentation since it is the most widely used type of solar back sheet. Non-fluoropolymer back sheets exhibit better performance and moisture resistance than fluoropolymer-type back sheets. The non-fluoropolymer back sheets are also completely recyclable, unlike fluoropolymer back sheets, which are non-recyclable and improper disposal may lead to contamination of the environment with hydrogen fluoride.

Solar Backsheet Market Geographical Share

Asia-Pacific is leading in the global solar back sheet market. The region accounts for the largest market share, primarily due to major investments in renewable green energy and major solar energy projects currently under construction in the region. The vast majority of the solar energy capacity in the region is concentrated in China and India.

China has the largest solar energy capacity globally, with nearly 253GW of installed capacity with plans to add 1200GW of total solar energy capacity by 2030. Some of the largest solar parks in the world such as the Huanghe Golmund solar park, the Longyangxia Dam solar park, and the Tengger Desert solar park. India is another country that has made significant investments in solar energy development.

The total solar capacity in India was nearly 50GW in 2022, with nearly 450GW of capacity expansion planned by 2030. The Bhadla solar park, with a capacity of 2245MW, is the largest solar power plant globally and is located in India. The Pavagada solar park is another major solar power plant in India. India and China's continued investment in solar energy will see the Asia-Pacific region retain the largest share in the global solar back sheet market.

Solar Backsheet Companies and Competitive Landscape

The global solar back sheet market is competitive due to a wide range of solar backsheets that cater to different types of installation techniques and applications. Some of the players contributing to the growth in the segment are COVEME s.p.a., DuPont, Arkema S.A., Agfa-Gevaert Group, Astenik Solar Inc., Jolywood, Madico, Inc., KREMPEL GmbH, ZTT International Limited, and Hangzhou Sun home Solar Backsheet Co., Ltd. The major players adopt several growth strategies such as new product launches, technological innovations, joint ventures, and collaborations, contributing to global growth in the industry.

COVEME s.p.a. 

Overview: Coveme s.p.a is an engineering company specializing in researching, designing, developing, and manufacturing polyester films and sheets for various industrial and commercial applications. The company primarily serves photovoltaics, labeling, flexible circuitry, electrical insulation, and biomedical industries. Coveme s.p.a has two production sites in China and Italy with 14 production lines and 600 employees. The company was founded in 1965 and is headquartered in Bologna, Italy.

Product Portfolio

• dyMAT is the company's brand of back sheets for photovoltaic applications. It has a wide range of films for ensuring stable insulation in any installation environment. The back sheets provide a high degree of humidity resistance and UV protection. Back sheets of the dyMAT brand are available in polyester and fluorinated versions.

Key Developments:

• In October 2021, Coveme s.p.a participated in the InterSolar Europe exposition in Munich, Germany. The company unveiled a new range of backsheet films under the dyMAT brand. The new films are made from completely recycled polyethylene terephthalate (PET) using the company's closed-loop recycling project for back sheets. The company intends to reduce its carbon footprint for manufacturing operations by completely recycling back sheets.