The History and Current Status of the Solar Cell Market in Europe and Japan (2007–2024)

The History and Current Status of the Solar Cell Market in Europe and Japan (2007–2024)

Status in 2007
As of 2006, Japanese companies led the global solar cell market. Sharp maintained its top position with a production volume of 4347 MW, followed by Kyocera with 1800 MW and Sanyo Electric with 1550 MW. Sanyo Electric achieved an impressive operation rate of 94%, with Mitsubishi Electric following at 82%, highlighting the strength of Japanese manufacturers. Meanwhile, rapid growth was seen from Q-Cell in Germany (2531 MW), Suntech in China (1600 MW), and Motech in Taiwan (1020 MW), intensifying market competition.
In Europe, silicon supply shortages impacted production plans and became a critical factor in maintaining competitiveness. Sharp aimed for a production volume of 710 MW in 2007, reaffirming its leading position in the market.

Status in the 2010s
The 2010s marked a period of intensified competition in the solar cell market. Chinese manufacturers, supported by government subsidies, rapidly expanded their production capacity at lower costs, significantly increasing their global market share.
Japanese companies struggled during this period. Sharp and Sanyo Electric faced challenges in maintaining competitiveness, with Sharp coming under the ownership of Taiwan's Hon Hai Precision Industry (Foxconn) in 2016. Sanyo Electric was absorbed into Panasonic, and other companies like Kyocera and Mitsubishi Electric shifted their focus to the domestic market.
In Europe, renewable energy policies, particularly the introduction of feed-in tariff (FIT) systems, accelerated the adoption of solar power. Germany led the way, driving the growth of residential and commercial solar systems.

European Market in the 2020s
In the 2020s, the European solar power market experienced rapid growth. The market size reached approximately $3727 billion in 2023 and is projected to expand to $7099 billion by 2032. This growth is driven by government incentives, renewable energy mandates, and cost reductions in solar cell technology.
Major companies include Q-Cell from Germany, Iberdrola from Spain, and JinkoSolar from China, with Chinese manufacturers dominating through low-cost mass production. However, some regions, like Spain, experienced slower growth due to declining energy prices and reduced subsidies.

Japanese Companies' Trends (2007–2024)
Once holding a 90% global market share in the 1980s, Japanese companies faced a sharp decline in the 2010s due to the rise of Chinese and Korean manufacturers. By the 2020s, Japanese firms continued to struggle on the global stage.
Domestically, however, renewable energy adoption grew, with government-supported models focusing on self-consumption solar power and surplus FIT electricity. Japanese companies also lead the world in developing next-generation perovskite solar cells, excelling in scalability and durability.

Summary
While Japanese manufacturers led the European market in 2007, the 2010s saw a dramatic shift as Chinese and Korean manufacturers surged ahead. Japan has focused on its domestic market and technological innovation to maintain competitiveness. In Europe, policy influences and corporate competition remain key drivers of market growth, with renewable energy transitions supporting further expansion.