Cadmium Telluride Photovoltaic Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Source (Tellurium and Cadmium), By Application (Solar PV, Optical Lenses and Windows, Electro-Optic Modulator, Nuclear Spectroscopy and Infrared Optical Material), By End User (Residential, Commercial, Industrial and Utility) By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.05 Billion
CAGR (2026-2031)	13.78%
Fastest Growing Segment	Residential
Largest Market	Europe
Market Size (2031)	USD 26.14 Billion

Market Overview

The Global Cadmium Telluride Photovoltaic Market will grow from USD 12.05 Billion in 2025 to USD 26.14 Billion by 2031 at a 13.78% CAGR. Cadmium Telluride (CdTe) photovoltaics describe a thin-film solar technology that employs a semiconductor layer consisting of cadmium and tellurium to convert sunlight into electricity, serving as a distinct alternative to conventional crystalline silicon panels. The fundamental drivers supporting this market include the technology's superior temperature coefficient, which allows for higher energy yields in hot climates, and a rapid energy payback time that enhances its appeal for large-scale utility projects. Furthermore, the simplified manufacturing process facilitates lower production costs and a reduced carbon footprint, providing a competitive advantage in regions prioritizing environmental sustainability and operational efficiency.

One significant challenge impeding broader market expansion is the scarcity and supply chain volatility of tellurium, a rare metalloid that is essential for the production of these solar cells. This resource constraint limits the ability of manufacturers to scale production globally at the same rate as silicon-based competitors. According to the National Renewable Energy Laboratory, in 2024, the United States manufactured 4.2 gigawatts of solar modules during the first half of the year, with production volume split approximately evenly between thin-film cadmium telluride and crystalline silicon technologies.

Key Market Drivers

Robust demand in utility-scale solar projects serves as a primary driver for the cadmium telluride photovoltaic market, underpinned by the technology's proven stability in grid applications. Developers prioritize these thin-film modules for their reliability and supply chain certainty, which are critical for securing long-term financing. This preference is evidenced by substantial forward-contracting, where utilities lock in volume years in advance to mitigate volatility. According to First Solar, October 2024, in the 'Third Quarter 2024 Financial Results', the company reported a contracted backlog of 73.3 gigawatts, with orders extending through 2030. This significant volume highlights the sector's reliance on cadmium telluride technology to fulfill growing energy goals.

Government incentives and renewable energy mandates further accelerate market expansion by fostering the rapid growth of domestic manufacturing. Legislative frameworks, such as tax credits for domestic content, encourage manufacturers to build vertically integrated facilities that reduce dependence on foreign supply chains. These policies enable companies to execute aggressive capital investments, increasing the availability of non-silicon solar options. According to First Solar, September 2024, in the 'First Solar Inaugurates $1.1 Billion Solar Manufacturing Facility in Alabama' press release, the company commissioned a new plant adding 3.5 gigawatts of nameplate capacity. Such expansions are pivotal for scaling the technology, as according to First Solar, in 2024, the manufacturer projected reaching approximately 25 gigawatts of global annual nameplate capacity by 2026.

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Key Market Challenges

The scarcity and supply chain volatility of tellurium acts as a formidable barrier to the expansion of the Global Cadmium Telluride Photovoltaic Market. Tellurium is a rare metalloid typically obtained as a byproduct of copper refining, meaning its availability is inelastic and dependent on the output of the copper industry rather than direct demand from solar manufacturers. This structural dependency creates significant supply risks and prevents manufacturers from ramping up production capacity with the same agility as their silicon-based counterparts. As the solar industry strives for terawatt-scale deployment, this raw material bottleneck physically restricts the total volume of modules that can be produced, forcing the technology to remain a niche solution rather than a universal alternative.

Consequently, the inability to scale manufacturing volume globally limits the market presence of cadmium telluride photovoltaics despite their technical advantages in specific climates. While silicon feedstock is abundant and supports massive global expansion, the finite supply of tellurium caps the growth potential of this sector. According to the Fraunhofer Institute for Solar Energy Systems, in 2024, the market share of thin-film technologies, which is dominated by cadmium telluride, remained between 2 percent and 3 percent of global photovoltaic production. This low penetration rate illustrates how resource constraints directly hamper the ability of this technology to capture a substantial portion of the growing solar energy landscape.

Key Market Trends

The transition to large-format module manufacturing is reshaping the sector by reducing balance-of-system costs and enhancing utility-scale compatibility. Manufacturers are adopting larger form factors to increase wattage per panel, decreasing the connections, racking, and labor required for major projects. This physical scaling is critical for cadmium telluride technology to maintain cost-competitiveness against the larger crystalline silicon panels that currently dominate the market. According to First Solar, February 2025, in the 'Fourth Quarter 2024 Earnings Call Transcript', the company reported that it produced 5.9 gigawatts of its large-format Series 7 modules in 2024, validating the significant industrial shift toward these optimized architectures.

The implementation of advanced doping architectures is a pivotal trend aimed at elevating energy conversion efficiencies to close the performance gap with silicon-based alternatives. Innovators are replacing traditional copper doping with alternative elements, such as group V materials, to improve charge carrier lifetimes and reduce degradation rates, which enhances long-term energy yields. This technological progression is transitioning from research to commercial viability, enabling modules that deliver stable performance over extended operational lifespans. According to First Solar, February 2025, in the 'Fourth Quarter 2024 Earnings Call Transcript', the manufacturer confirmed that it commenced commercial production of its proprietary CuRe (Copper Replacement) modules during the fourth quarter of 2024, marking a milestone in the deployment of this next-generation semiconductor chemistry.

Segmental Insights

The Residential segment is currently distinguishing itself as the fastest-growing category within the Global Cadmium Telluride Photovoltaic Market. This rapid expansion is primarily driven by the increasing demand for cost-effective distributed energy generation and the superior performance of thin-film technology in high-temperature or low-light environments compared to traditional options. Homeowners are actively seeking affordable renewable solutions, encouraged by supportive government policies such as green building mandates and residential solar subsidies. Consequently, these economic incentives, combined with technological advancements improving module efficiency for rooftop applications, are significantly accelerating adoption rates in the housing sector.

Regional Insights

Europe maintains a leading position in the Global Cadmium Telluride Photovoltaic Market, driven by robust government mandates favoring renewable energy transitions. The region benefits significantly from initiatives like the European Green Deal, which incentivizes low-carbon power generation. Furthermore, the European Commission’s decision to exempt photovoltaic panels from the Restriction of Hazardous Substances Directive provides the necessary regulatory certainty for cadmium-based technologies. This legislative support, coupled with a high demand for utility-scale solar installations across member states, fosters a stable environment for continued market expansion.

Recent Developments

• In November 2025, First Solar officially inaugurated its new vertically integrated manufacturing facility in Louisiana, representing a capital investment of $1.1 billion. The state-of-the-art factory is dedicated to the production of high-efficiency Series 7 cadmium telluride (CdTe) thin-film solar modules and is expected to add 3.5 gigawatts of annual nameplate capacity to the company's domestic operations. This expansion significantly boosts the manufacturing capabilities within the Global Cadmium Telluride Photovoltaic Market, allowing the company to meet the surging demand for renewable energy infrastructure while utilizing a supply chain that is largely independent of conventional crystalline silicon resources.
• In August 2025, 5N Plus, a global producer of specialty semiconductors, entered into a new and expanded supply agreement with First Solar to support the growing demand in the Global Cadmium Telluride Photovoltaic Market. Under the terms of the contract, the supplier committed to increasing its production and delivery of cadmium telluride (CdTe) semiconductor materials by 33% for the 2025-2026 period compared to initial volumes. The agreement also included provisions for a further 25% increase in supply for the 2027-2028 term. This collaboration ensures a secure supply chain of critical materials necessary for the solar manufacturer's expanding production capacity in the United States and India.
• In October 2024, First Solar announced the commencement of pilot production for its proprietary copper replacement technology, branded as CuRe, at its manufacturing lead line. This development marks a significant technological advancement in the Global Cadmium Telluride Photovoltaic Market, as the new Series 7 modules utilizing this technology are designed to offer the industry's lowest warranted degradation rate. The company disclosed that it had successfully produced the first commercial-grade units and deployed them for field testing. This launch is part of a broader technology roadmap aimed at enhancing the long-term energy yield and durability of CdTe thin-film solar panels for utility-scale applications.
• In July 2024, a leading American solar technology company inaugurated a major new research and development center in Ohio, specifically dedicated to the advancement of cadmium telluride (CdTe) thin-film photovoltaic technology. During the event, the manufacturer announced that it had achieved a new certified world record for CdTe solar cell efficiency of 23.1%, a milestone validated by the National Renewable Energy Laboratory. This facility, which features a high-volume manufacturing pilot line, represents a strategic investment intended to accelerate the innovation cycle for thin-film modules and strengthen the company's leadership position within the competitive Global Cadmium Telluride Photovoltaic Market.

Key Market Players

• Greatcell
• Exeger Operations AB
• Fujikura Europe Ltd.
• G24 Power Ltd.
• Konica Minolta Sensing Europe B.V.
• Merck KGaA

By Source	By Application	By End User	By Region
Tellurium and Cadmium	Solar PV Optical Lenses and Windows Electro-Optic Modulator Nuclear Spectroscopy and Infrared Optical Material	Residential Commercial Industrial and Utility	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cadmium Telluride Photovoltaic Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cadmium Telluride Photovoltaic Market, By Source:

• Tellurium and Cadmium

• Cadmium Telluride Photovoltaic Market, By Application:

• Solar PV
• Optical Lenses and Windows
• Electro-Optic Modulator
• Nuclear Spectroscopy and Infrared Optical Material

• Cadmium Telluride Photovoltaic Market, By End User:

• Residential
• Commercial
• Industrial and Utility

• Cadmium Telluride Photovoltaic Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE