Photoelectrochemical Cell Market Size, Share, Growth & Industry Analysis, By Material (Metal Oxides, Organic Semiconductors, Perovskite-Based Cells), By End-User Industry (Energy Sector, Environmental Monitoring, Research Institutes, Chemical Industry), and Regional Analysis, 2024-2031

Market Definition

The market involves the development and deployment of devices that convert solar energy into chemical energy through electrochemical reactions. PEC cells use light to trigger processes like water splitting to produce clean fuels such as hydrogen. 

Increasing demand for renewable energy solutions, clean fuel production, and sustainable technologies in energy generation is driving the photoelectrochemical (PEC) cell market.

Photoelectrochemical Cell Market Overview

Global photoelectrochemical cell market size was valued at USD 12.11 billion in 2023, which is estimated to be USD 12.65 billion in 2024 and reach USD 17.95 billion by 2031, growing at a CAGR of 5.12% from 2024 to 2031. 

The rising demand for clean energy is a key driver for the PEC cell market as nations focus on sustainable energy solutions to combat climate change. PEC cells, which produce hydrogen and solar fuels, are a clean, renewable alternative to traditional energy sources in turn fueling market growth. 

Major companies operating in the photoelectrochemical cell industry are Ossila, Binergy Scientific Inc., First Solar, KANOPY, Ascent Solar Technologies, Inc., Panasonic Holdings Corporation, Tandem PV, Inc., Mitsubishi Corporation., TOSHIBA CORPORATION, P3C Technology and Solutions Pvt. Ltd, Oxford Photovoltaics Ltd, Solliance solar research , Saule Technologies, GCL-SI, and Hiking PV Technology Co. Ltd.

The photoelectrochemical (PEC) cell market witnesses advanced energy conversion technologies that utilize sunlight to drive chemical reactions to produce clean energy such as hydrogen. 

PEC cells combine solar energy harvesting with electrochemical processes, offering a sustainable solution for renewable fuel production. PEC cells are increasingly recognized for their potential to reduce reliance on fossil fuels and address environmental concerns.

• In January 2025, Northwestern University researchers developed a method improving the durability and efficiency of perovskite solar cells. This breakthrough overcomes stability issues, advancing PSCs towards commercialization and enhancing renewable energy adoption with scalable, high-performance solar technology.

Key Highlights:

1. The photoelectrochemical cell industry size was recorded at USD 12.11 billion in 2023.
2. The market is projected to grow at a CAGR of 5.12% from 2024 to 2031.
3. Europe held a market share of 36.72% in 2023, with a valuation of USD 4.45 billion.
4. The metal oxides segment garnered USD 5.59 billion in revenue in 2023.
5. The energy sector segment is expected to reach USD 7.77 billion by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 5.50% during the forecast period.

Market Driver

"The Increasing Global Demand for Clean Energy"

The growing emphasis on sustainable energy solutions and reducing carbon emissions is driving the photoelectrochemical cell market. As per the Ministry of New and Renewable Energy, India is advancing toward its 2070 net-zero goal through initiatives like the National Green Hydrogen Mission and PM-KUSUM, fostering a sustainable and inclusive energy future.

The transition to cleaner renewable energy sources has increased interest in PEC cells. as they provide an efficient and sustainable alternative to fossil fuels.

• In July 2024, a research team at the Helmholtz-Zentrum Berlin (HZB) demonstrated that increasing the pressure in photoelectrochemical (PEC) cells to 6-8 bar significantly reduces energy losses, improving efficiency by 5-10%. This breakthrough has improved hydrogen production from water splitting under elevated pressures.

Market Challenge

"Low Durability and Stability of Photoelectrochemical (PEC) Cells"

Enhancing durability and stability of PEC cells remains significant a challenge for PEC cells manufacturers, as they degrade over time, particularly under prolonged sunlight exposure. This affects performance and limits the commercial viability of PEC technology. 

However, ongoing research by companies is addressing this by developing more robust materials, such as stable photoelectrodes and protective coatings that can withstand continuous exposure.

• In June 2024, Canon developed a high-performance material to improve the durability and mass-production stability of perovskite solar cells . This material can enhance photoelectric conversion efficiency while solving issues related to mass production, thus contributing to the growth and reliability of the market.

Market Trend

"Technological Advancements Driving Growth in the Photoelectrochemical Cell Market"

Technological advancements in the photoelectrochemical (PEC) cell are playing a crucial role in driving market growth. Ongoing research is improving the efficiency of PEC cells with innovations in photoelectrode materials and catalyst development. Additionally, efforts to reduce manufacturing costs by various companies are making PEC technology more commercially viable. 

As material science advances, new strategies are enhancing the performance, durability, and scalability of PEC cells. These innovations are driving the broader adoption of PEC technology, accelerating its expansion in the sustainable energy market.  .

• In August 2023, Rice engineers developed a cost-effective, durable photoelectrochemical device using halide perovskite semiconductors to split water into hydrogen with a 20.8% solar-to-hydrogen efficiency, advancing clean energy and scalable fuel production.

 Photoelectrochemical Cell Market Report Snapshot

Market Segmentation:

• By Material (Metal Oxides, Organic Semiconductors, Perovskite-Based Cells): The metal oxides segment earned USD 5.59 billion in 2023 due to their high stability, cost-effectiveness, and superior conductivity, making them ideal for efficient photoelectrochemical applications in energy production.
• By End-User Industry (Energy Sector, Environmental Monitoring, Research Institutes, Chemical Industry): The energy sector segment held 40.28% of the market in 2023 due to the growing demand for sustainable hydrogen production and solar energy solutions.

Photoelectrochemical Cell Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Europe photoelectrochemical cell market share stood around 36.72% in 2023 in the global market, with a valuation of USD 4.45 billion. Europe has established itself as a dominant region in the photoelectrochemical (PEC) cell market, supported by strong government initiatives for renewable energy. 

The European Union's focus on reducing carbon emissions and investing in green technologies has led to significant advancements in PEC cell research and development across the region. Countries like Germany, the Netherlands, and France are leading in solar energy utilization and hydrogen production, with PEC cells playing a key role in achieving Europe's renewable energy goals.

• In December 2024, Homerun Resources acquired Halocell Europe to advance the commercialization of photoelectrochemical (PEC) cells, supporting Europe’s renewable energy initiatives. This strategic move combines expertise in perovskite solar technology, accelerating the region’s transition to efficient, low-cost renewable energy solutions.

Asia Pacific is expected to experience significant growth at a robust CAGR of 5.50% over the forecast period. Asia Pacific is emerging as the fastest-growing region in the photoelectrochemical (PEC) cell market, owing to rapid industrialization, increasing energy demand, and a shift toward sustainable energy solutions. 

Countries like China, Japan, and India are heavily investing in PEC technology to enhance solar energy utilization and hydrogen production. The region's manufacturing capabilities along with government policies promoting clean energy, are accelerating the adoption of PEC cells, positioning Asia Pacific as a major player in the global market expansion.

Regulatory Frameworks:

• The U.S. Department of Energy (DOE) sets technical targets for hydrogen production via photoelectrochemical (PEC) cells, guiding R&D efforts. Regulatory oversight, through DOE and other agencies, ensures safety, efficiency, and market scalability for PEC technologies
• Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action ensures the effective implementation and coordination of the EU's Energy Union Strategy, covering energy security, the internal energy market, energy efficiency, decarbonization, and advancements in research, innovation, and competitiveness

Competitive Landscape:

The global photoelectrochemical cell market is characterized by a large number of participants. Innovations in photoelectrochemical cells improve their efficiency, durability, and cost-effectiveness. Companies are developing advanced materials, such as novel semiconductors and enhanced catalysts, to boost energy conversion rates. 

Recent launches introduce new, scalable manufacturing techniques, including inkjet printing and advanced coatings, to optimize performance. These developments aim to make solar-driven hydrogen production more viable and accessible for widespread commercial use.

• In April 2024, Panasonic's innovative perovskite solar cells, produced via inkjet printing, offer flexible, cost-effective, and energy-efficient solutions. The breakthrough enhances the photoelectrochemical market by enabling building-integrated photovoltaics and expanding solar power generation, contributing to more sustainable energy options.

List of Key Companies in Photoelectrochemical Cell Market:

• Ossila
• Binergy Scientific Inc.
• First Solar
• KANOPY
• Ascent Solar Technologies, Inc.
• Panasonic Holdings Corporation
• Tandem PV, Inc.
• Mitsubishi Corporation.
• TOSHIBA CORPORATION
• P3C Technology and Solutions Pvt. Ltd
• Oxford Photovoltaics Ltd
• Solliance solar research
• Saule Technologies
• GCL-SI
• Hiking PV Technology Co.

Recent Developments (Expansion/Innovation)     

• In December 2023, GCL-Perovskite began constructing the world’s first gigawatt-scale perovskite module production base in Kunshan, China. This project aims to develop high-efficiency perovskite solar cells to achieve over 26% conversion efficiency, marking a significant step in the commercialization of perovskite solar technology.
• In June 2024, LONGi’s breakthrough in silicon-perovskite tandem solar cells with 34.6% efficiency sets a new record. This innovation supports the photoelectrochemical cell market by advancing solar technologies, aligning with global renewable energy initiatives and enhancing sustainable energy solutions