The localization process of front-side silver paste is rapid and the industry concentration is high

Front-side silver paste is one of the key materials to improve the conversion efficiency of crystalline silicon solar cells. It is mainly used in P-type cells and N-type cells to collect and export photogenerated carriers. Front-side silver paste is composed of high-purity silver powder, glass powder, organic raw materials and other ingredients. Since it plays an important role in solar cells, terminals have higher requirements for front-side silver paste.

The market demand for front-side silver paste is related to the size of the solar cell market. In recent years, global photovoltaic installed capacity has shown a growth trend. In 2020, global photovoltaic installed capacity reached 760GW, and the demand for solar cells was approximately 165GW, a year-on-year increase of more than 15%. In 2020, my country’s newly installed photovoltaic capacity was approximately 48GW, the demand for solar cells is 135GW, a year-on-year increase of more than 20%. my country is the world’s major producer of solar cells. As production increases, the demand for front-side silver paste also increases. In 2020, global front-side silver paste consumption will be approximately 2,200 tons, of which my country’s front-side silver paste consumption will be approximately 1,803 tons. According to the current global and my country’s photovoltaic industry development trends, front-side silver paste consumption is expected to continue to grow, and my country’s front-side silver paste consumption will reach more than 3,800 tons in 2023.

According to the “2021-2025 Frontal Silver Pulp Industry In-depth Market Research and Investment Strategy Suggestions Report” released by the Industrial Research Center, due to High-purity silver powder relies on imports, and key technologies are backward. In the early days, domestic front-side silver paste market demand relied on imports. In 2017, my country’s silver paste localization rate was only about 31%. Global companies such as Samsung, DuPont, and Heraeus have advanced technologies and rich experience, and have a relatively high share of the domestic market by virtue of their first-mover advantage. However, in recent years, thanks to the development of the domestic photovoltaic industry, the market demand for front-side silver paste has shown a rapid growth trend, attracting many companies to deploy and achieve technological breakthroughs. The domestic substitution rate has subsequently increased, and the domestic front-side silver paste market share in 2020 The rate has reached about 53% and is expected to reach 62% in 2021.

In 2020, the top five companies in my country’s front silver paste market share are Heraeus, Juhe, Dike, Shuohe, and DuPont. Among them, Juhe Co., Ltd., Dike Co., Ltd., and Suzhou Jingyin are local companies. The front-side silver paste products they produce have cost advantages, seizing the overseas corporate market, and their market share is gradually increasing. In 2020, Juhe shares accounted for 24% of the market, followed by Dike shares, which accounted for 16%.

Industry analysts said that front-side silver paste is mainly used in solar cells. Benefiting from policy support, photovoltaic installed capacity globally and in my country continues to increase. As the price rises, solar cell output increases accordingly, which is good for the development of the positive silver paste industry. In terms of production, due to limitations in raw materials, domestic demand for front-side silver paste relied on imports in the early stage. However, in recent years, domestic companies have gradually realized front-side silver paste production, and achieved import substitution with high cost performance advantages, and the proportion of domestic products has continued to increase.