According to the latest Prediction by IHS, the Global installations of Solar PV systems will increase in 2013, but will face Revenue decline, due to lower prices and decreasing industry growth rates.
IHS has predicted, that 35 GW of Solar PV Plants will be installed globally, up 9.4% from 32GW level in 2012. Said this the market will shrink to about $75 billion in 2013, from $77 billion in 2012. Though this figure seems small, the story completely changes when compared to 2011, as the Market revenues stood at $94 billion in the year 2011. This fall was mainly contributed by rapid decline in prices and this also resulted in widespread mergers, acquisitions and bankruptcies.
Ash Sharma, the director of syndicated solar research for IHS said, “The conflicting trend of growing PV installation volumes accompanied on
the other hand by falling revenues will challenge solar companies to
continue to reduce their cost structures," He also added “While solar installations have grown every single year without fail
since we started analyzing the industry in 2006 - and will continue to
do so until at least 2017 - the picture is much more sobering when one
looks at industry revenue, especially as PV component prices continue
downward. And installation growth, although positive, is also slowing,
further affecting the industry’s overall top line.”
Globalization the new Phenomenon:
Until recently, due to the favorable federal subsidies, offered in Germany and Italy, the European market accounted for 80% of solar demand, but due to the emergence of United States and Asian giants China and India, the proportion had dipped to about 53% 2012. Also the proposition is expected to further drop to reach 39%.
But the Sun looks brighter beyond 2013, as IHS anticipates the industry revenues will expand in double digits
between 2014 and 2016, and is expected to
reach $115 billion.
