Global PV Market Set to Decline 20% this Year, will Rebound in 2015
25th Apr 2013
NPD Solarbuzz has reported that the global solar photovoltaic market will decline by 20 percent in 2013, from revenues of $25.5 billion in 2012, down to $20.5 billion this year. This downward trend will continue into 2014 as well, before starting to bounce back in 2015. Eventually the market will reach revenues of around $32 billion by 2017.
2012 was a tough year for the solar PV industry, with average module selling prices down by a half from previous years. Confidence was strained and huge pressure was placed on the solar manufacturing sector which had been gearing up for a bumper year of sales.
Michael Barker, the senior analyst at NPD Solarbuzz, explained that “manufacturing over-capacity and declining revenues had a dramatic impact on the P.V. industry in 2012, and this trend will continue during 2013.”
Over the last year many publically listed solar companies have watched their share values drop dangerously close to delisting levels, reporting operating losses each quarter in the range of hundreds of millions of dollars. Several manufacturers have even had to file for bankruptcy, with the most recent being Suntech of China, the world’s largest PV panel producer.
Barker stated that, “predicting how and when the solar P.V. industry will rebound to profitability has now become essential for all industry participants. Surviving the downturn phase of 2013 and 2014 remains the key objective for all solar P.V. manufacturers. In 2015, they can expect an industry that offers strong growth and revenue potential, which should restore confidence in the P.V. manufacturing sector and lead to further investments in new capacity and next-generation technologies.”
By. James Burgess