Despite the 2018 decline, the global market for solar photovoltaics is expected to increase its revenue from $38.38 billion to $44.82 billion by 2025, according to a new study published by Frost & Sullivan.
Solar energy capacity is expected to expand from 101.8GW to 128.3GW, an increase by 89.5GW, between 2018 and 2025.
Factors driving the growth of solar photovoltaics include:
- The transition of solar photovoltaics from a subsidy-dependent market to a subsidy-free, grid-parity market
- Solar power manufacturers will increasingly employ smart solutions to improve operational efficiency and reduce overall operation and maintenance costs
- The increasing demand for solar photovoltaics with energy storage
Sama Suwal, an energy & environment research analyst at Frost & Sullivan, said: "Solar PV manufacturers are enhancing their service offerings to include Internet of Things (IoT)-powered solutions and storage capabilities while integrating all upstream and downstream capacities.
"To bolster their technology portfolio and expand their presence in emerging countries, they are actively seeking partnerships, collaborations, and M&A opportunities.
"The imposition of tariffs on the import of Chinese modules in several countries such as the US and India has created opportunities for domestic manufacturers.
"Developed markets like Europe will experience a revival of demand due to the digitization of energy systems and smart grid solutions. Meanwhile, emerging markets such as the Middle East and Latin America will experience a demand surge fueled by supportive policies and economic development."
The market is rapidly becoming commoditised.
Market players can find growth opportunities by:
- Increasing their focus on technologies such as bifacial modules
- Enhancing their manufacturing presence in new markets that are exempt from import tariffs to secure a foothold in key markets such as the US
- Building strong local sales teams by selecting and training local experts with deep knowledge about their home market dynamics and regulations
- Expanding their service offerings to include all downstream and upstream capabilities to capture revenue from the entire value chain
- Forming alliances with energy companies or utilities, partnering with established solar developers, or merging with or acquiring start-ups or smaller manufacturers focused on specific countries or regional markets
For further information on this analysis, please visit: http://frost.ly/3t8