The number of solar photovoltaic (PV) system suppliers has declined from 250 in 2010 to 150 in 2013 due to the shakeout of uncompetitive PV cell manufacturers, says a new report from NPD Solarbuzz Marketbuzz.
The report also finds that solar photovoltaic (PV) installed system prices, module prices, and module production costs have all fallen by more than 50 percent. As a result of this, PV demand will continue to grow, the report said.
In addition to costs, other factors such as manufacturing consolidation and a more balanced supply-demand picture help the industry grow from a demand-constrained market into a classic supply-driven market in 2014.
The demand for solar PV systems in 2013 was primarily driven by the booming Asian market, led by China and Japan. Adding in the United States, the third largest market, the top three countries accounted for almost 60 percent of total annual demand in 2013.
“Until recently the size of the PV industry each year was constrained by deployment levels across individual end-markets, with global forecasting performed by adding demand from each country,” said Michael Barker, senior analyst at NPD Solarbuzz.
“Ultimately 2014 year-end demand will be determined by how much product can be produced and shipped, analogous to a classic supply-driven market environment,” Barker added.
According to NPD Solarbuzz, the solar PV markets in China, Japan and the U.S are characterized by strong PV project pipelines, flexible and innovative financing vehicles and proactive government policies that can be adapted to drive short-term demand upside.