ENGLEWOOD, Colo. — Following a weak performance during the first six months of the year, the global solar photovoltaic (PV) supply chain is set for strong 24 percent growth in the second half of 2014, driven by surging installations, according to IHS Technology.
Combined revenue for the PV polysilicon, wafer, cell, and module industries is forecast to rise to $28.7 billion in the second half of this year, up from $23.1 billion during the period from January through June. Revenue in the first half increased marginally by 1 percent compared to the second half of 2013.
All segments are expected to attain growth in the second half, led by a nearly 30 percent surge in module revenue.
“PV solar installations have been decelerating in the first half of 2014 because of a slow start to the year in China,” said Jessica Jin, PV analyst at IHS. “However, installations are expected to gain major momentum in the second half, mainly driven by increases in China, Japan, the United States, and the United Kingdom. Double-digit growth in these countries will more than offset major declines in once-hot markets like Germany, Italy, and Greece, resulting in a 24 percent global increase in megawatts installed for the year.
The rise in installation growth will benefit the top PV suppliers. Leading manufacturers are expected to enjoy bottom-line profitability during the third and fourth quarters.
IHS forecasts continuously increasing PV demand in the years 2015 through 2018 with annual growth rates of 10 to 15 percent. By 2018, global PV markets are expected to surpass the 70 gigawatt (GW) mark, up from 47 GW in 2014.
For more information from the Power & Energy service of IHS, click here.
Publication date: 7/21/2014