Emerging markets to provide significant growth opportunities to manufacturers, finds Frost & Sullivan
SANTA CLARA, California, Oct. 9, 2019 /PRNewswire/ -- As solar photovoltaics (PVs) transition 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. This trend, along with the demand for solar PV with storage, is expected to drive the $38.38 billion market toward $44.82 billion by 2025. Although it experienced a decline in 2018 with a total added capacity of 89.5 GW compared to 101.8 GW in 2017, it is likely to recover to reach 128.3 GW in 2025.
"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," said Sama Suwal, Energy & Environment Research Analyst at Frost & Sullivan. "To bolster their technology portfolio and expand their presence in emerging countries, they are actively seeking partnerships, collaborations, and M&A opportunities."
Frost & Sullivan's recent analysis, Global Solar PV Power Market, Forecast to 2025, examines the growth trends for solar power in developed and developing markets, including North America, Europe, Asia-Pacific, China, India, Latin America, Africa, and the Middle East. It analyzes the key companies, products, and applications and the drivers and restraints that will affect them in the future. It covers the project types of utility-scale, commercial & industrial, and residential.
For further information on this analysis, please visit: http://frost.ly/3t8
"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," noted Suwal. "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."
In a market that is rapidly becoming commoditized, solar PV manufacturers can find fresh 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.
Global Solar PV Power Market, Forecast to 2025 is part of Frost & Sullivan's global Energy & Environment Growth Partnership Service program.
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Global Solar PV Power Market, Forecast to 2025
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SOURCE Frost & Sullivan