PV revenues and profits to keep on declining29. September 2011 | Industry & Suppliers, Markets & Trends, Products | By: Becky Stuart
Despite an increase in photovoltaic module shipments, revenues and gross profits are forecast to keep on shrinking into next year, according to new research, due to the "huge" oversupply, "fierce" competition and falling prices.
In its latest quarterly report, IMS Research states that the rapidly declining photovoltaic module prices will see global industry revenues shrink by 10 percent this year, even though shipments are increasing.
This trend is expected to continue into 2012, with revenues of just $30 billion being reaped. This is less than the $38 billion generated in 2010, which experienced record growth of 74 percent from 2009.
While IMS expects that growth will resume in 2013, it says it is unlikely that revenues will return to 2010’s levels until after 2015.
Furthermore, it is estimated that gross profits will fall, from $10.3 billion in 2010 to just over $5 billion in 2012.
The research company goes on to say that module production is expected to be double that of actual market demand, at over 50 gigawatts. "This huge oversupply has driven many suppliers to engage in a price war to win business; and current prices are now 35 percent lower than they were at the end of 2010," it said in a statement.
Senior research analyst, Sam Wilkinson added, "Another significant consequence of declining revenues for the industry will be a sharp decrease in profits. As module prices have fallen much faster than suppliers have been able to reduce their costs, average gross margins are currently half what they were six months ago."
Choose between a digital and print subscription from pv magazine publisher Solarpraxis AG’s online shop!
- 4449 views
- 2386 views
- 2314 views
- 2264 views
- 2181 views
Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!