PV revenues and profits to keep on declining


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."

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.