The global PV O&M market grew substantially in 2022, with the top 15 suppliers overseeing 115 GW of PV capacity, up 13% from the previous year, according to Wood Mackenzie.
In their 2023 report on global PV O&M service provider dynamics, Wood Mackenzie said that the leading 15 companies in the sector collectively added 13 GW to their global portfolios in 2022. However, the market experienced a slight contraction of 2.8%, resulting in a 56% market share for these suppliers by the end of 2022, down from 58% in 2021, indicating fragmentation within the solar O&M industry.
The top three suppliers remained unchanged from the previous year, with NovaSource leading, followed by SOLV Energy, and Spain's Solarig in third place. Across the portfolios analyzed by Wood Mackenzie, O&M suppliers expanded their capacity under contract by 18% in 2022, reaching a total of 207 GW.
Regarding O&M contract prices for large-scale projects in the United States, they decreased in 2022, averaging $7.9 (€7.4)/kW/year, representing a 22% decline. While specific details were not provided, the report indicated that Europe, the Middle East and Africa had the highest cost per megawatt for large-scale projects, followed by North America and the Asia-Pacific region.
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In terms of volume growth, North America led the way, adding 13 GW in 2022 for a total of 86 GW. EMEA expanded by 23% to reach 59 GW, APAC grew its portfolio by 2.6 GW, reaching 40 GW, and Latin America added 4.7 GW, reaching 20 GW.
The dynamic landscape of the O&M market is exemplified by recent developments such as RES Group's acquisition of Ingeteam, which is set to become a significant multi-technology O&M provider. This move could potentially propel RES Group to the fourth position in the global solar O&M ranking once the deal is finalized, according to Leila Garcia da Fonseca, research director for renewables in the Americas at Wood Mackenzie.
While further market consolidation is anticipated to lead to increased price competition, long-term projections suggest rising costs. Factors contributing to this include increasing labor costs, general inflation, and the adoption of digital solutions, which have contributed to the recent decline in prices, as explained by Garcia da Fonseca.
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