New analysis from IHS Inc. says PV module gross profits this year will top $5 billion, which is more than double the profits garnered in 2014.
IHS has identified at least 89 countries with solar photovoltaic markets that will show growth in solar installations in 2015. This growth is forecast to drive a 30% increase in PV demand.
Last year, there were 73 countries that enjoyed year-over-year growth, the report says, but the 21 countries that declined accounted for a 5.6 GW drop in demand. IHS says demand will decline in only seven countries this year, representing a loss of 0.5 GW.
The report says the surge in PV demand – coupled with a slowing in average selling price declines and improving cost structures – will result in greater profits throughout the supply chain. In particular, gross margins for the wafer industry are forecast to increase to 20% this year, while module industry margins will increase to 13%.
‘In 2015, we can expect a much healthier year for the supply chain after two very difficult years, when incentives were pared back in several countries, over-supply continued and prices collapsed," says Ash Sharma, senior research director for solar at IHS." We now see far healthier and sustainable margins for much of the industry.’
For more information on the IHS PV Integrated Market Tracker, click here.