Global Solar Energy Outlook

"Solar"

07/06/2010

Solar Demand Dynamics, Cost Structures, Policy Factors, and Competitive Differentiators for Suppliers: Market Analysis and Forecasts



The solar energy market has undergone a dramatic transformation over the past two years, driven by a new abundance of polysilicon, the effects of the worldwide financial crisis, and the plunging price of solar modules. As a result of these factors, the solar industry has shifted from supply-constrained to demand-driven, and a few strong companies have been able to strengthen their revenues and market share based on a low cost per watt combined with high module efficiency.

This market realignment will set the stage for a new era of solar growth over the next several years, and Pike Research forecasts that worldwide demand will nearly double between 2010 and 2013, reaching 19.3 gigawatts by the end of that period. In this market environment, some of the key differentiators that will determine success for solar suppliers will include cost per watt, module efficiency, presence in key growth markets, supply chain integration, and availability of financing.