Global Photovoltaic (PV) Market Forecasted to Reach 59.7 GW in 2019
June 9, 2015
According to a recent report from BCC Research, the global photovoltaic (PV) modules market was valued at $32.6 billion in 2013 and $34.6 billion in 2014. This market is expected to decrease to $27 billion by 2019, with a compound annual growth rate (CAGR) of -4.8% from 2014 to 2019.
Global shipments of PV modules grew by 13.4% in 2014, reaching 43.9 gigawatts (GW). BCC Research projects the market will grow by a CAGR of 6.3% to reach 59.7 GW in 2019. The rapid growth of PVs is attributed to the demand for renewable energy; the gradual reduction in cost of PVs; the absence of pollution in PV technologies; demand for carbon-free energy solutions; various national, state and local incentives; and the increasing capability to manufacture solar cells and modules.
The average selling price of crystalline modules in the U.S. was $0.82 per watt in 2013, a sharp decrease from $3.50 per watt in 2007. A longer-than-expected economic recovery, reductions (or eliminations) in some incentives, as well as the economy of scale will moderate the average annual revenue of PVs.
“Although the total amount of energy created by this technology is still relatively small compared to other energy sources, PV has an excellent future potential,” said Claire Lepont, analyst. “With almost 70 GW cumulative park in 2011, electricity generated from PV represented less than 0.3% of the world’s electricity, which was seven times less than electricity generated from wind power.”
The price of silicon technology will continue to decrease in the next five years as companies continue to scale up, consolidate and optimize production. Extreme price pressure on polysilicon manufacturers could limit their equipment investment, and consequently affect the cost of crystalline silicon PV modules.
For more information, visit www.bccresearch.com.