IHS: Solar PV supply chain revenues to grow 24% during H2 2014

polysilicon and PV cell
IHS expects polysilicon prices to stabilize in H2 2014. Image: Wacker Chemie.

IHS Technology (London) has released a report which predicts that solar photovoltaic (PV) supply chain revenues will grow 24% during the second half of 2014, with combined revenue for polysilicon, silicon wafers, solar photovoltaic (PV) cells and modules rising to USD 28.7 billion.

The company says that while it expects all segments to rise on both higher sales volumes and better pricing conditions, that modules will increase the most during the six-month period at 30%. IHS says that this follows slowness in the first half of the year.


“PV solar installations have been decelerating in the first half of 2014 because of a slow start to the year in China,” said IHS Lead Analyst Jessica Jin. “However, installations are expected to gain major momentum in the second half, mainly driven by increases in China, Japan, the United States and the United Kingdom.”

“Double-digit growth in these countries will more than offset major declines in once-hot markets like Germany, Italy and Greece, resulting in a 24 percent global increase in megawatts installed for the year.”

Over the full year 2014, IHS expects polysilicon market revenue to rise 36%, wafer revenues to rise 35%, cells 18% and modules 17%.


Moderate declines in supply chain prices

IHS expects leading manufacturers throughout the supply chain to report profits during the third and fourth quarters of 2014, in part due to better pricing conditions. The company expects only moderate declines in wafer, cell and module prices during the next six months.

IHS also predicts that the polysilicon price increase that began in the third quarter of 2013 will end, with polysilicon prices becoming flat or falling slightly in the second half of the year.


Next phase of capacity expansions predicted

Over the full year 2014 IHS predicts PV installations of 47 GW, and for the global PV market to increase 10-15% annually to more than 70 GW in 2018. This will require significant capacity expansions along the supply chain, and IHS says that large PV makers now have enough cash for this next phase of growth.

IHS Technology is a division of IHS Inc. (Englewood, Colorado, U.S.).

 

 

2014-06-17 | Courtesy: IHS; Image: Wacker Chemie | solarserver.com © Heindl Server GmbH

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