On February 10th, 2012 IMS Research (Wellingborough, U.K.) announced the release of a report which states that despite sharp declines in the market for solar photovoltaic (PV) manufacturing equipment, 20 GW of equipment will need to be replaced or upgraded by 2016, representing a USD 25 billion market.

The company's quarterly PV Manufacturing Equipment report states that equipment markets will decline 65% in 2012. This follows the losses reported by equipment vendors at the end of 2011, and IMS notes that utilization rates in the PV industry are at an all-time low.

"IMS Research has estimated that there is between 2.5 and 4 GW of existing manufacturing capacity that requires upgrade in 2012, and this figure will steadily ramp-up over the coming few years," states IMS Research Senior Research Director Tim Dawson. "Companies wishing to remain competitive and take the opportunity to gain market share, will be forced to invest in new equipment."

"The inevitable market shake-out that will see less competitive product makers fall by the wayside, will stimulate further demand for equipment as existing manufacturing capacity goes off line."

IMS Research states that equipment makers that stand to benefit the most in this environment are those that have a clear upgrade strategy available to their customers.

2012-02-14| Courtesy: IMS Research; Image: Oerlikon Solar | solarserver.com © Heindl Server GmbH

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