A new record has been set, again, for the installed capacity of solar PV system. IHS reported that global solar PV installations totaled about 32 GW in 2012, which beats 2010′s 20 GW and 2011's 28 GW records. In 2010 Europe had accounted for 80% of the PV demand, which fell to 53% in 2012. The downtrend of Europe's PV demand will continue this year which will be undertaken by China.
IHS also forecasts that 2013 will be another record year with estimated installed capacity of 35 GW. They project that the annual installation capacity will continue raising, reaching 61 GW by 2017. Meanwhile, the module's price is projected to keep falling.
According to IHS, PV industry revenue, measured as the system price multiplied by total gigawatts installed, is expected to decline to US$75 billion in 2013, down from US$77 billion in 2012. However, IHS says that the revenue number will rise above US$100 billion between 2014 and 2016, and will reach as much as US$115 by 2016.
Cost reduction has become the key focus for PV suppliers to stay in the business. They are under pressure to continue reducing cost through technology innovation, manufacturing innovation, waste reduction, etc, to remain in the tightening PV market.
In conclusion, PV prices will continue to drop, installations will continue to increase, and suppliers will continue to go out of business as the industry consolidates.