| Date | August 26, 2024 |
|---|
Solar analyst Vikey Zhao of InfoLink Consulting shed lights on the latest global solar market trends at the “Photovoltaic New Era: Opportunities and Challenges for Enterprises Going Global” seminar held on Aug. 23 in Changzhou, China.
Against the backdrop of rapid global development in the solar industry, the seminar aimed to address challenges facing the solar industry, including capacity mismatches, price declines, sluggish overseas market demand, and market uncertainties.
Analyst Zhao delivered a presentation titled "Overseas Expansion of Key Materials and BoM: Opportunities and Risks," which analyzed global solar supply and demand, regional market developments, and the risks as well as opportunities businesses face in different markets.
China remains the dominant player in the global solar market, with solar installed capacity reaching 102GW in the first half of this year, up 31% YoY, according to Zhao. Yet, demand for modules has slowed due to price fluctuations and policy changes in distributed generation projects.
In overseas markets, modules exporting from Southeast Asia to the U.S. have been impacted by the ongoing trade disputes and AD/CVD petitions. InfoLink thus revised demand forecast from the initial 48-52 GW to 38-40 GW for this year. Additionally, concerns over policy changes affecting project approvals and grid access, coupled with the upcoming 2024 presidential election, have increased market uncertainty.
US’ subsidies under the Inflation Reduction Act and trade barriers have also prompted manufacturers to expand production in the U.S., with a focus on module capacity and some investments in cells and wafers. In light of this, Zhao emphasized the need for manufacturers to conduct comprehensive evaluations of demand, profit, business environment, policies, and overseas operations when planning overseas expansion.
>> Download InfoLink’s latest “US Market Report: PV Supply Chain Analysis and Market Prospect" to grasp the latest trends and in-depth insights into the US solar market and strategically plan for the future.
Zhao emphasized the critical role of BoM materials in the solar industrial chain, including backsheets, encapsulant, junction boxes, and frames, which are crucial for the overall performance and durability of modules.
As global solar installations increase, the BoM materials market is also expanding rapidly. However, competition in the BoM materials market is intensifying also, with raw material price fluctuations and stricter environmental regulations posing dual challenges for BoM materials suppliers.
For example, the overseas expansion of silver paste is concentrated in four Southeast Asian countries: Vietnam, Thailand, Malaysia, and Singapore, with Singapore housing the most production capacity among all.
Overall, the overseas silver paste capacity is sufficient to meet current demand in the US market, and with the acceleration of silver paste overseas expansion, supply capacity will further increase by the end of 2024, according to Zhao.
The production expansion of aluminum frames mainly takes place in Vietnam and Laos, with Vietnam holding a major share. Moreover, India also has some frame production capacity, but it is not as significant as Southeast Asia, said Zhao. The overseas expansion of aluminum frames is speeding up, which can meet demand from the U.S. 2024
To aid businesses with their global operations, InfoLink has recently launched the "PV Bill of Material Market Report," providing detailed analysis of market demand, supply chain changes, and price trends to help companies formulate strategies, optimize BoM material supply chain management, enhance market competitiveness, and achieve sustainable development.
InfoLink Consulting is a market research and consulting firm engaging in renewable energy and technology industries. Working alongside industry leaders and up-start businesses, InfoLink strives to empower them with real-time market intelligence, analytic reports, data research, and customized consulting services.
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Against the backdrop of rapid global development in the solar industry, the seminar aimed to address challenges facing the solar industry, including capacity mismatches, price declines, sluggish overseas market demand, and market uncertainties.
Analyst Zhao delivered a presentation titled "Overseas Expansion of Key Materials and BoM: Opportunities and Risks," which analyzed global solar supply and demand, regional market developments, and the risks as well as opportunities businesses face in different markets.
China remains the dominant player in the global solar market, with solar installed capacity reaching 102GW in the first half of this year, up 31% YoY, according to Zhao. Yet, demand for modules has slowed due to price fluctuations and policy changes in distributed generation projects.
In overseas markets, modules exporting from Southeast Asia to the U.S. have been impacted by the ongoing trade disputes and AD/CVD petitions. InfoLink thus revised demand forecast from the initial 48-52 GW to 38-40 GW for this year. Additionally, concerns over policy changes affecting project approvals and grid access, coupled with the upcoming 2024 presidential election, have increased market uncertainty.
US’ subsidies under the Inflation Reduction Act and trade barriers have also prompted manufacturers to expand production in the U.S., with a focus on module capacity and some investments in cells and wafers. In light of this, Zhao emphasized the need for manufacturers to conduct comprehensive evaluations of demand, profit, business environment, policies, and overseas operations when planning overseas expansion.
>> Download InfoLink’s latest “US Market Report: PV Supply Chain Analysis and Market Prospect" to grasp the latest trends and in-depth insights into the US solar market and strategically plan for the future.
Zhao emphasized the critical role of BoM materials in the solar industrial chain, including backsheets, encapsulant, junction boxes, and frames, which are crucial for the overall performance and durability of modules.
As global solar installations increase, the BoM materials market is also expanding rapidly. However, competition in the BoM materials market is intensifying also, with raw material price fluctuations and stricter environmental regulations posing dual challenges for BoM materials suppliers.
For example, the overseas expansion of silver paste is concentrated in four Southeast Asian countries: Vietnam, Thailand, Malaysia, and Singapore, with Singapore housing the most production capacity among all.
Overall, the overseas silver paste capacity is sufficient to meet current demand in the US market, and with the acceleration of silver paste overseas expansion, supply capacity will further increase by the end of 2024, according to Zhao.
The production expansion of aluminum frames mainly takes place in Vietnam and Laos, with Vietnam holding a major share. Moreover, India also has some frame production capacity, but it is not as significant as Southeast Asia, said Zhao. The overseas expansion of aluminum frames is speeding up, which can meet demand from the U.S. 2024
To aid businesses with their global operations, InfoLink has recently launched the "PV Bill of Material Market Report," providing detailed analysis of market demand, supply chain changes, and price trends to help companies formulate strategies, optimize BoM material supply chain management, enhance market competitiveness, and achieve sustainable development.
About InfoLink
InfoLink Consulting is a market research and consulting firm engaging in renewable energy and technology industries. Working alongside industry leaders and up-start businesses, InfoLink strives to empower them with real-time market intelligence, analytic reports, data research, and customized consulting services.Contact
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Get the PV Bill of Material Market Report, covering key auxiliary materials like diamond wire, silver paste, screen printing, glass, encapsulant, backsheet, and ribbon with a comprehensive supply and demand analysis. Download now!