January 9, 2019 (Investorideas.com Newswire) Despite a drop in its share, the Asia-Pacific (APAC) region, with its large population base and strong requirement for electricity generation capacity, will continue to influence the global solar PV module market over the forecast period 2018-2022, according to GlobalData, a leading data and analytics company.
The company’s latest report, ‘Solar PV Module, Update 2018’, reveals that market saturation, reduction in subsidies and declining costs of technologies are the major factors impacting the global solar PV module market. It states that the global market volume is estimated to decline at a negative compound annual growth rate (CAGR) of 2.8% from 87.5 gigawatt (GW) in 2018 to 78.13GW in 2022.
The large markets of China, India, Japan and the US are likely to decline, due to changes in their energy markets. In 2017, APAC constituted 73.6% of the market value due to the significant movements in the Chinese market.
Nirushan Rajasekaram, Power Analyst at GlobalData, comments: "The declining prices of PV modules and other auxiliary technologies such as inverters has translated into lower project costs; benefitting project developers and enabling proliferation within price sensitive markets. The declining price trend will be critical in driving the global market value down to $23.7bn in 2022."
The various levels of economic progress exhibited by countries within APAC will help sustain the market for PV modules, despite a dip in the Chinese market. China, the largest market for solar PV is likely to see a decline in its market value, at a negative CAGR of 14.8% over the forecast period.
Rajasekaram adds: "In order to counter the redundant capacity deployment of solar, which has transformed into a cost burden, the government proposed removing subsidies for utility scale projects and moving towards a competitive bidding market. Other countries in APAC, in particular in the Southeast, would drive the market, which is estimated to be $13.4bn in 2022."
Over the forecast period, the EMEA region is estimated to have the highest solar PV installation growth rate of 7.5%. The European market is projected to hold steady over the forecast period, with Germany, France and Turkey contributing to the capacity addition.
Rajasekaram concludes: "The solar PV module market is projected to slow down, due to reduced installations in major markets. Declining price trends and environmental impact concerns of power generation would create new growth prospects in emerging nations. However, financial support and market restructuring to attract investments are critical for proliferation in countries. In addition, the simultaneous development of power grid infrastructure would support higher installations; the current lack of suitable infrastructure is inhibiting large scale installation of solar PV."
For more information
To gain access to our latest press releases: GlobalData Media Centre
Analysts available for comment. Please contact the GlobalData Press Office:
EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.