Thursday, June 17, 2010

German PV Manufacturers Can Expect Difficulties

Munich, June 9, 2010 - Roland Berger Although photovoltaics (PV) is a growing market, competitors from Asia in particular are stepping up the pressure on German manufacturers. Worldwide, the industry will continue to expand by around 35% per annum. Oversupply and improved cost efficiency will nevertheless cause prices to drop by as much as 15% per year.

One consequence of ever fiercer competition is that German companies will offshore production to low-cost regions such as Asia. As a result, German firms that do keep production onshore will face the threefold threat of low-cost competition from Asia, declining sales at home and a dwindling presence in the world's growth markets. These are the findings of a market study entitled "Light and shade – German PV companies in the global competitive arena".

he report concludes:

- Competition heating up for German solar power companies
– few prepared to face difficult market climate
- More production will be off-shored to Asia
- Not every German photovoltaic company will survive
- Success factors: Production volumes that are large enough to facilitate low costs and healthy market access – especially in project business – to fuel high-volume sales.

Source:  SolarPlaza

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