The market for German solar companies is facing consolidation. This is shown by the results of a recent study by Wiesbaden Business School on behalf of Ventizz Private Equity AG. Participants are forecasting strong growth over the coming years with a simultaneous decrease in the number of suppliers. Further internationalization of sales and production are clearly apparent – in particular shifting to Asia.
The majority of German solar suppliers questioned are expecting a period of consolidation for the industry over the next two years. More than 40% of companies are playing a passive role – they are not actively planning acquisitions or mergers or preparing for corresponding talks. This passive behavior could reinforce German technology being sold off to other countries, thus endangers German solar equipment companies´ leading position on the global market. “Foreign investors in particular believe that this process offers an opportunity to acquire German expertise,” commented Dr. Helmut Vorndran, a Managing Partner with Ventizz Private Equity, on the results of this study. “That means that the solar equipment sector could see a repeat of the trends in other industries, such as tooling machine manufacturers: The centers of competence are increasingly migrating from Germany to China or South Korea. That means that another German domain – solar equipment suppliers – could find itself in a dangerous situation.”
The majority of German solar suppliers questioned are expecting a period of consolidation for the industry over the next two years. More than 40% of companies are playing a passive role – they are not actively planning acquisitions or mergers or preparing for corresponding talks. This passive behavior could reinforce German technology being sold off to other countries, thus endangers German solar equipment companies´ leading position on the global market. “Foreign investors in particular believe that this process offers an opportunity to acquire German expertise,” commented Dr. Helmut Vorndran, a Managing Partner with Ventizz Private Equity, on the results of this study. “That means that the solar equipment sector could see a repeat of the trends in other industries, such as tooling machine manufacturers: The centers of competence are increasingly migrating from Germany to China or South Korea. That means that another German domain – solar equipment suppliers – could find itself in a dangerous situation.”
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