Solar Power Photovoltaic Markets to Lose 10 Billion Dollar Value by 2020
According to Global Data, the global solar photovoltaic (PV) balance of system (BOS) market will decline in value from an estimated US $ 34.9 billion in 2014 to US $ 24.9 billion by 2020, due to falling BOS costs and slow increase in global annual capacity additions.
However, the company’s latest report indicates that while developed markets, such as the US, UK and Germany, will be the main contributors to this decline, some emerging countries, led by China, will witness growth over the forecast period. The largest drop will occur in the US, where the solar PV BOS market value will be more than half, from $6.7 billion in 2014 to $3.3 billion by 2020. Analyst, GlobalData, Harshavardhan Reddy Nagatham covering Power says, “The US solar PV market has grown strongly in recent years, and policies that promote solar power are also increasing at both the federal and state level.”
“Thanks to Investment Tax Credits (ITCs), the BOS market will see some initial growth, but it will begin to decline when ITCs expire in December 2016. This, combined with the cost of systems that continue to slide, will cause the US market to fall below 2011 levels by the end of the decade,” Nagatham added. By contrast, China’s BOS market value will expand from $6.8 billion in 2014 to $8.2 billion by 2020, thus, cementing its
position as the world’s leader in this space.