The Market Will Average 8% Annual Growth Despite New Challenges Such as Trade Disputes With China and Changes in Global Policy, Says Lux Research
BOSTON, MA--(Marketwired - Aug 26, 2014) - Led by China, the solar industry will grow at a CAGR of 8.3% -- from 37.5 GWp in 2013 to 65.6 GWp in 2019 -- but emerging trade disputes involving the Asian giant, as much as global policies, cast a shadow over short-term prospects, according to Lux Research.
China became the biggest solar market in the world with 11.8 GWp installations in 2013, and has been key to faster-than-expected global recovery. Since the competitive bankruptcy-ridden cost environment of 2012, module supplier margins have increased, with most Tier-1 suppliers topping 10% toward the end of 2013 and 15% in the first quarter of 2014.
"With solar now fairly common in most parts of the world, it reaps the rewards of direct incentives but also faces uncertainty due to pressure on trade activity with China," said Matthew Feinstein, Lux Research Senior Analyst and the lead author of the report titled, "Solar Market Size Update 2014: Reform for the Long Haul."
"Furthermore, as an increasingly commonplace electricity source, most major markets are dealing with some combination of these dynamics, complicating the status of policy globally," he added.
Lux Research analysts evaluated the growth trajectory of the solar industry, besides weighing policy and other challenges. Among their findings:
The report, titled "Solar Market Size Update 2014: Reform for the Long Haul," is part of the Lux Research Solar Intelligence service.
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Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.
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Contact:
Carole Jacques
Lux Research, Inc.
617-502-5314
carole.jacques@luxresearchinc.com