China’s JA Solar and Singapore-based Flextronics achieved the fastest growth among the Top 10 producers of photovoltaic (PV) modules in 2012, as the two companies cashed in on the soaring demand for contract manufacturing in the solar value chain.

JA Solar nearly doubled its PV module production in 2012, with its module production rising to 950 megawatts (MW) in 2012, up 96 percent from 490MW in 2011, according to the “IHS Solar Integrated PV Market Tracker – Q1 '13” from information and analytics provider IHS (NYSE: IHS). This caused the company’s rank among global PV module producers to rise to No. 6 in 2012, up from 14^th place in 2011.....

Yingli from China became the largest global supplier of photovoltaic (PV) modules in 2012 based on annual merchant shipments, while previous leader and besieged fellow Chinese producer Suntech Power dropped to fifth place, according to the latest analysis from information and analytics provider IHS (NYSE: IHS).

In a year that proved very challenging for the entire PV industry, Yingli managed to increase its merchant shipment volumes by 43 percent year-over-year to leapfrog Suntech as well as U.S.-based First Solar, the two largest suppliers of 2011. First Solar managed to defend its position as the No. 2 module manufacturer, while Suntech lost significant ground and was displaced to fifth position behind Trina Solar and Canadian Solar. REC, the only Top 10 supplier headquartered in Europe, grew faster than most of its Chinese competitors in 2012. Increasing its module shipments by 31 percent year-over-year to 757 megawatts (MW), REC strengthened its position as a leading player in a highly competitive environment.

After a disastrous third quarter of 2012 featuring extremely low factory utilization rates across the entire photovoltaic (PV) supply chain, a surge in demand was seen in the final quarter of the year for PV modules. A new PV module shipment record of 11 gigawatts (GW) was reached in the fourth quarter according to the IHS Solar Integrated Market Tracker from information and analytics provider IHS (NYSE: IHS). Despite this positive sign the situation of the global PV industry remains critical and a substantial recovery of the supply-demand balance is not expected to occur before the second half of 2013.

El Segundo, Calif. (Oct. 30, 2012)—Overcapacity, a decline in pricing as well as slowing growth in key worldwide markets will serve to keep the global photovoltaic (PV) market for solar modules depressed for the rest of the year, with recovery not expected until well in the second half of 2013, according to a new IHS iSuppli PV Integrated market tracker report from information and analytics provider IHS (NYSE: IHS).

Global revenue for the solar module industry comprising both crystalline and thin-film modules fell for the first time this year during the third quarter to $6.63 billion, down 7 percent from $7.14 billion in the second quarter. Prior to the decline, revenue had been up 2 percent in the second quarter from $7.03 billion in the first quarter.

The market is projected to retreat further for a second time this year during the fourth quarter to $6.62 billion, with revenue continuing to trend down throughout the first half of 2013, as shown in the figure below. The industry will return to growth only by the second quarter next year, finally regaining lost ground by the fourth quarter when revenue springs back to an estimated $7.06 billion—just slightly more than when the market started in the first quarter this year. 

Photovoltaic (PV) module prices continued their downward trend in July, falling by more than 2 percent over June’s average prices and 44 percent down annually, according to the latest monthly module price report from IMS Research (recently acquired by IHS Inc. (NYSE: IHS)). PV module prices had enjoyed a short period of stability in June due to high demand in Germany and Italy, but have begun to decline once again in the second half of 2012.

Suntech Power was the largest supplier of PV modules by shipment volumes for the second consecutive year, according to the latest market rankings released by IMS Research. For the first time, it was also joined by three other Chinese crystalline PV module manufacturers in the top five as Chinese manufacturers tightened their grip on the market, the analyst firm revealed.

PV module prices increased by 7% in December 2011 due to a temporary pick-up in demand ahead of FiT reductions in a number of key markets according to the latest monthly pricing report from IMS Research. Strong demand during the year-end rally saw installers buying PV modules from distributors at inflated prices. The survey found that installers were desperate to secure supply and complete installations before incentive levels were reduced, particularly in Germany where 3 GW of installations were connected in December alone. However, the survey also found that price increases were only temporary and both module suppliers and buyers expect price drops again in January.

The expansion of PV module, cell and wafer manufacturing capacity will slow dramatically throughout the rest of 2011 and the first half of 2012 according to the latest quarterly report from IMS Research. Production capacity has been added at a frantic pace for the last two years and almost 30 GW of capacity has been added since the start of 2010, but expansions have finally slowed in response to slowing demand in many key regions and a severe oversupply of PV products, revealed the market research firm.

Rapidly declining PV module prices will result in the global industry revenues contracting in 2011 and 2012 according to the latest quarterly report from IMS Research. A huge oversupply of PV modules and fierce competition has led to module prices falling quickly throughout 2011; despite shipments increasing, revenues are forecast to shrink by almost 10% in 2011, and shrink yet again in 2012.

The three largest suppliers of PV modules in Q2’11 were all Chinese according to the latest industry report from IMS Research. Suntech, Yingli and Trina Solar collectively grew their shipments by almost 20% over the previous quarter despite difficult market conditions, increasing their market share and furthering China’s growing dominance in this market.