Polysilicon is the first and most important step in the PV supply chain and its availability and price affects the entire industry. Click here to learn more
Want to receive the latest free information from IMS Research on the PV industry? Sign up here
Want to track the market share and project pipelines of more than 500 EPCs and System Integrators? IMS Research’s quarterly market share & pipeline report provides the answers.
PV Balance of System Market to Reach $24 Billion in 2016
Date: 23 February 2012
PV balance of system (BoS) equipment revenues are projected to increase from $17 billion in 2011 to close to $24 billion in 2016. The report found that whilst inverters will continue to be the largest part of the market, monitoring hardware, mounting structures and tracker systems will outpace the rest of the market to capture an increasing share.
IMS Research’s report “The World Market for PV Balance of System Equipment” which analysed volumes, pricing and revenues for eight BoS products, revealed that market revenues would fall by 5% this year from 2011’s peak of $17 billion. Ash Sharma, Senior Research Director commented, “Flat installations and shipments will inevitably lead to a fall in BoS equipment revenues this year due to price erosion, most notably for inverters and mounting structures. However the longer-term prospects for the market are still very positive with a $24 billion market size forecast in 2016.”
The report also found that whilst inverters formed the largest part of the market, accounting for more than 40% of revenues in 2011, the fastest growing segment will be tracker systems, with revenues for these products predicted to grow by close to 30% per annum up until 2016. Falling prices for these products is expected to boost penetration, particularly in high irradiation regions, such as California, South Africa and the Middle East which are all predicted to see high growth in PV deployment over the next few years. “Although the tracker market fell off a cliff at the end of 2008 when the Spanish market collapsed, it’s now facing a major resurgence as falling prices and more efficient motor control allows for a much more cost-effective system”, added Sharma.
According to the report, depending of the type of installation and the equipment used, BoS costs can sometimes outweigh the PV module costs. This means that customers are increasingly focusing on the BoS components to find cost savings and suppliers are experiencing price pressure that was previously reserved for module suppliers. Despite this, PV modules are still predicted to remain the largest single hardware cost in a PV system and will account for more than 50% of total PV hardware revenues in 2016. Intensifying competition particularly for PV combiner boxes and mounting systems, especially from Chinese suppliers means that prices are forecast to continue to decline. However, price declines of BoS components will not be as severe as those experienced by module suppliers “Although there will remain great pressure on suppliers to reduce prices as incentives fall, new products such as enhanced monitoring hardware, smarter inverters and a shift towards ground-mount mounting structures will help maintain average prices.” added Sharma.
Detailed analysis of the global PV balance of system market is available from IMS Research’s study The World Market for PV Balance of System Equipment which includes country-level forecasts, as well as analysis of revenues, shipments, pricing and technical trends for 8 different product types.
Senior Manager, Editorial
Direct: + 1 408 654 1714
Mobile: + 408 921 3754
IHS Media Relations
Direct: +1 303 305 8021
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 6,000 people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All rights reserved.