Number of Companies in the Solar Supply Chain Set to Plunge This Year

by Staff Writers
El Segundo, CA (SPX) Jan 10, 2013

Amid rapidly falling prices, mounting losses and massive operational costs, the upstream solar photovoltaic (PV) supply chain is undergoing major consolidation, with the number of companies participating in the market expected to plunge by 70 percent this year.

Worldwide, the total number of companies participating directly in the manufacturing of PV solar panels, from polysilicon manufacturing through module assembly, is set to fall to approximately 150 in 2013, down from about 500 in 2012, according to the IHS Solar service at information and analytics provider IHS. This compares to about 650 in 2011 and 750 in 2010, as presented in the figure attached.

“It would be a major understatement to say that consolidation is occurring in the PV supply chain this year,” said Mike Sheppard, senior photovoltaics analyst with IHS.

“Most upstream PV supply operations will simply cease to exist, rather than being acquired by other companies. Most of these suppliers actually have already stopped production-and will never restart.”

Read more: Number of Companies in the Solar Supply Chain Set to Plunge This Year — Solar Daily.

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