Global PV Installations to Grow by up to 21 Percent in 2012 Predicts IMS Research

The new report’s ‘optimistic forecast’ shows installations growing by 21 percent to 32.6 GW this year

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Wellingborough, UK – 4^th April 2012: Global solar PV installations will grow by at least 3.5 percent and up to 21 percent in 2012, according to a new report from IMS Research, recently acquired by IHS Inc. (NYSE: IHS). The market analyst firm forecasts that despite incentive cuts in most of the world’s largest markets, global installations will grow from 26.9 GW in 2011 to between 27.8 GW and 32.6 GW in 2012, with Europe’s share of installations falling from 69 percent last year to 50 percent this year.

IMS Research’s Q1’12 PV Demand Database, which tracks installations in more than 60 countries, revealed that new PV installations reached 26.9 GW in 2011 and its most-likely forecast shows this growing to 27.8 GW this year. (Note that figures are for installations and not grid connections; the figure for grid connections in 2011 would be much higher.) Ash Sharma, Senior Research Director for Photovoltaics, commented, “Despite many in the industry still expecting further doom and gloom, we in fact see a pick-up in demand driven by falling system prices, a rush to  beat incentive cuts, and the growing number of mid-sized emerging PV markets.”

PV Forecast by major region IHS

The new report’s ‘optimistic forecast’ shows installations growing by 21 percent to 32.6 GW this year. “It is no longer a case of whether the PV market will grow in 2012, the real question now is by how much will it grow,” Sharma explained. “When you only consider a handful of countries like Germany, Italy and France, it’s easy be pessimistic about demand; however, when you look further afield and analyse demand from 60 countries, the picture becomes much more positive.”,.

According to the Q1’12 report, at least 23 counties will install 100 MW or more this year, up from just 17 last year. “It is this geographic diversification that will help drive growth in global PV installations this year as the market becomes less dependent on just one or two markets. Ultimately it will also lead to stability for the industry in the longer term as the impact of a single country’s policy will weaken,” added Sharma.

 

Germany, however, is still predicted to remain the largest and most important PV market this year and despite the overhaul to its FiT policy, new installations are predicted to reach at least six GW this year and up to 8.5 GW is even possible. Such a result would have been almost unthinkable a few months back, but IMS Research found that demand in Q1 was extremely high in a rush to beat the incoming changes.

PV Forecast April

Although Germany will remain the largest market, IMS Research predicts that China will become the second largest, followed closely by Italy. “China remains one of the most unpredictable factors in the global supply and demand balance. With European demand faltering, the Chinese government is under increased pressure to accelerate domestic deployment to support its huge manufacturing base. Installations of up to eight GW would be unlikely in China this year, but still a possibility,” concluded Sharma.

 

Detailed analysis of PV installations in more than 60 countries is available from IMS Research’s quarterly PV Demand Database.

 

For more information please contact:

IMS Research

Stacey May, Research Associate, T: +44 (0) 1933 402255

Ash Sharma T: +44 (0) 1933 402255

Twitter: IMSResearch_PV

 

About PV Demand Database

IMS Research’s innovative database, which is being used by many of the leading companies in the PV industry, provides forecasts for new annual installed PV capacity in more than 40 countries. The data is updated every quarter to provide the most up-to-date projection for each market based on the latest data, such as equipment and system pricing, and incentives.

 

About IMS Research – Photovoltaics

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. The company is one of the most respected commentators in the renewable energy field, with a particular expertise in the PV (solar) market. It currently has nine analysts and a 15-person research team dedicated to researching the PV market. It now offers over 25 reports and cover every aspect of the supply chain from polysilicon supply to PV modules, inverters and PV system integrators. ; www.pvmarketresearch.com

 

About IHS Inc. (www.ihs.com)

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, incorporated in the State of Delaware in 1994, and became a publicly traded company on the New York Stock Exchange in 2005.  Headquartered in Englewood, Colorado, USA, IHS employs more than 5,500 people in more than 30 countries around the world.