Market supply and demand stabilized the solar industry in 2014
2025-09-23 09:07:08
Abstract The solar industry is expected to experience a shift from a demand-constrained market to a supply-driven one in 2014, according to the latest report by NPD Solarbuzz. As the cost of solar power plants continues to decline, along with increased consolidation among manufacturers, the balance between supply and demand is becoming more stable. This transition marks a key turning point for the sector, signaling a move away from oversupply and into a more mature phase of development.
Michael Barker, senior analyst at NPD Solarbuzz, highlighted that the global solar market has historically been shaped by end-user demand. However, by the end of 2014, the market size will be more closely tied to production levels and shipments, reflecting a supply-driven dynamic. This change indicates that the industry is maturing and becoming more efficient in its operations.
Over the past three years, the costs of solar modules, systems, and manufacturing have dropped by over 50%, leading to the exit of many less competitive PV cell suppliers. The number of manufacturers in the market has decreased from around 250 in 2010 to approximately 150 in 2013, which has helped bring the market closer to a balanced state.
In recent years, the demand-constrained environment has contributed to overcapacity in the solar industry, resulting in lower capacity utilization and reduced capital spending in 2013—the lowest in eight years. This period of adjustment has forced companies to become more efficient and strategic in their planning.
Notably, Asia—particularly China and Japan—has remained the primary driver of global solar demand in 2013. These two countries, along with the United States as the third-largest market, accounted for over 60% of total global demand. Their strong performance highlights the region's continued leadership in solar adoption.
Barker emphasized that while it’s important to track each of these markets individually, it’s equally crucial to consider them collectively when analyzing 2014 trends. A drop in demand in one region could be offset by growth in another, making the global market more interconnected than ever before.
Finlay Colville, vice president at NPD Solarbuzz, added that the Chinese mainland, Japan, and the U.S. are characterized by innovative financing models and supportive policies that drive short-term demand. For solar module suppliers, understanding the dynamics of these three key markets will be critical in navigating the evolving landscape of 2014.
Michael Barker, senior analyst at NPD Solarbuzz, highlighted that the global solar market has historically been shaped by end-user demand. However, by the end of 2014, the market size will be more closely tied to production levels and shipments, reflecting a supply-driven dynamic. This change indicates that the industry is maturing and becoming more efficient in its operations.
Over the past three years, the costs of solar modules, systems, and manufacturing have dropped by over 50%, leading to the exit of many less competitive PV cell suppliers. The number of manufacturers in the market has decreased from around 250 in 2010 to approximately 150 in 2013, which has helped bring the market closer to a balanced state.
In recent years, the demand-constrained environment has contributed to overcapacity in the solar industry, resulting in lower capacity utilization and reduced capital spending in 2013—the lowest in eight years. This period of adjustment has forced companies to become more efficient and strategic in their planning.
Notably, Asia—particularly China and Japan—has remained the primary driver of global solar demand in 2013. These two countries, along with the United States as the third-largest market, accounted for over 60% of total global demand. Their strong performance highlights the region's continued leadership in solar adoption.
Barker emphasized that while it’s important to track each of these markets individually, it’s equally crucial to consider them collectively when analyzing 2014 trends. A drop in demand in one region could be offset by growth in another, making the global market more interconnected than ever before.
Finlay Colville, vice president at NPD Solarbuzz, added that the Chinese mainland, Japan, and the U.S. are characterized by innovative financing models and supportive policies that drive short-term demand. For solar module suppliers, understanding the dynamics of these three key markets will be critical in navigating the evolving landscape of 2014.
Engineered Wood Flooring,Spc Flooring Cutting Tools,Spc Flooring For Libraries,Spc Flooring Sample Box
Changzhou Yingda New Material Co., Ltd , https://www.yingdaspc.com