The first-line PV manufacturers' operating rate has steadily increased

As the solar power sector continues its recovery, top-tier manufacturers are gaining more control over the market, while their production utilization rates are climbing steadily. During the 5th China (Wuxi) International New Energy Conference, which took place on the 25th, Shu Hua, who leads GCL-Poly Energy, stated, “The past two years have been tough for the photovoltaic industry, but we're now at a turning point. Signs of recovery are becoming clearer. By September, demand for mainstream products among top domestic companies was outpacing supply, and the utilization rate of leading firms exceeded 80%, with some even operating at full capacity.” Industry reports indicate that the entire photovoltaic supply chain is experiencing a growing trend of industrial concentration. Silicon materials and wafers, in particular, are dominated by a few major players—four companies control around 80% of the global silicon material market, while the top five wafer producers hold 65% of the market share. Although the concentration in the cell and module segments is slightly lower—top five companies account for 25% and 40% respectively—the trend toward consolidation is accelerating. This has strengthened the market position of first-tier manufacturers, allowing them to capture a larger share of the market. Leading photovoltaic brands are driving the industry’s recovery. The domestic shipment ratio of the top 13 component manufacturers has surpassed 70%, while overseas exports have gone beyond 65%. The shipments from these top component plants reached 11 GW, marking a 36% year-on-year increase. Their cost advantages have become more pronounced. Meanwhile, the regional distribution of these top manufacturers is becoming more balanced, enhancing their market influence and gradually pushing second- and third-tier manufacturers out of the competition. Shu Hua also noted that most companies are expected to turn a profit in the fourth quarter, but cash flow conditions remain weak for many. Their internal financial systems haven’t fully recovered yet. Although prices rebounded slightly in 2013, they were still down nearly 60% compared to the same period the previous year. While costs continue to fall amid price competition, the rate of decline has slowed, and overall profitability for each company is still deteriorating. According to industry insiders, from January to August, China’s PV product exports fell by approximately 27%. However, emerging markets now account for over 50% of total exports. Japan has become China’s second-largest market after the U.S., representing 21% of exports. At the same time, the domestic market is expanding rapidly, helping to balance the overall market structure. It's worth noting that the Japanese photovoltaic market has seen strong growth this year. Japan plans to install 28 GW of solar systems by 2020, and it's expected that the country will install over 7 GW in 2013. In the U.S., the market is projected to reach 4.5–5 GW in 2013, with an annual growth rate of about 1 GW in the coming years. Additionally, new large-scale markets are emerging. For example, India’s Nehru National Solar Mission aims to achieve 20 GW of grid-connected solar capacity. Thailand is also promoting village-level solar projects. Globally, the photovoltaic industry has moved beyond the traditional European market and is now expanding across the world.

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