News Article
Future Growth Spots
The UK has become a top ten PV market luring many solar players to the region but UK companies also seek opportunities to expand their business into the global market. Lux Research has released a report highlighting the faster growth spots and there is no real surprise where the big growth will be.
Global policy changes and the crystalline silicon module price crash have brought the solar industry to a pivotal point from which it must transform and thrive in a cost-conscious environment, targeting high-growth markets such as China and India, says Lux Research.
"While some historically strong demand markets will continue to pay dividends, the real winners going forward will need to make a few well-informed bets," said Matt Feinstein, Lux Research Analyst and the lead author of the report titled, "Past is Prologue: Market Selection Strategy in a New Solar Policy Environment."
"Successful players will anchor business in key developed regions like the U.S., Europe, Japan, and China, and place informed bets in markets like South/Central America, the Middle East, and Africa, through new offices or partnerships," he added.
Lux Research analysed the risk vs. reward, based on policy and market factors, for both distributed and utility-scale solar in countries around the world. Among their findings:
Europe shines for distributed generation. Established markets remain fruitful for distributed generation despite downturns in demand and reduced feed-in tariffs. Markets such as Germany and Italy have demonstrated a strong preference for rooftop systems and have strong existing channels to
market.
Utility-scale generation soars in emerging markets. High-growth markets come with high risks as well, but emerging economies of India, China, South Africa, and Saudi Arabia are set to become solar powers. Competition is booming in the last three in particular, and each will exceed installation targets.
Fortune favors the bold. In solar, firms that take calculated risks and expand quickly into foreign markets will boost success, as First Solar and many Chinese module manufacturers have shown. As the Chinese industry consolidates, opportunities exist for other global players.
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