The report identifies the key factors contributing to growth as higher global emphasis on clean energy production and governmental support in the form of beneficial policies for development of the solar PV market. Sunbelt countries in particular are expected to gain from regulations like Feed-in-Tariff, which is a preferential rate program.
Hexa Research also foresees falling prices of energy generated using Solar PV in future, largely due to huge increase in capacity, especially in China.
“The global solar PV market demands that companies employ innovation and differentiation strategies as a way to grow. Alliances and partnerships are crucial for gaining competitive edge,” the report says.
Utility Solar PV, with more than 44% share in the total installed capacity, was the biggest end use segment in the global Solar PV market in 2012, according to Hexa Research, and the segment is expected to experience the fastest growth in the coming years.
Countries such as Germany, France, and Spain, among others led to Europe hosting the largest capacity of solar PV recently. However, in future, most demand will be generated from rapidly developing Asia Pacific markets such as China, India and Taiwan, with factors like low raw material costs and supportive regulations spurring growth. Lower than expected development of solar PV in high-potential nations like Brazil and Chile in Latin America and Saudi Arabia in the Middle East may hinder market growth, however.