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The Global PV Value Chain

The Global PV Value Chain

Internationally, photovoltaics is on the rise. Despite pandemic-related impacts, the PV market was more successful than expected last year. For most of us in the PV industry, 2020 went comparatively well. After the first crazy months in the hard grip of the Corona pandemic in spring 2020, something like normality had almost returned to the solar market. Prices were right, orders were coming in, and for the first time, it was possible to plan a little bit into the future again.

The high demand for PV as well as the growth forecast continue for 2021 and beyond. The research institute IHS Markit forecasts worldwide PV installations of 181 GW for 2021 and is still sticking to this forecast at the moment. This would mean a growth increase of 27% compared to 2020. The "low case" scenario is 156 GW and would still mean 9% year-on-year growth. The key lead PV markets are currently China, USA, Japan and India. However, growth and high demand is also evident in other markets.

Accordingly, there is no lack of demand and orders. But the procurement of products at stable prices, as we have been used to in recent years, is currently difficult.

Delivery times, procurement of raw materials and products are currently delayed by various influences:

  • Imbalance of supply and demand
  • Shortage of raw materials due to COVID-19-related production losses last year
  • Competition from various industries for the scarce raw materials that are also needed for PV production
  • Logistics bottlenecks due to the lack of returned containers from China and due to the situation in the Suez Canal

The shortage of supply causes prices to rise:

  • Price increase of PV products due to lack of containers
  • Price increase of PV products due to shortage of raw materials

In the coming weeks, we want to give you insights into the global PV value chain. On the one hand, we would like to provide you with background knowledge on PV production, from raw material to finished product, and on the other hand, we would like to address the related challenges that are currently affecting all players in the market.

15.06.2021 10:12
by your Krannich Team

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