A new research report from Lux Research predicts that the photovoltaic market will grow to a $155 billion industry by 2018, “as market forces engineer a turnaround to a healthy 10.5% compound annual growth rate (CAGR).” In the most likely scenario, the market will grow at a modest rate to 35 GW this year before increasing in growth to reach 61.7 GW by 2018. “Record low prices pushed gross margins to near zero or below, but they’ve made solar installations competitive in more markets,” said Ed Cahill, Lux Research Associate and the lead author of the report “Market Size Update 2013: Return to Equilibrium.” To determine the viability and competitiveness of solar in each of 156 markets, the research examined levelized cost of energy (LOCE) analysis in locations accounting for 82% of the world’s population. Among the finding: the U.S., China, Japan, and India will take over where Germany and Italy left off, and the United States will emerge as the world’s second largest PV market. Utility-scale solar, the smallest segment in 2012 at 8.6 GW, will grow the fastest to 19.9 GW in 2018, driven by second and third world countries, many of which are experiencing burgeoning industrial and population growth requiring increasing levels of energy output. Developing countries will be able to build efficient industries by minimizing their level fossil fuel reliance and focusing on renewable energy sources.
Source: Solar PV Market Set To Grow To $155 Billion in 2018, by Joshua S Hill, May 23, 2013