Solarbuzz Reports World Solar Photovoltaic Market Grew to 5.95 Gigawatts in 2008

World solar photovoltaic (PV) market installations reached a record high of 5.95 gigawatts (GW) in 2008, representing growth of 110% over the previous year.

Europe accounted for 82% of world demand in 2008. Spain's 285% growth pushed Germany into second place in the market ranking, while the US advanced to number three. Rapid growth in Korea allowed it to become the fourth largest market, closely followed by Italy and Japan.

In the assessment of PV demand in 2008, 81 countries contributed to the 5.95GW world market total.

On the supply side, world solar cell production reached a consolidated* figure of 6.85 GW in 2008, up from 3.44 GW a year earlier. Overall capacity utilization rose to 67% in 2008 from 64% a year earlier.

Meanwhile, thin film production also recorded solid growth, up 123% in 2008 to reach 0.89 GW.

China and Taiwan continued to increase their share of global solar cell production, rising to 44% in 2008 from 35% in 2007.

Polysilicon supply to the solar industry grew by 127% in megawatt terms, sufficient to substantially ease supply limitations in 2008. United States polysilicon production accounted for 43% of the world's supplies. Average global wafering capacity grew to 8.30 GW (up 81%).

In dollar terms, the weighted 2008 average global factory gate crystalline module price increased by a modest 3% over 2007, notwithstanding the significant fall in fourth quarter 2008. Preliminary first quarter 2009 data shows a decrease of up to 24% (manufacturer dependent) compared to the 2008 global weighted average. Meanwhile, the new report quantifies the global inventory build during first quarter 2009.

The PV industry generated $37.1 billion in global revenues in 2008, while successfully raising over $12.5bn in equity and debt, up 11% on the prior year.

The PV industry's principal annual report, Marketbuzz™ 2009 provides in-depth and insightful analysis of global market demand, supply capacity and production, pricing through the PV chain, manufacturing costs and gross margins, capital expenditure together with a focus on the key industry, corporate and policy challenges.

A full one third of the report focuses on PV demand by country, including the status updates on key policies and programs for the major markets. In addition, over 130 product polysilicon, wafer and cell supply contracts during are highlighted, together with 87 capital and debt raising deals for corporations in the PV chain during the year.

The forecast data employs three scenarios** to capture the fundamental variables affecting market development over the period. Twelve months ago, this scenario analysis provided the early notice of the impending change in the global supply/demand balance, which then took place in fourth quarter 2008.