Global Solar Photovoltaic Balance of System Market Value to Lose $10 Billion by 2020, says GlobalData

Global solar photovoltaic balance of system (BOS) market value to fall from an estimated $34.9 billion in 2014 to $24.9 billion by 2020 ----However, China's BOS market value will expand to $8.2 billion by 2020, cementing its position as the world's leader in this space, says report

LONDON, UK (GlobalData), 3 February 2015 - The global solar photovoltaic (PV) balance of system (BOS) market will decline in value from an estimated $34.9 billion in 2014 to $24.9 billion by 2020, due to falling BOS costs and the slow increase in global annual capacity additions, says research and consulting firm GlobalData.


However, the company's latest report* indicates that while developed markets, such as the US, UK and Germany, will be the main contributors to this decline, some emerging countries, led by China, will witness growth over the forecast period.

The largest drop will occur in the US, where the solar PV BOS market value will more than half, from $6.7 billion in 2014 to $3.3 billion by 2020.

Harshavardhan Reddy Nagatham, GlobalData's Analyst covering Power, says: "The US solar PV market has grown strongly in recent years, and policies that promote solar power are increasing at both the federal and state level.

"Thanks to Investment Tax Credits (ITCs), the BOS market will see some initial growth, but it will begin to decline when ITCs expire in December 2016. This, combined with the cost of systems continuing to slide, will cause the US market to fall below 2011 levels by the end of the decade."

By contrast, China's BOS market value will expand from $6.8 billion in 2014 to $8.2 billion by 2020, cementing its position as the world's leader in this space.

Nagatham continues: "China's government has introduced a number of financial and regulatory initiatives to promote renewable energy sources. The country's National Energy Administration is spending about CNY250 billion, or $39.5 billion, on developing the solar power sector during the 12th Five Year Plan, which ends this year.

"As such, China's annual capacity additions have increased rapidly over the past few years, rocketing from 0.5 Gigawatts (GW) in 2010 to 12.42 GW by 2013. This high level of annual addition is expected to continue with even more growth through to 2020, providing a huge opportunity for BOS manufacturers."

*Solar PV Balance of System – Global Market Size, Technology Review, Cost Analysis, and Key Country Analysis to 2020

Featured Product

WS510 Secondary Standard

WS510 Secondary Standard

In the monitoring of large photovoltaic (Utility Scale), in assessing potential sites (Solar-assessment), or in up and coming electricity cost saving initiatives projects (Commercial & Industrial), the WS510 now provides the market a secondary standard pyranometer, ultrasonic wind speed, ultrasonic wind direction, temperature, pressure and humidity all in a single unit.. This sensor meets the high demands of the world meteorological organization (WMO) through the active valving at air temperature measurement and the inertia- and maintenance-free measurement of wind speed and wind direction on the ultrasonic principle. Equipped with a Kipp & Zonen pyranometer of the secondary standards, the WS510-UMB Compact weather sensor from Lufft unites the precision of a variety of meteorological individual sensors in a single all-in-one device, for the first time.