Major module manufacturers show resilience in H1 2024

Despite facing headwinds, companies have sufficient manufacturing capacity to meet demand, says Wood Mackenzie
Major module manufacturers show resilience in H1 2024
JA Solar's photovoltaic module factory in China. Photo: JA Solar/Disclosure

According to a report by Wood Mackenzie, despite facing significant challenges, including price declines in modules and the silicon supply chain, the top ten solar manufacturers achieved an average utilization rate of 66%.

The “Global solar module manufacturer ranking H1 2024” highlighted the resilience of these companies in the first half of 2024, highlighting that they have sufficient capacity to meet the global annual demand for modules.

One of the most notable points was the increase in non-Chinese manufacturers in the top 10 ranking, with companies from India, Singapore and Japan gaining prominence and making their mark on the global market.

Source: Wood Mackenzie

According to the study, both 7th and 9th places were awarded to several companies due to similar scores. Manufacturers that had a difference of up to 0,3 points between their scores were given the same position in the ranking.

“Profitability separated the industry’s major players. While many companies faced financial losses, eight of the top 13 manufacturers reported positive profits in the first half of 2024. This achievement highlights the ability to manage significant price reductions through effective cost control and efficiency optimization,” said Yana Hryshko, management consultant and head of global solar supply chain research at Wood Mackenzie.

more data

According to the report, the transition to new technologies is happening faster than the market anticipated. TOPCon is leading in technological innovation, while HJT and BC are also increasing their share of production. In addition, R&D (research and development) investments are increasing, averaging 4% – which represents an increase compared to 2023. 

However, the research also noted that current solar demand growth is not addressing overcapacity caused by rapid capacity expansion. “The top ten manufacturers are increasingly concerned about low utilization rates and declining margins, making them more cautious about their expansion plans,” Hryshko commented. 

“The PV industry has seen a dramatic decline in module prices recently, falling from $0,24 per watt to $0,08 per watt, which is a reduction of over 70%. This significant price reduction has put considerable pressure on revenues and profitability across the industry, raising concerns about the sustainability of some manufacturers,” he added.

Wood Mackenzie’s scoring methodology evaluated more than 38 manufacturers from 11 countries, with total production and shipping capacity ing for 68% and 84% of the world, respectively. The ranking examines nine different criteria, including module manufacturing experience, vertical integration, financial performance and capacity utilization.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please us by email: [email protected].

Photo by Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. He has been following the Brazilian electricity sector since 2020.

Leave a comment

Your email address will not be published. Required fields are marked with *

Comments should be respectful and contribute to a healthy debate. Offensive comments may be removed. The opinions expressed here are those of the authors and do not necessarily reflect the views of the author. Canal Solar.

News from Canal Solar in your Email

Posts

Receive the latest news

Subscribe to our weekly newsletter

<
<
Canal Solar
Privacy

This website uses cookies so that we can provide you with the best experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.