goetzpartners Study: PV Survival Guide

How German photovoltaic companies can survive global consolidation

goetzpartners general Energy/Utilities

The German photovoltaic industry is undergoing a dramatic consolidation process. Only 86 of the 232 leading companies operating on the market today will survive until 2017 - representing a 63% decline. The market is highly saturated with overcapacity of 45% in 2011. German photovoltaic manufacturers are increasingly losing ground primarily due to the rising market penetration of Asian competitors.

A continuous downward trend in system prices - 10% in 2011 alone - cannot be offset by many companies. This has resulted in an 11 percentage-point decline in gross margins and a 13 percentage-point loss in profit across the sector - and the trend is rising. Companies that are to survive must act now and redefine their business activities in line with their position in the photovoltaic value-creation chain. Market participants have eight courses of action available to them, according to the results of a recent goetzpartners’ study.