Converging supply and demand dynamics will result in PV module manufacturers rapidly returning to profitability and prosperity, according to market research firm, Lux Research.
Continued market growth is a contributing factor but the most significant development is the end of chronic module oversupply that has produced two years of profitless prosperity.
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Lux Research expects overall module capacity to decrease to 58GW in 2015, while PV demand will reach 52GW in the same year, which will lead to module oversupply of only 12%, down from 100% in 2012.
Therefore margins are expected to recover by up to 10% by that timeframe, compare to negative margins over the last two years.
The market research firm expects the surviving suppliers will position themselves in the market for the long-term by investing in technologies to increase performance, lower costs, improve product quality, and enable new features.
However, the return to profitability and continued market growth are expected to attract a new wave of entrants.
