PV module, cell, and wafer manufacturing capacity will slow significantly for the remainder of 2011 and H1 of 2012, according to IMS Research. Manufacturing capacity will increase, only at a slower rate and more from start-ups entering the market than from existing suppliers expanding.
Production capacity has been vigorously added for the last two years; almost 30GW since the start of 2010. This growth is finally slowing in response to sluggish demand in many key regions (Italy, Germany, the UK), and a severe PV module oversupply, IMS Research reports.
Over 50GW of PV module manufacturing capacity will be in place and operating by the end of 2011: over 54% more than at the start of the year. Annual global demand has only grown by 19% to 23 GW. In 2012, capacity will expand by less than 10%, just 6% in H1.