International.
By the end of 2016, solar photovoltaic (PV) installations worldwide will exceed 310 gigawatts (GW), compared to just 40 GW at the end of 2010.
The five countries that account for 70% of this capacity are China, the United States, Japan, Germany and Italy. With its facilities at an annual loss, Germany will fall from second place to fourth in terms of the largest installed PV base, surpassed by the United States and Japan, according to IHS.
During the last months of 2015, the global PV industry continued to enjoy strong growth. While some regional markets present challenges to local suppliers, the current outlook for the global industry in 2016 remains positive. After growing by 35% in 2015, the world's PV installations are forecast to grow an additional 17% in 2016, culminating in 21 GW of PV to be installed worldwide in the fourth quarter (Q4).
Global installed PV capacity is expected to increase by 69 GW over the course of 2016, compared to 59 GW of installations annually in 2015. The United States, India and China will grow by 5.6 GW, 2.7 GW and 0.9 GW, respectively, adding together 9.3 GW of the 10 GW increase.
Continued strong demand for solar PV will also support stable pricing. Average PV module prices are expected to fall to less than 5% in 2016, which is the smallest year-over-year drop recorded by IHS. Overall, 2015 was a positive year for the PV module manufacturing industry, with average industrial gross margins reaching 22%. Largely due to declining polysilicon prices and high price levels in some markets, total gross profit on modules reached $8.5 billion in 2015 – the highest level since 2011.
