Companies in solar PV industry to plunge by 70% this year, predicts iSuppli

iSuppli predicts worldwide, the total number of companies participating directly in the manufacturing of PV solar panels, from polysilicon manufacturing through module assembly, is set to fall to approximately 150 in 2013, down from about 500 in 2012, according to the IHS Solar service at information and analytics provider IHS (NYSE: IHS). This compares to about 650 in 2011 and 750 in 2010, as presented in the figure below. “It would be a major understatement to say that consolidation is occurring in the PV supply chain this year,” said Mike Sheppard, senior photovoltaics analyst with IHS. “Most upstream PV supply operations will simply cease to exist, rather than being acquired by other companies. Most of these suppliers actually have already stopped production—and will never restart.” More analysis from iSuppli: Companies at the highest risk of going out of business in 2013 include integrated suppliers that manufacture PV polysilicon, ingots, wafers and cells to offer complete solutions. Second- and third-tier suppliers of crystalline silicon (c-Si) polysilicon, ingots, wafers, and cells also will struggle to stay afloat. Finally, smaller thin-film cell providers likewise will face low sales and limited market sizes, putting them on the endangered list. The Disintegration of Integration: Many integrated players will fold up shop in 2013 as the large expense o...