Quo Vadis Solar Industry?
In the last few years, the photovoltaic industry has become one of the showcase sectors of the global economy, and has maintained this position in the face of several challenges. What needs to be clear to all market stakeholders, however, is that the sector is rapidly approaching maturity. This will inevitably lead to the end of the “gold-rush” atmosphere that currently pervades it, but not necessarily to the end of profitable growth for some select players in the market.
Business Models of the Future
Under these conditions, senior management must develop a sustainable and competitive business model that can be successful within a considerably more global context. And this process needs to get on track soon.
The recent Oliver Wyman study „Quo Vadis Photovoltaic Sector? Business Designs of the Future” takes an intensive look at the following key questions:
- What are the future profit centers in the photovoltaics sector?
- What developments will drive growth and also lead to structural changes in the market?
- Going forward, which business models are best suited to create value? What are the corresponding strategic and operational factors of success?
- What does that mean for the photovoltaics industry and its stakeholders as they attempt to flourish in a competitive global market?
- Accordingly, what are the respective players’ implied strategic options?
The Study Shows:
- The photovoltaics sector is rapidly globalizing, both in terms of markets and competition. Successful players are already operating globally in the USA, Europe and China.
- As measured by EBIT margins and by revenues, German suppliers have undergone sub-par development in the past few years.
- Currently, a wide range of different business models is matched by a commensurately wide range of profitability within and among them.
- There will be an extensive professionalization and polarization within the marketplace: only four dominant business models will crystallize out of the current line-up of around 20.
- Almost inevitably, mergers & acquisitions, driven primarily by strategic investors, will lead to market consolidation.
