July 29 (SeeNews) - The photovoltaic (PV) balance of systems (BOS) market in the Asia-Pacific region is expected to decline from USD 27.4 billion (EUR 24.9bn) in 2015 to USD 14.2 billion by 2020, GlobalData said Wednesday.
The entire global PV BOS market is set to experience varying levels of decline across a number of regions over the years to come, according to the latest study of the research and consulting firm. The decrease forecast is based on the falling solar PV BOS costs for all of the components of a solar PV system, except the modules. The hardware components of BOS include inverters and structures, as well as cabling and transmission equipment.
“As the solar PV market gained momentum, the optimisation in component manufacturing industries led to large-scale manufacturing and reduced costs, including labor and service costs,” GlobalData Analyst covering Power, Prabhanjan Kumar Singh, said.
Although the Asia-Pacific market is to depreciate the most with a projected negative compound annual growth rate (CAGR) of 12.3%, it will maintain its position as the leading region. Its share of the global BOS market is expected to fall from 57% in 2015 to 45% by the end of the decade. Meanwhile, the market share of the Americas is expected to increase from 25% to 41% within the same years, peaking in 2016 at over USD 19.5 billion.
The Solar PV Balance of System, Update 2016 report shows that BOS costs fell from USD 1.96 per watt in 2010 to USD 0.98/W in 2015. GlobalData expects this cost to decrease further to approximately USD 0.5/W by 2020, taking into account future standardisation expected in the structure-manufacturing industry and in installation procedures.
(USD 1.0 = EUR 0.909)