PV market revenues to see CAGR of 9.5% through 2020, Frost & Sullivan says

Global photovoltaic (PV) market revenues will grow at a compound annual growth rate (CAGR) of 9.5% over the next five years, rising from USD 113.75 billion (EUR 103.3bn) in 2015 to USD 179.13 billion in 2020, according to a new report from Frost & Sullivan.

The consultancy said on Wednesday that the technology is finally maturing on the global stage and forecast that both residential and utility-scale PV will reach grid parity by 2020.

"Pro-solar incentives and the recently made pledges at the COP 21 summit will ensure that the market for solar PV continues to grow exponentially over the next 5 years," said Frost & Sullivan energy and environment research analyst Pritil Gunjan, adding that grid integration of renewables and energy storage are other market drivers.

Solar installations will grow from 50.8 GW in 2015 to 76.6 GW in 2020, representing a CAGR of 8.6%, according to the report.

Solar will see aggressive expansion in Asia, whose market share will increase to 64.1% by 2020. North America will also experience robust growth with the extension of the investment tax credit, while Europe will suffer a setback due to withdrawal of incentives, according to the analysis. Demand in Latin America and Africa, meanwhile, will be boosted by investments in grid infrastructure, especially in off-grid locations.

(USD 1.0 = EUR 0.908)

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