Quarterly solar photovoltaic (PV) module revenues (excluding processing service revenues) by the 20 leading global suppliers increased to US$5.9 billion in the fourth quarter of 2014, according to IHS.
Quarterly module revenues of the 20 leading suppliers increased 12% on year, driven by strong growth of their total module shipment volume, which reached 8.8GW in the fourth quarter. Full-year 2014 module revenues by these suppliers also grew to US$21.4 billion.
"To fund their capacity expansion or acquisition, PV module suppliers must continuously increase their revenues," said Ray Lian, principal analyst for IHS. "As these companies gain more market share, we can expect to see further industry consolidation."
Total module shipments from the 20 leading suppliers were the equivalent of 68% of global PV module demand in 2014, compared to only 60% in 2011. Both Trina Solar and Yingli Green Energy shipped more than 3GW of modules in 2014.
During the fourth quarter, the ASP for modules was negatively affected by the strong appreciation of the US dollar against most other currencies, as well as by the elevated share of modules shipped to China and other low-ASP regions. The blended ASP of the 20 leading suppliers decreased 4% on quarter, added IHS.
Continuous cost reduction efforts, including module efficiency improvements, helped to mitigate declining ASPs. The blended module cost-of-goods-sold of the top 20 suppliers fell below US$0.60 per watt for the first time, reaching just US$0.58 per watt in the fourth quarter. Blended gross margins only slightly increased to 14%.
"PV module revenues of the 20 leading suppliers will continue to grow, as they benefit from both robust global PV demand growth and increasing market share," Lian said. "We expect them to reach historic revenue heights, as early as fourth-quarter 2015."
