Yingli Solar from China became the largest global supplier of solar modules in 2012 based on annual merchant shipments, while previous leader and besieged fellow China-based producer Suntech Power dropped to fifth place, according to latest findings from market research institute IHS.
In a year that proved very challenging for the entire solar industry, Yingli Solar managed to increase its merchant shipment volumes by 43% on year to leapfrog Suntech as well as US-based First Solar, the two largest suppliers in 2011. First Solar managed to defend its position as the number two module manufacturer, while Suntech lost significant ground and was displaced to fifth position behind Trina Solar and Canadian Solar. REC, the only Top 10 supplier headquartered in Europe, grew faster than most of its China-based competitors in 2012. Increasing its module shipments by 31% on year to 757MW, REC strengthened its position as a leading player in a highly competitive environment.
Although the solar industry is consolidating and many players have exited the business, many of the Top 10 module suppliers lost market share in 2012. While the Top 10 in 2011 had accounted for 46% of global module shipments, the group in 2012 only achieved a combined share of 40%.
"Canadian Solar, as well as Jinko Solar and Hanwha SolarOne were the only Top 10 companies that managed to grow merchant module shipments at a double-digit rate in 2012 – in addition to Yingli Solar and REC, of course," explained Stefan de Haan, principal analyst for solar at IHS. "SunPower and Trina grew at a slower pace, while Suntech, First Solar and Sharp from Japan saw declining shipment volumes. Global solar end markets increased by a robust 14% in 2012, so on average the leading module suppliers effectively lost some ground."
The fall of debt-burdened Suntech had become apparent by the third quarter of 2012, when the company closed factories and cut production significantly. On March 20, 2013, the manufacturing unit of the company announced insolvency.
According to IHS, the entities gaining share from the Top 10 companies were the large, but not yet leading, players that continued to aggressively scale up their operations during a phase of general pessimism.
"Japanese suppliers Solar Frontier and Kyocera expanded output and shipments massively in 2012, and both benefited from the current boom in Japan," de Haan added. "Solar Frontier climbed from number 14 in 2011 to number 11 in 2012, while Kyocera rose from number 17 to number 12."
Strong performance was also recorded for China-based suppliers Renesola, Astronergy, Hareon Solar, and JA Solar, increasing module shipments by more than 200MW for each in 2012.
Until 2011 it was sufficient for the leading module suppliers to focus on very few key markets in the world – above all on Germany and Italy – in order to maintain a successful business. However, this situation has changed, said the research institute.
"As a reaction to the shifting of global installation volumes away from Europe, the strategies of top players are increasingly branching out," de Haan explains.
Yingli Solar generated 24% of its 2012 revenue in China. Jinko is another winner in this market, shipping approximately 400MW to China alone in 2012 while also building up a strong presence in South Africa. For its part, Canadian Solar generated 26% of 2012 sales in the US market and is also one of the strongest imported brands in Japan. Leading US supplier First Solar, on the other hand, is anchoring itself to the Latin America market with the acquisition of a Chile-based developer and its portfolio. These are a few examples highlighting the importance of timely and appropriate reaction for solar suppliers in a rapidly changing environment.
