Asia, America To The Rescue For German PV Machinery Makers

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A release from the VDMA ( German Mechanical Engineering Federation ) says that sequential sales and orders for Q1/2023 dropped 27% and 26% respectively for German solar PV equipment manufacturers. The drop was mainly due to drop in demand from the ‘home’ markets in the European Union (EU) . However, on a YoY basis, sales were up 29% for the quarter, thanks to strong demand from Asia and the US. While orders from Asia were up 168%, orders from the US grew 27%. That easily ensured that exports outside Europe dominated overall sales at over 80%.

According to the VDMA, lead times for orders have grown due to component shortages in electronics, even as some pandemic related issues continue to drag demand in Europe especially. European demand was down 81% YoY.

Sales continue to be dominated by built up cells, rather than machinery used for manufacturing polysilicon, ingots, wafers that was anticipated. the thin film segment is also seeing a healthy increase as new applications are developed.

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The sector is witnessing a strong revival after a 7% decline in 2022, thanks to the strong push for manufacturing in Asia and the US.

The sequential drop in sales will worry, but not panic the manufacturers, as they remain confident of a rebound across markets, thanks to plans announced worldwide, including of course Europe itself.

Dr. Peter Fath, Managing Director of RCT Solutions GmbH and Chairman of the Board of VDMA Photovoltaic Equipment, comments: “In the first quarter, the PV manufacturing equipment from the EU sales and orders decreased. The PV results align with the ones of the entire German machinery and equipment. Although the pandemic related shortages are reduced, they still exist. German PV equipment manufacturers are dealing with high material costs and energy prices. The reduction of these factors would improve the cost-competitiveness of made in Germany machinery and equipment in comparison to the competition. With the instigation of industrial policy measures in Europe to establish PV manufacturing of the entire value chain on the continent, we expect an increase of orders in the EU.”

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Even as the German manufacturers benefit, figures on the share of overall global shares were not available, as Chinese competitors have also been witnessing massive order increases led by capacity expansions in China by the leading Chinese module makers, besides orders from other markets too.