Following two years of contraction, IHS has forecast a 32% growth in 2015 for the PV (photovolatic) industry - to reach $4.3billion. This is an increase on earlier forecasts of 5% growth, says the analyst in its latest report on PV Manufacturing and Capital Spending.

PV companies are increasing production following oversupply in 2012 and 2013, that led to erosion in pricing. Now, with a capacity correction, bringing supply and demand into closer alignment, the industry is expected to return to balance by late this year or in the first half of 2014.

At present PV manufacturers are starting to ramp up production, with many already running at full capacity. However, some companies have engaged in contract manufacturing of products from Tier 2 and Tier 3 suppliers to meet increases in demand. However, this is a short-term, small scale tactic, says the research. Long-term, large-scale increases in production during the next few years will be accomplished via increases in internal capacity.”

The areas have the potential to rise to more than 18GW by 2017, which would be equivalent to 6% of the worldwide business at that time.