European Orders Significantly Up For German PV Equipment Makers

European Orders In Q2/2022 Beat Asia For German Solar PV Equipment Makers First Time in Over A Decade
After years of dominating the order books of German PV equipment makers, Asia saw its market share as highest but at a lower level in Q2/2022 as European orders pour in, according to the VDMA. (Illustrative Photo; Photo Credit: Juice Flair/Shutterstock.com)
After years of dominating the order books of German PV equipment makers, Asia saw its market share as highest but at a lower level in Q2/2022 as European orders pour in, according to the VDMA. (Illustrative Photo; Photo Credit: Juice Flair/Shutterstock.com)
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  • VDMA reports Q2/2022 order intake from Europe having increased for the 1st time since 2008, compared to those from Asia for German PV equipment makers
  • There was 62% sequential increase in Europe sales as these increased by a factor of 4
  • Despite lack of skilled labor and persistent supply chain issues, there is increase in capacities of local PV module manufacturing facilities in the continent
  • Orders received within H1/2022 have now exceeded the total value of European orders in 2021 by 4 times; momentum is expected to continue in Q3/2022

As positive policy frameworks for domestic solar manufacturing are starting to take shape in Europe, German solar PV equipment manufacturers are seeing a momentum for their business in Europe. In Q2/2022 European orders for PV production equipment were higher than those from Asia for the 1st time since 2008, according to German Mechanical Engineering Federation (VDMA).

"Orders from Europe in 2022 by the 2nd quarter of this year have also already exceeded the value of total European orders in 2021 by 4 times," stated the VDMA. "The industry is expecting an increase in sales for the 3rd quarter of 2022 which indicates an improvement in addressing the current supply chain bottlenecks."

Even in terms of sales, the federation counts a 62% increase in the reporting quarter compared to the previous quarter as Europe sales increased by a factor of 4. The current export ratio of the European PV manufacturing equipment is around 66%.

VDMA attributes this increase in sales and high values in 2022 to increase in capacities of local PV module manufacturing facilities in Europe even as manufacturers here deal with supply chain shortages and lack of skilled labor.

"The Asian market was in the past the largest for the German PV equipment manufacturers, but since first quarter 2022, orders in Europe have increased and are expected to further increase," said Division Manager of the sector group VDMA Photovoltaic Equipment Dr Jutta Trube. "In general, a continuing demand is expected because of an increasing interest of different countries on local PV manufacturing."

Although orders in Asia were lower than in Europe in the Q2/ 2022, Asia still tops sales with a 52% share of the total market, according to VDMA. Sales in the US increased sequentially even as there was a slight decrease in orders.

"An increase of initiatives in Europe and the political will to establish PV production throughout the entire value chain is a chance for the further deployment of EU PV equipment. Currently countries such as USA and India are introducing very attractive incentive programs to stimulate PV manufacturing, the same is required in Europe," added Chairman of the Board of VDMA and Managing Director of RCT Solutions GmbH Dr Peter Fath.

Recently, CEOs of 13 European and American organizations referred to the US and India's policy push to demand European Commission (EC) to take stronger and bold action to spur local PV value chain manufacturing (see Solar CEOs Demand Bold Action From European Commission).

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