Solar farm: Key market research findings
- Tie-ups to encourage use of solar power in emerging countries
- Turnkey solutions are reducing distributors’ customer acquisition cost
Technavio has released a new market research report on the global solar farm automation market, which is expected to grow at a CAGR of around 17% between 2016 and 2020. Solar energy has become an important renewable energy resource owing to the growing demand for electrivity production through renewable energy resources. This has opened wide opportunities for various automation companies to come up with innovative automation solutions in solar farms for effcient power generation. EMEA dominates the global market for solar farm automation, occupying around 54% of eth overall market share. Much of this region’s growth comes from the growing number of utilities and non-utilities sectors which are increasingly investing in solar projects.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The market is witnessing steep rise in the number of tie-ups among various power companies. These partnerships are intended to encourage the use of solar power in emerging countries to propel the growth prospects of this market over the forecast period. Power firms worldwide are forming close partnerships among themselves to promote the use of solar power in developing nations. For example, Conergy and NEXTracker formed an alliance in Latin America and the Caribbean. This partnership is expected to be the leading sponsor of the Latin America-focused solar events, to be held worldwide. The alliance has gained confidence from Latin American countries and has started receiving new solar projects which will aid in the growth of this market until the end of 2020,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research
Of late, the cost of solar farm automation solutions has declined to great extent, and has put intense pressure on the profit margin of distributors. Thus, distributors, apart from selling automation equipment and software, are identifying ways to improve contractors’ worth. Distributors are also forming partnerships with contractors on solar projects, including integrated and turnkey solutions. By offering a one-stop shop for project finance and automation equipment and solutions, distributors are strengthening relationships with the contractors. This reduces distributors’ customer acquisition costs, and enhances revenue. The distributors are also organizing marketing programs for contractors, which help the latter to contact for new solar projects. Distributors are also providing technical training on new and advanced automation solutions available in the market.
The key vendors in the global solar farm automation market include ABB, AllEarth Renewables, DEGER, Emerson Electric, First Solar, and Mecasolar. This market is highly competitive owing to the presence of a large number of vendors. The vendors in the global solar farm automation market offer completely customized automation solutions. Intense competition and the presence of many vendors have reduced the prices of solar farm automation products and solutions.
A more detailed analysis is available in the Technavio report, Global Solar Farm Automation Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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