Los Angeles, CA (PRWEB) November 03, 2011
The Solar Thermal Energy Equipment Manufacturing industry will gain ground over the next five years, according to IBISWorld, the nation’s largest publisher of industry research. Industry revenue is set to grow to $273.1 million in the five years to 2016. Revenue growth will slow down as the positive effects of the manufacturing tax credit end. Nonetheless, the industry will continue to grow on the back of generous tax credits given to downstream buyers of solar energy in states with RPS goals and favorable government programs.
The Solar Thermal Energy Equipment Manufacturing industry manufactures solar thermal energy (STE) equipment. STE is a technology for harnessing solar energy by capturing concentrated sunlight on a particular surface. The surface takes captured energy and creates steam to power turbines and produce electricity. The USA Energy Information Administration classifies solar thermal collectors as low-, medium- or high-temperature. Industry products are different from photovoltaics, which convert solar energy directly into electricity.
The Solar Thermal Energy Equipment Manufacturing industry has surged during the five years to 2011. Revenue is expected to grow 35.1% per year to $185.3 million in the five-year period. Generous government incentives for solar thermal energy (STE) manufacturing and downstream solar power generation (the industry's customer) have buoyed revenue. Without government subsidies, solar power generation firms would have a hard time competing against traditional energy-generating sources. With incentives in place, downstream customers demand solar thermal equipment at an increasing pace. However, the recession caused industry revenue growth to slow down amid tightening credit conditions that hampered customer's ability to purchase STE equipment. Revenue is expected to bounce back as these government incentives continue to positively influence the industry. Industry revenue is anticipated to jump 19.9% from 2010 to 2011.
The Solar Thermal Energy Equipment Manufacturing industry is characterized by strong technological innovation. Industry firms continually try to come up with more efficient ways to create energy and store that heat for extended periods of time. In doing so, firms are essentially trying to lower the price of energy so that they can compete with other types of electricity generation. In particular, many firms are concentrating on energy storage to deliver energy around the clock. Amid growing competition from solar photovoltaic (PV) manufacturers (which are an external industry competitor), industry firms are positioning themselves to be more competitive by producing energy for 24 hours. For the most part, PV plants can only produce and sell energy during the day.
According to IBISWorld analyst, Kathleen Ripley, the next five years will likely be bright for the industry. “Government incentives that favor the industry's customer will continue,” says Ripley “and the federal government will open up large plots of land for solar developers to begin generating solar power.” In addition, “industry firms will continue to innovate and come up with more efficient ways to create energy and store that energy.” Amid favorable incentives and strong innovation, the industry will be limited by growing competition from solar PV manufacturers and the expiration of a manufacturing tax credit incentive (expired in 2010). As a result, industry revenue is expected to grow at a slower rate over the next five years, at 8.1% annually to $273.1 million in the five years to 2016.
For more information, download the full report from IBISWorld on the Solar Thermal Energy Equipment Manufacturing industry
IBISWorld Industry Market Research Reports Contain:
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.