The average price of photovoltaic (PV) wafers in the first quarter of 2012 fell by more than 70 percent in a year according to the latest research released by IMS Research, which was recently acquired by IHS Inc. (NYSE:IHS). This dramatic price collapse, caused by a global oversupply, has significantly changed the cost structures and strategies of leading PV module suppliers and making many switch from in-house production to buying in their wafer supply. Throughout 2010 and 2011, many suppliers had quickly expanded their in-house wafer capacities. However, as wafer prices have fallen by over $0.70/W to record lows, suppliers are now reducing their in-house manufacturing and purchasing more wafers from third-party suppliers.

Global solar PV installations will grow by at least 3.5 percent and up to 21 percent in 2012, according to a new report from IMS Research, recently acquired by IHS Inc. (NYSE: IHS). The market analyst firm forecasts that despite incentive cuts in most of the world’s largest markets, global installations will grow from 26.9 GW in 2011 to between 27.8 GW and 32.6 GW in 2012, with Europe’s share of installations falling from 69 percent last year to 50 percent this year.

Following a range of EU and UK-specific mandates, smart meters are set to be installed in most UK homes by 2019. These meters provide two-way communication between electricity (or gas) meters, and utility companies via an Advanced Metering Infrastructure (AMI) network, enabling the companies to measure how much electricity consumers are using remotely and send signals back to the meter. Mass roll-out is expected to occur from 2H14, although a number of utility companies have demonstrated smaller-scale deployments already. According to a recent study from IMS Research, a leading independent supplier of market research and consultancy to the global electronics industry, in the next five years, over £2.4 billion will be spent in the UK on smart home energy management devices – ranging from smart meters themselves, to in-home devices that can ‘talk’ to them.

IMS Research defines Smart Grid and how it is evolving in phases. 'Smart' is evolving from mere connectivity to complete metering, connectivity and control in an effort to obtain masimum benefits from available resources. "Grid" is evolving from generation, transmission and distribution to include consumption to match generation and consumption efficiently.

Suntech Power was the largest supplier of PV modules by shipment volumes for the second consecutive year, according to the latest market rankings released by IMS Research. For the first time, it was also joined by three other Chinese crystalline PV module manufacturers in the top five as Chinese manufacturers tightened their grip on the market, the analyst firm revealed.

The average price of Chinese Tier-2 crystalline PV modules fell to $0.96 per watt in January 2012, according to the latest PV module pricing report from IMS Research. Annualized price declines (ignoring seasonality) slowed to 22% in January, having exceeded 50% in December, as incentive levels were reduced in a number of major PV markets at the end of 2011.

The PV inverter market achieved a new record in 2011 with shipments exceeding 26 GW for the first time according to preliminary results from IMS Research. The research firm found that inverter shipments grew by more than 10% in 2011, despite the huge inventory overhang from the year before.

Wellingborough, UK – 1/2/12. IMS Research has made the following predictions for 2012 and beyond, to provide some guidance on the key trends and opportunities in each of these areas. We hope you find them useful in planning for the year ahead.

PV module prices increased by 7% in December 2011 due to a temporary pick-up in demand ahead of FiT reductions in a number of key markets according to the latest monthly pricing report from IMS Research. Strong demand during the year-end rally saw installers buying PV modules from distributors at inflated prices. The survey found that installers were desperate to secure supply and complete installations before incentive levels were reduced, particularly in Germany where 3 GW of installations were connected in December alone. However, the survey also found that price increases were only temporary and both module suppliers and buyers expect price drops again in January.

Wellingborough, UK – 11/1/12. IMS Research’s latest report “The EMEA and Americas Markets for Building Automation Controllers, Software and Sensors – 2011 Edition” has found the air waves in buildings are increasingly being filled with signals from building automation systems.