Global Market Entering a Phase of Unprecedented Growth
VDMA Services study forecasts a cumulative global market volume of USD 250-300 billion and analyzes the entire PV value chain. Europe leads in reliability and performance but lacks a strong home market.
The global market for manufacturing equipment used in photovoltaic (PV) production is entering a phase of unprecedented growth. This is highlighted by a new industry study from VDMA Services entitled “European Photovoltaics Machinery and Equipment Study,” conducted by Fraunhofer ISE and ISC Konstanz.
According to the study, global annual capital expenditure (CAPEX) for PV manufacturing equipment is projected to rise from 16.6 billion dollars in 2025 to 43.8 billion dollars by 2035, resulting in a cumulative market volume of approximately 250 to 300 billion dollars over the next decade.
The study provides a comprehensive overview of global PV manufacturing, key technological trends, and the competitiveness of European machinery and equipment manufacturers.
European High-Tech Solar Technology Leadership Under Pressure
The authors confirm that Europe continues to play a leading role in high tech solar manufacturing technologies, based on decades of research and development and a high level of engineering expertise. European production equipment is particularly recognized for its reliability, process stability, and long service lifetimes. At the same time, a structural disadvantage remains: while many key technologies are developed in Europe, industrial scale manufacturing today takes place predominantly in China, India, and the United States with the latter two countries also benefiting significantly from strong industrial policy support.
Interviews with global factory operators confirm European technological advancements but also identify slow response times, higher upfront costs, and limited turnkey offerings as barriers. The study emphasizes that Europe currently lacks a functioning home market for PV manufacturing equipment. Announcements for GW scale European PV factories are numerous, but tangible investment remains limited. PD Dr. Ralf Preu, Director Photovoltaics at Fraunhofer ISE, one of the world‘s largest solar research institutes, emphasizes: “Europe continues to develop high efficiency solar manufacturing technologies, but without large scale industrial deployment at home, competitiveness is at risk. We do have research excellence, we need real factories with industrial excellence.”
New Technology Wave Creates Opportunities
The report highlights that the global PV market will grow by a factor of 2.5 by 2035, reaching an annual installation level of 1,650 GWp. Advanced cell technologies such as TOPCon, back contact, heterojunction, and tandem structures are expected to dominate the global demand by 2035. ISC Konstanz co-founder Dr. Radovan Kopecek, states: “European machinery already demonstrated its strength in current TOPCon technology. The technological shift to Back contact, HJT, and tandem cells creates significant opportunities for European equipment suppliers. But speed matters customers increasingly prioritise short payback cycles, integrated solutions, and fast response times.”
European manufacturers have a challenge to compete on CAPEX against heavily subsidized Asian competitors. The study provides a detailed analysis of all major process steps across the photovoltaic manufacturing value chain from polysilicon production through ingot pulling, wafering, cell processing, and module assembly and evaluates their associated equipment categories and CAPEX requirements. By examining key equipment types such as nano-layer deposition, process automation, silicon ingot crystal pullers, wet chemical and thermal tools, metrology equipment, stringers, laminators and more, the analysis shows that throughput and productivity have increased dramatically, in some cases by a factor of six over the past decade, while equipment lifetime and process stability remain defining strengths of European suppliers.
Prof. Dr. Peter Fath, chairperson VDMA Photovoltaic Equipment, CEO RCT Solutions GmbH, summarizes the implications: “We are proud to have the results of the important study that puts the current situation of the European PV machinery industry in perspective. For us it is clear that the expertise to build a competitive European solar manufacturing industry is possible with competencies of our machinery segment and research. The absence of global level playing field in the current market situation makes it necessary to introduce clever industrial policy measures and effective financing tools for the domestic EU market and the export-relevant regions like India and USA. Europe must act now to secure its share. Our companies are present on ground and ready to deliver to global customers.”
From his part, VDMA Photovoltaics Equipment sector group leader, Dr. Puzant Baliozian states “The study shows that apart from the large potential of the European market the export markets for our companies with a total expected yearly CAPEX of more than 40 billion dollars. European PV Machinery suppliers with the unique selling points and extensive experience and global reach are ready to tap shares in the growing equipment segment. European machinery and equipment consortiums/turnkey solutions for the different ingot/wafer, cell, and module technologies are already on track.”
