Compared with the annual growth rate of 139% in 2010, the global solar market demand in early 2011 appears to be relatively weak. According to preliminary estimates, the demand for Germany's Q1'11 terminal market is still less than 50% of the same period of last year. This year, in some regional or national markets that are optimistic about this year, it seems that the rate of price decline has not yet effectively stimulated market demand growth. Despite this, Solarbuzz is still optimistic about the second quarter of the market, the latest quarterly report pointed out that the second quarter global demand is expected to reach 7.4GW, compared with 77% growth rate in the same period last year.

In the first quarter of 2011, component manufacturers continued to expand their sales channels and recruit more small-scale distributors and intermediaries to digest increased production and maintain better factory prices. This may cause the number of downstream stocks in Europe to increase to an unsustainable level at the end of the quarter, and to a lesser degree in the United States.

By mid-2011, the top five markets in Europe will experience reductions in subsidy policies (FIT), some as high as 45%. Therefore, the demand for the second quarter will be an early retrenchment stimulated by the reduction of FIT in the middle of the year, especially in Germany and Italy. While Other European markets, the United States, Canada, China and India have a steady growth.

In 2011, component manufacturers plan to increase shipments by 55%, but the annual market demand growth rate is expected to be only 12%. After the peak of demand in the second quarter, the industry will face a very challenging second half, especially the imbalance between supply and demand. In order to avoid excessive inventory, it is estimated that there will be a period of time before the appropriate production cuts need to be made.

The catastrophe of nuclear power plants that occurred after the major earthquake and tsunami in Japan may lead to the adjustment of photovoltaic policies by various governments, but it will not impact the market demand before 2012. At the same time, Japan’s nine major factories engaged in silicon materials, silicon wafers and batteries are currently not affected by the earthquake. “Because the pace of market growth has slowed, 2011 will be a challenging year for the industry.” Solarbuzz Managing Director Craig Stevens said, “Europe is no longer a locomotive of growth in the past few years, and manufacturers will need to expand into new markets, otherwise When prices fall, they will bear the burden of stockpiling or sharply reduce production.

By the fourth quarter of 2011, the battery capacity of manufacturers in mainland China, Taiwan, and non-U.S., Japan, and Japan will account for 74% of the world's total, up from 66% in the fourth quarter of last year. The leading manufacturers of thin film, First Solar, and low cost Asian manufacturers will be the less vulnerable groups in the second half of the year; however, all manufacturers are expected to face strong price pressures by the end of the year. Low-cost mainland and Taiwanese manufacturers will continue to benefit from the increasing number of outsourced OEM orders from Japan and European and American manufacturers.