The study, conducted by Fraunhofer ISE and ISC Konstanz, provides a comprehensive overview of global PV manufacturing, technological trends and the competitiveness of European machinery and plant engineering companies. It projects annual investment rising from 16.6 billion US dollars in 2025 to 43.8 billion dollars by 2035.
The study finds that, thanks to decades of research and development and strong engineering expertise, Europe continues to play a leading role in high-tech solar manufacturing technologies. European equipment is particularly distinguished by its reliability, process stability and long service life.
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At the same time, a structural disadvantage remains: while many key technologies are developed in Europe, large-scale industrial production now takes place primarily in China, India and the USA, with the latter two countries also strongly supporting their industries through policy measures.
Concrete investment decisions remain limited in Europe
Interviews with international factory operators confirm the technological lead of European solutions, but also identify long response times, higher investment costs, and a limited range of turnkey solutions as market barriers. In addition, Europe currently lacks a functioning domestic market for PV production equipment. Although there are numerous announcements regarding GW-scale PV factories in Europe, concrete investment decisions remain limited.
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Dr Ralf Preu, Division Director for Photovoltaics at Fraunhofer ISE, one of the world’s largest solar research institutes, emphasises: “Europe continues to develop high-efficiency production technologies for photovoltaics. Without large-scale industrial implementation in the domestic market, however, competitiveness is at risk. Research excellence exists, what we need now are real factories with industrial excellence.”
New technology wave opens up 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 GW. Advanced cell technologies such as TOPCon, back contact, heterojunction (HJT) and tandem cells are expected to dominate the global market by then. Radovan Kopecek, co-founder of ISC Konstanz, says: “European production equipment manufacturers have already demonstrated their strength with current TOPCon technology. The technological shift towards back contact, HJT and tandem cells offers significant opportunities for European suppliers. However, the key factor is speed: customers are increasingly focusing on short payback times, integrated solutions and rapid responsiveness.”
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European equipment manufacturers face the challenge of competing on CAPEX with heavily subsidised Asian rivals. The study provides a detailed analysis of all process steps along the PV value chain, from polysilicon production and crystal pulling to wafer processing, cell and module manufacturing, and assesses the corresponding categories of production equipment and investment requirements.
Key technologies examined include nano-coating, process automation, silicon crystal pulling systems, wet chemical and thermal processes, metrology, stringers and laminators. The analysis shows that throughput and productivity have increased by up to a factor of six over the past ten years, while service life and process stability remain core strengths of European suppliers.
Importance of export markets
Peter Fath, Chair of the VDMA Photovoltaic Production Equipment Section and CEO of RCT Solutions, summarises: “It is clear that building a competitive European solar industry is possible with the competencies of our mechanical engineering sector and research landscape. However, the absence of a global level playing field makes targeted industrial policy measures and effective financing instruments essential for the EU market and for export-relevant regions such as India and the USA. Europe must act now. Our companies are present on the ground and ready to deliver worldwide.”
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Puzant Baliozian, head of the VDMA Photovoltaic Production Equipment Section, adds: “Alongside the significant market potential in Europe, the study highlights in particular the importance of export markets, with an expected annual CAPEX volume of over 40 billion dollars. European PV production equipment manufacturers, with their unique selling points, experience and global reach, are ready to capture market share. Consortia and turnkey solutions for ingot and wafer, cell and module technologies are already in preparation.” (hcn)
