The international thin film branch has undergone rapid development in recent years. From 2008 to 2009, its market share increased from eight to twenty percent. Gains in market share resulted in particular from the reduced prices of the materials used in production. However, the advantages enjoyed by this segment have since diminished.

The elimination of the silicon bottleneck, the immense decline in prices for conventional photovoltaic technologies as well as the economic and financial crisis has had a dramatic impact on the thin film segment. The financing of manufacturing facilities will become particularly difficult for market participants. The restrictive credit policy of investors means that they now tend to invest in companies with tried and tested technologies. As only a minority of thin film companies have taken the step to mass production, few fall under the aforementioned category.

Strategic Cluster of the Thin Film Segment
The results of the white paper show that in order to survive in a market that is consolidating and to maintain control over your market share concentrating alone on the competitiveness of the product will no longer suffice. An increasing diversification of, for example, individual market niches or the development of innovative sales strategies will be of utmost importance. EuPD Research analyzed the thin film segment closely in its latest white paper and illustrated the already existing strategic clusters of the branch. Accordingly, six clusters in the thin film segment were identified.

These are, for example, reputable thin film manufacturers that have been doing business in this segment for a longer period of time and have a significant market share. In addition, there is a cluster of companies with a distinctive technological background coupled with well established research and developments departments. Furthermore, companies which do not have a PV background but a well known global brand as well as the corresponding sales and marketing structures combined with experience in mass production make up a further cluster. The majority of these companies generally come from other sectors or PV related sectors such as the LCD or flat screen segment.

Market players in the thin film photovoltaic sector now have to address the challenge of finding a strategy which will ensure their survival in this turbulent market. In order to increase market share companies will have to be able to compete on all elements of the marketing mix – Product, Price, Place und Promotion.

EuPD Research has examined various market sectors, technology segments and other issues currently of significance to the solar industry in this white paper. This paper delivers background information on the historical development of the issue at hand, clearly explains the current situation and provides an outlook of future developments. The various factors which will influence this future development were identified and analyzed. Companies already competing on this market were identified and the potential as well as the appeal of the various segments illustrated.

In contrast to other market studies published by EuPD Research, this paper is not solely based on quantitative data but pointedly includes the interpretation of the author. These opinions can and should be discussed in order to facilitate the generation of a multitude of diverse opinions on this complex topic.

An example of a white paper can be found on eupd-research.com.  It is available for download free of charge.