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Shifting demand and pricing pressure main solar tracker challenges | pv magazine

“The Latin American market will continue its upward path,” he added, while “Mexico and Brazil will again be the largest Latin America markets but we expect significant volume increases in Chile and Argentina as well.”

Overall, Moskowitz said the main challenges in the current tracker market are shifting demand and pricing pressure. India, for example, is set to see declining tracker shipments, “due to extremely low-priced modules that encourage the use of seasonal tilt racking.”

“Vendors that are strong in that market will be looking internationally to maintain their volumes,” he said. “Tracker companies have recognized the need to globalize over the past several years and so most major markets are extremely price competitive. Margins have fallen, so firms have to be extremely strategic and operationally efficient to be successful.”

Pointing to the recent acquisition of Exosun by steel giant, ArcelorMittal, GTM Research yesterday said it expects to see continued consolidation, with vendor margins squeezed as the market grows.

Asked if the industry can expect to see other significant acquisitions in 2018, Moskowitz said, “The tracker market has an overwhelmingly strong long-term outlook, but pricing is ultra-competitive and margins are tight. Some vendors will struggle in the near term while others will want to invest for the future. There will likely be some big announcements in 2018.”

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Shifting demand and pricing pressure main solar tracker challenges – GTM Research – pv magazine International.