Summary
Solar cell technology is an example where Europe can defend or increase its market share. Solar cell technology was never going to be ignored by the European Commission because it fits into its environmental theme. This means that it benefits from a concerted and organized system of funding. Until recently, this did not exist for the photonics industry and it is the photonics areas that do not overlap with other industries that have suffered.
Analysis
Europe holds a healthy 28% in the world production of solar cells and a 37% share in the production of panels. Germany dominates the European scene with a 57% share of the combined cell and panel market. The country is also home to the world’s largest manufacturer of solar cells, Q-Cell, and has the largest demand for solar cells worldwide. There is a chance that Europe can defend its market share but investment is needed. There is a trend to larger fabrication facilities and countries like China will benefit from economies of scale.
Today 90% of the world’s solar cells are based on crystalline silicon technology, but Europe is strong in the emerging technologies such as organic cells and thinfilm technology. Europe combines strong technology resources with a healthy market share in the whole value chain from materials and manufacturing equipment to solar panels, and the chances are excellent that Europe can play a significant role in the future of photovoltaics. One reason why the solar energy industry in Europe is so healthy is that it is not purely a photonics technology but also part of a growing environmental technology industry.
