What's Happening?
Wood Mackenzie has reported that non-Chinese solar module manufacturers have managed to remain profitable despite a challenging market environment. In the first half of 2025, the top 10 non-Chinese companies maintained profitability, while the global solar industry faced a collective net loss of $2.2 billion. These companies have focused on premium and protected markets, demonstrating financial discipline and operational excellence. The report highlights the diversification of the competitive landscape, with rising challengers from India, South Korea, Singapore, and the U.S. The top 10 manufacturers achieved an average utilization rate of 70%, compared to 43% for others.
Why It's Important?
The ability of non-Chinese solar module manufacturers to remain profitable
in a difficult market underscores the importance of strategic market positioning and operational efficiency. This trend indicates a shift in the global solar industry, where companies outside China are gaining ground by focusing on high-value markets and maintaining strong operational standards. The diversification of the industry could lead to increased competition and innovation, benefiting consumers and promoting the adoption of solar energy. This development also reflects the impact of trade policies that encourage regional manufacturing and reduce dependency on Chinese imports.
What's Next?
Wood Mackenzie anticipates further industry consolidation, deeper vertical integration, and regionalization of manufacturing in the coming years. The focus will be on wafer-to-module control and the expansion into tariff-resilient regions like the Middle East and North Africa. The next technological advancements, such as TOPCon 3.0 and back-contact technologies, are expected to push module performance above 25%, leading to the retirement of lower-grade manufacturing lines. As global demand strengthens and pricing stabilizes, the industry will shift from survival mode to strategic investment, with Grade A manufacturers poised to capture the next growth cycle.
