Despite the outlook for the Photo Voltaic (PV) manufacturing equipment market remaining bleak in 2012, a new report from IMS Research claims that there could be a 20GW opportunity for the upgrade or replacement of existing capacity over the next 4 years.

Revenue declines of over 65% are forecast for the PV manufacturing equipment market in 2012. However, there may be a bright spot: aging equipment requiring upgrade or complete replacement is where the majority of equipment revenues will come from in 2012. The research report found that this could provide a 20 GW opportunity for equipment suppliers, generating some $25 billion in revenues during the period.

Ingot, wafer, cell and module makers are all placing less importance on expanding production, and are instead focusing on increasing end-product quality and overall efficiencies. Utilization rates are at an all-time low and the current lull in new demand and capacity across the supply chain will provide a potential opportunity for PV makers to gain market share longer-term through upgrading equipment now.

A company representative said, “The inevitable market shake-out that will see less competitive product makers fall by the wayside, will stimulate further demand for equipment as existing manufacturing capacity goes offline. Manufacturing equipment companies that stand to benefit most are those that have a clear equipment upgrade strategy available to their customers. Furthermore, companies that will resist the shake-out best will be those who can go through these equipment upgrades with the least disruption, readying themselves for the time when end-demand does ultimately pick-up.”