Analysis of market development for photovoltaics

The acceptance of any product by the market is dependant upon a multitude of formal and informal mechanisms. These include, amongst others, the technical merit of the product, its presentation, its perceived image and the user feedback to the market-place. Further growth or diffusion of the product into the market-place is possible if the image and perception are positive. If the product is difficult to use, and/or lacks the information necessary for implementation and operation, it is unlikely that it will sell well. The result is a negative image and slow market growth. Today, photovoltaic (PV) systems are technically appropriate for many applications. However, apart from specific niche markets, the overall market penetration for PV is small when compared to other products of similar developmental history. This paper discusses the market development of PV applications, reviews some of the promoted scenarios and depicts past experiences with PV systems. In particular, it looks at the market development for PV in the telecommunications and health care sectors.