LONDON — Europe has experienced a significant slowdown is sales of photovoltaic (PV) manufacturing equipment with a subsidy caps (reductions) in Spain having a major impact.

The world market for PV manufacturing equipment from the first quarter of 2009 to the third quarter was down by approximately 25 to 30 percent on the same period in 2008 according to a report from IMS Research (Wellingborough, UK).

However 2010, although still difficult in certain regions - in particular Europe - will again show growth overall.

"With many end users postponing orders, the market through the middle part of 2009 practically dried up for many equipment suppliers," said Mark Watson, senior analyst at IMS. "However, there are promising signs that 4Q09 will see an increase in order intake and that postponed orders will start to be revived."

"Asia Pacific PV manufacturing equipment revenues, driven by countries such as China, Taiwan, India and South Korea, are projected to grow quickly from 2010 onwards," added Watson. "Large numbers of Asia Pacific equipment suppliers are starting to emerge, supplying domestic markets with low cost manufacturing equipment."

IMS says that EMEA PV equipment suppliers are largely considering moving production to Asia Pacific to take advantage of lower production costs, whilst keeping design and software engineering in EMEA