In 2022, the global photovoltaic (PV) operations and maintenance (O&M) industry saw significant expansion, according to a report by Wood Mackenzie. The top 15 PV O&M providers collectively increased their portfolio by 13%, reaching a total of 115 gigawatts direct current (GWdc). NovaSource maintained its leadership position, with SOLV Energy and Solarig following closely behind in the rankings.
Across Wood Mackenzie’s assessed portfolio, O&M providers expanded their capacity by 18%, totaling 207 GWdc in 2022. Regionally, North America experienced the most growth, adding 13 GWdc to reach a total of 86 GWdc. EMEA also saw substantial growth, expanding by 23% to 59 GWdc. APeC and Latin America increased their portfolios by 2.6 GWdc and 4.7 GWdc, respectively, with Latin America showing the highest growth rate globally.
Interestingly, despite portfolio expansion, the top 15 vendors experienced a slight market contraction of 2.8%, resulting in a 56% market share, down from 58% in 2021. This suggests a growing fragmentation in the solar PV O&M industry, partly attributed to recent acquisitions and changing dynamics.
Wood Mackenzie’s Leila Garcia da Fonseca noted the industry’s rapid transformation and highlighted RES Group’s acquisition of Ingeteam as a significant move likely to reshape the market. She suggested that this fragmentation could lead to more mergers and acquisitions as service providers seek technology diversification opportunities.
Additionally, the report highlighted a 22% decline in O&M contract pricing for US utility-scale projects, averaging $7.9 per kilowatt direct current per year. EMEA had the highest cost per megawatt for utility-scale projects, followed by North America and APAC. Despite the current price competition due to market growth and digital solutions adoption, Wood Mackenzie anticipates long-term cost increases due to rising labor costs and inflation.