Global photovoltaic module manufacturing showed clear signs of strain in 2025, according to the China Photovoltaic Industry Association, with output declining even as installed capacity continued to grow.
Total global module manufacturing capacity reached 1,430.2 GW, up 3.0% year on year, while actual production fell 4.4% to 693.6 GW. China remained the dominant producer, delivering 574.5 GW of modules, although this represented an 8.4% decline. Domestic manufacturing capacity in China also contracted by 5.8% to 1,089.4 GW, reflecting tightening market conditions.
CPIA said the sector has entered a period of deep supply and demand adjustment following years of rapid expansion that led to significant oversupply. The imbalance has triggered a wave of consolidation, with more than 40 smaller Chinese manufacturers exiting the market through bankruptcy, delisting, or acquisition since 2024.
Market concentration is increasing as leading players strengthen their positions. The combined share of the top five manufacturers rose by 0.8 percentage points to 48.2%, while the top ten saw their share decline by 2 percentage points to 64.3%, indicating pressure across mid tier producers.
Despite consolidation, profitability remains under pressure due to intense price competition. Major manufacturers including Jinko Solar, Trina Solar, and LONGi have reduced workforces by more than 30% as they respond to margin compression.
At the same time, global trade dynamics are shifting. Markets are moving away from tariff based restrictions toward policies that prioritise domestic manufacturing. This trend has contributed to a notable decline in Chinese module exports as countries seek to localise supply chains.
In response to ongoing price competition and inefficiencies, Chinese authorities are introducing mandatory national standards focused on energy consumption and product efficiency. These measures are designed to phase out outdated production capacity and improve overall industry quality.
In related data, CPIA reported that global solar cell production edged up by 0.5% year on year to 757 GW in 2025, suggesting upstream resilience even as module output declined.
Author: Bryan Groenendaal
June 11, 2026
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