[SMM Hot Topic] How Much Longer Will the Window for Exporting Sheets & Plates to Southeast Asia Remain? A Detailed Look at the Production Lines of Sheets & Plates in Southeast Asia

01 Market Status:

Global PV Industry Enters Golden Period of High-Quality Development

Growth Rate of New Global PV Installations Slows Down, Emerging Markets Contribute Major Increment

Slowdown in Growth Rate of New Global PV Installations

Emerging Markets Contribute Major Increment

Global PV Installation Potential Map

Data sources: IEA, Bloomberg, public data, SMM.

Large-Scale Utility PV Projects in Emerging Markets Flourish, Driving Demand Growth for Solar Panel Mounting Brackets

Utility-Scale PV Leads Global Installations

Demand Scale of Global Solar Panel Mounting Brackets

Data sources: IEA, China Photovoltaic Association, SMM.

China Ranks First Globally in Under-Construction and Planned Tracking Bracket Installations, Followed by Spain, US, Brazil, India, and MENA Regions

Current Global Under-Construction and Announced Tracking Bracket Project Scale, 2023-2045

Note: Data as of August 2025.

Data sources: Global Solar Tracker, public data, SMM.

02 Market Landscape: Industry Consolidation Accelerates, Chinese Companies Rise Prominently

Polarized Policy Support Creates Both Crises and Opportunities in Global PV Industry Chain

US

▶ The Trump administration issued the "Revitalizing America's Clean Coal Industry" executive order, potentially diverting federal funding and resources from solar to traditional energy. However, as the world's largest economy, US electricity demand is tied to GDP. The expansion of computing centers and AI industries requires massive power,while fossil fuel power plants have long construction cycles, necessitating short-term reliance on wind, solar, and ESS.

▶ Major 2025 IRA revisions under Trump dampened market confidence, including: 1)Phasing out clean energy investment and production tax credit provisions by 2029;2)Adding "foreign entity investment share restrictions" to production tax credits, directly impacting PV, wind, and battery supply chains.

EU

▶ The 2024 Net-Zero Industry Act (NZIA) established "renewable energy acceleration zones" to streamline permitting,targeting at least 30GW PV manufacturing capacity across the supply chain by 2030.The same year's Energy Performance of Buildings Directive mandated "solar readiness" for all new buildings with specific installation requirements.

▶ In May 2025, EU introduced binding localization targets under NZIA, requiring member states to source fixed proportions of annual PV module, battery, and heat pump deployments from domestic manufacturing by 2026,aiming to cover 40% of EU market demand with local net-zero technology manufacturing by 2030.

India

▶ 2024’s PM Surya Ghar Muft Bijli Yojana and National Electricity Plan target 280GW solar capacity by 2030, implying30GW annual new installations from 2025.

▶ India accelerates PV localization via a "dual-track" strategy: trade barriers (higher tariffs, ALMM certification) to limit Chinese PV imports, coupled with PLI incentives to boost domestic manufacturing capacity and technology.This "import restriction + local cultivation" stimulus policy package is reshaping India's PV landscape.

MENA

▶ Saudi’s Vision 2030 plans 20GW annual PV additions from 2024; Turkey targets 30GW by 2030; UAE advances the world’s largest single-site plant (5GW),with MENA PV investments potentially exceeding $100 billion in five years.

▶ MENA accelerates PV localization via tariffs and "whitelist" systems. Yet, due to local undersupply of raw materials and limited technology, these countries still heavily rely on Chinese PV supply chains short-term.This drives Chinese PV firms to expand local production investments to counter trade barriers.

Data source: SMM

Concentration Trend Accelerates, Chinese Firms Rank Second Globally in Market Share

Global PV Tracking Bracket Competitive Landscape (Shipments)

Data sources: Wood Mackenzie, public data, SMM.

Overseas Factories Mitigate Policy Risks, Solar Bracket Manufacturing Shifts from China to MENA and Latin America

Capacity Distribution of Global Leading Solar Bracket Manufacturers

Note: Partial display.

Data sources: Public data, SMM research.

03 Production Materials: New-type materials are accelerating in popularity, offering superior performance and lower costs

These new materials are rapidly replacing hot-dip galvanizing and are widely used in various PV mounting bracket installation scenarios

Classification of PV mounting brackets by different processes

Different material application scenarios

Note: Only fixed brackets are illustrated.

Data source: Public information, SMM.

Zinc-aluminum-magnesium coated steel significantly reduces galvanizing costs while greatly shortening the delivery cycle, helping PV mounting bracket companies to reduce costs, improve efficiency, and enhance quality

Traditional PV mounting bracket cost structure

Zinc-aluminum-magnesium coated steel significantly reduces galvanizing expenses

Data source: China Photovoltaic Industry Association, public information, SMM.

Catching up later, China's zinc-aluminum-magnesium coated steel contributes nearly half of the global capacity, mainly consisting of medium and low aluminum products

Global expansion of zinc-aluminum-magnesium coated steel capacity

Data source: Public information, SMM

Amidst the wave of global localization, how long can the export benefits of China's zinc-aluminum-magnesium coated steel last?

Export landscape of China's zinc-aluminum-magnesium coated steel coils

Note: Different colors represent export target regions, and the size of the bubbles indicates the scale of products exported from China to that country in 2025.

Data source: General Administration of Customs, public information, SMM research and compilation.

04 How Can Chinese Enterprises Break Through?

Facing a slowdown in PV growth, localization requirements for the supply chain, and cost pressures, how can Chinese enterprises break through?

Arctech Solar's revenue structure (by region)

Actively expanding overseas markets

• Adopting a localized strategic layout with "overseas regional headquarters + service centers + local production sites," which effectively avoids trade barriers and strengthens delivery capabilities. Factories have already been established in India, Saudi Arabia, Brazil, and other locations, with an annual delivery capacity of over 10GW for overseas tracking brackets.

Arctech Solar's revenue structure (by product)

Focusing on expanding the tracking bracket business

• Technological innovation drives the surge in demand for tracking brackets, with the key cost gap narrowing significantly from 0.6 yuan/W to 0.1-0.2 yuan/W, marking an economic turning point and highlighting competitive advantages.

• As the product mix continues to optimize, the revenue share of the tracking bracket business steadily increases, becoming the core engine driving corporate profit growth.

Gross margin comparison: Arctech Solar vs Nextracker

Gross margin levels still have a significant gap compared to top overseas players

• In 2024, Nextracker leads the industry with a 35% operating profit margin, thanks to two core advantages: focusing on high-technology premium markets like Europe and America, and building a competitive barrier through years of technological accumulation. This "high-end market + technology leadership" dual-driven model brings significant profit premiums.

• Notably, Arctech Solar achieved continuous gross margin improvement in 2024 through its overseas strategic layout. Although there is still a gap with international leaders, its globalization path— including breakthroughs in emerging markets, local production layouts, and rapid technological iteration—provides an important development model for Chinese PV mounting bracket companies.

Data source: Corporate annual reports, public information, SMM.

Facing a slowdown in PV growth, localization requirements for the supply chain, and cost pressures, how can Chinese enterprises break through?

01. Technological Innovation – Artificial Intelligence and Robotics

• Nextracker launched an "AI + robotics" business plan, investing over $40 million in technology acquisitions in the past year

• Clenergy's products are equipped with AI climate response systems, using high-precision sensors to capture environmental parameters and dynamically adjust tracking angles

• Arctech Solar's second-generation tracking system AI algorithm has been applied in an Oman project

02. Global Strategic Layout

• Arctech Solar has a matrix layout of "six bases across three continents + 17 branches," establishing an "overseas regional headquarters + service centers + local production sites" model to enhance delivery efficiency and ensure capacity supply

• Trinasolar has an integrated N-type full industry chain capacity, with strong risk resistance. Future capacity planning and construction in emerging markets such as the Middle East are important options

03. Comprehensive Energy Service Provider for the Entire Life Cycle

• Arctech Solar has recently built a "green electricity +" smart energy one-stop solution centered around "tracking +," with multiple products certified by TÜV Group

• Antaisolar launched the SolarAid platform, simplifying the design and quotation process for rooftop projects, and developing comprehensive PV mounting bracket solutions tailored to European needs

04. Anti-Rat Race and Capacity Optimization

• The PV industry is expected to undergo a profound transformation, shifting from pure price competition to a new phase of value competition centered on technological innovation, global layout, and supply-demand collaboration. In this process, the PV mounting bracket industry will experience capacity optimization and integration, with market concentration continuously increasing. Ultimately, top-tier enterprises with core technological advantages and global operational capabilities will become the dominant market forces

Data source: Corporate annual reports, public information, SMM.

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