PowerPivot Add-In needed by End User?

All.
A very simple question for somebody who knows what they are doing.
I've created several spreadsheets in Excel 2010 which utilize the PowerPivot add-in.
My worksheets contain several PivotTables based on my PowerPivot Data
The original data is imported from an SQL table.
These spreadsheets are uploaded to a SharePoint (2010) PowerPivot Gallery.
They refresh overnight successfully.
Viewing the pivot table in a web page works fine i.e. the data is up-to-date, filters work etc.
If an end user opens up a spreadsheet in Excel, via the ribbon They receive multiple errors:
"Initialization of hte data source failed"
"A PivotTable cube function or slicer using connection "XXX" failed to refresh the data."
I turned off the open on refresh option - based on another MS article.
The only way I could remove the errors all together was to install the PowerPivot add-in on the end users pc.
Alternatively I could hide the option to open in Excel in SP - Yet NOT being able to open/read in Excel might be too big a cultural shift
Am I correct in my assumption, that to view a SP PowerPivot Excel spreadsheet in Excel natively, the person viewing the spreadsheet must have the PowerPivot add-in installed?
If so, will somebody explain in simple terms, why?
That way I can easily explain why I need to install the add-in a lots of PCs.
Thanks
W

Hi Wilkies0106aw,
It seems it was a know issue, I found the following information:
Assume that you have a pivot table that groups some items in a workbook. The pivot table is connected to a server whose cube was modified since the last time that the pivot table was refreshed. When you update the workbook in Excel 2010, you receive the
following error message:
A PivotTable, cube function or slicer using connection <var>Server name</var> has failed to refresh. Continue to refresh all?
For detail information, please see the KB article:
http://support.microsoft.com/kb/2597010/en-us
Regards,
Elvis Long
TechNet Community Support

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