The solar PV inverters market is expected to register a CAGR of more than 8%, during the forecast period. Factors, such as a drop in inverter prices and the increasing solar PV installations, are expected to boost the market growth. Also, advancement in technology leading to solar panel manufacturing cost reduction and increase in efficiency have also been a major factor for the growth of solar PV inverters market. However, lack of general awareness, cost of infrastructure development and recent subsidy cuts on solar panels by governments in Asia-Pacific region have hampered the market growth.
- Industrial sector has seen a rapid growth in solar power generation and hence solar PV inverters in recent years. Some of the major reasons being solar electricity being cheaper, and the stability of power supply.
- The rising concerns over environmental impact of energy generation from conventional sources such as coal and natural gas, is expected to act as opportunity for the solar PV inverter market.
- Asia-Pacific is expected to dominate the market with majority of the demand coming from the countries such as the China and Japan. Asia Pacific accounts for over 70% of solar PV inverters installed globally in 2018, with Americas coming second at 16%.
Key Market Trends
Increasing Demand from the Industrial Sector
- Industries have started relying more and more on renewable energy sources for their power demand, of which solar energy holds the major share, this have been a big driving factor for solar PV inverters market.
- This gradual shift can be connected to various factors, such as mounting pressure on industries to reduce their environmental impacts, economical aspects, etc.
- In November 2019, Heineken NV opened its largest production facility in Mexico. The facility is installed with solar panels, which provide upwards of 12% energy required to run the facility.
- With the panel costs dropping significantly over the past 10 years and the adoption at an all-time high, the market for solar PV inverters is expected to grow in the forecast period.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region dominated the solar PV inverter market in 2018, and it is expected to continue its dominance over the coming years as well.
- China’s solar power generation grew almost 50% from 117,800 GWh in 2017 to 177,500 in 2018.
- In the recent years, there has also been an increased emphasis on inverters in China providing Zero-voltage Ride Through (ZVRT). To meet the Chinese Grid Code for ZVRT, PV power plants must continue to operate without breaking away from the grid for 0.15 seconds when the voltage at the point of interconnection drops to 0.
- With the rising pollution concerns across the world due to industrialization, especially in Asia-Pacific, the regional solar power generation has gained considerable momentum.
- Moreover, various government initiatives, such as incentives and energy saving certificates by the governments in India, China, Malaysia, and Thailand, are also expected to help drive the market during the forecast period.
The global solar PV inverters market is fragmented, with many big and small players occupying significant shares. Some of the major companies are ABB Ltd, Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation, Omron Corporation, General Electric Company, and SMA Solar Technology AG, among others.
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