Market Snapshot
| Study Period: | 2018- 2026 |
| Base Year: | 2020 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | >8 % |
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Market Overview
The solar PV inverters market is expected to register a CAGR of more than 8% during the forecast period. The COVID-19 pandemic has led to the creation of supply chain issues in various regions in the solar PV inverter industry. The industry has also been hit severely due to a reduction in electricity consumption and declining economic growth. However, with resuming market activities globally, the demand for the market is growing at a faster rate. Factors, such as a drop in inverter prices and the increasing solar PV installations, are expected to boost the market growth. Advancement in technology leading to solar panel manufacturing cost reduction and increase in efficiency have also been a major factor for the growth of the solar PV inverters market. However, lack of general awareness, infrastructure development costs, and recent subsidy cuts on solar panels by governments in the Asia-Pacific region has hampered the market growth.
- The commercial and industrial segment has seen rapid growth in solar power generation and hence solar PV inverters in recent years. Some of the major reasons being solar electricity are cheaper and the stability of the power supply.
- The rising concerns over the environmental impact of energy generation from conventional sources such as coal and natural gas are expected to act as an opportunity for the solar PV inverter market.
- Asia-Pacific is expected to dominate the market, with the majority of the demand coming from the countries such as China, India, and Japan.
Scope of the Report
The solar PV inverters market report includes:
| Inverter Type | |
| Central Inverters | |
| String Inverters | |
| Micro Inverters |
| Application | |
| Residential | |
| Commercial and Industrial | |
| Utility-scale |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Key Market Trends
Commercial and Industrial Segment to Witness Growth
- Industries have started relying more and more on renewable energy sources for their power demand, of which solar energy holds the major share. This has been a big driving factor for the solar PV inverters market. This gradual shift can be connected to various factors, such as mounting pressure on industries to reduce their environmental impacts, economic aspects, etc.
- Additionally, Industrialization and urbanization across the globe have led to constant energy demand in the world, which leads to the excessive usage of coal, natural gas, and oil for energy generation. Many different countries have established a renewable energy development and promotional plan to prepare for an efficient, effective, and sufficient energy source.
- Thailand, for example, has plans to support the country’s goal of reduction in energy from coal to 12% by 2037 and increasing solar energy, which directly improves the graph for solar PV inverters deployment in the country that is used for energizing any residential, commercial, industrial, and utility-scale appliances.
- In other parts of the world, Heineken NV opened its largest production facility in Mexico in November 2019. The facility is installed with solar panels, which provide upwards of 12% energy required to run the facility. Solar PV with inverters provides for the required growth of such industries.
- Furthermore, with the panel costs dropping significantly over the past ten years and the adoption at an all-time high, the market for solar PV inverters is expected to grow in the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region dominated the solar PV inverter market in 2019, and it is expected to continue its dominance over the coming years as well. Most of the demand is expected to come from China, which is also the largest producer of solar energy in the world.
- In China, over the years, there has also been an increased emphasis on solar 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 zero. This is even more significant as the country hosts the largest amount of solar power generation in the world.
- With the rising pollution concerns across the world due to industrialization, especially in Asia-Pacific, regional solar power generation has gained considerable momentum. Large counties like India have set a target of installing-175 GW of renewable energy capacity by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power, and 5 GW from small hydro-power. Any increase in Solar generation is expected to influence the growth of the PV inverter industry directly.
- Moreover, various government initiatives, such as incentives and energy-saving certificates by the governments in China, Malaysia, and Thailand, are also expected to help drive the market during the forecast period.
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Competitive Landscape
The solar PV inverters market is partially 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, and Omron Corporation.
Recent Developments
- In 2021, the imported solar inverters are expected to get costlier, as the Indian union budget for the next fiscal year has proposed customs duty increases from 5% to 20%. This is expected to raise the cost of solar projects in the country.
- In February 2021, German inverter maker SMA Solar Technology AG announced it is supplying its equipment for the 220-MW Diego de Almagro Sur solar project in Chile. SMA received an order for 46 units of its medium voltage power station (MVPS) solution from Chilean utility Colbun SA, which is currently building the solar complex in the Atacama Desert.
- A research project has produced a silicon carbide inverter capable of enabling large-scale solar systems to connect directly to medium-voltage grids without the need for a transformer. The project, led by researchers at the Fraunhofer Institute for Solar Energy Systems ISE, has demonstrated the use of silicon carbide (SiC) transistors in a compact inverter, posing numerous benefits to both solar arrays and grids in general.
Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.4.1 Drivers
4.4.2 Restraints
4.5 Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products and Services
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Inverter Type
5.1.1 Central Inverters
5.1.2 String Inverters
5.1.3 Micro Inverters
5.2 Application
5.2.1 Residential
5.2.2 Commercial and Industrial
5.2.3 Utility-scale
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ABB Ltd
6.3.2 Schneider Electric SE
6.3.3 Siemens AG
6.3.4 Mitsubishi Electric Corporation
6.3.5 Omron Corporation
6.3.6 General Electric Company
6.3.7 SMA Solar Technology AG
6.3.8 Delta Energy Systems Inc.
6.3.9 Enphase Energy Inc.
6.3.10 SolarEdge Technologies Inc.
6.3.11 Huawei Technologies Co. Ltd
6.3.12 Kstar New Energy Co. Ltd
6.3.13 Sineng Electric Co. Ltd
6.3.14 Sungrow Power Supply Co. Ltd
6.3.15 Tabuchi Electric Co. Ltd
6.3.16 TBEA Sunoasis Co. Ltd
6.3.17 TMEIC Corporation
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Solar PV Inverters Market market is studied from 2018 - 2026.
What is the growth rate of Solar PV Inverters Market?
The Solar PV Inverters Market is growing at a CAGR of >8% over the next 5 years.
Which region has highest growth rate in Solar PV Inverters Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Solar PV Inverters Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Solar PV Inverters Market?
ABB Ltd , Schneider Electric SE , Siemens AG , Mitsubishi Electric Corporation , Omron Corporation are the major companies operating in Solar PV Inverters Market.
