The global PV inverter market size is expected to reach USD 13.0 billion by 2027, ascending at a CAGR of 5.6% over the forecast period, according to a new report by Grand View Research, Inc. Growing demand for solar energy-generated clean electricity across several end-use markets along with the reduction in renewable power generation costs is likely to strengthen market growth over the forecast period.
Increasing demand for a steady power supply in harsh climatic conditions or remote locations has led to the enhanced deployment of off-grid solar PV systems, thereby propelling the PV inverter product demand across such locations. In addition, favorable government policies and initiatives regarding clean fuel usage agenda are expected to further bolster the industry growth.
The market is consolidated and highly competitive in terms of huge demand and vertically integrated market players. Technological advancements due to extensive R&D investments have led to more competitiveness in the industry. Some of the key competitive factors for the market include product quality, brand, maintenance, and distribution network.
Persistent pressure on equipment suppliers due to anti-dumping tariffs is anticipated to hinder the market growth over the forecast period. Such duties have been levied by several countries on account of price deterioration that has hampered the domestic market for solar equipment. The tremendous price declines have forced nations, such as the U.S., to levy anti-dumping duties on the inflow of cheaper equipment from countries, such as China.
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PV Inverter Market Report Highlights
- Central PV inverter segment occupied the largest market share in 2020 owing to wide usage of these systems in large industrial-scale applications due to high reliability and efficiency offered by them
- String product segment accounted for the second-largest market share in 2020 owing to enhanced efficiency, easy installation, and availability of three-phase variations of this product type
- Utility emerged as the largest end-use segment in 2020 owing to decreased costs of solar power & equipment, increased government subsidies, and demand for solar-generated electricity across utility-scale projects
- The residential end-use segment is expected to witness significant growth over the forecast period on account of increased demand for solar renewable energy for home appliances and other applications
- Asia Pacific accounted for the largest share in 2020 with China being the largest contributor to the regional market growth
- A growing number of solar installations in the developing nations of APAC will boost the regional market growth over the coming years
China is expected to be a dominant regional market for the solar sector and related equipment including solar inverters. The inverter companies in China occupy prominent shares in the domestic market, with the majority of the shipments heading towards the utility-scale sector of the country. Some of the key manufacturers involved in these shipments include Kstar New Energy, Huawei Technologies Co., Ltd., Sungrow, CHINT Group, and Sineng Electric Co., Ltd.
The value chain of solar inverters is considerably complex and comprises component manufacturers, inverter manufactures, distributors, sellers, and end-users. Different components of the solar value chain account for different revenue generation, such as the significant portion constitutes of panels followed by inverters and batteries. The value chain complexity includes little room for technical differentiation of solar devices as the efficiency of these devices is already relatively high.
Solar PV inverters are subjected to numerous safety certifications, manufacturing, and grid interconnection certifications. The regulatory compliance reflects in all equipment segments of the solar PV industry, especially the U.S. PV industry. The increased demand for solar equipment has put immense pressure on testing organizations, such as Underwriters Laboratories, to ensure inverter safety and keep pace with the technological changes.
The solar PV inverter market has witnessed exceptionally high growth, in terms of capacity installations, but the global market is anticipated to be substantially impacted by the anti-dumping tariffs. Several countries have implemented anti-dumping tariffs on imports of solar products, which are comparatively cheaper than the domestic market. Such duties have been levied on account of price deterioration that has hampered the domestic market for the solar equipment.
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The global market is highly competitive and consolidated due to the presence of a large number of companies. The dominant trend in the operations of these companies includes vertical integration, which defends against the market power and reduces competition. Technology sourcing, skilled manpower, and strong R&D are among the significant factors governing the competitiveness of the industry. Some of the prominent players in the PV inverter market include:
· SMA Solar Technology AG
· Delta Electronics, Inc.
· Siemens Energy
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global PV inverter market report on the basis of product, end-use, and region:
· Product Outlook (Revenue, USD Million, 2016 - 2027)
· End-use Outlook (Revenue, USD Million, 2016 - 2027)
· Commercial & Industrial
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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