Global Solar Inverters Market Overview
The key driver impacting the solar inverters market is the rising demand for renewable energy for power generation to meet ever-increasing electricity demand globally is likely to boost market demand in the coming years. for instance, as per the Center for Climate and Energy Solutions, around 18%of the energy consumed globally for power, heating, and transportation was from renewable sources in 2017. It is probable to rise to 45 percent by 2040. renewables accounted for 26.2 percent of global electricity generation in 2018. as per International Energy Agency(IEA), the share of renewable energy in global electricity generation reached nearly 28% in Q1 2020 from 26% in Q1 2019. Most of the increase will be supposed to come from solar, wind, and hydropower. the IEA estimation says that the Power generation from solar PV is increased by 22% in 2019, to 720 TWh, making the solar PV share in global electricity generation almost 3%. In the Sustainable Development Scenario (SDS), the electricity generation from solar PV may increase to 15% annually, from 720 TWh in 2019 to approximately 3 300 TWh in 2030. Moreover, the reduction in renewable power generation costs and the high price of fossil fuels worldwide is surging countries to invest more in solar power projects, thus positively impacting the market growth.
According to Value Market Research, the global solar inverters market size was valued at around USD 8500 million in 2020 and is estimated to grow at a CAGR of about 5% during the forecast period of 2021 to 2027.
The considerable investments in renewable energy projects are estimated to augment solar inverter's demand in the forecast period. for instance, according to the International Institute for Sustainable Development (IISD), In 2018, 29 countries invested over USD 1 billion in renewable capacity, which increased from 25 in 2017 and 21 in 2016. Worldwide investment in new renewable energy capacity reached USD 2.6 trillion by the end of 2019. Solar power alone is projected to be responsible for half of the total investments. China is the leading investor in renewable energy capacity with an investment of USD 758 billion between 2010 and the first half of 2019, the US is second with USD 356 billion, and Japan is third with USD 202 billion. however, high maintenance, installation, and operation cost may hamper the global solar inverters market in the long run. also, the constant need for sunlight may be a considerable challenge that negatively impacts market growth. The current industry trends, such as the growing government focus towards continued infrastructural development, and growing concerns towards greenhouse gas effect and environmental issues, are expected to provide several market opportunities for the market players.
The solar inverters market is vast, with many local and global players. the key leaders follow different strategies to improve their market position, such as contracts, mergers, contracts, extending product portfolio, acquisitions, expansions, and product innovations to improve their market share globally. The major players included in the report are ABB, SunPower, Power Electronics S.L., SMA Solar Technology AG, Delta Electronics, Inc., Emerson Electric Co., Eaton, OMRON Corp., Hitachi Hi-Rel Power Electronics Pvt. Ltd., and Siemens Energy.
In this research report, the solar inverters market is segmented by product, end-use, and region.
Analysis by Product:
By product, the report is categorized into central, string, micro, and others. The Central PV inverter dominates the product segment with over 40% share in 2020. It is due to the widespread adoption in large industrial-scale applications. Moreover, the numerous benefits associated with central PV inverters, such as high reliability with timely maintenance, centralized approach so easy to manage, and others, contribute to the high central solar inverters market demand in the forecast period.
Analysis by End Use:
By end-use, the report is categorized into residential, commercial & industrial, and utilities. The utility segment dominates the end-user segment with over 40% share in 2020. It is due to the augmented demand for solar renewable energy, reducing costs of solar power & equipment, and high subsidies by the government. Moreover, the several key players globally offer industry-leading utility-scale solutions to consumers for attaining higher efficiency and decreased balance-of-system costs with their pre-integrated power stations are driving the single-stage solar inverters market demand in the forecast period.
Analysis by Region:
In the regional outlook of the global solar inverters market, the Asia Pacific region dominates with a 42% market share during the forecast period. It is due to the rising investments in solar power projects and favorable government initiatives such as energy-saving certificates and high incentives by the governments in India, China, Thailand, and Malaysia. The enormous growth of solar capacity in Asia's developing nations is also responsible for regional market growth. For instance, As per the Climate Brief Organization report, China is leading in the development of solar energy capacity globally. In 2017, around 70% of the solar capacity build by Chinese firms was domestic, with Taiwan (7%) and Malaysia (8%) are the next largest markets. Moreover, the growing demand for solar energy as an alternative to conventional energy sources to reduce carbon emission by meeting the region's rising electricity needs contributes to the development of the solar inverters market across Asia Pacific.
Market Segmentation covered in the Report:
By Product
- Central
- String
- Micro
- Others
By End-Use
- Residential
- Commercial & Industrial
- Utilities
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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