As energy conservation reforms are legislated in more and more countries around the world and consumers look increasingly favorably on integrating sustainable energy networks, a Global Market Insights research report on photovoltaic inverter (PV) market trends 2018-2024 indicates the worldwide market will register more than 8% CAGR up to 2024. The report covers an extensive analysis of the power class, nominal output power, nominal output voltage, and connectivity landscapes and presents a detailed summary of the stand-alone, product, application, regional, and competitive spectrums.
The growing emphasis on the adoption of solar power generation solutions primarily to curb global CO2 emissions will boost PV inverter market trends. According to the International Energy Agency report, the total installed solar PV capacity worldwide is expected to surpass 1,600 Gigawatts (GW) by 2030. PV inverters are a vital component of any solar power generation systems. The product is well designed to offer longer service lifetimes and is efficient to fulfill the user’s energy demands.
Increasing deployment of rooftop solar PV systems across both urban and rural areas is expected to boost the size of the PV inverters’ industry. The product is an affordable and cost-efficient alternative to expensive generators. It also provides a high-quality, stable output response for a wide range of customer appliances. Growing social awareness regarding the benefits of solar power systems and the introduction of government subsidies to promote sales is anticipated to offer impetus to industry growth.
Increasing technological advancements in the solar power generation sector are expected to further propel the PV inverter market size. Companies are launching hybrid solar inverters lately that come with features like compact design, easy scalability, quick launch via an app, and easy maintenance.
Additionally, rising investments towards the deployment of large scale solar farms worldwide would open new growth opportunities and drive PV inverter market growth over the upcoming years. Many firms have commenced construction on high-capacity solar photovoltaic (PV) plants worldwide and have plans to make them operational by 2020.
The residential and commercial application segments are estimated to accelerate growth in the PV inverter market owing to surging demand for rooftop solar PV systems. The product has gained immense traction across developed and developing economies on account of factors like the increasing cost of electricity, rising urbanization and industrialization, growing population, increased sales of consumer electronics and more.
By switching to solar PV solutions, customers can reduce electricity costs and gain additional benefits like longer lifetime assurance, extended warranty, and safety certifications.
Government-backed price concessions on solar PV parts and components have also led to increased adoption of clean, renewable electricity sources, which has thereby augmented product demand. Additionally, investment in solar power generation sector is anticipated to foster PV inverter market expansion.
According to the Solar Energy Industries Association, in 2018, solar-generated $17 billion in investments for the U.S. economy. Moreover, due to the federal solar Investment Tax Credit, homeowners have been able to claim 30% of the cost of installing a new residential solar system since 2016. These factors will majorly augment PV inverter market share from residential applications.
Asia Pacific market is projected to garner considerable gains on account of rising power tariff across the region along with increasing federal initiatives focused on promoting the use of renewable energy solutions to mitigate carbon emissions. Factors like low-cost labor and the presence of market players and resources are allowing the region’s solar industry to employ a large number of employees and develop solar project at an incredible pace.
The rising expansion of the renewable sector across China will also augment the APAC industry outlook. Driven by the increasing number of energy conservation reforms in the region, the size of the China PV inverter market is anticipated to register an annual shipment of more than 25 GW by 2024.
The Energy Transition Commission of India predicts renewables will become the preferred source of energy by 2030 with tariffs for solar power ranging between Rs 1.9-2.3/kWh and storage cost declining by around 70%.
Investments toward the development of new solar power plants have also supplemented the regional PV inverter market size. In 2018, the Karnataka government inaugurated the world’s largest solar park, dubbed Shakti Sthala, with an estimated capacity of 2,000 MW fueled by an investment of Rs16,500 crore.
Additionally, in 2019, Andhra Pradesh developed around 3.3 GW of grid-connected solar capacity which includes the fully operational 1 GW Kurnool Solar Park. Credible reports suggest that solar installation in India is further expected to increase to 360% by 2020.
Implementation of new strategic government policies to increase the capacity of solar power generation will compliment the regional market outlook. According to IBEF, the government of India has released its roadmap to reach renewable energy capacity of 175 GW by 2022, which includes 100 GW of solar power.
Furthermore, the Union Government of India is preparing a “rent a roof” policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022. That means new growth opportunities for regional players, boosting the Asia Pacific market size.
The Europe PV inverter industry is subject to lucrative growth owing to stringent federal norms targeting reduction in carbon footprint and increasing adoption of renewable energy sources. Development of new solar power projects and implementation of supportive policies to subsidize the cost of renewable power generation system components will complement market size. The UK’s post-subsidy large-scale solar pipeline has grown to over 5GW in the first half of 2019. Meanwhile, over 60 new solar farms have been identified, accounting for around 1.8GW of additional capacity.
The global PV inverter market should see prolonged growth over the coming years and is expected to generate new growth revenues owing to rapid expansion in the renewable energy generation sector and investments from nations worldwide. In terms of the power class landscape, the PV inverter market is divided into single-phase, three-phase, and high power. The power class segment entails a detailed collection of industry scope, prioritized market definitions, and leading driving factors.
Source: Global Market Insights, Inc.