The string inverter market is expected to grow at a CAGR of more than 15% during the forecast period of 2020-2025. Factors such as increasing deployment of solar projects, on account of the supportive government initiatives, and the declining price of solar photovoltaic components are expected to drive the market. Governments across the world have incorporated various policies to implement renewable energy as a source of alternative energy. However, the lack of financing options to install solar photovoltaic (PV) systems in the residential sector in underdeveloped and developing economies is expected to hinder the string inverter market growth during the forecasting period.
- The utility segment is likely to witness significant growth during the forecast period, owing to the increase in solar power projects in various countries across the globe to develop a sustainable and affordable energy source.
- With the targets to reduce greenhouse gas (GHG) emissions in the coming years, countries across the globe are adopting various targets to mitigate climate change. For instance, California is one of the prominent states in the United States, that has targeted to reduce greenhouse gas emissions to 40% by 2030. Moreover, it is estimated that by 2030, the global demand for electricity would be nearly 36 thousand terra watts hours. The increasing demands for electricity clubbed with the targets for GHG emissions are expected to promulgate the increase in renewable energy facilities like solar PV, which is likely to create an opportunity for the string inverter companies to expand its business in the near future.
- Asia-Pacific is expected to witness significant growth during the forecast period, with the majority of the demand coming from China, Japan, and India.
Key Market Trends
Utility Segment Likely to Witness Significant Growth
- Utility-Scale solar photovoltaic installations are massive projects that cover multiple acres of land that are used to generate electricity, solely for distribution purpose. The string inverters are used to convert the generated direct current (DC) by the solar panels into alternating current (AC).
- The utility-scale solar facilities generate electricity through several technologies that include concentrating photovoltaics (CPT), concentrating solar power (CSP), and photovoltaics (PV). Among all, photovoltaic is the most widely implemented technology, on which string inverters are getting used.
- In2019, global solar PV installed capacity was nearly 580.2 gigawatts (GW) and is expected to increase during the forecast period on account various initiatives taken by the countries to have a sustainable and cheaper form of energy source.
- Utility segment string inverters are primarily three-phase, have a power rating of more than 80kW, and have unique properties to withstand extreme climatic conditions.
- For instance, the solar park project in Tatvan town of Turkey is one of the recent utility solar projects, that installed nearly 40 string inverters. The installed capacity of the park is around 5 megawatts and was commissioned in 2019.
- With increasing demand, investment for solar utility projects are growing over the years. Countries like China and the United States are among the top countries that are concentrating on having a large number of utility projects in the upcoming years. Such steps in the utility sector are likely to have a large installation of string inverter and thus would help to dominate the market during the forecast period.
Asia-Pacific to Witness Significant Growth
- Asia-Pacific is dominating the region with the highest installed capacity of solar PV and string inverters. In 2019, the region has nearly 330 gigawatts (GW) of solar PV installed capacity, with China, Japan, and India as the major countries.
- China is the major country in the region with approximately 205 GW of solar PV installations in 2019. It is expected that the country is planning to double its installation capacity by 2025, which is likely to expand the string inverter market during the forecast period.
- Tengger Desert Solar Park and Longyangxia Dam Solar Park of China, Kurnool Ultra Mega Solar Park, and Kamuthi Solar Power Station of India are the few key projects in the region that have installed string inverters.
- As per the National Energy Administration (NEA), China has allocated three billion yuan of subsidiaries for solar projects during the year 2019. Out of the total, nearly 750 million yuan is expected to allocate to the rooftop solar power projects. Subsidiaries allocated is expected to install more solar PV facilities, which is likely to boost the string inverter installations during the upcoming years.
The string inverter market is moderately fragmented. Some of the key players in the market include KACO New Energy GmbH, Delta Energy Systems GmbH, ABB Ltd, Sungrow Power Supply Co Ltd, Huawei Technologies Co. Ltd., Chint Power Systems Co. Ltd., Ningbo Ginlong Technologies Co Ltd, Fronius International GmbH, SMA Solar Technology AG, and Eaton Corporation Plc.
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