PV Inverter Market Growth & Trends
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.
PV Inverter Market Report Highlights
- Central PV inverter segment occupied the largest market share in 2019 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 2019 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 2019 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 2019 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