PV inverter market size is projected to surpass USD 5 billion by 2023 and is expected to grow at a CAGR of over 14.86% from 2016 to 2023. In terms of installation, the industry is likely to exhibit growth at a CAGR of over 21.53% over the forecast period. The spur in the industry can be subjected to increasing awareness regarding depletion of conventional energy sources. Proliferating usage of renewable resources is projected to drive the industry growth from 2016 to 2023.
Photovoltaic (PV) inverters, also known as solar inverters, convert inconsistent direct current (DC) to alternating current (AC) frequency. These systems use MPPT (maximum power point tracking) technique to extract optimum power form solar panels. The frequency furnished by these systems can be supplied directly into the commercial network and can be used by local electrical network and off grid. Furthermore, it enables in direct use of commercial appliances. Flourishing technological innovations are likely to positively impact PV inverter market growth over coming years.
These systems are expected to play vital role for project regulators, investors as well as for developers. In addition, photovoltaic power supplied to the utility grid is expected to gain visibility as global solar energy demand is increasing. In addition, rising need to diminish carbon emission is expected to further propel the industry demand for solar inverter systems.
PV inverter systems market is anticipated to account for more than 10 to 15% of the overall equipment cost. High cost involved in installation of these systems is expected to hamper the industry growth over the forecast period. Unpredictable seasonal changes might negatively impact the industry growth.
Rapidly declining PV inverter price should improve industry penetration. Solid state inverters are the considered to be the compatible technology for implementing into the grid. Industry growth factors such as power purchase agreements and solar PV lease is anticipated to provide potential growth avenues from 2016 to 2023. In addition, solar carve-outs, reduced module costs, feed-in tariffs and renewable energy targets might are likely to surge PV inverter market demand over the forecast period.
Flourishing innovations in inverter technology accompanied by highly developed system optimization for residential applications up to utility scale photovoltaic projects is likely to boost the industry demand over the several forthcoming years. Criteria for selecting PV inverter include array size selection along with AC grid inter-tie.
PV inverters offer numerous design modifications that encapsulate battery stand alone inverters, grid-tie inverters as well as battery backup inverters. Furthermore, designs of these inverters are expected to vary with respect to application areas. Integration of highly developed features such as optimization, solar charge controller along with remote monitoring are projected to fuel the demand over the several upcoming years. Special features such as maximum power point tracking coupled with anti-islanding protection might positively impact the industry demand from 2016 to 2023.
Solar PV inverter market can be segregated on the basis of size and application area such as residential, utility scale systems and commercial. Usage of number of small inverters is likely to offer more efficiency when compared to usage of a single large inverter. It offers better reliability and also aids in reducing direct current (DC) wiring. Furthermore, AC modules with integrated micro-inverters are anticipated to eliminate DC wiring thereby simplifying installation process for residential application.
Asia Pacific solar PV inverter market is anticipated to witness substantial growth. The surge can be attributed the flourishing energy conservation initiatives in the region over the forecast period. Europe is expected to hold substantial market share due to proliferating number inverter installation in residential as well as commercial sectors.
Major industry participants accumulating significant solar PV inverter market share include SMA Solar Technology, Siemens AG, KACO New Energy Inc., ABB, Power-One, Mitsubishi Electric, Tigo Energy and Enphase Energy, Advanced Energy Industries, Danfoss Solar Inverter, Siemens Emerson Electric, Sungrow Power Supply, Growatt New Energy Technology, Fronius International, REFUsol, Huawei Technologies, Omron, Tabuchi Electric, SMA Solar Technology, KACO New Energy, Schneider Electric, Elettronica Santerno, Bonfiglioli Riduttori, Jiangsu Zeversolar New Energy, Ingeteam Corporacion, Fronius International and Danfoss Solar Invertersn among others.
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