ID: MRFR/E&P/1551-HCR | 188 Pages | Published By Priya Nagrale on March 2023
String Inverter Market share is projected to be worth USD 7,952.2 Million by 2030, registering a CAGR of 8.3% during the forecast period (2022 - 2030).
String Inverter Market is projected to reach USD 7,952.2 Million with CAGR of 8.3% during the forecast period 2022 - 2030. Easy installation & customization is expected to drive the global market.
A string inverter acts as an important device in the solar system. It converts DC power from solar panels to AC power in your residential applications. Apart from the conversion, solar inverters perform voltage tracking, grid connecting communication, and shutdown during emergency conditions. On-grid inverters produce a pure sine wave of AC electricity than off-grid string inverters; hence, increasing on-grid string inverters ensures home appliances' safety and efficiency. String inverters find their common uses in both residential and commercial applications. Also, they are increasingly used in small utility projects across the globe.
The substantial increase in large-scale PV projects in several nations pushes for the establishment of an affordable and sustainable power generation source. Such a source will encourage the demand for such systems mainly in the utility sector. Inverter designs equipped with Silicon Carbide (SiC) and Gallium Nitride (GaN) components increase power densities and reduce cooling requirements, thus reducing the overall system cost and weight, boosting the string inverter industry progression. However, the market still needs to focus on increasing government initiatives and investments in the electrification of rural and remote areas to move along with the anticipations to create global opportunities for the key players in the market.
There have been ongoing advancements in renewable sources of energy due to the high energy demand. A string inverter is a type of device that is linked with solar photovoltaic power generating equipment.String inverters are commonly used inverters in solar panels globally.
Solar Panels market are generally arranged in groupings that are connected through strings. Individual strings of the panel are associated with a single inverter. The equipment helps in converting electricity from DC to AC units thus, being an important part of the solar panel system.The market growth is expected to grow at an increasing trend owning to preferences of solar power sources on a global basis.
Solar Photovoltaic panels are used in commercial and residential constructions. However, there has been a halt in construction and reconstruction activities which has compacted the growth of the string inverter market. Also, the manufacturers of the copper wire that is the main component of string inverters are distributed globally. Thus, many of the regions have imposed national and international lockdowns. This has disrupted the supply chain thus impacting production, selling, and distribution.
Also, the demand for string inverters has decreased due to reduced purchasing power and investment in the sector. It is said that the impact from COVID-19 will impact the string inverter market growth on a short and long-term basis.
Drivers- The market for renewable energy sources has increased due to concerns about environmental damage. It is estimated that the renewable energy market with a CAGR of 6.1% by 2025. This has increased demands for easily installed and customized panels which will positively impact string inverter industry growth. Also, string inverters are extensively being used in residential, commercial, and industrial units. It is estimated that the global construction industry will be grown at 4.2% in the forecast of 2028.
The string inverter market encounters low costs of operations which eliminates monitoring issues within the system. Other drivers of the market will include reliability, affordability, and efficient features provided by the inverters. In addition to this, strict policies have been created for almost all industries for reducing their carbon footprint. This will further drive the demand for solar panels thus fuelling market growth.
Opportunities- There has been increasing integration ofrenewable sources in large-scale projects that will provide huge opportunities for the string inverter industry. Solar inverters reduce costs of electricity conversion while it provides services on a long-term basis. Key players operating in the power generation market have huge opportunities for adopting non- convectional energy to reduce carbon footprints. This will further fuel market share.
It can be said increasing demand for solar power in a global context will provide huge opportunities for string inverter manufacturers.
Restraints-The inverters are generally produced in large sizes which increases heat loss. This is one of the major limitations which will negatively impact string inverter market growth. In addition to this, string inverters are commonly used in solar panels globally.However, a reduction in microinverter cost might impact sales patterns for string inverters. It is also estimated that market restraints will be momentous which will require neutralization by the string inverter industry. In addition to this, technological limitations within the string inverters will also hamperstring inverter market growth.
Challenges- Technologies of string inverters have been extensively in use for decades. However, it is more of tried-and-true technologies which are not suitable for varied types of installations. Also, electricity generation is dependent on the least productive panels. Thus, if any panel is kept in shade or does not receive equal solar power, the total output will be much lower. Hence, it poses a great challenge for manufacturers to sell the products in high-energy demanded areas.
Cumulative Growth Analysis- It is estimated that string inverter market growth will be at 8.3% with a value of $3.8 billion by the year 2026. The targets for reducing greenhouse gas have been adopted for mitigating climate change. Also, there has been increasing demand for electricity that is coupled with GHG emission targets will improve the installations of solar photovoltaic panels
Value Chain Analysis- The demand for continuous and reliable power sources has increased the market demand for string inverters. The installation converts direct current into alternative currents which help in facilitating generated electricity into the electrical grid. In addition to this, globally the governments are taking initiatives for supplementing alternative energies. This will help in increasing the installations of solar panels.
Also, there have been low-cost alternative products. The string inverters coupled with power optimizers for improving output powers will further enable high performance. In addition to this, on the islands, energy storage systems are integrated within String Inverters. Thus, with the high penetration of renewable sources of energy, string inverter market growth will be on the rise.
The market segments for string inverters includes system type, phase, end-users, and power rating.
By System Type- It includes on and off grids. In the year 2015, the on-grid segment witnessed the highest market growth in the string inverter market. As the usage of On-grid systems is majorly in small and medium solar panels used in commercial and industrial sectors. In the utility sector, large solar panels are generally used. However, its scope in utility is lower than compared to industrial and commercial sectors.
By Phase- The market for string inverters is further categorized into Single- Phase and Three- Phase.
By End- Users- It is divided into commercial, utility, and industrial. During the forecast period, the growth rate in the utility sector will be highest. Also, due to improvements in renewable integration regulations has will accelerate string inverter market growth. Also, string promotions from manufacturers are witnessed on the installation of three-phase string inverters. This will further boost shipments for large-scale power units in the upcoming four years.
By Power Rating- It includes power ratings up to 10KW, 11KW- 40 KW, 41KW – 80KW, and more than 80 KW. In this view, the 41 KW to 80KW segments has the highest market owing to their size, lightweight. Also, the inverters in this power range offer higher flexibility thus catering to the demands of all power plants sizes. It also enhances protection and durability within a harsh outdoor environment.
On a regional basis, the string inverter market is further subdivided into America, Europe, Asia- Pacific, and the Middle East.
As per the regional growth, Asia Pacific Region is estimated shall experience the highest demand for string inverters. The major contributors of string inverter market growth will be China, India, and ASEAN amongst which China will hold approximately one-third of the total market share. North America and Europe will also contribute the highest in string inverter market growth.
Owning to stringent government regulations on controlling environmental damage. In this market, the major countries will be U.S., UK, Germany, France, Italy, and Spain. Latin America will be also a significant growth market due to promotion on the usage of Solar energy reduction of taxes along with attractive incentives.
The key players within string inverter market size are located globally
This report has been prepared with headings like market overview, pandemic analysis, market dynamics, value chain analysis, segment overview, competitive landscape, and recent development.
|Market Size||2030: USD 7,952.2 Million|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product ,phase, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||SolarMax, Huawei Technologies, Sungrow Power Supply, Fronius International, KOSTAL Solar Electric, Growatt New Energy Technology, Schneider, Ingeteam, Ginlong Technologies, Advanced Energy Industries, KACO New Energy.|
|Key Market Opportunities||Increasing consumption of solar energy across the world|
|Key Market Drivers||
is projected to be worth USD 7,952.2 Million, registering a CAGR of 8.3% from 2022-2030.
The key market players will be Solar Max, Sungrow Power Supply (California), Fronius International (Austria), Kostal Solar Electric (Germany), Huawei Technologies (Hong Kong, China), Schnieder (France), Ginlong Technologies (China), Ingeteam (U.S.A), KACO New Energy (Germany), Advanced Energy Technologies (U.S.A)
All the parts of the solar panel need to be equally heated for absorbing solar energy. If a partial panel receives heat, the generation of electricity will be lower. Also, they usually are manufactured in large sizes which is also a restraint growth factor.
The Asia Pacific will encounter the highest growth region due to the changes in the building codes and increasing demand for electricity.
The driving factors will high demand for solar power energy coupled with government initiatives like subsidies, incentives for using solar power.