Americas to depose Asia as top solar PV inverter market

The value of the global solar photovoltaic inverters market will almost halve over the next five years as the balance of power in the sector shifts from Asia to the Americas.

That’s the conclusion of a new report from analysts at consultancy GlobalData.

The study forecasts that the market will decline from $6.3bn in 2017 to $3.7bn in 2022, with Asia-Pacific relinquishing its leading regional share to the Americas over the same period.

GlobalData states that solar PV inverters will hold an aggregate global market value of $22.2bn between 2018 and 2022, with an average annual value of $4.4bn during the same period.

In terms of solar PV additions, the Asia-Pacific eclipsed all other markets for the fourth consecutive year, accounting for about two-thirds of global additions in 2017.

Consequently, the APAC region led the solar inverters market, with a value of $3.75bn. It was followed by the Americas and EMEA (Europe, Middle East, and Africa) registering $1.71bn and $0.89bn respectively.

However, APAC will see its share of the market fall from 59 per cent last year to 38 per cent in 2022, while the solar PV inverter market share for the Americas will expand from 27 per cent to 41 per cent over the same period. EMEA’s share will increase from 14 per cent to 21 per cent between 2017 and 2022.

GlobalData power analyst Subha Krishnan said: “In terms of market value, China, the US, and Japan together held over 65 per cent and led the global solar PV inverter market in the year 2017. The market developments in the top countries are largely due to economies of scale, emerging inverter technologies, and policy-based government and institutional industry.”

The study predicts that between 2017 and 2022, the global solar PV inverters market will witness a negative compound annual growth rate of 10.15 per cent, in terms of market value. The estimated fall in the market value is mainly attributed to the fall in inverter prices.

Krishnan explained: “The solar inverter and module prices have declined for a variety of reasons, including but not limited to, persistent price pressure on equipment suppliers, the anti-dumping tariffs implemented by the US on Chinese modules, the euro and yen depreciation, and the downward adjustment of the minimum import prices. In the solar PV industry, buyers are price sensitive, creating persistent price pressure on equipment suppliers.”

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