NEW
YORK, July 10, 2024 /PRNewswire/ -- The global
solar central inverters market is estimated to grow by USD 3.67 billion from 2024-2028, at a CAGR
of 14.99%, driven by rising investment in renewables and growing
demand for clean energy technologies. However, challenges posed by
alternative energy sources remain. Key market players include ABB
Ltd., Delta Electronics Inc., Eaton Corp. Plc, Fimer SpA, Hitachi
Ltd., Huawei Technologies Co. Ltd., Infineon Technologies AG,
Ingeteam Corp. S.A., OCI Co. Ltd., Shenzhen Growatt New Energy
Technology Co. Ltd., Siemens AG, and others, as reported by
Technavio.
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report
Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Utility
and Non-utility) and Geography (APAC, Europe, North America, South
America, and Middle East and Africa)
|
Region
Covered
|
APAC, Europe, North
America, South America, and Middle East and Africa
|
Key companies
profiled
|
ABB Ltd., Delta
Electronics Inc., Eaton Corp. Plc, Fimer SpA, Hitachi Ltd., Huawei
Technologies Co. Ltd., Infineon Technologies AG, Ingeteam Corp.
S.A., OCI Co. Ltd., Shenzen Growatt New Energy Technology Co. Ltd.,
Siemens AG, Sineng Electric Co. Ltd., SMA Solar Technology AG,
SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., Toshiba
Corp., Yaskawa Solectria Solar, and Zhejiang CHINT Electrics Co.
Ltd.
|
Key Market Trends Fueling Growth
The global electricity demand has experienced significant
growth, increasing by 8% in 2021 to over 8300 TWh compared to 2020.
Emerging economies, particularly in Asia, are driving this demand due to their
rapid economic growth and increasing population. Traditional energy
sources, such as coal, natural gas, and oil, have dominated
electricity generation, accounting for 61% of the total mix in
2018. However, the reliance on these sources has led to a rise in
carbon emissions, with coal accounting for the largest share at
38%. Moreover, a significant population in Asian and African
countries relies on fuels like kerosene and coal for cooking,
resulting in environmental pollution and health issues. The
International Energy Agency (IEA) reports that 8.70 million people
in South Africa and 703.20 million
people in India lack access to
clean cooking facilities. The high cost of conventional sources of
electricity and lighting, such as diesel and kerosene, has
increased the demand for off-grid solar appliances. Solar power, a
clean energy technology, is gaining popularity due to its zero
carbon emissions and potential to provide an alternative to
high-cost conventional sources. The rising price of oil and gas is
also driving the cost of derived products like kerosene, leading to
increased government spending and household expenses. As a result,
the demand for solar PV systems is expected to grow, providing
opportunities for the solar central inverter market during the
forecast period.
The Solar Central Inverters market is witnessing significant
growth, particularly in commercial buildings and renewable energy
plants. Solar power transmission for reliable and continuous power
supply is a top trend. String Inverters and Micro Inverters are
popular choices for Solar Photovoltaic Systems. Utility-scale
projects require Grid Connection, Maximum Power Point Tracking, and
Low-Frequency Transformers. Input Voltage levels and BOS Components
are key considerations. Monolithic and Modular Inverters offer
flexibility. Multi-MPPT Trackers and Master-Slave Control Approach
ensure optimal performance. Electric Grid Standards, Energy Storage
Systems, and Government Efforts are driving decarbonization and
electricity demand. Solar Energy is a clean alternative to
polluting fossil fuels in the face of industrialization and
increasing renewable energy capacity. Solar Potential, Grid Parity,
Solar Irradiance, and Grid Frequency are crucial factors. Direct
Current and Alternating Current systems operate at Utility
Frequency. Photovoltaic Solar Panels convert sunlight into
electricity, while Microgrids ensure local power supply.
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Market Challenges
- The global solar central inverters market is expected to face
challenges due to the dominance of non-renewable sources of
electricity generation, particularly fossil fuels and hydropower.
According to the International Energy Agency (IEA), approximately
72% of the world's electricity was generated from non-renewable
sources in 2021, with coal and gas accounting for significant
increases of 9.3% and 10.4% respectively. Several countries
continue to rely on fossil fuels due to their abundant availability
and lower cost of generation compared to renewable sources. For
instance, Indonesia, which aims to
achieve 23% of its renewable energy target by 2025, will still rely
heavily on coal for electricity generation in the near term.
Moreover, the decline in the cost of natural gas in recent years
has encouraged its use in power generation, posing a challenge to
solar power. In the US, shale gas production has reached record
highs, while Middle Eastern countries with substantial crude oil
and natural gas reserves have not reduced production output,
leading to a continuous decline in oil and gas prices. These
factors make non-renewable sources of energy more economically
viable, hindering the demand for solar power generation and, in
turn, the growth of the global solar central inverters market
during the forecast period.
- The Solar Central Inverters Market is experiencing significant
growth due to increasing demand for solar power in various sectors.
Large buildings and residential areas are adopting solar power for
power backup and environmental concerns. Infrastructural
development, home loans, and home renovation projects are also
driving the market. Business owners are investing in solar power
for economic-friendly energy solutions. Hot prone regions and rural
electrification projects are key areas of focus. Government support
and expansion activities are boosting the market. New product
innovations, such as off-grid inverters and large-sized solar
inverters with panel level monitoring, are addressing the needs of
different applications. The PV inverter market caters to both
on-grid and off-grid solar power systems. On-grid solar inverters
convert DC power from solar panels into AC power for use by home
appliances and utilities applications. In the utilities segment,
solar parks and power plants are major consumers of solar
inverters. Single phase and three phase inverters cater to
residential and utilities users respectively. Challenges such as
heat loss and power transmission in the transmission sector are
being addressed through technological advancements. The market is
expected to continue growing due to increasing power supply needs
and the shift towards renewable energy.
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challenges - Download a Sample Report
Segment Overview
This solar central inverters market report extensively covers
market segmentation by
- Application
- 1.1 Utility
- 1.2 Non-utility
- Geography
- 2.1 APAC
- 2.2 Europe
- 2.3 North America
- 2.4 South America
- 2.5 Middle East and
Africa
1.1 Utility- The utility segment dominated the
global solar central inverters market in 2023, accounting for the
largest share due to the increasing number of utility-scale solar
projects. Utility-scale solar plants generate solar power and feed
it into the main grid, making central inverters essential
components. These projects, with a capacity of 1 MW or higher, are
driven by government policies and corporate targets to expand power
generation capacity, meet rising energy demand, and reduce grid
dependence. According to the US Energy Information Administration
(EIA), as of February 2023, there are
pending licenses for over 48 GW of new pumped storage hydroelectric
(PSH) capacity in the US, which could take years to materialize.
Central inverters offer lower operations and maintenance (O&M)
costs and capital expenditure compared to other inverters, making
them the preferred choice for utility-scale projects. The utility
segment's growth is fueled by the shift towards renewable energy
sources, declining solar component costs, and favorable solar
policies and incentives. Solar PV technology's affordability and
investor and public utility interest further boost the market's
growth during the forecast period.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
Solar inverters are essential components of Solar Photovoltaic
Systems that convert DC power generated by solar panels into AC
power for use in industrial, commercial, and residential
applications. Central inverters, also known as utility-scale
inverters or string inverters, are used in large-scale solar power
plants, converting DC power from multiple solar panels into AC
power for grid connection. On-grid solar inverters, such as central
inverters, work in synchronization with the utility grid and are
available as string inverters or micro inverters. Off-grid solar
inverters, on the other hand, convert DC power into AC power for
use in standalone systems, powering home appliances and utilities
applications without grid connection. Central inverters have
maximum power point tracking capabilities, ensuring optimal energy
conversion and minimizing heat loss. They come in various input
voltage ranges and can be monolithic or use low-frequency
transformers. BOS components, including central inverters, are
crucial for the successful implementation of solar power projects.
PV inverters, including central inverters, are an integral part of
the solar value chain, converting DC power from solar panels into
usable AC power for various applications.
Market Research Overview
The Solar Inverter market is a significant segment of the
renewable energy sector, focusing on converting the DC electricity
generated by solar panels into AC electricity for industrial,
commercial, and residential use. Central inverters, including
string inverters and micro inverters, are crucial components of
this market. Central inverters process electricity from multiple
solar panels, making them suitable for large buildings and solar
power plants. On-grid and off-grid solar inverters cater to various
applications. On-grid inverters connect solar systems to the
utility grid, while off-grid inverters provide power backup and are
essential for rural electrification and infrastructural development
projects. The PV inverter market is expanding due to growing
environmental concerns, tax benefits, home loans, and home
renovation projects. Solar inverters are essential for power
generation in hot prone regions, where electricity demand is high,
and power supply is unreliable. They are also crucial for powering
home appliances and utilities applications in residential areas.
Large-sized solar inverters offer panel level monitoring, reducing
heat loss and ensuring reliable power supply. The market is
witnessing expansion activities, new product innovations, and
government support. Utility-scale solar parks and power plants,
solar structures, and construction projects are significant
consumers of solar inverters. The market is expected to grow
further due to the increasing demand for economic-friendly and
continuous power supply, especially in the utilities segment.
Single-phase and three-phase central inverters cater to residential
and commercial users, respectively. String Inverters and Micro
Inverters are popular choices for utility-scale solar photovoltaic
systems. The market is also witnessing the emergence of monolithic
and modular inverters, multi-MPPT trackers, and master-slave
control approaches to improve efficiency and reduce failure rates.
Low-frequency transformers and BOS components are integral to the
solar inverter market. The market is subject to electric grid
standards and energy storage systems, ensuring maximum power point
tracking and grid connection. The market's growth is driven by the
need for reliable power supply, continuous power supply, and the
transition towards renewable energy sources to reduce carbon
emissions and greenhouse gas emissions.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Geography
-
- APAC
- Europe
- North America
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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