Increasing Demand For Solar Energy And Renewable Power Generation
According to the International Energy Agency (IEA), solar PV generation increased from 250.2 TWh in the year 2015 to 570.8 TWh in the year 2018.
The solar PV generation contributed to around 31% increase in production in the year 2018 as compared to the year 2017. The Sustainable Development Scenarios (SDS) of the IEA have set a target of solar PV electricity generation to around 3268 TWh by the year 2030. The growing need to meet the electricity contribution by solar energy and renewable power generation sources, is anticipated to raise the demand for greater deployment of solar panels across the globe. The increased deployment of solar panels will require the deployment of solar PV inverters, which is anticipated to drive the growth of the global PV inverter market.
The global PV inverter market is further classified on the basis of region as follows:
The global PV inverter market is thriving on the back of rapid adoption of solar cells, supported by the increasing demand for renewable energy generation sources around the globe. Globally, the solar cell market is anticipated to achieve an installed capacity of 1080GW with a CAGR of 25.0% over the forecast period 2015-2021. Additionally, increasing research and development activities so as to enhance the operational performance of the PV inverters, coupled with focus towards developing cost effective inverters, and characteristics having long operational life as well as being able to perform under fluctuating power conditions, all of these factors are anticipated to promote significantly towards the growth of the global PV inverter market.
The market is anticipated to record a robust CAGR throughout the forecast period, i.e. 2019-2027. The global PV inverter market is segmented by power class into single phase and three phase, out of which, single phase PV inverter segment is anticipated to hold the largest market share on the back of low cost of these inverter type when compared to three phase PV inverters, coupled with greater deployment of single phase grid connections across residential customers. Residential customers do not have much of a load capacity, which is why, single phase electricity distribution network is the most common form of electricity distribution type across the globe. CLICK TO DOWNLOAD SAMPLE REPORT
FIMER SpA and ABB have announced that they have signed an agreement for the acquisition by FIMER of the activities related to solar inverters of ABB.
SMA Solar Technology AG have announced that it supplied Vietnam with its high performance system solutions for PV power plants. The company also announced that till date it has supplied over 500MW inverter power to the Vietnamese photovoltaic projects.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.