Falling PV inverter prices lead to negative CAGR in 2017-2022

Because of falling prices, the global solar inverters market is to shrink to USD 3.7 billion (EUR 3bn) in 2022 from USD 6.3 billion in 2017, according to GlobalData.

The data and analytics company calculates that the market will experience a negative compound annual growth rate (CAGR) of 10.15% in terms of market value between 2017 and 2022. At the same time, the total installed capacity in 2018-2022 is seen to go near 370.6 GW, up from 316.2 GW between 2012 and 2017.

“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,” explained Subha Krishnan, Power Analyst at GlobalData.

The Asia-Pacific (APAC) region is expected to lose the top spot to the Americas over the period, with APAC’s share of the market plunging to 38% from 59%, while that of the Americas is seen rising to 41% from 27%. EMEA’s share will grow from 14% to 21% between 2017 and 2022, GlobalData said.

The combined market value of solar photovoltaic (PV) inverters will be around USD 22.2 billion in 2018-2022, with the annual average being USD 4.4 billion.

(USD 1 = EUR 0.82)

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