String Inverter Market to grow at CAGR of 8.29% from 2016 to 2021: MarketsandMarkets

According to a new report from MarketsandMarkets the global string inverter market is expects to grow from an estimated USD 2.61 Billion in 2016 to USD 3.89 Billion by 2021, registering a CAGR of 8.29% from 2016 to 2021. The research firm notes that the global market is witnessing growth due to decrease balance of system cost, remove systems monitoring capabilities, and easy installation & customization.

The report segments the string inverter market based on end-users into residential, commercial & industrial, and utilities. Utilities segment is the largest end-user of string inverter owing to growing number of utilities in the solar sector, serving both, the distributed solar market as well as building and operating large-scale PV power plants says the report.

MarketsandMarkets forecasts the on-grid segment to dominate the string inverter market, by system type, during the forecast period.  The market has also been segmented based on power rating into four segments: up to 10 kW, 11 kW – 40 kW, 41 kW – 80 kW, and above 80 kW. The 41 kW-80 kW segment is the largest market; due to their compact size and light weight, these inverters offer more design flexibility for all sizes of PV plants and provide higher level of protection and enhances durability in a harsh outdoor environment.

The utilities segment is expected to hold the largest share the String Inverter Market during the forecast period. Utility-scale large projects are improving given regulations for renewable integration, while accelerating the growth of the String Inverter Market for the utility segment. On islands, string inverter in utility-based solar systems, integrated with energy storage systems, is expected to grab areas with high level of penetration of renewable energy. Inverter manufacturers have been strongly promoting the installation of three-phase string inverters in large power plants, due to which the global shipments are projected to double in the next 4 years.

In this report string inverter market has been analyzed with respect to four regions, namely, the Americas, Europe, Asia-Pacific, and the Middle East & Africa. Asia-Pacific is expected to dominate the global string inverter market till 2021. Government targets, policy support (tax incentives and RPOs), incentives such as feed-in tariffs, and tenders and competitive bidding in the region will drive the Asia-Pacific sting inverter market from 2016 to 2021. The Americas, on the other hand, is expected to be the fastest growing market among other regions, during the forecast period.

Marketsandmarket in its new report notes that higher heat loss due to the large size and no panel level monitoring will slow down the demand for string inverters during the forecast period. However, government incentives schemes offer huge opportunities.