Solar buyers continue to gravitate to the top manufacturers in terms of market share, according to new global rankings released by Wood Mackenzie. Global top 10 solar photovoltaic (PV) inverter vendors shored up 82% of market share in 2021, increasing by 2 percentage points compared to 2020.
The global list looks a bit different than the U.S. leaderboard. For the seventh consecutive year, Huawei and Sungrow continue to lead the pack taking the first and second positions, respectively. Huawei’s market share stayed at a stable 23% in 2021 while Sungrow ranked a close second at about 21% growing from approximately 19% in 2020. Second runner-up Growatt accounted for 7% of market share, replacing SMA which slid down to sixth position. Together, the top three vendors control over half of the world’s solar PV inverter market.
GoodWe jumped four positions to rank at number five in 2021 owing to large shipments to the Asia Pacific region particularly China and South Korea. The company also scored the largest growth in shipments of nearly five-fold between pre-covid 2019 and 2021, and it has the potential to really grow in the U.S. on its own and as the supplier of GE’s solar inverter.
Entering the top 10 list for the first time is Israeli-backed SolarEdge which secured the ninth spot in 2021, adding about 1,000 MWac, since 2020 with focus on the European market.
Global inverter market insight
Global PV inverter shipments grew 22% or 40,250 MWac to 225,386 MWac in 2021 compared to 2020. This is mainly driven by strong growth in markets in Europe, India, and Latin America where government support increased to meet decarbonization goals.
Wood Mackenzie research analyst Annie Rabi Bernard said: “Despite soaring raw material prices, supply chain challenges and delayed constructions, global PV inverter shipments continue to rise. Leading vendors have become bigger, and the top players continue to consolidate market share in 2021.”
The US, however, saw a minor reduction of 360 MWac in inverter shipment in 2021 from 2020, and accounted for 14% of the global market share. Supply chain constraints, record-level raw material costs and rising costs for developers contributed to the slight year-on-year dip. Spanish-headquartered Power Electronics continues to hold the biggest market share in the country. The company is ranked seventh on the leader board.
Areas for growth?
According to a PV Inverter Market report by Future Market Insights, the global PV inverter market is poised to grow at a moderate CAGR of over 5.1% during the forecast period of 2022-2032, reaching a value of about US$ 33.1 Bn in 2032 from the US$ 19.2 Bn in 2021. Some takeaways by segment:
A key growth area is hybrid inverters, which connect both PV panels and battery storage systems. This essential function performed by hybrid solar inverters or PV Inverters made it an indispensable item for the success of renewable energy development. Due to cheap labor and higher manufacturing facilities, China is leading in production and export with lower hybrid solar inverter prices than anywhere else.
The easier installation and higher efficiency provided by string inverters are constantly replacing the traditional central inverters in all significant solar firms worldwide. • String inverters also constitute a significant segment of the experiencing increased traction of 5.2% CAGR during the forecast years.
And yet, central PV Inverters will be the dominant segment of the global PV Inverter Market by Product that is poised to reach a market value of US$ 7.7 Bn by 2028 in terms of revenue generated.
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