The photovoltaic inverter market is expected to grow by US$1.48bn during 2021-2025, decelerating at a CAGR of almost 3%, according to a report by Technavio, a leading global technology research and advisory company
The report also throws light on the impact of the COVID-19 pandemic on the market and the new opportunities and challenges market players can expect. The impact can be expected to be significant in the first quarter but gradually lessen in subsequent quarters ? with a limited impact on the full-year economic growth.
The decline in LOCE of solar power generation and cost of solar inverters
Solar PV cells are capable of generating more electricity at cost-competitive rates. This will significantly increase solar power generation globally, which results in a rise in demand for PV inverters. The reduction in the cost of solar inverters along with government subsidies will increase the popularity of PV inverters in commercial, utilities, and residential sectors. Hence, with the decrease in the cost of PV power generation and reducing LOCE of solar power generation, there will be a high demand for solar energy during the forecast period, which, in turn, increases the demand for PV inverters, as they are an integral part of the solar energy plants.
Is there any relief during this COVID pandemic?
As per Technavio, the rise in solar PV installations will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyses other significant trends and market drivers that will influence market growth over 2021-2025.
The rise in solar PV installations
The energy demand is increasing rapidly along with the increasing population. However, the rise in carbon emission and environmental concerns regarding climate change has increased investments in renewable energy sources. Due to the reduced LOCE value and reduction in the manufacturing cost, most governments have increased their investments in solar energy growth. Many solar projects are operational or are under construction across the world. Similarly, there is a large growth in the solar PV market owing to the increasing need for low-cost clean energy. The government policies supporting the production of clean energy also drive the market growth of solar PV. Owing to the growth of the solar PV market, there will be considerable growth in the global photovoltaic inverter market.
?The increasing environmental concerns and growing energy demand will further boost market growth during the forecast period,? said a senior analyst at Technavio.
Download free sample research report, here!
