The global inverter market, after its significant growth in 2010, is expected to fall below 6 billion U.S. dollars in 2011, a drop of more than 10%. Although IMS Research predicts that the installed capacity of the global PV system will increase this year, excess inventory pressure will drive down the industry's revenue this year due to excessive price pressure.
According to AshSharma, senior research director of photovoltaics at IMS Research, “With the help of the Asian and American markets, we expect the installation of photovoltaic systems to increase by 16% in 2011. However, due to the oversupply of the market at the end of 2010, photovoltaic inverters were out. The volume will drop by about 5%. In addition, homogenous competition and falling prices will lead to a drop in industry revenue."
Inverter suppliers faced high price pressures in the first half of 2011, and in some transactions homogeneous competition prices have fallen by 10-15%. “Some large suppliers have even pushed prices lower in order to seize market share in some emerging markets. However, changes in product structure resulting from new market share and the introduction of new products, such as small inverters, will Help maintain average price levels,†Sharma added. Therefore, the research institute predicts that the overall price of the inverter in 2011 will only fall by 8%.
Despite the bleak outlook for the industry's revenue, there is also good news that the industry's revenue in 2011 will still be much higher than in 2009. Sharma said: “The year 2011 will still be a good year for the PV inverter industry. Of course, it is still slightly inferior to last year. Shipments will still exceed 20 GW, and revenues will reach around US$6 billion. It is 2009. More than doubled."
Although the total revenue of the photovoltaic inverter industry may decline this year, there are still large profit opportunities for some suppliers. “Although some European markets have slowed down in 2011, we expect that the strong growth in Asia and the US market will benefit some suppliers in particular. In addition, we predict large-scale inverters used in megawatt power plants and their commercial applications. The small three-phase inverters used in the system will be very popular. In 2010, due to the ease of installation and scalability, small three-phase inverters are popular in commercial projects, an increase of up to 560%. It is expected that this year's performance in the market will still be very eye-catching," concluded Sharma.
Although the industry's revenue is expected to decline this year, IMS Research is still very optimistic about the long-term prospects of the inverter industry. It is estimated that the revenue in 2015 will exceed 10 billion US dollars.
According to AshSharma, senior research director of photovoltaics at IMS Research, “With the help of the Asian and American markets, we expect the installation of photovoltaic systems to increase by 16% in 2011. However, due to the oversupply of the market at the end of 2010, photovoltaic inverters were out. The volume will drop by about 5%. In addition, homogenous competition and falling prices will lead to a drop in industry revenue."
Inverter suppliers faced high price pressures in the first half of 2011, and in some transactions homogeneous competition prices have fallen by 10-15%. “Some large suppliers have even pushed prices lower in order to seize market share in some emerging markets. However, changes in product structure resulting from new market share and the introduction of new products, such as small inverters, will Help maintain average price levels,†Sharma added. Therefore, the research institute predicts that the overall price of the inverter in 2011 will only fall by 8%.
Despite the bleak outlook for the industry's revenue, there is also good news that the industry's revenue in 2011 will still be much higher than in 2009. Sharma said: “The year 2011 will still be a good year for the PV inverter industry. Of course, it is still slightly inferior to last year. Shipments will still exceed 20 GW, and revenues will reach around US$6 billion. It is 2009. More than doubled."
Although the total revenue of the photovoltaic inverter industry may decline this year, there are still large profit opportunities for some suppliers. “Although some European markets have slowed down in 2011, we expect that the strong growth in Asia and the US market will benefit some suppliers in particular. In addition, we predict large-scale inverters used in megawatt power plants and their commercial applications. The small three-phase inverters used in the system will be very popular. In 2010, due to the ease of installation and scalability, small three-phase inverters are popular in commercial projects, an increase of up to 560%. It is expected that this year's performance in the market will still be very eye-catching," concluded Sharma.
Although the industry's revenue is expected to decline this year, IMS Research is still very optimistic about the long-term prospects of the inverter industry. It is estimated that the revenue in 2015 will exceed 10 billion US dollars.
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