The solar inverter substitute market will rise to over 8.7 GW in 2020 – IHS Markit – PV-Tech

IHS Markit expects the PV inverter replacement market to grow by around 40% in 2020, creating a demand of 8.7 GW outside of new global installations. Image: IHS Markit

The market research company IHS Markit estimates that the market for the replacement of PV inverters will increase by around 40% in 2020, creating a demand of 8.7 GW outside of new global installations.

New analyzes by the company show that due to the early acceptance rates in the German residential property market, Europe has become the largest replacement market for PV inverters, initially and later in the residential, commercial, industrial and supply segments in Spain, Italy and the UK.

String inverters, typically used in the early stages of the European residential real estate market, had a life expectancy of 5 to 10 years and therefore make up a large percentage of the replacement equipment market.

With a large utility-scale installed base in Europe, the replacement of megawatt-based central inverters could become a larger market, with options for the introduction of advanced central inverters with energy storage capabilities, or the introduction of the latest string inverter technology.

According to IHS Markit, the greatest demand for inverter replacement is in Germany, Italy and Spain, which together account for over 70% of replacement needs in the EMEA region.

Asia is the second largest region for replacement inverters, driven by China.

Demand is also expected to rise in Japan, which is said to have the largest installed base of residential complexes over 5 years old.

However, it has been predicted that replacement demand in the Americas region will increase at a CAGR of 130% and represent 12% of global replacement demand in 2023.

Currently, listed manufacturers of PV inverters rarely offer breakdowns for replacement sales in their annual financial statements.

Picture credits for the homepage picture of this story: ABB

Keywords:
Ihs Markit, PV Inverters, String Inverters, Central Inverters, PV Power Plants, Roof, Europe, China, USA, Japan, Spain, Italy

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