Market Consolidation in Solar Inverter Market
Market Consolidation in Solar Inverter Market | RationalStat

Market Duopoly: Huawei and Sungrow

The installation of solar panels and inverters for power generation is one of the best ways to contribute to the betterment of the environment in this era of an environmental crisis that is constantly calling for higher usage of environmentally friendly and sustainable means of producing electricity.

The Chinese Solar Inverter manufacturers, namely, Huawei Technologies Co Ltd and Sungrow Power Supply Co Ltd are anticipated to maintain their duopoly for the seventh year in a row in the Global Solar Inverter Market.

Huawei and Sungrow cover the first and second positions respectively, followed by Growatt, another Chinese manufacturer in the third position, combined making up for more than half of the solar inverter shipments in 2021.

With the top three manufacturers remaining constant for seven years, Chinese firm Huawei topped the pack. Prior to German company SMA, Chinese rival Sungrow held the second-largest share of the market. Even though it lost market share in the US to Sungrow throughout the year, the Spanish company Power Electronics claimed fourth place due to its dominance in its domestic market.

In addition, Fimer, an Italian manufacturer of inverters, experienced substantial growth, moving up to fifth place after acquiring the Swiss company ABB's solar inverter division. Overall, the top five make up just 1% of their monopoly on the world. However, demand growth in Germany, Italy, and the Netherlands, and Poland’s ambitious target of 7,300 MWac of solar PV by 2030 contributed to the significant increase.

This market growth is an after-effect of technological advancements and wide-ranging investments in the R&D segment. Moreover, developed countries like the US, the Netherlands, and Australia have constant government support and tax rebates on the use of rooftop PV installations. Which in turn has sponsored the adoption of solar inverters over conventional inverters. Spanish-headquartered Power Electronics continues to hold the biggest market share in the US. The company is ranked seventh in the global solar inverter market.

Despite rising raw material costs, supply chain obstacles, and delayed constructions, worldwide PV inverter shipments remain to increase. Leading vendors have actually become bigger, and also the top players continue to combine market share in 2021.

Major Consuming Regions

The major consumer - Asia Pacific consumed over half or 116,064 MWac of the global solar inverter market owing to the soaring demand in India, Australia, and China. Whereas, the European region, took up 50,770 MWac inverter shipments making a whopping 23% of the global market share.

However, the state of affairs was different in the US, affected by supply chain issues, the rising cost of raw materials, and increasing manufacturing costs of solar inverter batteries. This led to an insignificant reduction in the inverter shipments falling to 360MWac.

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.

Growth in Shipments | Market Consolidation in Solar Inverter Market
Source: Public Domain, RationalStat Analysis

Road Ahead

Largely, rising energy prices and pro-environmental government laws around the world have prompted an upsurge in the use of energy-saving technologies like solar rooftop PV systems to reduce rising energy costs in residential applications. Additional support from the government and benefits for the end user will further act as a catalyst in the growth of the global solar inverter market.

The Asia Pacific maintains its position as the prominent market, accounting for more than half of total shipments. Meanwhile, Europe and the US acquired 23% and 14% of the market share respectively. The major demand is expected to be from the power utility sector, which is an obvious growth, owing to the government initiative in increasing the share of solar energy in the power utility segment. Furthermore, many upcoming solar projects which have been announced by the government such as Al Faisaliyah Solar PV, and Sudair IC Solar PV will further drive the growth of solar inverters in the upcoming years in the Power Utility segment.

To know more about the current market scenario for the Solar Inverter Market, request a sample.

Divyanshu Sharma | RationalStat Director and co-founder

Divyanshu Sharma

Co-founder and Director at RationalStat

Divyanshu is an experienced market research consultant. He helps growth-driven organizations and entrepreneurs understand market entry prospects, industry assessment, and grow their revenue strategically. 

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