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26 March, 2021, New York, 2021 – The power converter or inverter market is expected to witness tremendous growth during the 2021-2028. The market is expected to reach valuation of over $20 billion, thanks to promising forecast by the International Energy Agency (IEA). The IEA estimated that in 2018, renewables made up 26% share of global electricity generation. Moreover, the IEA reported that despite the covid-19 blues, the renewable electricity generation grew by 6%, and solar PV, and wind accounted for 64% of this growth. This trend will emerge as a major positive for players in the power converter market as converts remain the go-to option for power production, distribution, and consumers at large in usage of solar PVs, and wind energy. The seasonal, and intermittent nature of renewable energy supply will make the application of power conversion indispensable during the 2021-2028 period. Furthermore, the
IEA estimates that renewable energy investments, and power generation needs to be expanded significantly in the near future to meet Sustainable Development Scenario (SDS) targets. This IEA forecast will be likely met with positive response from regulators around the world, as despite the covid-19 created economic uncertainty, in 2020, the IEA reported that investor appetite remained strong. For example, in October 2020, shares of solar companies globally witnessed doubling of growth from December 2019. Moreover, renewable capacity also remained 15% higher than 2019 levels. Furthermore, countries like China, and US invested in new capacities, with 4% growth annually, reaching 200 GW. Furthermore, new renewable energies like hydropower are storming in the energy generation arena, with 90% increase in total power capacity in 2020. The solar PV, and wind energy are both expected to increase their output by 30% in China, and United States with a faster expansion of utility-scale projects.
Europe and India to Lead Growth with 10% Annual Growth in Renewable Power Generation
Thanks to declining costs of renewable energy, and clearly established relationship between emissions, and fossil fuels, the policy support for renewable electricity generation is likely to be robust in India, and Europe. India is expected to double its current renewable output in 2021, and become the largest contributor to renewables upswing in 2021. The country is on its way to tackle challenges arising from land acquisition, and contract negotiations. European Union is also set to accelerate its deployment of renewable projects, which was derailed during the pandemic.
The demand for inverters in sectors like automotive will also remain robust globally. For example, the IEA estimates that vehicle manufacturers will launch nearly 250 EV brand during the 2020-2050 period. The IEA reported that electric car sales reached another milestone in 2019, with 2.1 million EVs sold. The sales figure was a record, despite the covid-19 adversities, and surpassed another record year in 2018. The EVs made up over 1% of all vehicles in operation in 2019, and registered a 40% y-o-y increase. The IEA forecasts that growing demand for electrification for public buses, two, and three-wheelers, and trucks will remain key drivers for growth for EVs in the near future. The growing demand for EVs, the solid expansion in supporting infrastructure, and strong initiatives from private players to launch new models will promise major growth for players in the power converter market.
Demand for Automotive and PV plants to Remain Strong in Europe
According to the European Commission report, in 2019, the Final Energy Consumption (FEC) in the union increased significantly in the transport sector. The energy consumption in sectors like transport increased to 4.4 Mtoe, making up for reduction in energy use in other sectors due to growing energy efficiency. The commission also reported that in buildings, the growing energy efficiency has led to significant improvements outweighing the additional plug-in of appliances, and increased floor areas. Despite the tremendous sustainable progress on the energy efficiency front, the commission reports that the transport sector will lead to tremendous demand for renewable energy creation, as solid fossil fuels are witnessing a major downward trend in Europe. For example, in 2018-2019 the use of fossil fuels in the region decreased by 17%. The growing demand for energy in automotive, increased use of renewables like PV solar, and growing investment in creation of renewable energy will remain key drivers to growth in the power converter and inverter market.
The Lowering Costs of Solar to Drive Growth of Hybrid Energy Generation
In a notable development, the EDPR, a company in Spain has announced that it will be generating 400 MW by 2025. The recent auctions, and growing efficacy of wind-solar hybrid projects have enabled the company to build infrastructure that promises to reduce wind generated electricity costs by 5 Euros, compared to the lowest wind MWh. The development is notable for players in the power converters which are witnessing a growing innovation in solar PV cells, fuel cells, among other technologies leading to reduction in energy costs, resulting in expansion of potential opportunities. Some key players in the global power inverter market are Omron Corporation., SMA Solar Technology AG, Tabuchi Electric Co., ABB Ltd, and Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Advanced Energy Industries, Inc.
The Power Converter or Inverter Market Report is Segmented as Follows:
Inverter Market, by Type
Inverter Market, by Output Power Rating
Inverter Market, by Output Voltage
Inverter Market, by Sales Channel
Inverter Market, by End User
Inverter Market, by Geography
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