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The domestic PV inverter market showed a stable price trend in December 2023, although the cost side of power devices is facing certain price pressure, but this impact is relatively limited. At the end of the year, the market demand declined, and the number of centralized procurement projects also decreased, but the demand for PV inverters in the industrial and commercial sectors remained stable, providing support for market prices.
The global PV inverter market is experiencing significant growth on both the installed and the part of shipments. According to S&P Global, global inverter installations reached 212.8GW in 2022, an increase of 63.9GW from the previous year and an annual growth rate of 42.9%.
According to WoodMackenzie's forecast, the global PV inverter market is expected to reach 300GW by 2025, and revenue is expected to exceed US$18 billion.
At the same time, according to data from the China Photovoltaic Association and China Business Intelligence Network, China's PV inverter production is expected to grow from 62GW in 2017 to 130GW in 2023, with an average annual compound growth rate (CAGR) of 13%, showing huge market potential.
Pay attention to Leqing's industry observation and gain insight into the industrial pattern!
Overview of the PV inverter industry
During the 20-25 year service life of PV modules, the replacement of inverters becomes an inevitable requirement.
As a key equipment in the photovoltaic energy storage system, the conversion function of the inverter from DC to AC is the cornerstone of the effective utilization of solar energy.
Photovoltaic inverters and energy storage inverters have a high degree of similarity in technology and market, and the two promote each other and jointly promote the development of the photovoltaic storage industry.
As the core component of the photovoltaic power generation system, the main function of the PV storage inverter is to convert the unstable direct current generated by the photovoltaic panels into stable alternating current for commercial or off-grid use.
During the off-peak period, the excess electric energy is stored in the battery through the inverter and the charge/discharge controller to realize the time-shifted utilization of electric energy.
In addition, modern inverters integrate smart features such as Maximum Power Point Tracking (MPPT) to optimize the performance of solar cells, protect photovoltaic power generation systems, and adapt to the operational needs of different lighting conditions.
Schematic diagram of the working principle of photovoltaic inverter:
Source: Jinlang Technology
PV inverters can be classified according to a variety of criteria, which cover key aspects such as the technical roadmap, the number of phases of the output AC voltage, whether they have energy storage capabilities, and downstream application areas.
Classification according to technical route is a common method in the industry, which mainly divides photovoltaic inverters into four categories: centralized inverters, string inverters, distributed inverters and microinverters.
Centralized inverters use a special PV inverter method, that is, multiple parallel PV strings are connected to the DC input of the same inverter. This inverter is capable of maximum power peak tracking of these strings, and then converts DC power into AC power through an inverter process and feeds it into the grid.
Centralized inverters typically have a single capacity of more than 500kW, high individual power, and relatively low cost. Therefore, it is mainly suitable for centralized application scenarios such as large-scale ground-mounted photovoltaic power stations.
String inverters occupy an important position in the PV market due to their excellent performance, and this position is expected to continue to be maintained. The advantages include high energy yield, high reliability, excellent safety and easy installation and maintenance.
Especially when a PV module is shaded or fails, the string inverter's multi-channel maximum power point tracking (MPPT) function can minimize losses, reduce array mismatch losses, and improve overall efficiency.
According to CPIA's forecast, the market share of string inverters in China will remain around 75% between 2023 and 2025, and is expected to continue to grow in the future.
Microinverters have more demanding requirements for the performance of electronic components. At present, microinverters are mainly composed of components imported from overseas, but domestic components are gradually being introduced into this market.
As microinverters face the requirements of larger voltage difference, smaller size and longer service life, their core components mainly rely on the supply of established overseas manufacturers, such as Infineon, onsemi, Texas Instruments, etc.
In recent years, the performance and quality of domestic electronic components have been continuously improved, and they have begun to be applied to the field of microinverters. Nu Skin mentioned in its 2022 semi-annual report that its MOS products have successfully expanded into the microinverter market.
Diagram of PV inverter industry chain:
Source: HTI
Competitive landscape and leading combing of photovoltaic inverters
In 2022, the position of Chinese companies in the global inverter market will be further consolidated. The number of Chinese companies in the Top 10 ranking has increased from 6 in 2021 to 7, indicating the strong growth momentum of China's inverter industry.
According to Wood Mackenzie's statistics, the top five manufacturers in the global inverter market in 2022 are Huawei, Sungrow, Jinlang Technology, Growatt and GoodWe.
Together, these five giants account for more than 70% of global PV inverter shipments, with a total shipment of more than 200GW, showing extremely high market concentration and competitiveness.
From 2020 to 2022, Huawei ranked first in global PV inverter shipments for three consecutive years. In 2022, Huawei's shipments increased by 83% year-on-year, and its global market share reached 29%, an increase of 6 percentage points from 2021.
Since 2015, Sungrow and Huawei have been firmly in the top two positions in terms of shipments, and together with SMA, they have formed a "three-legged" pattern. However, this situation was broken by Jinlang Technology in 2021, which successfully surpassed SMA and redefined the competitive landscape of the industry.
In the U.S. inverter market, the proportion of domestic companies' shipments is relatively low, but the future growth potential is huge.
According to Wood Mackenzie, the top five PV inverter suppliers in the U.S. together accounted for 74% of the market share in 2022. Sungrow leads the pack with a 22% share, while other suppliers including Power Electronics (19%), TMEIC (15%) and General Electronics (11%) are overseas.
In addition to Sungrow and Chint Power, the penetration rate of other domestic companies in the US market is not high. Domestic inverter manufacturers still have huge room for expansion in the U.S. market.
With the continuous expansion of the global photovoltaic market and the increasing maturity of domestic enterprises' technology, it is expected that the proportion of domestic companies' shipments in the U.S. inverter market will increase in the future. #PV##New Energy##Energy Storage##Inverter##Article Launch Challenge##财经#
epilogue
As the core component of photovoltaic systems, the localization process of inverters has made significant progress in recent years. As a key equipment to convert direct current into alternating current, the inverter plays a crucial role in the photovoltaic system, and its performance directly affects the power generation efficiency, stability and reliability of the photovoltaic system.
In the context of the localization of the photovoltaic industry, the localization rate of inverters, as the core link, continues to increase. Domestic inverter companies have gradually occupied a dominant position in the market by virtue of their advantages in technological innovation, cost control and market expansion.
With the improvement of the localization of inverters, the cost of photovoltaic systems has been reduced, which has further promoted the popularization and application of photovoltaic power generation. In the context of the accelerated development of new energy and photovoltaics, inverters are expected to usher in broad market opportunities.
Pay attention to Leqing's industry observation and gain insight into the industrial pattern!