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PV Inverter revenues fall 10% in 2011

Posted: 08 Jul 2011     Print Version  Bookmark and Share

Keywords:PV Inverter  revenue forecast  PV market 

IMS Research forecasts a 10 per cent fall in the global PV inverter market in 2011 following the surge in 2010 PV revenues. According to IMS Research, the PV revenues are expected to decline below Rs.26,785.71 crore ($6 billion) in 2011 driven by the inventory overhang from 2010 and high price pressure.

Revealing a very mixed outlook for the PV inverter industry this year, senior research director for PV at IMS Research and co-author of the report's 4th edition, Ash Sharma commented, "We predict that installations will grow by 16 per cent in 2011, driven by demand in Asia and Americas, however shipments of PV inverters will in fact fall by around 5 per cent due to the oversupply into the market towards the end of 2010. In addition, both like-for-like and average prices will fall resulting in a decline in industry revenues.

Suppliers of inverters have faced intense pricing pressure in 1H 11 and like-for-like prices have fallen already by 10-15 per cent in some cases, "Some major suppliers have made even steeper cuts particularly in emerging markets to buy market share. However product mix change caused by new markets gaining share, introductions of new models, such as those with reactive power capability, and shifts in some segments to smaller inverters will help maintain average prices." added Sharma. As such the research firm's report predicts that overall inverter prices will fall by only 8 per cent in 2011.

Despite the outlook for industry revenues looking bleak, it is not all bad news according to the report and industry revenues in 2011 will still be significantly higher than 2009. "2011 will still be a good year for the PV inverter industry, but of course not so good when compared to the phenomenal 2010. Shipments will still exceed 20GW again and revenues around $6 billion [Rs.26,785.71 crore]—more than double the amount generated back in 2009," commented Sharma.

Also commenting on possible major growth opportunities for some suppliers, Sharma said, "Despite a major slowdown in some European markets in 2011, we predict robust growth in many Asian countries as well as the USA which will benefit some suppliers more than others. Furthermore we're forecasting excellent growth for large inverters used in MW-scale installations as well as small 3-phase string inverters for commercial applications." Sharma added, "Small 3-phase string inverters grew by a massive 560 per cent in 2010 driven by high demand in commercial systems due to their ease of installations and scalability. Their penetration is forecast to increase further in almost every geographic market."

Although it predicts industry revenues will decline in 2011 the report from IMS Research shows a positive long-term outlook for the industry with revenues exceeding Rs.44,642.86 crore ($10 billion) by 2015.

For more statistics and forecasts, click here.

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