Global annual demand for PV energy storage inverters is expected to reach 25GW by 2025
Polaris energy storage network: the future of photovoltaic power generation will increasingly be equipped with energy storage equipment. Photovoltaic energy storage inverters will become one of the critical development directions of the industry.
China’s domestic inverter manufacturers accelerate overseas layout, and the international market share continues to rise.
In recent years, Chinese domestic inverter companies have developed overseas channels and accelerated their overseas layout. The demand for string inverters is mainly concentrated in countries and regions like the United States, Europe, and Australia. These countries have higher price tolerance for inverters, and the gross product margin is about 20 higher than the domestic gross margin. What can be seen is that the competitive advantage of domestic inverter enterprises is more evident because the product quality is comparable with overseas enterprises. At the same time, the labor and manufacturing costs are lower compared with overseas enterprises. With the increase in the share of overseas shipments of domestic enterprises in recent years, the market share of overseas inverter enterprises is declining. According to CPIA statistics, the export scale of domestic inverters in 2019 is 52.3GW, up 177% year on year. The market shares in the mainstream markets of Europe, India, Latin America, the United States, and Japan are 77%, 61%, 58%, 34%, and 23%, respectively. The penetration rate is expected to continue to increase subsequently. As revenue share in overseas markets continues to grow, product margins are likely to improve as well. As the revenue share of the overseas demand continues to rise further, the profitability of the products is also expected to improve.
The inverter industry is entering an era of high growth with stock replacement.
The service life within the inverter is generally around 10-15 years. 17.5GW of new PV installations were added globally in 2010, reaching a scale of over 10GW for the first time. Europe, where the PV market started earlier (2009), has seen a rising demand for inverter replacement in recent years, with domestic PV installations reaching a level of more than 1GW since 2011 and new buildings exceeding 10GW in 2013 (10.9GW). As a result, inverter stock replacement is expected to enter an era of high growth from 2020 onwards. According to IHS Markit forecast, the global inverter replacement demand will reach 8.7GW in 2020, a year-on-year growth of 40%; considering the year-on-year increase in global PV new installations since 2010, we, therefore, believe that the worldwide inverter replacement demand is expected to reach 15 and 20GW in 21 and 22, a year-on-year growth of 72% and 33%.
The energy storage battery market is promising, and the demand for energy storage inverters is expected to continue to grow at a high rate.
With the increasing popularity of photovoltaic panels and new energy utilization, the volatile nature of photovoltaic power generation, and the consideration of enterprises on the cost of peaking and frequency regulation, future photovoltaic power generation will be increasingly equipped with energy storage equipment. PV energy storage inverter will become one of the key development directions of the industry.
In recent years, governments have introduced policies to support the energy storage industry, increasing the scale of investment in the energy storage market, improving the layout of the industry chain, increasingly diversified business models, accelerating the extension of application scenarios, IHS Markit report shows that in 2018 the global energy storage inverter shipments reached 3GW. Looking ahead, assuming that in 2025 the global PV installed capacity goes to 250GW, energy storage configuration rate To get 10%, the annual demand of energy storage inverters will be expected to reach about 25GW, and the order of energy storage inverter is expected to maintain a high growth state.