Wood Mackenzie’s latest report, “Global PV Inverter and MLPE Landscape 2019,” found that due to “price pressures and fierce competition, the total revenue of the world’s top five PV inverter suppliers fell by 10% year-on-year.”
The report found that although global PV inverter shipments will continue to increase, the market value will decline in 2024. Price pressures intensified in 2018, in part because of China’s solar policy.Steel Profile Suppliers
More and more vendors are now placing the IoT platform at the center of their revenue growth strategy. As PV inverter profits become thinner and thinner, others are pushing out of the inverter industry and focusing on more profitable businesses.
The price pressure in the inverter market is quite stable, but in 2018 it caused special pressure on suppliers.
In late May 2018, China experienced a huge policy change: lower on-grid tariffs and termination of subsidies for new utility-scale photovoltaic power plants. Although China’s policies have been clarified, the overnight policy shift has had a major impact on the Chinese market, and Chinese suppliers have begun to aggressively enter the international market, thus exacerbating price pressures in the inverter market.
WoodMac’s figures portray a clear picture: China’s inverter manufacturers accounted for 28% of global shipments in 2018, up from 22% in 2017 and 14% in 2016. Chinese companies’ market share in Europe, Latin America and the Middle East grew east last year.