The worldwide photo voltaic inverter market will contract for 2 consecutive years, declining 2% to 577 GWAC in 2025 and an additional 9% to 523 GWAC in 2026, based on Wood Mackenzie’s newest reporting. The downturn follows file shipments in 2024 and displays market uncertainty throughout main areas together with China, Europe and america.
“The photo voltaic inverter business faces a interval of strategic realignment as producers navigate evolving market dynamics and regulatory frameworks” stated Joe Shangraw, analysis analyst at Wooden Mackenzie. “After years of an exponential rise in photo voltaic inverter demand, steady cargo progress is not sensible for even the highest world inverter producers. As a substitute, distributors might want to adapt to new demand drivers to remain aggressive: hybrid solar-plus-storage methods, retrofits and repowering, cybersecurity options, 2000-V architectures, and grid companies.”
U.S. inverter market prepares for volatility
Credit score: Titan Photo voltaic Energy
The U.S. market is experiencing policy-driven volatility. WoodMac expects the U.S. market will attain 47 GWAC in 2025 earlier than declining 22% in 2026 as Inflation Discount Act tax credit are phased out.
Inverter pricing continues its downward trajectory throughout all product classes, pushed primarily by Chinese language manufacturing competitors and technological advances. Module-level energy electronics (MLPE) keep vital regional worth disparities. U.S. MLPE costs are over 50% greater than world averages, as market leaders Enphase and SolarEdge should compete towards a rising variety of Chinese language distributors in Europe, Latin America and Asia-Pacific markets. Hybrid inverter costs additionally declined 13% in 2024 as DC-coupled battery-ready methods change into commonplace choices from producers like Huawei, SolarEdge and Tesla. Utility-scale inverter pricing faces the steepest declines, with central standalone inverters approaching $0.01/WAC by 2034.
“Cybersecurity considerations over inverter remote-access capabilities are gaining vital traction in each U.S. and European governments, with stricter insurance policies anticipated in 2026 that would impression the aggressive panorama between home and international producers,” Shangraw stated. “We anticipate the 2 areas to observe totally different methods to deal with cybersecurity considerations. Europe is predicted to increase upon the Cyber Resilience Act by introducing extra software program, reporting and remote-access necessities that would function financial or logistical boundaries to international producers. In the meantime, Republican lawmakers within the U.S. are urging the Division of Commerce to implement restrictions on Chinese language inverter imports, including uncertainty to the roadmap for each international and home producers.
“Following this present downturn, we do anticipate the photo voltaic inverter market to get better and even surpass the 2024 market measurement by the early 2030s,” Shangraw continued. “Electrification, AI demand progress and a cyclical repowering market will present a strong basis for inverter demand over the following decade. Corporations that navigate the present challenges whereas investing in next-generation applied sciences will emerge stronger when the market recovers within the late 2020s.”
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