According to a new study by Technavio, the global solar photovoltaic (PV) balance of systems market will post a CAGR of nearly 21% between 2019 and 2023.
The solar PV market is expected to reach $50 billion in revenue generation during the forecasts period.
Driving the market growth is an increase in renewable energy investments. According to the International Energy Agency, the share of renewables in the energy mix will increase from 24% in 2017 to 30% by 2023.
When compared with the traditional sources such as fossil fuels, the total cost of generating electricity using renewable energy sources is relatively expensive. However, renewable technology is evolving and competing against the newly built fossil fuel power plants.
Despite the anticipated growth, the growth momentum of the market is expected to decelerate due to a decline in the year-over-year growth.
One of the key trends for the market is the continued advancement of solar inverter technologies.
According to a senior analyst from Technavio: “The inverter is responsible for smart grid interaction, maximising energy production, monitoring, safety functions, storage, smart homes, and many others. Hence, it proves to be a key factor for the advances in the solar energy industry. Upgradation in inverter technology impacts all the other additional functionalities that the inverter manages.
“In contrast, when a development is made in another component, such as a panel, the impact of this advancement is very limited and might not necessarily affect other parts in the system. Thus, advances in an inverter can help in advancing the whole PV system.”
APAC led the market in 2018 with a market share of over 78%. This region is expected to dominate the market through 2023.
This article was published on our sister website Smart Energy International.