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SUMMARY
Inverter Vendors Need to Match the Pace of Change in the End-user Markets
Inverter demand is completely dependent on the dynamics of the end-user
makets. The current upsurge in the installations of the renewable energy
market especially solar has translated into a proportionate increase in the
consumption of inverters. In 2004 as the Germany upgraded its feed-in tariffs
it grew by an astounding 162 percent. Such surge in the demand suddenly caught
the vendors to the solar market off guard and there was a shortage of solar
cells. On the other hand, there is a strong shift towards the adoption of grid
tied systems as the governments have been introducing incentives such as net
metering and feed-in tariff based on the power fed back to the utility. In
addition to these developments, the emergence of the solar systems as a
distributed power generation system has lead to the installation of very high
power systems in the 100 to 200 kW ranges. With the propagation of these high
power systems the vendors are developing similar inverter capacities in the
form of central inverters. With all these changes happening at a very rapid
pace due to the extraordinary growth in the market the vendors need to prepare
themselves both on the technical aspect and the manufacturing capability
aspect.
While the sales incentive programs such as rebates and low interest loans
provide the initial spark to trigger off the interest and awareness about
renewable energy, the performance based net metering and feed-in tariffs act
as steroid that create rapid growth for the inverter demand in renewable
energy systems.
The renewable energy systems have always been supported through rebates that
reduced the initial cost of installation. Production tax credits on the other
hand are meant to encourage the vendors to promote the renewable systems.
These incentives managed to trigger off the basic interest in end-users to try
out the systems or at least enquire about its capabilities. As the awareness
spread to more end-users, the consumption of the inverters also increased.
With the advent of superior grid tied inverter technologies, many governments
have adopted it to develop performance-based incentives of net metering and
feed-in tariffs. As these incentives provided the end-users a constant benefit
over a longer period, it was easier to promote and it attracted a larger
customer base. Reduction of electricity bills and constant income through
these incentive triggers a strong demand for renewable energy systems leading
to an equally high demand for inverters used in them.
Performance based incentive programs reward end-users based on the amount of
power fed back to the grid increasing the demand for the grid tied inverters.
Grid tied systems continue to contribute a majority of the inverter demand for
the renewable energy market. This high contribution from the grid tied
inverters is the outcome of the popular net metering and feed-in tariff
incentives that require grid connectivity. Out of the three segments in the
study the solar market for inverters contributed the highest revenue portion
to the extent of 95 percent in the total inverter market for renewable energy
in 2004. As the inverter consumption in the wind energy market is restricted
to the small scale (below 100 kilowatts) systems, the revenues generated are
very low. In the case of the inverters used in fuel cell systems the
consumption is very low, as fuel cells are not yet commercialized. However
fuel cells are expected to contribute more in terms of inverter consumption
once they are commercialized in Japan during 2005.
TABLE OF CONTENTS
- 1. Executive Summary
- 1. Market Overview
- 1. Introduction
- 2. Competitive Analysis
- 3. Technologies
- 2. Major Market Findings
- 1. Opportunities and Forecasts
- 2. Market Segment Analysis
- 3. Strategic Conclusions
- 2. Total Inverter Markets for Renewable Energy Systems
- 1. Market Overview
- 1. Introduction
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 5. Market Challenges
- 2. Revenue Forecasts and Trends
- 1. Revenue Forecast for Total Market
- 2. Technology Trends
- 3. Revenue Analysis - Geographical Regions
- 1. North America
- 2. Europe
- 3. Asia Pacific
- 4. Rest-of-World
- 4. Revenue Analysis - Power Ranges
- 1. Below 10 Kilowatts
- 2. Above 10 Kilowatts
- 5. Revenue Analysis - Grid Connectivity
- 6. Competitive Analysis
- 7. Frost & Sullivan Awards
- 1. Frost & Sullivan Market Leadership Award
- 2. Frost & Sullivan Market Penetration Leadership Award
- 3. Frost & Sullivan Entrepreneurial Company Award
- 3. World Inverter Markets for Solar Energy Systems
- 1. Market Overview
- 1. Introduction
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 2. Revenue Forecasts and Trends
- 1. Revenue Forecasts
- 2. Technology Trends
- 3. Pricing Trends
- 4. Distribution Trends
- 3. Revenue Analysis - Geographical Regions
- 1. North America
- 2. Europe
- 3. Asia Pacific
- 4. Rest-of-World
- 4. Revenue Analysis - Power Ranges
- 1. Below 10 Kilowatts
- 2. Above 10 Kilowatts
- 5. Revenue Analysis - Grid Connectivity
- 6. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 4. World Inverter Market for Wind Energy Systems
- 1. Market Overview
- 1. Introduction
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 2. Revenue Forecasts and Trends
- 1. Revenue Forecasts
- 2. Technology Trends
- 3. Pricing Trends
- 4. Distribution Trends
- 3. Revenue Analysis - Geographical Regions
- 1. North America
- 2. Europe
- 3. Asia Pacific
- 4. Rest-of-World
- 4. Revenue Analysis - Power Ranges
- 1. Below 10 Kilowatt
- 2. Above 10 Kilowatt
- 5. Revenue Analysis - Grid Connectivity
- 6. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. World Inverter Markets for Fuel Cell Energy Systems
- 1. Market Overview
- 1. Introduction
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 2. Revenue Forecasts and Trends
- 1. Revenue Forecasts
- 2. Technology Trends
- 3. Pricing Trends
- 4. Distribution Trends
- 3. Revenue Analysis - Geographical Regions
- 1. North America
- 2. Europe
- 3. Asia Pacific
- 4. Rest-of-World
- 4. Revenue Analysis - Power Ranges
- 1. Below 10 Kilowatt
- 2. Above 10 Kilowatt
- 5. Revenue Analysis - Grid Connectivity
- 6. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 6. Appendix
- 1. Terms and Definitions
- 1. List of Abbreviations
- 2. Glossary of Terms
- 7. Decision Support Database
- 1. DSD 1
- 1. Total Electricity Installed Capacity
- 2. DSD 2
- 1. Electricity Generation Capacity - Others
- 3. DSD 3
- 1. Electricity User Profile - Residential Sector Use
- 4. DSD 4
- 1. Per Capita Consumption of Electricity
- 5. DSD 5
- 1. Length of Transmission and Distribution Network
List Of Figures
SEGMENT 1
- Inverter Markets for Renewable Energy Systems: Unit Shipment and Revenue
Forecasts (World), 2001-2011
SEGMENT 2
- Inverter Markets for Renewable Energy Systems: Market Drivers Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Renewable Energy Systems: Market Restraints Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Renewable Energy Systems: Unit Shipment and Revenue
Forecasts (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Percent of Revenues by
Geographic Region (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts (North
America), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts (Europe),
2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts (Asia
Pacific), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts
(Rest-of-World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Percent of Revenues by
Power Range (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts for up to
10 kilowatts Power Range (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts for above
10 kilowatts Power Range (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Percent of Revenues by
Application (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts for Grid
Tied Applications (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Revenue Forecasts for Off
Grid Applications (World), 2001-2011
- Inverter Markets for Renewable Energy Systems: Competitive Structure
(World), 2004
SEGMENT 3
- Inverter Markets for Solar Energy Systems: Market Drivers Ranked in Order
of Impact (World), 2005-2011
- Inverter Markets for Solar Energy Systems: Market Restraints Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Solar Energy Systems: Unit Shipment and Revenue
Forecasts (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Percent of Revenues by
Geographic Region (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts (North
America), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts (Europe),
2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts (Asia
Pacific), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts
(Rest-of-World), 2001-2011
- Inverter Markets for Solar Energy Systems: Percent of Revenues by Power
Range (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts for up to 10
kilowatts Power Range (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts for above 10
kilowatts Power Range (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Percent of Revenues by
Application (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts for Grid Tied
Applications (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Revenue Forecasts for Off Grid
Applications (World), 2001-2011
- Inverter Markets for Solar Energy Systems: Competitive Structure (World),
2004
- Inverter Markets for Solar Energy Systems: Company Market Share by
Revenues (World), 2004
SEGMENT 4
- Inverter Markets for Wind Energy Systems: Market Drivers Ranked in Order
of Impact (World), 2005-2011
- Inverter Markets for Wind Energy Systems: Market Restraints Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Wind Energy Systems: Unit Shipment and Revenue
Forecasts (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Percent of Revenues by
Geographic Region (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts (North
America), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts (Europe),
2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts (Asia
Pacific), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts
(Rest-of-World), 2001-2011
- Inverter Markets for Wind Energy Systems: Percent of Revenues by Power
Range (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts for up to 10
kilowatts Power Range (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts for above 10
kilowatts Power Range (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Percent of Revenues by
Application (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts for Grid Tied
Applications (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Revenue Forecasts for Off Grid
Applications (World), 2001-2011
- Inverter Markets for Wind Energy Systems: Competitive Structure (World),
2004
- Inverter Markets for Wind Energy Systems: Company Market Share by Revenues
(World), 2004
SEGMENT 5
- Inverter Markets for Fuel Cell Energy Systems: Market Drivers Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Fuel Cell Energy Systems: Market Restraints Ranked in
Order of Impact (World), 2005-2011
- Inverter Markets for Fuel Cell Energy Systems: Unit Shipment and Revenue
Forecasts (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by
Geographic Region (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (North
America), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (Europe),
2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts (Asia
Pacific), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts
(Rest-of-World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by
Power Range (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for up to
10 kilowatts Power Range (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for above
10 kilowatts Power Range (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Percent of Revenues by
Application (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for Grid
Tied Applications (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Revenue Forecasts for Off
Grid Applications (World), 2001-2011
- Inverter Markets for Fuel Cell Energy Systems: Competitive Structure
(World), 2004
- Inverter Markets for Fuel Cell Energy Systems: Company Market Share by
Revenues (World), 2004
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