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Global PV Inverter Revenues Decline in Q3'11
Date: 06 December 2011
The PV inverter market declined once again in Q3’11 with industry revenues in Euros falling by over 20% year-on-year according to the latest quarterly report from IMS Research. A lethargic quarter in Germany was the main contributor where third quarter revenues were over 50% down compared to Q3’10. Although this is a dire statistic for the industry to consider, a positive is that prices stabilised in the third quarter, a welcome relief for suppliers that have had to endure heavy price erosion since the turn of the year. However, average prices are still 15% lower than in 2010.
According to IMS Research, the market was limited by the lack of activity in Germany where shipments were over 1 GW lower than in Q3’10, contributing to global shipments being 8% down year-on-year. Shipments had still grown for the last two consecutive quarters, however revenues decreased because of falling prices. Although Q3’11 shipments failed to hit 2010 quarterly levels, prices stabilized during the quarter, indicating a healthier level of inventory in the market.
IMS Research’s quarterly PV Inverter Supply & Demand report, which collects revenue and shipment data from more than 90% of the industry, shows that exchange rates were also a contributing factor to revenue and price changes in Q3. “The majority of inverters are still sold in Europe where the average price per watt stabilised last quarter if measured in Euros. However, companies from outside the Eurozone realizing their revenues in dollars may still have felt the price pressure as Dollar prices fell by 5% compared to Q2’11 due to changes in exchange rates”, commented Tom Haddon, PV Market Analyst at IMS Research. “Price pressure will continue to be a prominent feature of the market for some time and it wouldn’t be wise for PV inverter suppliers to count on prices staying at this level for long”, added Haddon.
Despite the sluggish performance of the German market in Q3, market leader SMA Solar Technology’s market share held stable at over 30% of revenues due to an increased focus on ‘foreign’ markets. “Whilst SMA has always been strong in its domestic market, it is now turning its attentions to the faster growing emerging markets with the Americas becoming a larger proportion of its business. In order to maintain or increase market share this strategy will need to continue”, concluded Haddon.
Despite declining shipments in Q3’11, IMS Research forecasts that annual inverter shipments will still grow in 2011 and break the 25 GW mark as new incentives in Asia and an end of year rally in Germany (before the January 1st FIT cut) help to stimulate demand.
Quarterly analysis of global PV inverter market is available from IMS Research’s Quarterly PV Inverter Supply & Demand Report.
For more information please contact:
Tom Haddon, PV Market Analyst, IMS Research T: +44 (0) 1933 402255 Tom.Haddon@IMSResearch.com
About the PV Inverter Supply & Demand Quarterly Report
This IMS Research's highly regarded quarterly report on PV inverters. It is researched throughout the year and provides the only detailed and reliable assessment of the global market for solar inverters through IMS Research’s unique relationship with virtually every major supplier of PV inverters and relies heavily on primary data collection not available in the public domain.
About IMS Research – Photovoltaics
IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. The company is one of the most respected commentators in the renewable energy field, with a particular expertise in the PV (solar) market. It currently has eight analysts and a 12-person research team dedicated to researching the PV market. It now offers over 30 reports and cover every aspect of the supply chain from polysilicon supply to PV modules, inverters and PV system integrators. PV@imsresearch.com; www.pvmarketresearch.com
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