European Inverter Market for Renewable Energy Systems

Frost & Sullivan
May 20, 2008
99 Pages - SKU: MC1792256
License type:
Countries covered: Europe

This Frost & Sullivan research service titled European Inverter Market for Renewable Energy Systems provides a comprehensive examination of the main trends, drivers, restraints and challenges facing manufacturers. It also offers revenue forecasts and competitive analysis. The study examines major segments in the market and offers in-depth analysis of key issues and strategic recommendations on tackling them. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: solar, wind and fuel cells.

Harvest Time for the Green Inverter Market

There has been no looking back for the inverter market for renewable energy systems in Europe since 2004. A combination of technological innovations and proactive energy policies will enable the market to emerge successful in the long term. Generous subsidies for green energy have propelled the growth of this market, catapulting it to a significantly growing segment of the green electricity industry. A multi-million euro industry is in the making in Europe and prospects for renewable inverters are extremely optimistic.

With Germany leading in solar, wind and fuel cell inverter markets and Spain registering extremely high growth rates, the market is on the upswing. "A booming market in Spain is rewriting market dynamics for renewable energy-based inverters even as new incentives for green electricity in Portugal and Greece are set to shape the market in the future," explains the analyst of this research. "Across Europe, renewable energy-based inverters registered growth of 36.7 per cent in 2007 as compared to 2006." The adoption of highly attractive financial incentives for renewable energy alternatives in Spain, Portugal and Greece, based on the German model, has spurred the growth of such energy sources. These markets are experiencing soaring sales and spiralling growth, and are potential hotspots for renewable energy inverters.

Promising Photovoltaics

Germany, the champion of green energy causes in Europe, has smartly turned a cause into a revolutionary business by introducing attractive financial incentives to green electricity producers. Photovoltaics, the segment which has enjoyed the best incentives, has soared to unparalleled heights in Europe. This highly promising market offers spectacular growth for solar inverters. Wind and fuel cell inverters have also benefited from the heightened interest in green energy across Europe, although their success has been limited in comparison to the sizeable photovoltaic inverter market.

However, administrative hurdles and policy uncertainties in Spain and most other countries pose a serious challenge to sustained market expansion. "Despite all its advantages, renewable energy systems are no match for oil and gas in terms of energy efficiency and energy density; as long as oil and gas remain superior to clean energies in this regard, the full potential of the renewable energy market and its inverter markets will remain untapped," cautions the analyst. "Moreover, administrative hurdles and red-tapism are discouraging potential investors." However, the opening up of new markets in other parts of Europe will encourage manufacturers to leverage emerging opportunities, and compensate for uncertainties and resulting stunted growth elsewhere. The key to market success will be to boost the energy efficiency of renewable energy systems and inverters through intense R&D and technological innovation. This will need to be a collaborative effort by clean energy players and inverter manufacturers. Furthermore, increasing the appeal of green energy through widespread media coverage will also promote market prospects.


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