The growth opportunities in the MEA solar inverter market look promising in the coming years. The increasing investments in the renewable energy sector in order to achieve the clean energy targets across several countries and growth in the number of upcoming projects and programs to encourage the adoption of solar energy are the key factors driving the growth of the solar inverter market in the MEA region. In addition to this, the decrease in the cost of solar energy and the increasing government-backed programs due to the development of financial institutions to advise and fund renewable projects are some of the major factors bolstering the growth of the MEA solar inverter market during the forecast period. Moreover, the increasing innovations in the solar technologies like the emergence of bi-facial & mono facial panels and other related developments and the rising adoption of distributed PV solutions mainly in the commercial & industrial and off-grid segments are the factors thriving various growth opportunities of the solar inverter in the market. An increased focus on energy planning and growing consumer awareness for the use of green energy are the major factors propelling the growth of the MEA solar inverter market.
For instance, in 2020, the government of Egypt is aiming to deploy solar power plants having a combined capacity of 500 MW across the country and will be built by China Gezhouba Group. Through this project, the country planned to surge the percentage of renewable energy in the energy mix of the country to 42% by 2035. In 2019, Saudi Arabia planned to tender a contract for building a 600 MW solar power project in Mecca. This project is a part of the broader plan to build 2,600 MW solar power projects in Saudi City.
String Inverter type dominated the market in 2019 due to the high adoption of such inverters across several end-users such as commercial and residential sectors. In addition to this, several advantages associated with the use of string inverter such as ease of maintenance & troubleshooting, low initial cost, easy installation, along with the enhanced durability and robustness are the factors fuelling the growth of the market in this segment.
On-Grid Connection type accounted for the largest market share in 2019 owing to the increase in the utilization of this type of connection driven by its several advantages such as cost-effective nature, enhanced reliability, net metering, along with its longer lifespan and easy installation.
Indirect sales channel is expected to dominate the market in the forecast period owing to its high adoption among the inverter manufacturers to supply their inverter solutions to various end users. The high adoption of solar inverter among the commercial and residential end-users is increasing the requirement of expertise for the integration with the solar panels. This factor is surging the demand for system integrators to deploy or maintain them, thus fuelling the growth of the market in this segment.
Commercial & Industrial end-user segment is anticipated to dominate the market in the forecast period owing to the rising deployment of solar inverter in the commercial construction projects and industrial facilities across major countries. In addition to this, the rising investments in various commercial projects for the integration of renewable energy, development of infrastructure, and expansion in the industrial activities are leading to an increase in the demand for electricity. All these key factors are further driving the growth of the solar inverter market in this segment.
UAE accounted for the largest share in the market in 2019 owing to the high deployment of solar inverter in the country as a result of the growing penetration of renewable energy to meet the overall target for clean energy. Several upcoming projects of renewable energy, government support, and an increase in the development of infrastructure are the factors thriving various growth opportunities for the solar inverter market in this country.
For instance, in 2020, UAE launched the first floating solar power plant off the coast of Nurai Island in Abu Dhabi. The plant has an overall combined capacity of 80 kilowatts and is set to start the production of electricity within the days of it being installed.
Key Market Developments:
- In 2020, Fimer Group completed the acquisition of the solar inverter business of ABB. Through this acquisition, the company will boost its presence at a global scale to major strategic geographic regions that include the Middle East, Africa, Europe, and Asia-Pacific.
- In 2020, Sungrow entered into two distribution agreements for supplying 200 MW of residential and commercial & industrial inverter solutions to the Middle East and North Africa in 2020. The first phase of the agreement was signed of 100 MW with Power n Sun, a Dubai based firm, and the rest 100 MW distributed partnership is with ACO, an Egyptian Group.
Major key players in MEA solar inverter market include Fimer Group, SMA Solar Technology AG, Sungrow, Huawei Technologies Co., Ltd., Fronius International GmbH, Ingeteam, KACO new energy GmbH, Schneider Electric, SolarEdge Technologies Inc., and Altenergy Power System Inc. among others.
The MEA Solar Inverter market has been segmented based on the type, connection type, sales channel, end-user, and countries. Based on the type, the market is segmented into string inverter, central inverter, and micro inverters. Based on the connection type, the market is segmented into on-grid connection, off-grid connection, and hybrid connection. Based on the sales channel, the market is segmented into direct and indirect. Based on the end-user, the market is segmented into utilities, commercial & industrial, residential, and others.