Solar inverter replacement market set to top 8.7GW in 2020 – IHS Markit

Facebook
Twitter
LinkedIn
Reddit
Email
IHS Markit believes the PV inverter replacement market will increase by around 40% in 2020, creating an 8.7GW need outside new global installations. Image: IHS Markit

Market research firm IHS Markit believes the PV inverter replacement market will increase by around 40% in 2020, creating an 8.7GW need outside new global installations. 

New analysis by the firm shows that Europe has become the largest replacement market for PV inverters, due to early adoption rates in Germany's residential market initially and later in the residential, commercial and industrial and utility-scale segments across Spain, Italy and UK. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

String inverters typically used in the early phase of the European residential market had life expectancies of 5 to 10 years, and so are accounting for a large percentage of the unit replacement market. 

However, with a large utility-scale installed base in Europe, central inverter replacement could become a larger market on a megawatt basis, with options to adopt advanced central inverters with energy storage capabilities or adopt the latest in string inverter technology. 

According to IHS Markit, the greatest need for inverter replacements lies in Germany, Italy and Spain, which together accounted for over 70% of replacement demand in the EMEA region.

Asia was said to be the second largest region for replacement inverters, driven by China. 

Demand is also expected to increase in Japan, which was said to have the largest installed base of residential installations that were more than 5 years old.

However, replacement demand in the Americas region was forecasted to increase at a CAGR of 130% and account for 12% of global replacement demand in 2023.

Presently, PV inverter manufacturers that are publicly listed rarely offer breakdown figures for replacement sales in their financial statements. 

Image credit for this story's homepage picture: ABB

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

October 15, 2025
The Australian government has approved the 141MW Forbes Solar Farm Project in New South Wales in just 19 days, marking one of the fastest environmental approvals on record in the country.
October 15, 2025
Australia has opened registrations for Capacity Investment Scheme (CIS) Tender 7, which targets 5GW of renewable energy generation capacity across the National Electricity Market (NEM).
October 14, 2025
German IPP wpd has started construction at its 140.6MW Marcy solar park in the Nièvre department of central France.
October 14, 2025
Levanta Renewables will develop a 166MWp ground-mounted solar and storage project in the Visayas Islands as part of the Philippines’ Fourth Green Energy Auction. 
October 14, 2025
India has installed 4.9GW of residential rooftop solar capacity in the first half of 2025, according to a report by IEEFA and JMK Research.
October 14, 2025
Apple will support 650MW of projects as part of a major expansion of its renewable energy investments in Europe, aimed at reducing its carbon footprint.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK