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

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 2028 and beyond.
13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.
3 November 2026
Málaga, Spain
Understanding PV module supply to the European market in 2027. PV ModuleTech Europe 2026 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.

Read Next

May 19, 2026
Michigan power utility DTE Energy has issued a tender for 1GW of new solar PV and wind power projects across the state.
May 19, 2026
JinkoSolar has partnered with PM Green to supply 200MW of modules, as part of a broader collaboration covering up to 1GW of capacity. 
May 19, 2026
Alex Barrows and Molly Morgan of CRU lay out their predictions for the biggest themes at this year's Intersolar Munich and SNEC conferences.
May 19, 2026
Inox Clean Energy has completed the acquisition of US solar manufacturer Boviet Solar Technology in a deal valued at around US$750 million.
May 19, 2026
Toyo Solar has posted a 177% increase in revenues in Q1 2026, after bringing online new cell and module manufacturing facilities.
May 18, 2026
Naqaa Sustainable Energy has signed a power purchase agreement (PPA) for a 2.7GW hybrid renewable energy project in Mahout and Duqm, Oman.

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)