The weak start to the year for PV installations will have a knock-on effect on the solar inverter market in 2009, according to a new report from IMS Research. The market research firm expects the inverter market to decline by 27% to below US$2 billion in value. IMS Research noted that first-quarter worldwide inverter shipments fell 45% compared to the same quarter in 2008.
“A sharp decrease in inverter shipments in 2009 is forecast due to four key factors: the restricted access to credit which has delayed major projects, the 500MW cap implemented by Spain’s Government, the particularly harsh winter in Europe which has delayed installations, and the sudden drop in PV module prices,” commented report coauthor, Sam Wilkinson of IMS Research. “We have seen falling module prices having an adverse affect on the market as suppliers have reduced prices so dramatically that end-users are now waiting further in order to buy at the lowest possible price”
IMS Research said that the inverter market experienced record growth in 2008, growing by 95% to reach US$2.5 billion. Despite a contraction this year, IMS Research expects growth to return in 2010 and exceed US$4 billion in the next five years.