New Renewable Energy Policies to Negatively Impact Solar and Wind Frequency Inverters Market in Europe, Cautions Frost & Sullivan
Despite immediate challenges, benefits of energy optimisation, lower maintenance costs and higher ROI will ensure continued product uptake
LONDON, Feb. 8, 2013 /PRNewswire/ -- Policy changes in the renewable energy sector and the ongoing debt crisis are set to have a profound impact on the market for frequency inverters in the solar and wind energy industries across Europe. While the reduction in subsidies is expected to dampen the European market in the near future, low maintenance costs and the promise of high returns on investment (ROI) will buoy frequency inverter market revenues during this turbulent phase. Unlike Europe, the market is expected to see strong growth in other regions such as Asia and North America.
New analysis from Frost & Sullivan (http://www.motors.frost.com), Strategic Analysis of the Frequency Inverters Market in Solar and Wind Energy Industry, finds that frequency inverters in the global solar and wind energy markets earned $6.00 billion and $2.84 billion, respectively, in 2011. Frequency inverters are estimated to rack up $ 14.58 billion in the solar industry and $7.09 billion in the wind industry by 2018.
Policy changes in Europe are predicted to hike taxes and reduce subsidies and investment in the renewable energy sector in the next 2 years. The increase in feed-in tariffs could discourage investment in the renewable energy sector.
"The impact of such changes on the frequency inverters market will be high during the short-term and moderate during the medium- and long-terms," cautioned Frost & Sullivan Industrial Automation and Process Control Practice Industry Analyst Sivakumar Narayanaswamy. "Market participants are planning to adapt to this new policy landscape by streamlining operational costs and developing sustainable strategies."
Both solar and wind frequency inverter manufacturers are also grappling with falling investments due to the debt crisis. In this scenario, the lower maintenance costs and higher ROI of frequency inverters will prove beneficial in encouraging continued uptake.
"Solar inverters are highly durable and have lower lifecycle costs, which help reduce maintenance costs by 10 per cent compared to other inverter products," noted Narayanaswamy. "Lower maintenance costs will make these inverters more cost-effective for customers."
Similarly, wind inverter products have an average lifespan of 8-10 years. Efforts to further enhance product quality and durability will reduce maintenance costs, supporting cost savings for customers.
Rapid ROI will be another factor motivating the continued demand for both solar and wind frequency inverters. These products enable energy optimisation, boosting energy savings for customers.
If you are interested in more information on this study, please send an e-mail with your contact details to Julia Nikishkina, Corporate Communications, at [email protected].
Strategic Analysis of the Frequency Inverters Market in Solar and Wind Energy Industry is part of the Power Transmission Growth Partnership Service programme, which also includes research in the following markets: Advanced Motion Controllers in Europe, Repairs and Refabrication Market for Electric Drives in Europe, Motor Management and Control Devices and, European Market for Integrated Motors and Drives. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation
Strategic Analysis of the Frequency Inverters Market in Solar and Wind Energy Industry
M851-17
Contact:
Julia Nikishkina
Corporate Communications – Europe
P: +7 (499) 918 6146
E: [email protected]
SOURCE Frost & Sullivan
Share this article