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Solar Inverter Market Size, Share, and Analysis, By Type (Central Inverter, String Inverter, Micro Inverter, and Others), By Connection Type (On-grid and Off-grid), By Application (Residential, Automotive, Commercial & Industrial, Utilities, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2023-2032
Solar Inverter Market is projected to grow at a CAGR of 10% in the forecast period (2023-2032), with the market size valued at USD 13.15 billion in 2022 and projected to reach USD 34.2 billion by 2032.
Solar Inverter is an essential component within photovoltaic systems which is responsible for converting the direct current (DC) electricity generated by solar panels into alternating current (AC) power suitable for powering homes and supplying excess energy into the electrical grid. Solar inverters are available in various types, such as string, micro, central, hybrid, and battery inverters, each suited to specific applications. When selecting an inverter, it's crucial to consider factors like efficiency, real-time monitoring capabilities, grid compatibility, safety features, appropriate sizing, durability, warranty, integration with solar panel system, and compliance to local regulations. Selecting the right solar inverter is important for optimizing the efficiency, reliability, and overall performance of a solar power system.
Solar Inverter Market is anticipated to reach USD 34.2 billion, growing at a CAGR of 10% during the forecast period owing to the increasing global adoption of solar energy solutions. The factors responsible for this expansion include the decreasing costs of solar panels, government incentives supporting renewable energy, and a growing focus on clean energy alternatives. Residential installations primarily favour string inverters, while commercial and utility-scale projects are increasingly turning to central and microinverters. Additionally, there is a rising demand for hybrid inverters that seamlessly integrate solar power with energy storage systems. Continuous technological developments, such as increased efficiency and advanced monitoring features, also support the market's upward trend.
Source: Fatpos Global
By Application, the Solar Inverter Market is segmented into Residential, Automotive, Commercial & Industrial, Utilities, and Others. The automotive segment is set to experience substantial growth, with a specific focus on vehicle inverters, due to the increasing adoption of electric vehicles. The global push towards sustainability and clean energy solutions may lead to increased interest in solar-powered electric vehicles, creating a great demand for solar inverters in the automotive sector. Continuous advancements in solar technology, such as more efficient and flexible solar panels, could make it more feasible to integrate solar solutions into vehicles, further driving the demand for solar inverters in the automotive industry.
Based on Type, the market is divided into Central Inverter, String Inverter, Micro Inverter, and Others. Central inverters are dominating the market for their reliability and secure installation in various settings, such as field installations, industrial facilities, and buildings Central inverters typically have a centralized design, with the entire solar array connected to a single inverter unit. This design gives efficiency benefits and cost advantages for large-scale installations. Central inverters are particularly well-suited for utility-scale solar projects where upfront costs and efficiency at scale are crucial considerations.
Source: Fatpos Global
Increasing Number of Solar Installation Due to Government Subsidies Will Fuel Market Expansion
Solar energy sector is witnessing rapid growth, driven by developments in power generation and utilization. Solar power is becoming the fastest-growing renewable energy source, contributing significantly to global renewable capacity. Governments worldwide are implementing various initiatives to promote inverter use in industrial applications. Additionally, governments offer feed-in tariffs (FiT) to encourage residential and small commercial PV installations in different countries. These policies have promoted growth in the inverter market, particularly in the solar inverter segment.
Expanding Demand for Electric Vehicles to Support Market Growth
In the automotive industry, inverters play a crucial role, particularly in electric vehicle (EV) powertrains, where they convert DC power from vehicle batteries into usable AC power. This AC power is essential for running various onboard electronic systems and vehicle motors. The automotive sector is currently undergoing significant technological advancements, with a strong emphasis on connected, autonomous, and electric vehicles. The electric vehicle market is witnessing substantial growth on a global scale, primarily due to strict environmental laws and growing customer demand for electric vehicles. Government initiatives aimed at achieving ambitious EV adoption targets and the implementation of favorable laws have led to reduced EV costs, increased vehicle ranges, and improved charging infrastructure, all contributing to the rising demand for electric vehicles.
High DC Voltages May Provide Safety Risks That Hinder Market Expansion
In traditional photovoltaic (PV) systems, the use of high DC voltages in PV panels and associated equipment presents safety concerns for technicians, maintenance personnel, and firefighters. Solar inverters connected to PV arrays also operate with these high DC voltages, making it complex to separate DC electrical components from PV arrays using DC isolation switches. When PV modules are connected in series, they generate high voltages, which can be hazardous during system installation. Short-circuit conditions may result in electric arcs, potentially causing fires and endangering people near the PV system. Extinguishing these DC arcs is challenging and presents risks to firefighters. Fires can also damage DC cables in PV arrays, leading to automatic inverter shutdowns while requiring manual isolation of DC cables and other components.
Solar Inverter Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region is expected to take a leading position in the global inverter market between during the forecast period, followed by North America and Europe. This popularity is a direct result of significant developments in the renewable energy sector, driven by active climate change initiatives and ambitious net-zero targets, which are driving demand for inverters across the region. Additionally, the increased investments in photovoltaic (PV) installations, a rising number of installations in residential sectors, and a notable shift towards electric vehicles in countries such as China, India, Australia, and Japan are key factors fueling the strong growth of the inverter market in Asia Pacific. These dynamics underscore the region's essential role in promoting renewable energy technologies and achieving sustainability goals.
Source: Fatpos Global
Global COVID-19 pandemic had an enormous effect on the global economy. It disrupted supply chains, leading to price increases for components and raw materials. In contrast, the solar PV industry saw a positive influence on its installation trends in 2020, mainly due to supportive government programs such as Feed-in Tariffs (FiTs) and an accelerated adoption of rooftop installations. Additionally, industrialized economies responded to the ongoing effects of the pandemic by accelerating the development of their existing solar PV projects. This proactive approach has further strengthened the solar PV sector amidst the challenges posed by the COVID-19 crisis.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2022-2032 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 10% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Connection Type |
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By Application |
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By Region |
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Solar Inverter Market size was values at USD 13.15 billion in 2022 and is projected to reach the value of USD 34.2 billion in 2032, exhibiting a CAGR of 10% during the forecast period.
The solar inverter market is the industry that produces devices to convert solar panel-generated DC power into usable AC electricity for various applications.
The Automotive segment and the Central Inverter segment accounted for the largest Solar Inverter Market share.
Key players in the Solar Inverter Market include SMA Solar Technology AG, ABB Group, Huawei Technologies Co., Ltd., Fronius International GmbH, SolarEdge Technologies, Inc., Enphase Energy, Inc., Delta Electronics, Inc., Schneider Electric, Sungrow Power Supply Co., Ltd., KACO New Energy GmbH, Ginlong Technologies (Solis), GoodWe Power Supply Technology Co., Ltd., Growatt New Energy Technology Co., Ltd., Chint Power Systems Co., Ltd., TMEIC, and Other Prominent Players.
Increasing number of solar installation due to government subsidies and expanding demand for electric vehicles are the factors driving the Solar Inverter Market.
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