Solar Inverter Market Size, Share, and Trends 2024 to 2034

Solar Inverter Market Size to Reach USD 22.61 Bn by 2032

The global solar inverter market size was valued at US$ 10.33 billion in 2022 and it is expected to hit over US$ 22.61 billion by 2032 with a registered CAGR of 8.2% from 2023 to 2032.

Growth Factors

The solar inverter helps to provide electricity in areas such as industrial, commercial, and residential. The solar (PV) inverter can be connected as on-grid or off-grid. The types of solar (PV) inverter are central inverter, string inverter, and micro inverter. The global solar (PV) inverter market is expanding due to rapid expansion of the renewable energy sector. The growing demand and need for green and clean energy are driving the growth and development of global solar (PV) inverter market over the projected period. The government of developed and developed regions is taking initiatives to curb the impact of the carbon emissions and greenhouse gas emissions.

The string solar (PV) inverter are adopted in all areas and utilities as it is effective and incurs low failure rates while operating and maintaining in large buildings. The string solar (PV) inverter is also low in cost as compared to other types of solar (PV) inverters. The implementation of solar (PV) inverter is feasible in nature as it has good power back up. Due to infrastructural development and growing number of construction and building projects, the demand for solar (PV) inverter is growing at a rapid pace. Another factor that is boosting the expansion of the global solar (PV) inverter market is the growing number of home loans and home renovation projects in developed and developing regions. Moreover, due to low cost and tax benefits provided by solar (PV) inverter, the business owners are accepting and adopting solar (PV) inverter on a large scale. As a result, all these factors are driving the demand for solar (PV) inverter in the global market.

The main target market for solar (PV) inverter is commercial and industrial areas. The growing consumer awareness regarding solar (PV) inverter and growing environmental concerns is creating importance for the solar (PV) inverter globally. The solar (PV) inverter is considered as integral part for electricity generation. The solar power is free and is abundant in nature. The production and manufacturing process of solar (PV) inverter is quite easy for key market players. It is also beneficial for end users as it does not involve any further cost except installation cost and operating cost. Financially, this is very feasible in nature and is in high demand all over the world.

Solar Inverter Market Scope

In addition, the technological advancements and innovation in technology is creating growth and development prospects for the solar (PV) inverter market globally. The new and advanced features are being applied to the solar (PV) inverters. This is helping end users to cope up with the high demand for electricity. The hot prone region is considered as important and profitable region for the installation of the solar (PV) inverter. Thus, this is propelling the growth and development of the global solar (PV) inverter market during the forecast period.

The demand for the rural electrification, technological advancements, higher renewable energy investments, and rising government support are all driving the solar (PV) inverter market. The aggressive expansion activities, contracts, and new product innovations to increase the product offerings of major market players will support the solar (PV) inverter market growth. The new product launches by key market players related with improved communication, faster installation, and low shipping costs, and increased reliability and efficiency. All of these aforementioned trends and factors are driving the growth of the global solar (PV) inverter market over the projected period.

Product Type Insights

The central inverter segment dominated the market with share of 49.5% in 2022. The central solar (PV) inverter is widely applicable in industries. This type of inverter is used in huge buildings and industrial centers. The solar panels are installed in the rooftops of buildings which enables the smooth power supply.

The string inverter segment is fastest growing segment of the solar (PV) inverter market in 2021. The installation of string inverters is economic friendly and it is easy to install in commercial and residential areas. This type of solar (PV) inverter is effective and efficient in nature.

Connection Type Insights

In 2022, the on-grid segment dominated the solar (PV) inverter market. This is due to growing investments in the electricity and power generation. The on-grid solar (PV) inverter is cost effective in nature. The on-grid solar (PV) inverters are mostly installed in residential areas.

The off-grid segment, on the other hand, is predicted to develop at the quickest rate in the future years. The off-grid solar (PV) inverters are increasingly common and often come with a backup power supply. The solar (PV) inverters that are not connected to the grid are known as off-grid inverters.

End User Insights

The utilities segment accounted market share of 44% in 2022. The factors such as surge in demand for renewable energy and rising government initiatives are driving the growth of the segment. In addition, the solar (PV) inverter is cost effective solution for various utilities.

The residential segment is fastest growing segment over the forecast period. The people living in residential areas use large number of home gadgets and appliances. It means that the people require more amount of electricity for these gadgets. This factor is creating demand for electricity in residential areas on a large scale. Thus, the expansion of the segment is expected due to this factor.

Region Insights

Asia-Pacific accounted largest revenue share of around 43% in 2022. The factors such as rising government initiatives and presence of major market players in the region are propelling the expansion of solar (PV) inverter market in Asia-Pacific.

North America is expected to develop at the fastest rate during the forecast period. The U.S. dominated the solar (PV) inverter market in North America region. The U.S. is dominating the solar (PV) inverter market in North America region. Since few years, the region has seen substantial growth in the sales of central inverter and string inverter.

Key Developments

• Deye Inverter Technology Co. Ltd, a leading producer of solar inverters and hybrid inverters will introduce its innovative hybrid inverter in Europe in December 2020. A three-phase hybrid inverter with an output of 8/10/12KW. High compatibility with diesel generators, smart loads, and grid peak shaving are just a few of its important features.
• Solarvest Holdings BHD announced in February 2021 that it had declared MOUs to procure inverters with Huawei Technologies SDN BHD and Sungrow Power Supply Co. Ltd.

Solar Inverter Market Companies

• Omron Corporation
• ABB Ltd
• Mitsubishi Electric Corporation
• Siemens AG
• Schneider Electric SE
• SMA Solar Technology AG
• Delta Electronics Inc.
• SunPower
• Hitachi Hi-Rel Power Electronics Pvt. Ltd
• Power Electronics S.L.

Segments Covered in the Report

By Product Type

• Central Inverter
• String Inverter
• Micro Inverter
• Others

By Connection

• On-grid
• Off-grid

By Phase

• Single phase
• Three phase

By End User

• Residential
• Commercial
• Industrial
• Utilities

By Nominal Power Output

• ≤ 0.5 kW
• 0.5 - 3 kW
• 3 - 33 kW
• 33 - 110 kW
• 110 kW

By Nominal Output Voltage

• ≤ 230 V
• 230 - 400 V
• 400 - 600 V
• 600 V

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa