Solar Inverter Market Size, Share, Growth and Industry Analysis, By Type (Central Solar, String Solar, Micro Solar Inverter), By Application (Residential and Commercial), and Regional Forecast to 2032.

Updated On: 20 November 2024

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SOLAR INVERTER MARKET REPORT OVERVIEW

The Solar Inverter Market Size was US$ 14600 Mn in 2023 and is projected to touch US$ 34417.62 Mn By 2032, Exhibiting a CAGR of 8.9% During the Forecast Period.

This growth is as a result of higher demand for photovoltaic (PV) products in the international market that is expected to be high because of improved technologies in solar and policies that support their use. China’s position in the PV industry on the basis of silicon wafers, cells, and components manufacture has added to the cause of the market as well. Similarly, solar inverters have gained increased traction across the world due to the increasing use of solar power systems in areas like Europe, the U.S, and Japan that are backed by favourable policies.

The cumulative installed Photovoltaic power generation at the end of 2022 was approximately 1180GW while that of new installations was around 230GW. Figures for the year 2023 has the newly installed photovoltaic capacity reaching between 280-330 GW. The increase of solar electricity generation and the improvements in the field of sun power have also driven the market for solar inverters. Several firms such as ABB, SMA Solar Technology, and SolarEdge Technologies are fully involved in innovations to create better and sophisticated solar inverters because of the constantly increasing demand for solar energy.

Covid 19 Impact: The COVID-19 has brought about changes with regards to individuals going out, holding of regular social meetings among other things.

Pandemic impacts the supply chain and as result slows down the solar inverter market Some reasons why such a view may be considered COVID-19 as a global pandemic Limited market expansion due to disrupted supply chains. The coronavirus pandemic is and was global, and the market has faced significantly low demand in all regions as compared to pre-covid times. This has been occasioned by the upward fluctuation of CAGR, which shows that the market has grown and became demanding again as it was before the pandemic.

The COVID-19 pandemic averts detrimentally regarded the solar inverter market across the world by Settling down the chains of supply of solar inverter and holds back the development of solar projects. Due to lockdowns and limitations on industrial activities, PV solar inverter production and shipment volumes were dramatically reduced in the short term. Yet the market showed a recovery in 2021 with the start of the recovery of the global economy, backed up by the renewed interest and more investment in clean energies and specifically, in solar power plants. Pandemic also brought focus on renewable energy, and consequently solar inverters; various governments and organizations set higher priority for green energy as part of their recovery agenda.

LATEST TRENDS

"Top Trends to Shape the Market in Future"

Solar inverters technology evolvement makes solar inverters even more efficient and compatible with smart electrical grids. Because of increasing innovation to increase solar inverter efficiency and compatibility with smart grid systems, the solar inverter market is growing rapidly. New advancements like; Artificial Intelligence based energy management and the Internet of Things smart inverters are facilitating the market and enhancing the power generation and distribution, minimizing energy wastage and offering the power flow supervision in real-time. Stating these advances make not exclusively enhances the efficiency of the solar power systems but also contribute to the development to the more robust and less rigid energy infrastructure.

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SOLAR INVERTER MARKET SEGMENTATION

By Type

• Central Solar Inverter: These are the large types of inverters mostly suitable for use in utility scale photovoltaic power generation systems. They are built to accommodate a large power capability, and are well suited for utility-scale solar power plants where the DO main power generated by several solar panels needs to be converted from DC to AC.

• String Solar Inverter: Employed in residential and commercial settings, these inverters are responsible for the manipulating the conversion of Direct Current for Alternating Current for strings of solar panels. They are flexible and their installation and maintenance costs are much lower than in central inverters.

• Micro Solar Inverter: These inverters are mounted on each of the solar panels in order to provide the best results with each of the panels. These are suitable for home usage where shading, or perhaps partial sunlight may affect some of the panels in a particular way.

By Application

• Residential: Solar inverters in residential applications are used where there is installation of solar PV system in homes to change DC power produced by the solar panels on the rooftops of homes to AC power for domestic use. This segment is expected to grow at a faster pace as people are getting aware of the solar energy for residential use and government offering subsidies to use solar for residential purpose.

• Commercial: In commercial solar system, solar inverters are used in business premises and industries to control complex solar systems. These inverters act as effective power converters and as interface with the existing electrical network saving energy costs and cutting down carbon footprints in various businesses.

• Utility: Utility power inverters are meant for the solar power stations that feed electricity straight into the utility companies. These inverters can manage high voltage levels and are vital in the functionality of big solar power stations.

DRIVING FACTORS

"Entry of new companies and hike in incentives benefit solar inverter market"

The market for solar inverters is affected by the government policies. In the states governments are providing incentives in the form of tax credits subsidies and grant to encourage the solar energy product or system. Because of such incentives, the cost of installing solar has been considerably lowered making it possible for residential or commercial users to embrace it. Due to the availability of financial support the solar inverter is being demands from across the globe and thus leads to the growth in the market of solar inverter. Further, favourable government policies that encourage the usage of fewer carbons and more renewable energy sources have also gone a long way in enhancing the demand for solar inverters.

"Solar inverter demand is stimulated by increasing consciousness about the environment and enhance energy"

The worry on environmental defence, particularly in harnessing the use of renewable energy and over-emphasis on energy saving has created the need for solar inverters. For this reason, individuals and businesses are searching for cleaner and renewable sources of energy to power the gadgets, and businesses in an effort to reduce the emission levels and the energy costs too. There are various advantages of using solar inverters, which include high efficiency and high reliability which are typical of current versions of the inverters. They also need green energy solutions which has driven them to adopt solar inverters more and more and therefore solar inverter market have an upward trend.

RESTRAINING FACTOR

"High Initial Cost Prevents Large Number of Consumers"

Another factor of consideration in the market of solar inverters is the factor of cost and it has been seen that the initial costs of acquisition can be very high and this acts as a discouraging factor for a number of consumers to include the solar inverters in their systems. These keep the initial costs extremely high, especially for those consumers in areas that have low access to credit facilities. This financial restriction slows the development of the solar inverter market, especially in the developing countries where price consciousness is higher.

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SOLAR INVERTER MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"China Region Influencing the Market Due to Widespread Production Abilities"

Solar inverter market share is also a function of regions, where Asia-Pacific Region with emphasis on China holds a major share. The Chinese have the largest manufacturing capacity for solar inverters and their government policies are supportive and more so they are the biggest consumers. Europe and North America also have large solar inverter market shares because of the support from the government and technological advancement that promotes the use of RE. The most obvious examples are the United States and Germany; both countries witnessed huge new PV installations in the past few years. New opportunities will be also discovered in Latin American and Middle Eastern countries as the demand for environmentally friendly energy solutions is increasing.

KEY INDUSTRY PLAYERS

"Leading Companies Driving Innovation and Growth"

Market leaders of the solar inverter market are witnessing continuous improvements in new products, securing partnerships and acquisitions. The main industry players include ABB, SMA Solar Technology and SolarEdge Technologies in which have a variety of solar inverters that can fit different projects from residential, commercial to utility scale. These companies are focusing on development of new and better inverters, which have higher efficiency, reliability and which are smart devices. Other players include Canadian Solar, SunPower and Delta Electronics that have contributed for the structure of competition in the market by introducing new products and enhancing the technologies in this industry.

LIST OF MARKET PLAYERS PROFILED

• ABB (Zurich, Switzerland)
• SMA Solar Technology (Germany)
• Canadian Solar (Canada)
• SolarEdge Technologies (Herzliya, Israel)
• SunPower (San Jose, California, USA)
• Seining Electric (Wuxi, China)
• Hitachi Hi-Rel Power Electronics (Gandhinagar, India)
• Power Electronics (Valencia, Spain)
• Schneider Electric (France)

INDUSTRIAL DEVELOPMENT

July 2023: Today the market of solar inverters is evolving fast as a result of innovation and rising investment in the development of renewable energy sources. Solar invert has additionally come into focus for the establishment of efficiency and effectiveness like the use of four hybrids inverters; combining the use of solar energy and others like batteries system. Moreover, through artificial intelligence and the internet of things the solar inverters being developed are supporting the real-time monitoring and controlling of the energy generation and consumption which in turn is helping the market to gain more popularity.

REPORT COVERAGE

Within the current report, you will find the data concerning the solar inverter market size and growth rate for different geographical regions, as well as information on key market players and their market shares. It has the variation of type, application and region analysis along with the description of industry players. The report also included the new trends, factors driving the solar inverter market and the challenges faced by the market for strategic decision making. In addition to the forecasts, the report also contains projections for the years 2024-2030 to clarify the future trends of the market.

Furthermore, the Covid-19 occasion has been examined in the context of the solar inverter market, with special reference to the challenges that the market observed due to the pandemic and its ongoing process of recuperation. In the report, technological aspect is analysed and crucial tips are given to apply for different stakeholders such as manufacturers, investors or policymakers regarding to evolve technologies in the solar inverter markets.