Reports - Photovoltaic Inverter Market
Photovoltaic Inverter Market Size, Share & Trends Analysis Report by Product (String PV inverter, Central PV inverter, Micro PV inverter, Others) by End-Use (Commercial & Industrial, Utilities, Residential) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Historic Data (2021 - 2023) & Forecast Period (2025 - 2035)
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USD 15.18 Billion
USD 91.1 Billion
17.70%
Asia Pacific
Asia Pacific
2024
2021 - 2023
2025 - 2035
By Product, By End-Use, By Region
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The global Photovoltaic Inverter Market is valued at USD 15.18 Billion in 2024 and is projected to reach a value of USD 91.1 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 17.70% between 2025 and 2035.
Asia Pacific accounted for a revenue share of 45.3% share in 2024. Factors such as, scalability, cost-effectiveness, and a focus on energy-efficient inverters across residential and commercial sectors are propelling the growth of the Photovoltaic Inverter Market in this region. China stands as the primary driver for the expansion of the Photovoltaic Inverter market within this region and holds a substantial position as a global competitor. The proliferation of solar installations in developing nations has notably bolstered market growth in the area. As per the Energy Information Administration (EIA), solar and wind power jointly accounted for 12% of Chinas electricity generation in 2021. Similarly, as reported by the Ministry of New and Renewable Energy, by the conclusion of 2022, the installed capacity of solar power had surged to approximately 61.97 GW. Additionally, the Asia Pacific Photovoltaic Inverter market is expected to witness growth in various segments, such as single-phase PV inverters, on-grid PV inverters, and ≤ 0.8 kW PV inverters, driven by factors like shifting consumer focus towards clean energy solutions and the need for energy independence.
The United States stands out as a prominent market for various types of Photovoltaic Inverters. Recent trends in inverters within the country include the prevalence of three-phase string inverters with capacities exceeding 60 kW and central inverters with capacities surpassing 1.5 MW. According to the Solar Energy Industries Association, the U.S. saw a cumulative installation of 153 GWdc of solar capacity in the first half of 2023, with expectations to reach approximately 375 GWdc by 2028. Notably, photovoltaic solar (PV) installations represented around 54.0% of total new electricity-generating capacity additions in the first quarter of 2023. This surge in solar PV adoption is expected to serve as a significant driving force for market expansion in the U.S. throughout the forecast period.
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The global Photovoltaic Inverter market can be categorized as Product, End-use, and Region.
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Segment Covered | By Product
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In 2024, String PV inverter generated a significant revenue share of 49.2%. The Product segment is divided into String PV inverter, Central PV inverter, Micro PV inverter, and others. These inverters offer high reliability & timely maintenance and are adaptable to placement in secure locations during installation. They are seamlessly integrated into expansive arrays found in field installations, industrial facilities, and buildings, where they collect DC power from all PV panels and convert it into AC power, serving as a central point for power distribution. Ease of installation and minimum initial cost are considered as a primary driver for the segmental growth of the Photovoltaic Inverter Market. These inverters are sturdy and offer significant design flexibility, high efficiency, various three-phase configurations, and reliable support from trusted brands. Additionally, they provide capabilities for remote system monitoring. In September 2023, WattPower announced the opening of a new solar inverter factory in Chennai, India, with an annual production capacity of 10 GW. The company will focus on manufacturing string PV inverters at this new facility.
The utilities segment dominated the Photovoltaic Inverter market with revenue share of 47.2% in 2024. The End-Use segment covers Commercial & Industrial, Utilities, and Residential. The predominant Photovoltaic Inverters utilized in the utility sector are central and string inverters. Escalating requirement for renewable energy, the decreasing costs of solar power and equipment, and the emergence of government subsidies are some major factors responsible for the segmental growth of the Photovoltaic Inverter Market. Leading industry players are instrumental in providing consumers with cutting-edge utility-scale solutions, aimed at enhancing efficiency and reducing balance-of-system costs through their pre-integrated power stations, thus propelling segment growth. This trend is anticipated to persist throughout the forecast period. Utility-scale solar projects necessitate dependable, potent, and scalable infrastructure, with central and string inverters being extensively employed in this regard. Companies like SMA Solar Technology AG, Delta Electronics, Inc., Fimer Group, Hitachi Hi-Rel Power Electronics Private Limited, and other prominent players are actively involved in the manufacturing of string and central Photovoltaic Inverters.
The significant investments in the energy sector projected by the International Energy Agency, totaling USD 2.8 trillion in 2022 reached USD 2.4 trillion in 2023, is augmenting the growth of the Photovoltaic Inverter Market in recent years. Of this investment, over USD 1.7 trillion is allocated towards renewable power, grids, storage, and other clean energy initiatives. This surge in investment, particularly in renewables and grids, is reflecting a growing focus on clean energy solutions. Although there has been an encouraging increase in clean energy investment since the signing of the Paris Agreement in 2015, with a yearly average growth rate of over 2%, the current rate of 12% since 2020 falls short of meeting international climate objectives. China emerged as the leading investor in clean energy in 2021, with USD 380 billion, followed by the European Union with USD 260 billion and the US with USD 215 billion. These substantial investments signal a promising outlook for the Photovoltaic Inverter Market.
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Renewable Energy Policies boost the Photovoltaic Inverter Market growth
Rising demand for the renewable energy sources in developing countries such as the US, Japan, India, and China is responsible for the growth of the Photovoltaic Inverter Market. The major focus of revising energy policies in these countries to prioritize renewable energy, including wind and solar power offers significant financial backing from government bodies. As a result, investments in the global renewable energy sector are on the rise, with over USD 1.7 trillion allocated towards clean energy initiatives such as renewables, grids, storage, and efficiency improvements. According to the International Energy Agencys 2022 estimates, total energy investments are reached USD 2.8 trillion in 2023, with clean energy investments leading the way. This substantial shift towards clean energy investment, where for every dollar spent on fossil fuels, 1.7 dollars are invested in clean energy, presents a favorable landscape for the Photovoltaic Inverter market. The growing demand for renewable energy, coupled with initiatives focused on grid modernization and energy storage, creates significant opportunities for inverter manufacturers. Moreover, favorable policies and improved economics further enhance the attractiveness of clean energy investments, positioning technologies like inverters as crucial components in driving the transition towards a sustainable energy future.
The Photovoltaic Inverter Market growth is propelled by the surge in Electric Vehicle adoption
The Photovoltaic Inverters plays a pivotal role in automotive applications particularly within Electric Vehicle (EV) powertrains in order to convert DC power from vehicle batteries into usable AC. These inverters serve to power the onboard electronic systems and motors of vehicles. The electric vehicle market is primarily dominated by China, accounting for nearly 60% of global electric vehicle sales currently and has surpassed its 2025 target for new energy vehicle sales and boasting over half of all electric vehicles globally. In Europe, the second-largest market, electric car sales surged by over 15% in 2022, indicating that more than one in every five automobiles sold was electric. Meanwhile, the United States, the third-largest market, experienced a remarkable 55% increase in electric car sales in 2022, achieving an 8% sales share.
The Photovoltaic Inverter market is characterized by high competitiveness and moderate fragmentation, attributed to the presence of numerous market players. A dominant trend among solar companies involves vertical integration, serving to defend against market power and mitigate competition. Key factors determining competitiveness in the Photovoltaic Inverter industry include technology sourcing, access to skilled manpower, and robust research and development capabilities. Furthermore, the development and introduction of innovative products are central strategies for market players. For example, in January 2023, SOFARSOLAR Co., Ltd. unveiled its latest offering, the SOFAR 100-125KTL-G4 inverter, featuring industry-leading ultra-high current, easy installation, and intelligent protection. Similarly, LG Energy Solution Ltd., a South Korea-based battery manufacturer, introduced new hybrid inverters tailored for residential applications in the European market in July 2023.
The key players in the global Photovoltaic Inverter market include - Delta Electronics Inc among others.
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