Solar Inverter Market to Reach Valuation of USD 12.93 Billion by 2028 - The rapidly Growing Demand for Renewable Energy, Continuing Rural Electrification, Favorable Government Regulations, and Investments in Renewable Energy are Driving the Solar PV Inverter Industry

Vantage Market Research

Jun 02, 2022

From the period of 2022 to 2028, the Global Solar Inverter Market is expected to reach USD 12.93 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 8.5%.

Since it converts DC power from solar panels to AC power, the Solar Inverter is an essential component of a solar system. Solar inverters track voltage, communicate with the grid, and shut down in an emergency, among other functions. On-grid solar inverters produce a purer sine wave of AC energy than off-grid inverters, ensuring home equipment safety and efficiency. Furthermore, while solar inverters are most commonly used in residential and utility applications, they are increasingly being used in commercial and industrial projects around the world. The market is also growing as a result of the growing number of solar power plants that are connected to the grid using on-grid inverters and feed-in tariff (FIT) rules. Furthermore, as the demand for energy grows year after year, so does the demand for other renewables like solar energy and equipment. Since the decline in gas prices in 2021, alternative energy, notably wind and solar, has been put on the back burner, and the trend has spread across various businesses.

Key Highlights from the Report

  • The market is divided into three categories based on product type: central inverter, string inverter, and micro inverter. The central inverter had the highest earning share in 2021. When properly maintained and installed in a secure location, these inverters are incredibly trustworthy. The inverters are connected to massive arrays installed on field sites, industrial facilities, and buildings, converting DC power from all PV panels into AC power and acting as a single point of power distribution.

  • On-grid and Off-grid connections are the two types of connections available on the market. In 2021, the on-grid segment dominated the Solar Inverter Market. This is due to increased investments in electricity and power generation. The on-grid solar (PV) inverter is cost effective in nature. On-grid solar (PV) inverters are mostly found in residential areas.

  • Asia Pacific is the fastest regional segment in terms of growth. China is a prominent global rival as well as a big contributor to the solar market's rapid expansion in this region. A growing number of solar installations in developing countries has also contributed to the market's growth. The Solar Inverter Market is being driven by increased investments in industrial automation solutions, increased emphasis on regulations that demand operational and workforce safety, expansion of power generation capacity of plants, electrification of the transportation sector, and reduction in the production and operational costs of power plants due to technological advancements in APAC's emerging economies.

Market Dynamics:

Increasing String Inverter Usage Across the Commercial and Utility Sectors

Residential, commercial, and industrial uses, as well as large-scale utility projects, can all benefit from string inverters. Individual connections with a single PV module are possible with these inverters, resulting in cheaper costs and fewer failure rates. In comparison to its competitors, rising regulatory concerns about the availability of appropriate interconnection with on-grid solar projects will enhance deployment possibilities. Furthermore, these products have excellent operational feasibility across a wide range of applications, such as auxiliary line support, power backup, and so on, stimulating the industry landscape even more.

Growing House Renovation Projects and Net Metering Schemes

A growing trend toward a combination of rigorous energy efficiency and renewable energy sources is expected to boost the economy. Product acceptance has increased in the residential and small business sectors, which can be ascribed to expanding investments in rooftop solar installations along with rising worldwide energy consumption. Furthermore, many government initiatives, including trade investments across developing countries, are expected to have a positive impact on industrial expansion. For example, the Chinese government announced plans in June 2021 for a new policy initiative to support rooftop growth in large countries with more than 20% rural population.