Inverter Market is predicted to reach USD 56.56 billion at a CAGR of 16.30% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Inverter Market”.

The Inverter Market is estimated to register a CAGR of 16.30% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Inverter Market— Huawei Technologies Co., Ltd. (China), SUNGROW (China), SMA Solar Technology AG (Germany), Power Electronics S.L. (Spain), Fimer Group (Italy), SolarEdge (Israel), Fronius International GmbH (Austria), Altenergy Power System Inc., (US), Enphase Energy (US), DARFON (China).

Market Highlights

The global Inverter Market is accounted to register a CAGR of 16.30% during the forecast period and is estimated to reach USD 56.56 billion by 2032.

The primary factors fueling the expansion of the global inverter market include the rising installation of solar power systems and the escalating demand for energy-efficient solutions in industrial automation. Furthermore, the growth of the infrastructure supporting charging stations worldwide has aided in the increase in sales of electric cars. Producers in the sector are always trying to make their products bigger and more effective. The concept of combining an inverter with a motor or converter is drawing more attention from automakers.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Inverter Market Trends

Segment Analysis

The global Inverter Market has been segmented based on Output Power Rating, End User, Type, Output Voltage, Connection Type, and Sales Channel.

Based on the Output Power Rating, the market is segmented into Below 10 kW, 10-50 kW, 51-100 kW, and Above 100 kW. The 51-100 kW segment was attributed to holding the largest market share in 2023. The 51-100 kW segment of the inverter market primarily serves commercial and industrial sectors, encompassing medium-sized businesses, factories, warehouses, and large-scale commercial facilities. With these industries increasingly embracing solar power systems to lower energy expenses and carbon footprints, the need for inverters within this capacity range is witnessing a surge.

Based on the End User, the Inverter Market has been segmented into Residential, Photovoltaic (PV) Plants, Automotive, and Others. The Residential segment was expected to hold the largest market share in 2023. Solar panels, when installed on building rooftops, receive consistent sunlight throughout the day, leading to a rise in demand for solar inverters in the residential sector. Additionally, the solar energy industry has witnessed substantial growth over the past decade, with projections indicating continued expansion in the coming years due to heightened investments in renewable energy worldwide.

Based on the Type, the Inverter Market has been segmented into Solar inverter, Vehicle inverter, and Others. The Solar inverter segment was expected to hold the largest market share in 2023. Solar inverters play a crucial role in both residential and commercial installations by converting photovoltaic-generated DC into usable AC, aligning with the increasing focus on sustainable practices. The growth of this market is propelled by government subsidies, declining solar panel expenses, and heightened environmental awareness. As the global transition towards clean energy solutions accelerates, the demand for effective solar power integration continues to rise, underscoring the ongoing significance of the solar inverter market.

Based on the Output Voltage, the Inverter Market has been segmented into 100-300 V, 301-500 V, and Above 500 V. The Above 500 V segment was expected to hold the largest market share in 2023. Grid-forming inverters with capacities above 500 V are frequently employed in utility-scale renewable energy ventures, such as expansive solar and wind farms. These inverters possess the capability to manage high power capacities and effectively integrate generated electricity into the grid. The market for above 500 V grid-forming inverters has been experiencing notable expansion, driven by the rising adoption of large-scale renewable energy initiatives and the demand for high-capacity inverters to accommodate such projects.

Based on the Connection Type, the Inverter Market has been segmented into Standalone and Grid-tied. The Grid-tied segment was expected to hold the largest market share in 2023. Grid-tied inverters are indispensable components within grid-tied solar systems, which are gaining popularity among residential, commercial, and utility-scale consumers. These systems seamlessly integrate solar energy with the grid, allowing users to utilize solar-generated electricity and even feed surplus power back into the grid. As the adoption of solar energy grows among individuals, businesses, and utilities due to its cleanliness and cost-effectiveness, the demand for grid-tied inverters naturally increases.

Based on the Sales Channel, the Inverter Market has been segmented into Direct and Indirect. The direct segment was expected to hold the largest market share in 2023. Direct sale channels frequently furnish comprehensive product details, specifications, and customer feedback, empowering purchasers to make well-informed buying choices. Manufacturers can also engage directly with customers, providing technical assistance, advice, and warranty details, thereby fostering transparency and confidence in the purchasing journey.

Regional Analysis

The global Inverter Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The Europe Inverter Market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Inverter Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Inverter Market comprises the Middle East, Africa, and Latin America.

The largest market share for the Inverter Market was maintained by the North American regional sector. The region is witnessing a notable increase in renewable energy projects, particularly in solar and wind energy, propelled by government initiatives, tax incentives, and environmental concerns. In the United States, onshore wind resources have a potential capacity of nearly 11,000 GW, with a current installed capacity of 140.9 GW. Similarly, offshore wind resources have a potential capacity of 4,200 GW, with a current capacity of 42 MW, and a development pipeline containing over 40,000 MW of capacity in projects as of 2022. The United States is experiencing widespread adoption of clean energy solutions, leading to a growing demand for inverters in solar installations. 

The U.S. Department of Energy’s SunShot Initiative aims to halve the price of solar energy by 2030, with projections indicating that 33% of U.S. electricity demand will be met by solar power and a corresponding 18% decrease in greenhouse gas emissions from the electricity sector by 2050. Moreover, advancements in smart grid technology and the electrification of industries are contributing to the increased deployment of inverters. The rising adoption of electric vehicles (EVs) is further driving demand for inverters in charging infrastructure. As consumers and businesses in North America prioritize sustainability, the inverter market is experiencing rapid growth, with technological innovations and regulatory support playing pivotal roles in shaping the region's evolving landscape for clean energy solutions.

Moreover, the Europe market has been persistently growing over the forecast period. In Europe, there has been a notable rise in the adoption of grid-forming inverters, spurred by the region's heightened emphasis on integrating renewable energy and modernizing the grid infrastructure. These inverters are now fundamental elements of Europe's evolving energy framework, facilitating the incorporation of renewable energy sources and bolstering grid stability and resilience. In 2022, the proportion of energy consumed in the EU derived from renewable sources reached 23%, up from 21.9% in 2021, primarily attributed to significant growth in solar power. The power sector saw the highest penetration of renewables in 2022, accounting for 41.2% of all electricity generated, followed by the heating and cooling sector at 24.9% and transport at 9.6%.

The growth of the industry in the Asia-Pacific can be attributed to the presence of numerous key players and the availability of manufacturing facilities in the region. Furthermore, the increase in the use of inverters in the commercial and industrial sectors has driven industry expansion. According to the International Renewable Energy Agency (IRENA), countries such as China, Japan, India, and Australia in the Asia-Pacific region rank among the top ten globally in terms of installed solar energy capacity, thereby stimulating the global growth of the inverter market. Additionally, the International Energy Agency (IEA) projects that India's installed renewable energy capacity will reach 174 GW by 2023, accounting for approximately 37% of the country's total energy supply. The report highlights that India has surpassed its target of installing 175 GW of renewable energy capacity by 2022, with an estimated capacity of 280 GW by 2025.

Furthermore, the rest of the world's Inverter Market is divided into the Middle East, Africa, and Latin America. The Middle East and Africa region has witnessed significant growth in the inverter market due to the rising electricity demand and the expansion of renewable energy infrastructure. In South America, the International Renewable Energy Agency (IRENA) reported an addition of 18.2 GW of capacity in 2022, marking a 7.4% year-on-year increase. The market for inverters in Latin America is experiencing moderate growth, driven by the increased adoption of solar energy installations and the development of renewable energy infrastructure in countries such as Brazil, Mexico, and Chile. Between 2015 and 2022, Latin America saw a 51% increase in its renewable capacity, leading to 64% of electricity generation from renewable sources in 2022.

Key Findings of the Study

• The global Inverter Market is expected to reach USD 56.56 billion by 2032, at a CAGR of 16.30% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market because of the increased adoption of energy systems from renewable sources, as well as rising electricity demand in emerging countries.


• Based on End User, the Residential segment was attributed to holding the largest market in 2023, with an approximate market share of 55–60%.


• Huawei Technologies Co., Ltd. (China), SUNGROW (China), SMA Solar Technology AG (Germany), Power Electronics S.L. (Spain), Fimer Group (Italy), SolarEdge (Israel), Fronius International GmbH (Austria), Altenergy Power System Inc., (US), Enphase Energy (US), and DARFON (China) are the key market players.