Battery Storage Inverter Market

Rapid growth and technological innovation is driving the market growth

The market for power conversion systems (PCS) has emerged as a key enabling technology for the best grid integration due to its rapid expansion and technological advancement. As a result, energy storage battery inverters are now widely used throughout the world. Electronic devices known as energy storage inverters are used to change direct current (DC) into alternative current (AC). The primary drivers causing the rapid growth of the renewable energy sector are government encouragement for the quick deployment of renewable energy projects to reduce rising carbon emissions and declining air quality levels.

Inverters are necessary because power outages are becoming more frequent in nations with shoddy electrical infrastructure. This is yet another important element fueling the market for energy storage inverters.

To meet the rising demand in the market, several market participants are aiming to strengthen their position and broaden their production capacities. Utility-scale is expected to experience the fastest CAGR growth throughout the course of the projected period. As massive PV projects are constructed all over the world over the next several years, it is projected that this market would grow dramatically. Centre and string solar inverters are frequently used in solar PV power facilities. The utility-scale segment is likely to grow, which would enhance the market for battery storage inverters.

The Global Battery Storage Inverter Market Industry is poised for substantial growth, with projections indicating a market value of 12.5 USD Billion in 2024 and a remarkable increase to 45 USD Billion by 2035. This trajectory suggests a compound annual growth rate (CAGR) of 12.35% from 2025 to 2035. Such growth is driven by various factors, including technological advancements, increasing demand for renewable energy, and supportive government policies. The market's expansion reflects the broader transition towards sustainable energy solutions and the critical role that battery storage inverters play in this evolution.

The increasing need for energy storage solutions is a significant driver of the Global Battery Storage Inverter Market Industry. As energy consumption patterns shift and peak demand periods become more pronounced, the necessity for efficient energy storage systems becomes evident. Battery storage inverters facilitate the management of energy supply and demand, ensuring that excess energy generated during low-demand periods can be stored for later use. This capability is particularly crucial in regions with high renewable energy penetration. The market's growth is further supported by the projected increase in energy storage capacity, which is expected to align with the anticipated market value of 45 USD Billion by 2035.

The growing adoption of electric vehicles (EVs) significantly impacts the Global Battery Storage Inverter Market Industry. As EVs become more prevalent, the demand for efficient charging infrastructure and energy management systems rises. Battery storage inverters are integral to this infrastructure, enabling the efficient conversion and storage of energy for EV charging. The synergy between battery storage systems and EVs not only enhances grid stability but also promotes the use of renewable energy sources for charging. This interconnection is likely to drive market growth, as the automotive sector increasingly aligns with sustainable energy practices, further contributing to the overall expansion of the battery storage inverter market.

Government incentives and policies play a pivotal role in shaping the Global Battery Storage Inverter Market Industry. Many governments worldwide are implementing supportive measures, such as tax credits, rebates, and grants, to encourage the adoption of battery storage systems. These initiatives not only lower the financial barriers for consumers but also stimulate market growth by promoting energy independence and sustainability. For instance, various countries have set ambitious renewable energy targets, further driving the demand for battery storage inverters. As these policies continue to evolve, they are likely to create a favorable environment for market expansion, contributing to the projected growth trajectory.

The Global Battery Storage Inverter Market Industry experiences a surge in demand driven by the increasing adoption of renewable energy sources. As countries strive to meet their carbon reduction targets, the integration of solar and wind energy into the grid necessitates efficient energy storage solutions. Battery storage inverters play a crucial role in converting and managing the energy generated from these renewable sources. In 2024, the market is projected to reach 12.5 USD Billion, reflecting the growing emphasis on sustainable energy solutions. This trend is expected to continue, with the market potentially reaching 45 USD Billion by 2035, indicating a robust growth trajectory.

Technological advancements significantly influence the Global Battery Storage Inverter Market Industry, enhancing the efficiency and performance of battery storage systems. Innovations in inverter technology, such as improved power conversion efficiency and advanced control algorithms, enable better integration with renewable energy sources. These advancements not only optimize energy management but also reduce operational costs for consumers. As a result, the market is likely to benefit from increased adoption rates, with a projected compound annual growth rate (CAGR) of 12.35% from 2025 to 2035. This growth is indicative of the industry's response to the evolving energy landscape and the need for more efficient energy solutions.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Battery Storage Inverter Market dominated this market in 2022 (45.80%). Other than that, it is projected that the adaptable use of electric and hybrid vehicles throughout various areas would increase the demand for inverter batteries. North America now has the largest market in terms of demand for the automotive and home appliance industries. Other than that, it is projected that the adaptable use of electric and hybrid vehicles throughout various areas would increase the demand for inverter batteries.

North America now has the largest market in terms of demand for the automotive and home appliance industries. Further, the U.S. Battery Storage Inverter market held the largest market share, and the Canada Battery Storage Inverter market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Battery Storage Inverter Market Share By Region 2022 (USD Billion)

Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Battery Storage Inverter market accounted for the healthy market share in 2022. The government's pollution control regulations and policies, along with the booming investments in the automotive industry, are what are driving this market. The market for battery storage inverters is driven by rising demand for electric vehicles and expanding renewable energy infrastructure. Further, the German Battery Storage Inverter market held the largest market share, and the U.K Battery Storage Inverter market was the fastest growing market in the European region

The Asia Pacific Battery Storage Inverter market is expected to register significant growth from 2023 to 2032. This is a result of customers' growing desire for electrification in countries like China, Japan, India, and others, which is anticipated to fuel the market for battery storage inverters. In addition, the demand for energy storage capacity has been fueled by the growth of wind power. Moreover, China’s Battery Storage Inverter market held the largest market share, and the Indian Battery Storage Inverter market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Battery Storage Inverter market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Battery Storage Inverter industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Battery Storage Inverter industry to benefit clients and increase the market sector. In recent years, the Battery Storage Inverter industry has offered some of the most significant advantages to medicine. Major players in the Battery Storage Inverter market, including Robert Bosch GmbH, CLOU, Zhicheng Champion, SUNGROW, Dynapower, Parker-Hannifin Corporation, TRIED, Eaton, SMA, KACO, ABB, and Princeton, are attempting to increase market demand by investing in research and development operations.

Specialty chemical firm Evonik Industries AG (Evonik), a division of RAG-Stiftung. Surfactants, resins, additives, polymers, among other things, are included in its product line. Agriculture, alternative energy, paints and coatings, metal and oil products, electrical and electronics, paper and printing, food and animal feed, plastics and rubber, automotive, pharmaceuticals, personal care and cosmetics, and construction are just a few of the industries where the company's products are used. Additionally, it provides engineering, logistics, utilities, and process technology services. Major production facilities for Evonik are located in China, Singapore, Belgium, the US, and Germany.

In addition to other places, the corporation also operates in North America, Asia-Pacific, Africa, South America, and Europe. Essen, in Nordrhein-Westfalen, Germany, serves as the headquarters for Evonik. VESTAKEEP iC4800 3DF, a novel osteoconductive PEEK (polyether ether ketone) filament that enhances fusing between bones and implants, was unveiled by Evonik Industries AG in March 2022.

Defence products, machinery and commerce, and explosives are all produced and offered by Hanwha Corp (Hanwha). Aerospace equipment, solar products, machine tools, power trains, factory automation, plants, and other machinery products are among its outputs. Hanwha provides a variety of services using nitric acid, ammonia, and ammonium nitrate chemicals, including demolition, cladding, drilling, blasting, and fireworks explosions. Products from the company are utilised in fireworks, rockets, fuses, grenades, underwater equipment, petroleum products, and cattle products. In South Korea, Asia, North America, South America, Europe, and the Middle East, it sells its goods through a network of wholesalers.

The headquarters of Hanwha are in Seoul, South Korea. Hanwha Group and LG Energy Solution declared their intention to invest together in battery manufacturing facilities in the US in January 2023. To enhance the respective company's market share in the American battery energy storage systems sector, the investment will be made.