Global Photovoltaic Inverter Market Overview
As per MRFR analysis, the Photovoltaic Inverter Market Size was estimated at 22.03 (USD Billion) in 2022. The Photovoltaic Inverter Market Industry is expected to grow from 25.04 (USD Billion) in 2023 to 79.3 (USD Billion) by 2032. The Photovoltaic Inverter Market CAGR (growth rate) is expected to be around 13.67% during the forecast period (2024 - 2032).
Key Photovoltaic Inverter Market Trends Highlighted
The Photovoltaic Inverter Market is rapidly expanding, fueled by the surge in solar energy adoption. Key market drivers include government incentives for renewable energy, declining photovoltaic panel prices, and increasing energy demand. Emerging opportunities lie in the integration of advanced technologies such as blockchain and artificial intelligence (AI) to enhance grid stability and optimize energy management. The rise of micro-inverters, which offer higher efficiency and modularity, is also gaining traction. Recent trends indicate a shift towards larger inverters with higher power capacities, as well as an increasing demand for inverters with storage capabilities. The growing integration of electric vehicles (EVs) and the need for reliable charging infrastructure present further opportunities for market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photovoltaic Inverter Market Drivers
Rising Demand for Renewable Energy
One of the main drivers of the photovoltaic inverter market is the rising global demand for renewable energy. As countries around the world are transitioning to cleaner energy sources, solar photovoltaic systems are becoming increasingly popular. Photovoltaic inverters are an essential component of a solar PV system as they convert the direct current electricity produced by the solar panels to alternating current electricity that can be used by houses, businesses, and the grid. The adoption of solar PV systems is projected to continue rising, which will keep the demand for photovoltaic inverters strong. An alternative driving force for administrative inverters is their increasing affordability combined with the rising awareness of the benefits of solar energy.
The prices of solar panels and inverters have been decreasing substantially in recent years, making solar PV systems more affordable to more people. If the costs of solar energy continue falling at the same rate, the demand for photovoltaic inverters may rise even higher. Finally, governments across the world have been facilitating the growth of the solar PV industry by implementing many favorable policies and incentives. These include tax reductions, acceptance fees, or feed-in tariffs, which make solar PV systems more affordable for end customers and businesses. Such policies will promote the development of photovoltaic inverters, making them a strong driving force for the photovoltaic inverter market.
Technological Advancements
Technological advancements are yet another driver of the photovoltaic inverter market. Photovoltaic inverters are becoming more efficient and reliable. At the same time, they are becoming cheaper. These developments help render the technology more appealing to both consumers and businesses. In addition, it should be noted that the development of new technologies drives the growth of the solar PV industry. One of the most important technological advances in recent years is represented by microinverters. These are small grid-connected inverters that are placed on each individual solar panel. As a result, the conversion of DC electricity into AC electricity becomes much more efficient and reliable.
Furthermore, the technology eliminates the need for a central inverter. It is, therefore, not surprising that microinverters are becoming increasingly popular. On the whole, it is expected that this particular technology will remain one of the drivers of the photovoltaic inverter market in the foreseeable future. String inverters can also be defined as a particular technological advancement in this field. While string inverters are somewhat larger than microinverters, they are considerably more efficient. In addition, string inverters are usually used in large solar PV systems alongside the continued decrease in the prices of solar panels.
Government Support
Government support is another significant factor driving the photovoltaic inverter market. Governments worldwide are taking more and more measures to promote the development of the solar PV market. These measures include tax incentives, rebates, feed-in tariffs applied to the customers, and so on, and are making solar PV systems cheaper for consumers and businesses. It can be concluded that due to such an encouraging situation, the demand for photovoltaic inverters is going to keep on growing in the years to come. The solar investment tax credit is one of the most important government laws stimulating the development of the solar PV field.
Basically, it lets the customers deduct 30% of all installation expenses from their taxes. The ITC laws have been voluminously expanded before, and now, the provision is going to expire in 2024. As Forbs states, due to the fact that the ITC “enjoys bipartisan support” and has been formerly prolonged, it is more likely than not that it will be prolonged again. Apart from the ITC, there are also a number of other laws that are stimulating the development of the solar PV field. These are mostly the state and local laws that offer rebates, feed-in tariffs, and renewable portfolio standards. All of them are making solar PV systems cheaper for consumers and better from the investment point of view, helping to boost the growth of the photovoltaic inverter market.
Photovoltaic Inverter Market Segment Insights
Photovoltaic Inverter Market Input Voltage Insights
The Photovoltaic Inverter Market is segmented by input voltage into central inverters, string inverters, and microinverters. Among these, the string inverter segment is expected to hold the largest share of the market in 2023 and will continue to be dominant during the forecast period. This is due to the benefits offered by the product, such as ease of installation, lower cost, and modular design. String inverters are ideally used in residential and small commercial applications as they are cost-effective and occupy less space. The central inverter market is expected to grow at the highest CAGR of 11.61% during the forecast period because the product is highly efficient and can handle highly-powerful PV systems, such as those used in utility-scale solar power plants.
Central inverters are also ideal for these applications since they offer centralized control and better monitoring. The microinverter segment will experience steady growth and be the 2 nd fastest-growing market due to the benefits offered by the product, wherein power generation is optimized at the module level. The products are essential in applications experiencing shading and when modules are subject to varying local conditions. The market is driven by the demand for solar energy, the increase in population, environmental concerns, and policies and incentives offered by governments. The Asia-Pacific region will hold the largest market share, followed by North America and Europe.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photovoltaic Inverter Market Application Insights
The Photovoltaic Inverter Market segmentation by Application includes Residential, Commercial, Industrial, and Utility. The Photovoltaic Inverter Market revenue for Residential applications is estimated to be USD 12.34 Billion by 2024, growing at a CAGR of 14.2%. The residential segment growth is being driven by the increasing adoption of solar energy systems at homes to reduce electricity costs and environmental impact. The commercial applications are expected to amount to USD 8.54 Billion by 2024, growing at a CAGR of 13.8%.
The growth in this segment is due to the rising demand for renewable energy solutions at commercial buildings to meet sustainability goals. The industrial applications are estimated to reach USD 6.73 Billion by 2024, growing at a CAGR of 12.9%. The growth of the industrial segment is being driven by the increased demand for reliable and efficient power supply across industrial facilities. The Utility applications are expected to be USD 5.43 Billion by 2024, growing at a CAGR of 11.7%. The growth in this segment is due to governments’ initiatives and incentives for large-scale solar power projects.
Photovoltaic Inverter Market Power Rating Insights
The Photovoltaic Inverter Market is segmented by power rating into Below 10 kW, 10-100 kW, 100-500 kW, and Above 500 kW. Among these segments, the 10-100 kW segment held the largest market share in 2023, accounting for over 40% of the Photovoltaic Inverter Market revenue. The growth of this segment can be attributed to the increasing adoption of rooftop solar systems in both residential and commercial applications. The Below 10 kW segment is expected to grow at the highest CAGR during the forecast period, owing to the rising demand for small-scale solar systems in remote areas and developing countries. The 100-500 kW segment is also expected to witness significant growth, driven by the increasing installation of solar power plants in the utility sector. The Above 500 kW segment is expected to account for a smaller share of the market due to the high cost and complexity of these systems.
Photovoltaic Inverter Market Topology Insights
The Photovoltaic Inverter Market is segmented by topology into Transformerless and Transformer-based. The Transformerless segment accounted for a larger share of the market in 2023 and is expected to continue to dominate the market over the forecast period. The growth of this segment can be attributed to the increasing demand for transformerless inverters due to their higher efficiency, smaller size, and lower weight. The Transformer-based segment is expected to witness a steady growth rate over the forecast period due to the increasing adoption of transformer-based inverters in large-scale solar PV systems. The Transformerless segment is expected to reach a market value of USD 45.48 billion by 2032, growing at a CAGR of 12.4%. The Transformer-based segment is expected to reach a market value of USD 33.82 billion by 2032, growing at a CAGR of 11.8%.
Photovoltaic Inverter Market Phase Insights
The Photovoltaic Inverter Market segmentation by Phase can be divided into Single-phase and Three-phase. The Three-phase segment is expected to hold a larger market share in the coming years due to the increasing demand for high-power inverters in commercial and industrial applications. Three-phase inverters are more efficient and can handle higher power than single-phase inverters, making them ideal for large-scale solar PV systems. The Single-phase segment is expected to witness significant growth in the residential sector, as single-phase inverters are more suitable for smaller-scale solar PV systems. The Photovoltaic Inverter Market revenue for the Single-phase segment is projected to reach USD 10.2 billion by 2024, while the Three-phase segment is expected to reach USD 17.6 billion by 2024.
Photovoltaic Inverter Market Regional Insights
The regional segmentation of the Photovoltaic Inverter Market offers insights into market dynamics across various geographic regions. North America holds a significant market share due to the increasing adoption of solar energy systems and government incentives. Europe follows closely, driven by stringent environmental regulations and ambitious renewable energy targets. The APAC region is expected to witness substantial growth, attributed to rapid urbanization and expanding industrialization. South America and MEA present promising opportunities for market expansion, with growing demand for sustainable energy solutions. This growth is attributed to rising environmental concerns, technological advancements, and government support for renewable energy initiatives.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photovoltaic Inverter Market Key Players And Competitive Insights
Main competitors in the Photovoltaic Market industry are continuously investing in innovations. They are trying to improve their market position, which also includes improving product portfolios, investing in research and development, and creating partnerships. Nowadays, leading Photovoltaic Market players are seeking to introduce new, advanced technologies, such as artificial intelligence and machine learning, which will allow for improved performance of the devices and their reliability. The Photovoltaic Market is characterized by a high degree of competition, and companies such as Sungrow or Huawei are trying to maintain their leading market position by continuously investing in product development and innovations. One of the most important competitors, with its principles of competition focused on innovation, research, and development, is China-based company Huawei.
The company is a leading producer of photovoltaic inverters, which are used in a wide array of solar panels and solar installations. Huawei is known for its wide portfolio of products, starting from multiple single-phase or other models used for residential installations and ending on utility-grade products designed for industrial applications. Huawei is also investing highly in research and development. The company is currently known as a leader in terms of the efficiency of the inverters, as well as their reliability and compatibility with the power grid. The company is also a highly innovative one that is focused on creating advanced products, such as energy management systems based on artificial intelligence and systems using installed inverter bases as a smart grid network.
It is important to mention that the company is also present in many markets all over the world, as it has already created an extensive network of partners and customers around the globe. Another important competitor is Sungrow Power Supply Co., Ltd., a company based in China that operates all over the world. Sungrow is also an important producer of highly efficient and reliable photovoltaic inverters that are mainly used in a variety of solar applications. The company uses a wide product portfolio and is also known for using research and development to improve the performance of its products.
Key Companies in the Photovoltaic Inverter Market Include
- Schneider Electric
- ABB
- Mitsubishi Electric
- Yaskawa
- Huawei
- Omron
- SolarEdge
- GoodWe
- Sungrow
- Enphase Energy
- TMEIC
- Danfoss
- Ingeteam
- Fronius
- SMA
Photovoltaic Inverter Market Industry Developments
The Photovoltaic Inverter Market is expected to exhibit a CAGR of 13.67% from 2024 to 2032, reaching a valuation of USD 79.3 billion by 2032. Asia-Pacific is anticipated to lead with a 48.1% revenue share in 2024. Adoption of renewable energy sources and supportive government policies drive market growth. Recent developments include: Sungrow launches a 1500V string inverter with high power density for utility-scale PV plants. Huawei unveils AI-powered string inverters with 99% efficiency and grid-forming capabilities. SMA introduces Sunny Central UP, a central inverter with up to 10 MW capacity, targeting large-scale solar projects. These developments highlight the industry's focus on efficiency, cost reduction, and grid integration, shaping the future of the Photovoltaic Inverter Market.
Photovoltaic Inverter Market Segmentation Insights
-
Photovoltaic Inverter Market Input Voltage Outlook
- Central Inverter
- String Inverter
- Microinverter
-
Photovoltaic Inverter Market Application Outlook
- Residential
- Commercial
- Industrial
- Utility
-
Photovoltaic Inverter Market Power Rating Outlook
- Below 10 kW
- 10-100 kW
- 100-500 kW
- Above 500 kW
-
Photovoltaic Inverter Market Topology Outlook
- Transformerless
- Transformer-based
-
Photovoltaic Inverter Market Phase Outlook
-
Photovoltaic Inverter Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
22.03 (USD Billion) |
| Market Size 2023 |
25.04 (USD Billion) |
| Market Size 2032 |
79.3 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
13.67% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Schneider Electric, ABB, Mitsubishi Electric, Yaskawa, Huawei, Omron, SolarEdge, GoodWe, Sungrow, Enphase Energy, TMEIC, Danfoss, Ingeteam, Fronius, SMA |
| Segments Covered |
Input Voltage, Application, Power Rating, Topology, Phase, Regional |
| Key Market Opportunities |
1 Growing demand for renewable energy 2 Government incentives for solar energy adoption 3 Technological advancements in inverter efficiency 4 Increasing penetration of distributed generation systems 5 Expansion into emerging markets |
| Key Market Dynamics |
Growing demand for renewable energy sources Supportive government policies and incentives Technological advancements improving efficiency and cost Increasing distributed generation systems Grid integration challenges |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Photovoltaic Inverter Market is expected to reach USD 79.3 billion by 2032, growing at a CAGR of 13.67% from 2024 to 2032.
The key regions in the Photovoltaic Inverter Market are Asia-Pacific, North America, Europe, South America, and the Middle East & Africa. North America is the largest region, accounting for over 50% of the market share.
The key applications of Photovoltaic Inverters are residential, commercial, and industrial. The residential sector is the largest application segment, accounting for over 40% of the market share.
The key competitors in the Photovoltaic Inverter Market include Sungrow, Huawei, Schneider Electric, ABB, and SMA Solar Technology.
The Photovoltaic Inverter Market is expected to grow at a CAGR of 13.67% from 2024 to 2032.
The key trends in the Photovoltaic Inverter Market include the increasing adoption of renewable energy sources, the rising demand for energy efficiency, and the development of new technologies.
The challenges in the Photovoltaic Inverter Market include the high cost of photovoltaic inverters, the lack of skilled labor, and the stringent regulatory environment.
The opportunities in the Photovoltaic Inverter Market include the growing demand for renewable energy sources, the rising awareness of energy efficiency, and the development of new technologies.
The future outlook of the Photovoltaic Inverter Market is positive. The market is expected to grow at a CAGR of 13.67% from 2024 to 2032, driven by the increasing adoption of renewable energy sources, the rising demand for energy efficiency, and the development of new technologies.
The key factors driving the growth of the Photovoltaic Inverter Market include the increasing adoption of renewable energy sources, the rising demand for energy efficiency, the development of new technologies, and supportive government policies.
