Global Residential Solar PV Inverter Market Overview
As per MRFR analysis, the Residential Solar PV Inverter Market Size was estimated at 10.34 (USD Billion) in 2022.The Residential Solar PV Inverter Market Industry is expected to grow from 11.66(USD Billion) in 2023 to 34.5 (USD Billion) by 2032. The Residential Solar PV Inverter Market CAGR (growth rate) is expected to be around 12.81% during the forecast period (2024 - 2032).
Key Residential Solar PV Inverter Market Trends Highlighted
The Residential Solar PV Inverter Market is influenced by the provision of more government support, increasing energy costs, more environmental issues, and the rise of smart homes. The crucial propellants in this market include reducing physical capital requirements, technological breakthroughs and improving rebates and tax incentives. Potentializes are in the using of IoT-compliant energy inverters for the control and management of the power system as well as from the upcoming markets with great room for expansion. Recent market trends include grid-connected inverters with a built-in energy storage system for improved performance and support to the grid. There is also a rise in demand for smart inverters that optimize the performance of the grid by integrating AI technology. By tapping into these main market drivers and opportunities, previously significant improvements will be evident in regard to the world Residential Solar PV Inverter Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Solar PV Inverter Market Drivers
Increasing Adoption of Solar Energy
The historical and policy pressures of climate change and the increasing supply of other energy resources such as renewable are influencing the proliferation of solar photovoltaic (PV) systems global adoption. The PV systems particularly used in households include the solar PV inverters, which play the role of changing the DC electric current that is produced from the solar panels into AC current which is used for the domestic appliances and the grid. The rising adoption rate of solar PV systems, especially in areas with good solar irradiation, may boost the growth of the Residential Solar PV Inverter Market globally.
Various governments and utilities in some countries are making use of supportive measures, for example, feed-in tariffs, tax holidays and net metering systems that enhance the use of solar PV units, thus increasing the market for residential solar PV inverters. Furthermore, solar PV systems are becoming affordable and economical to install by homeowners because of the improvement in the technology and dropping of the prices hence aiding in the expansion of the Residential Solar PV Inverter Market.
Technological Advancements and Innovation
The Residential Solar PV Inverter Market is witnessing significant technological advancements and innovation. Manufacturers are continuously investing in research and development to improve the efficiency, reliability, and functionality of their products. The adoption of advanced technologies, such as maximum power point tracking (MPPT) algorithms, wide input voltage ranges, and wireless communication capabilities, is enhancing the performance and user experience of residential solar PV inverters.Additionally, the integration of smart grid technologies, including remote monitoring and control features, is enabling homeowners to optimize their energy consumption and participate in demand response programs. These technological advancements are expected to drive the growth of the Residential Solar PV Inverter Market, as they offer improved performance, increased efficiency, and enhanced user experience.
Government Incentives and Policies
Government incentives and policies play a crucial role in driving the growth of the Residential Solar PV Inverter Market. Many countries have implemented supportive policies, such as feed-in tariffs, tax incentives, and net metering schemes, to encourage the adoption of renewable energy sources, including solar PV systems. These incentives provide financial benefits to homeowners who install solar PV systems, reducing the upfront investment costs and making them more affordable.Additionally, governments are implementing regulations and standards to ensure the safety, reliability, and efficiency of solar PV systems, further boosting the demand for high-quality residential solar PV inverters. The supportive policy landscape is expected to continue driving the growth of the Residential Solar PV Inverter Market as governments worldwide prioritize the transition to clean energy sources.
Residential Solar PV Inverter Market Segment Insights:
Residential Solar PV Inverter Market Inverter Type Insights
The Residential Solar PV Inverter Market is segmented by Inverter Type into String Inverters, Central Inverters, and Microinverters. Among these, String Inverters held the largest market share in 2023, accounting for over 60% of the Residential Solar PV Inverter Market revenue. String Inverters are cost-effective and simple to install, making them a popular choice for residential applications. However, Microinverters are gaining traction due to their advantages, such as module-level monitoring, increased efficiency, and enhanced safety.The growing adoption of smart homes and the increasing demand for energy independence are expected to drive the growth of the Microinverters segment in the coming years. String Inverters String inverters are the most common type of solar inverter used in residential applications. They are connected to a string of solar panels and convert the DC power produced by the panels into AC power that can be used by the home. String inverters are relatively inexpensive and easy to install, making them a good option for homeowners who are looking for a cost-effective way to add solar power to their homes.Central Inverters Central inverters are typically used in larger commercial and industrial solar installations. They are more expensive than string inverters, but they offer several advantages, including higher efficiency and greater flexibility. Central inverters can be used with a variety of different types of solar panels, and they can be easily scaled up to meet the needs of larger systems. Microinverters Micro-inverters are the smallest and most advanced type of solar inverter. They are connected to individual solar panels, and they convert the DC power produced by each panel into AC power.Microinverters offer several advantages over string inverters, including higher efficiency, module-level monitoring, and enhanced safety. The growth of the market is being driven by the increasing adoption of solar power in residential applications, the growing demand for energy independence, and the increasing popularity of microinverters.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Solar PV Inverter Market Power Range Insights
The Residential Solar PV Inverter Market is segmented by power range into Below 5 kW, 5-10 kW, 10-15 kW, and 15 kW and Above. Among these segments, the 5-10 kW segment is expected to hold the largest market share in 2023, accounting for over 40% of the total market revenue. This is due to the increasing popularity of rooftop solar systems in the residential sector, which typically use inverters in this power range. The Below 5 kW segment is expected to witness the fastest growth over the forecast period, driven by the growing adoption of micro-inverters in residential applications.The 10-15 kW and 15 kW and Above segments are also expected to experience significant growth as larger residential properties and commercial buildings increasingly adopt solar PV systems.
Residential Solar PV Inverter Market End-User Insights
The Residential Solar PV Inverter Market is segmented into End-Users such as Single-Family Homes, Multi-Family Homes, and Commercial Businesses. Among these, Single-Family Homes held the largest market share in 2023 due to the growing demand for residential solar systems. The increasing awareness of environmental sustainability and government incentives for renewable energy adoption contribute to this growth. Multi-family homes are expected to witness a significant growth rate during the forecast period, owing to the rising popularity of solar energy in urban areas and the need for energy efficiency in multi-dwelling units.Commercial Businesses are also expected to contribute to the market growth, driven by the need for cost-effective energy solutions and the desire to reduce carbon footprint. The overall Residential Solar PV Inverter Market is estimated to reach 11.66 USD Billion in 2023 and is projected to reach 34.5 USD Billion by 2032, exhibiting a CAGR of 12.81% during the forecast period.
Residential Solar PV Inverter Market Installation Type Insights
The Residential Solar PV Inverter Market is segmented by installation type into residential, commercial, and industrial. Among these, the residential segment is projected to account for the largest revenue share during the forecast period. The growth of the residential segment can be attributed to the increasing adoption of solar PV systems by homeowners to reduce their electricity bills and carbon footprint. Additionally, government incentives and subsidies are also driving the demand for residential solar PV inverters. The commercial segment is expected to witness significant growth over the forecast period, owing to the increasing number of commercial buildings installing solar PV systems to reduce their operating costs.The industrial segment is also expected to grow steadily as more and more industrial facilities are adopting solar PV systems to meet their energy needs and reduce their carbon emissions.
Residential Solar PV Inverter Market Application Insights
The Residential Solar PV Inverter Market is segmented by application into grid-tied, off-grid, and hybrid systems. Among these, the grid-tied segment is expected to dominate the market in the coming years due to the growing adoption of solar photovoltaic (PV) systems in residential applications. The grid-tied system allows excess solar energy generated to be fed back into the utility grid, providing homeowners with financial incentives and reducing their reliance on traditional energy sources. In 2023, the grid-tied segment accounted for approximately 60% of the Residential Solar PV Inverter Market revenue, and it is projected to grow at a CAGR of 14.5% from 2024 to 2032.Off-grid systems are expected to witness significant growth during the forecast period due to their increasing popularity in remote areas and regions with unreliable grid infrastructure. These systems enable homeowners to generate and store solar energy for use when the grid is unavailable or unreliable. The off-grid segment is anticipated to grow at a CAGR of 12.8% from 2024 to 2032. Hybrid systems combine the features of both grid-tied and off-grid systems, allowing homeowners to maximize solar energy utilization while maintaining grid connectivity.The hybrid segment is projected to grow at a CAGR of 13.2% from 2024 to 2032, gaining traction in areas with intermittent grid supply or high electricity costs.
Residential Solar PV Inverter Market Regional Insights
The Residential Solar PV Inverter Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to witness the fastest growth during the forecast period. The growth in the APAC region can be attributed to the increasing adoption of solar photovoltaic systems in countries such as China, India, and Japan. The growth in the Residential Solar PV Inverter Market in North America and Europe is expected to be driven by the increasing demand for self-consumption of solar energy and the growing popularity of net metering policies.The South American and MEA regions are expected to experience moderate growth during the forecast period. The MEA region is expected to witness a significant increase in the adoption of solar PV systems due to the increasing government support for renewable energy.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Solar PV Inverter Market Key Players And Competitive Insights:
Major players in the Residential Solar PV Inverter Market industry are continuously focusing on product development to meet the growing demand for efficient and cost-effective solar energy solutions. Leading Residential Solar PV Inverter Market players are investing in research and development to improve the performance and functionality of their products. The market is characterized by intense competition, with key players competing on factors such as product quality, reliability, and customer service. The Residential Solar PV Inverter Market Competitive Landscape is expected to remain highly competitive in the coming years, with the emergence of new technologies and the expansion of solar energy adoption globally. Ongoing mergers and acquisitions will further shape the competitive landscape as companies seek to strengthen their market positions and expand their geographical reach.Schneider Electric is a leading Residential Solar PV Inverter Market player with a global presence. The company offers a range of high-efficiency solar inverters for residential applications, including single-phase and three-phase models. Schneider Electric inverters are known for their reliability, durability, and ease of installation. The company has a strong presence in Europe, North America, and Asia-Pacific, and it continues to expand its reach through partnerships and acquisitions. Schneider Electric is committed to innovation and sustainability, and it plays an active role in promoting the adoption of renewable energy solutions globally.Sungrow is another prominent player in the Residential Solar PV Inverter Market. The company is headquartered in China and has a global presence. Sungrow offers a wide range of solar inverters for residential, commercial, and utility-scale applications. Sungrow inverters are known for their high conversion efficiency, low operating costs, and long service life. The company has a strong track record of innovation and has been recognized for its technological advancements. Sungrow is expanding its presence in international markets, and it has established local operations in key regions to better serve its customers. Sungrow is committed to providing high-quality solar energy solutions and supporting the global transition to renewable energy.
Key Companies in the Residential Solar PV Inverter Market Include:
- Enphase Energy
- ABB
- SMA Solar Technology
- SunPower
- Yaskawa Electric
- SolaX Power
- GoodWe
- Solaredge Technologies
- KACO new energy
- SolarEdge Technologies
- Fronius International
- Schneider Electric
- Sungrow
- Danfoss
- Huawei
Residential Solar PV Inverter Market Industry Developments
The Residential Solar PV Inverter Market is projected to grow significantly in the coming years, driven by the increasing adoption of solar photovoltaic (PV) systems for residential applications. Government incentives, falling costs of solar panels and inverters, and rising electricity prices are also contributing to the market growth. As of 2023, the market is valued at approximately USD 11.66 billion and is expected to reach USD 34.5 billion by 2032, exhibiting a CAGR of 12.81% during the forecast period.Recent news developments in the market include the launch of new inverter technologies with higher efficiency and advanced features, strategic partnerships and acquisitions among key players, and government initiatives to promote the adoption of solar PV systems. For instance, in 2023, Sungrow, a leading solar inverter manufacturer, announced the launch of its new residential solar inverter, the Sungrow SH10RT, which offers higher efficiency and a wider input voltage range. Additionally, the U.S. government has implemented the Inflation Reduction Act of 2022, which provides tax credits and incentives for the installation of solar PV systems, further stimulating market growth.
Residential Solar PV Inverter Market Segmentation Insights
- Residential Solar PV Inverter Market Inverter Type Outlook
- String Inverters
- Central Inverters
- Microinverters
- Residential Solar PV Inverter Market Power Range Outlook
- Below 5 kW
- 5-10 kW
- 10-15 kW
- 15 kW and Above
- Residential Solar PV Inverter Market End-User Outlook
- Single-Family Homes
- Multi-Family Homes
- Commercial Businesses
- Residential Solar PV Inverter Market Installation Type Outlook
- Residential
- Commercial
- Industrial
- Residential Solar PV Inverter Market Application Outlook
- Grid-Tied
- Off-Grid
- Hybrid
- Residential Solar PV Inverter Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.34(USD Billion) |
| Market Size 2023 |
11.66(USD Billion) |
| Market Size 2032 |
34.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.81% (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 |
Enphase Energy, ABB, SMA Solar Technology, SunPower, Yaskawa Electric, SolaX Power, GoodWe, Solaredge Technologies, KACO new energy, SolarEdge Technologies, Fronius International, Schneider Electric, Sungrow, Danfoss, Huawei |
| Segments Covered |
Inverter Type, Power Range, End-User, Installation Type, Application, Regional |
| Key Market Opportunities |
Decentralized energy storage systems Energy efficiency mandates Technological advancements in solar PV systems, Government incentives, and Net metering. |
| Key Market Dynamics |
Increasing adoption of technological advancements, government incentives, rising energy costs, growing consumer awareness |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Residential Solar PV Inverter Market is expected to be valued at USD 11.66 billion in 2023.
The Residential Solar PV Inverter Market is projected to grow at a CAGR of 12.81% from 2024 to 2032.
Asia Pacific is expected to hold the largest market share in the Residential Solar PV Inverter Market in 2023.
Key applications of residential solar PV inverters include grid-tied systems, off-grid systems, and hybrid systems.
Key competitors in the Residential Solar PV Inverter Market include SMA, SolarEdge, Huawei, Fronius, and ABB.
The growth of the Residential Solar PV Inverter Market is being driven by factors such as increasing demand for renewable energy, government incentives, and technological advancements.
Challenges facing the Residential Solar PV Inverter Market include high upfront costs, lack of awareness, and competition from traditional energy sources.
Opportunities for growth in the Residential Solar PV Inverter Market include expanding into emerging markets, developing new technologies, and partnering with other companies in the solar industry.
Key trends in the Residential Solar PV Inverter Market include the increasing adoption of microinverters, the growing popularity of smart inverters, and the development of new grid-tied technologies.
The Residential Solar PV Inverter Market is expected to reach USD 34.5 billion by 2032.
