Global Solar PV Inverter Market Overview:
As per MRFR analysis, the Solar PV Inverter Market Size was estimated at 8.59 (USD Billion) in 2022. The Solar PV Inverter Market Industry is expected to grow from 9.58 (USD Billion) in 2023 to 25.5 (USD Billion) by 2032. The Solar PV Inverter Market CAGR (growth rate) is expected to be around 11.49% during the forecast period (2024 - 2032).
Key Solar PV Inverter Market Trends Highlighted
The Solar PV Inverter Market continues to experience significant growth, driven by increasing adoption of renewable energy sources. The rising demand for solar energy is fueled by government incentives, decreasing costs of solar panels, and growing awareness of the environmental benefits of solar power.Key market drivers include increased adoption of distributed generation, rising demand for clean energy sources, and technological advancements in solar PV Inverter efficiency and functionality. Opportunities for growth are seen in emerging markets, off-grid applications, and innovative technologies such as micro-inverters and energy storage integrations.Recent trends in the solar PV Inverter market include the integration of artificial intelligence (AI) and machine learning (ML) for predictive maintenance and performance optimization, the adoption of decentralized and grid-interactive inverters, and the increasing popularity of hybrid inverter systems that combine solar PV and battery storage. These trends are poised to shape the future of the solar PV Inverter market, leading to a more efficient, reliable, and cost-effective solar power generation system.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Solar PV Inverter Market Drivers
Increasing Demand for Renewable Energy
Governments worldwide are setting ambitious targets for reducing greenhouse gas emissions and transitioning to clean energy sources. Solar photovoltaic (PV) systems are a key part of this transition, as they provide a clean and renewable source of electricity. As a result, the demand for solar PV inverters, which convert the direct current (DC) output of solar panels into alternating current (AC) electricity, is expected to grow significantly in the coming years. The increasing demand for renewable energy is being driven by a number of factors, including: The rising cost of fossil fuels. The growing awareness of the environmental impact of fossil fuels The increasing availability of solar PV panels. The decreasing cost of solar PV panels. The Solar PV Inverter Market Industry is expected to witness high growth during the forecast period. The increasing adoption of solar PV systems is a major factor driving the growth of the market.Additionally, government initiatives and policies promoting the use of renewable energy are also contributing to the growth of the market. Some of the key trends in the Solar PV Inverter Market Industry include: The increasing adoption of string inverters. The growing popularity of microinverters. The development of new inverter technologies. The emergence of new market players Overall, the outlook for the Solar PV Inverter Market Industry is positive.The increasing demand for renewable energy, coupled with the decreasing cost of solar PV panels, is expected to drive the growth of the market in the coming years.
Technological Advancements
The solar PV Inverter industry is constantly evolving, with new technologies being developed all the time. These new technologies are making solar PV inverters more efficient, more reliable, and more affordable. One of the most important recent developments in solar PV Inverter technology is the advent of string inverters. String inverters are more efficient than traditional central inverters, and they are also more reliable. This makes them a more attractive option for residential and commercial solar PV systems. Another important development in solar PV Inverter technology is the growing popularity of microinverters. Microinverters are smaller and less expensive than string inverters, and they can be installed on individual solar panels. This makes them a good option for small solar PV systems, such as those used in homes and businesses. The development of new inverter technologies is expected to continue in the coming years. These new technologies will make solar PV inverters even more efficient, more reliable, and more affordable.This will help to drive the growth of the solar PV industry as a whole.
Government Incentives
Government incentives are playing a major role in the growth of the solar PV Inverter market. Many governments are offering tax breaks, rebates, and other incentives to encourage the installation of solar PV systems. This is making solar PV systems more affordable for businesses and homeowners, which is leading to increased demand for solar PV inverters. The level of government incentives for solar PV systems varies from country to country. In some countries, such as Germany and the United States, government incentives have been very effective in driving the growth of the solar PV industry.In other countries, such as China and India, government incentives have been less effective. Despite the variation in government incentives, it is clear that government support is playing a major role in the growth of the solar PV Inverter market. As governments continue to offer incentives for solar PV systems, the demand for solar PV inverters will continue to grow.
Solar PV Inverter Market Segment Insights:
Solar PV Inverter Market Power Rating Insights
The Solar PV Inverter Market segmentation by power rating comprises Below 10 kW, 10-50 kW, 50-250 kW, 250-1 MW, and Above 1 MW. Among these segments, the 10-50 kW segment held the largest market share in 2023, and it is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of solar PV systems in the residential and commercial sectors. Furthermore, government incentives and favorable policies are also driving the growth of this segment. The Below 10 kW segment is expected to witness significant growth during the forecast period.The growth of this segment can be attributed to the rising demand for small-scale solar PV systems in remote areas and developing countries. The 50-250 kW segment is also expected to grow at a steady pace during the forecast period. The growth of this segment can be attributed to the increasing adoption of solar PV systems in the industrial and commercial sectors. The 250-1 MW segment is expected to witness moderate growth during the forecast period. The growth of this segment can be attributed to the increasing adoption of solar PV systems in large-scale projects. The Above 1 MW segment is expected to grow at a slow pace during the forecast period. The growth of this segment can be attributed to the high cost of large-scale solar PV systems and the limited availability of suitable land for such projects. Overall, the Solar PV Inverter Market is expected to witness significant growth during the forecast period. The growth of the market can be attributed to the increasing demand for solar PV systems across various sectors, government incentives, and favorable policies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Solar PV Inverter Market Installation Type Insights
The Solar PV Inverter Market is segmented by Installation Type into Grid-tied, Off-grid, and Hybrid. Among these, the Grid-tied segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of solar photovoltaic (PV) systems for residential and commercial applications. Grid-tied systems allow users to connect their solar PV systems to the electrical grid, enabling them to sell excess electricity generated back to the grid.This has made solar PV systems more affordable and attractive for consumers, leading to the growth of the Grid-tied segment. The Off-grid segment is expected to witness significant growth during the forecast period due to the rising demand for solar PV systems in remote areas and regions with unreliable grid infrastructure. Off-grid systems allow users to generate and store their own electricity, providing them with energy independence and resilience. The Hybrid segment is also expected to grow steadily, as it offers the benefits of both Grid-tied and Off-grid systems, allowing users to connect to the grid when available and switch to stored energy when needed.
Solar PV Inverter Market Waveform Type Insights
The waveform type segment plays a crucial role in the Solar PV Inverter Market, influencing market growth and dynamics. Among the different waveform types available, sine wave inverters are expected to dominate the market, accounting for a significant share of the Solar PV Inverter Market revenue in 2023 and beyond. Sine wave inverters produce a smooth, continuous waveform, ensuring high-quality power output and compatibility with various electrical devices. Square wave inverters, on the other hand, generate a stepped waveform, making them suitable for applications where cost-effectiveness is prioritized over waveform quality.Modified sine wave inverters offer a balance between the two, providing a waveform that is closer to a sine wave but with reduced complexity compared to pure sine wave inverters. The choice of waveform type depends on specific application requirements and cost considerations, with each type catering to different market segments and driving the overall growth of the Solar PV Inverter Market.
Solar PV Inverter Market Cooling Type Insights
The Solar PV Inverter Market segmentation by cooling type into natural convection, forced air, and liquid cooling provides valuable insights into the market dynamics. Natural convection cooling, which relies on natural airflow to dissipate heat, is a cost-effective option for smaller inverters. Forced air cooling, which utilizes fans to actively circulate air, is suitable for medium-sized inverters and offers improved cooling efficiency. Liquid cooling, which employs a liquid coolant to transfer heat away from critical components, is commonly used in high-power inverters and provides the most effective cooling performance.In 2023, the forced air cooling segment held the largest market share due to its wide adoption in residential and commercial solar PV systems. The liquid cooling segment is projected to grow at the highest CAGR during the forecast period, driven by the increasing demand for high-power inverters in utility-scale solar projects.
Solar PV Inverter Market Topology Insights
The Solar PV Inverter Market is segmented by Topology into Central, String, and Micro. Among these, the central topology is expected to hold the largest market share in 2023, accounting for over 45% of the Solar PV Inverter Market revenue. This is due to the advantages of central inverters, such as higher efficiency, lower maintenance costs, and better grid integration capabilities. However, the string topology is expected to grow at a faster CAGR during the forecast period, owing to its lower cost and easier installation process. The micro-inverter topology is also gaining traction, as it offers several advantages, such as module-level monitoring, increased energy production, and improved reliability.String inverters are expected to account for over 30% of the Solar PV Inverter Market share by 2032, followed by micro-inverters with a share of over 20%. Overall, the Solar PV Inverter Market is expected to witness significant growth in the coming years, driven by the increasing adoption of solar PV systems worldwide.
Solar PV Inverter Market Key Players And Competitive Insights:
Major players in Solar PV Inverter Market are continuously working on developing advanced and cost-effective products. Leading Solar PV Inverter Market players are focusing on expanding their product portfolios and enhancing their geographical presence. The Solar PV Inverter Market industry has been witnessing significant investment and consolidation activities, with key players acquiring smaller companies to strengthen their market positions. These developments indicate that the Solar PV Inverter Market is expected to remain highly competitive in the coming years, with leading players continuing to drive innovation and growth.Huawei has established itself as a prominent player in the Solar PV Inverter Market, with a strong presence in various regions. The company offers a wide range of solar inverters, including string inverters, central inverters, and microinverters. Huawei's strength lies in its focus on research and development, enabling it to provide advanced products that meet the evolving needs of customers. Additionally, Huawei's global reach and strong distribution network contribute to its success in the Solar PV Inverter Market.Sungrow is another leading player in the solar PV inverter market, and it is known for its innovative and high-quality products. The company has a strong presence in the Asia-Pacific region and is expanding its footprint in other markets. Sungrow offers a comprehensive portfolio of solar inverters, ranging from small residential units to large-scale utility-grade systems. The company's commitment to research and development has resulted in the development of advanced technologies, such as its patented topology optimization and maximum power point tracking algorithms.
Key Companies in the Solar PV Inverter Market Include:
- Power Electronics
- ABB
- Kostal Solar Electric
- Sungrow Power Supply
- Delta Electronics
- SolarEdge Technologies
- Schneider Electric
- SMA Solar Technology
- Enphase Energy
- Yaskawa Electric Corporation
- Fimer
- Huawei Technologies
- Ginlong Technologies (Solis)
- Ingeteam
- Fronius International
Solar PV Inverter Market Industry Developments
The Solar PV Inverter Market is projected to grow from USD 9.58 billion in 2023 to USD 25.5 billion by 2032, at a CAGR of 11.49%. Rising demand for renewable energy sources, increasing government initiatives to promote solar energy adoption, and technological advancements are driving market growth. String inverters currently dominate the market, but microinverters are gaining traction due to their efficiency and reliability. Asia-Pacific is the largest regional market, followed by Europe and North America. Key players include Sungrow Power Supply, Huawei Technologies, Schneider Electric, ABB, and SMA Solar Technology. Recent developments include the launch of new high-power inverters and the integration of artificial intelligence (AI) and blockchain technology to enhance efficiency and reliability.
Solar PV Inverter Market Segmentation Insights
Solar PV Inverter Market Power Rating Outlook
- Below 10 kW
- 10-50 kW
- 50-250 kW
- 250-1 MW
- Above 1 MW
Solar PV Inverter Market Installation Type Outlook
- Grid-tied
- Off-grid
- Hybrid
Solar PV Inverter Market Waveform Type Outlook
- Sine wave
- Square wave
- Modified sine wave
Solar PV Inverter Market Cooling Type Outlook
- Natural convection
- Forced air
- Liquid cooling
Solar PV Inverter Market Topology Outlook
Solar PV Inverter Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
8.59(USD Billion) |
| Market Size 2023 |
9.58(USD Billion) |
| Market Size 2032 |
25.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.49% (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 |
Power Electronics, ABB, Kostal Solar Electric, Sungrow Power Supply, Delta Electronics, SolarEdge Technologies, Schneider Electric, SMA Solar Technology, Enphase Energy, Yaskawa Electric Corporation, Fimer, Huawei Technologies, Ginlong Technologies (Solis), Ingeteam, Fronius International |
| Segments Covered |
Power Rating, Installation Type, Waveform Type, Cooling Type, Topology, Regional |
| Key Market Opportunities |
Growing demand for renewable energy sources Expansion of distributed solar power generation Increasing adoption of smart grid technologies Government incentives and subsidies Technological advancements in solar PV Inverter design |
| Key Market Dynamics |
Growing demand for renewable energy Government incentives for solar installations Technological advancements in solar PV inverters Falling costs of solar panels Increased awareness of environmental sustainability |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Solar PV Inverter Market size is expected to reach USD 9.58 billion by 2023, growing at a CAGR of 11.49% from 2024 to 2032. The growth of the market is attributed to the increasing adoption of solar PV systems, government incentives, and technological advancements.
The key regions in the Solar PV Inverter Market are Asia-Pacific, North America, Europe, and the Rest of the World. Asia-Pacific is the largest market, accounting for over 50% of the global market share. North America and Europe are also significant markets, with a combined market share of over 30%.
Solar PV inverters are used in a variety of applications, including residential, commercial, and industrial. Residential applications account for the largest share of the market, followed by commercial and industrial applications.
The key competitors in the Solar PV Inverter Market include Sungrow, Huawei, SolarEdge, ABB, and Schneider Electric. These companies account for a significant share of the global market and offer a wide range of solar PV inverters.
The Solar PV Inverter Market is expected to grow at a CAGR of 11.49% from 2024 to 2032. The growth of the market is attributed to the increasing adoption of solar PV systems, government incentives, and technological advancements.
The Solar PV Inverter Market is facing a number of challenges, including the high cost of solar PV systems, the lack of skilled labor, and the volatility of the solar PV market. However, these challenges are expected to be mitigated by the increasing adoption of solar PV systems and the development of new technologies.
The Solar PV Inverter Market is expected to experience significant growth in the coming years. The growth of the market will be driven by the increasing adoption of solar PV systems, government incentives, and technological advancements. New opportunities for growth are expected to emerge in the areas of energy storage, smart grids, and microgrids.
The key trends in the Solar PV Inverter Market include the increasing adoption of string inverters, the development of new technologies, and the growth of the distributed generation market. String inverters are becoming increasingly popular due to their lower cost and higher efficiency. New technologies, such as microinverters and power optimizers, are also emerging and are expected to gain market share in the coming years.
The future outlook for the Solar PV Inverter Market is positive. The market is expected to continue to grow at a healthy rate in the coming years, driven by the increasing adoption of solar PV systems and the development of new technologies. The market is also expected to benefit from the growing demand for renewable energy and the increasing awareness of climate change.
The key factors driving the growth of the Solar PV Inverter Market include the increasing adoption of solar PV systems, government incentives, and technological advancements. The increasing adoption of solar PV systems is due to the rising cost of electricity, the growing awareness of climate change, and the increasing availability of solar PV systems. Government incentives, such as tax breaks and rebates, are also helping to drive the growth of the market. Technological advancements, such as the development of more efficient and cost-effective solar PV inverters, are also contributing to the growth of the market.
