String Inverter Market

• Increasing demand for continuous and reliable power sources is driving the market growth

The string inverter market is expected to be driven by lower costs that eliminate the monitoring capabilities of the system. Apart from the conversion, solar inverters perform voltage tracking, grid connecting communication, and shut down during emergency conditions. String inverters are most commonly used in residential and commercial applications and are nowadays increasingly used in small utility projects across the globe.

The closure of new chain inverter facilities in the commercial and residential sectors and disruptions to supply chain and manufacturing activities due to active lockdown and social distancing has hampered the growth of this industry.

Solar power systems are currently manufactured in various forms, such as an off-grid solar power system, a battery-backed grid-tied solar power system, and a battery-free, off-grid solar power system without backup. By having such diverse types and uses, a significant increase in the solar inverter market is expected, increasing new opportunities in the future.

The Global String Inverter Market Industry is poised for substantial growth in the coming years. Projections indicate that the market will expand from 5.42 USD Billion in 2024 to 11.7 USD Billion by 2035, reflecting a compound annual growth rate of 7.27% from 2025 to 2035. This growth trajectory suggests a robust demand for string inverters, driven by various factors such as technological advancements, increasing renewable energy adoption, and supportive government policies. The market's expansion is likely to attract new entrants and investments, further enhancing competition and innovation within the industry.

Government initiatives aimed at promoting renewable energy adoption significantly influence the Global String Inverter Market Industry. Various countries are offering financial incentives, tax credits, and subsidies to encourage the installation of solar energy systems. For instance, the Investment Tax Credit in the United States allows homeowners to deduct a percentage of the cost of solar systems from their federal taxes. Such incentives lower the upfront costs associated with solar installations, making string inverters more accessible to a broader audience. As these programs continue to evolve, they are likely to stimulate further growth in the market.

The increasing global emphasis on renewable energy sources drives the Global String Inverter Market Industry. Governments worldwide are implementing policies and incentives to promote solar energy adoption. For instance, the global solar power capacity is projected to reach 2,000 GW by 2024, significantly boosting the demand for string inverters. These devices play a crucial role in converting the direct current generated by solar panels into alternating current, making it usable for households and businesses. As a result, the market is expected to grow from 5.42 USD Billion in 2024 to 11.7 USD Billion by 2035, reflecting a compound annual growth rate of 7.27% from 2025 to 2035.

The rising adoption of energy storage systems complements the Global String Inverter Market Industry by enhancing the overall efficiency of solar energy systems. Energy storage solutions, such as batteries, allow users to store excess energy generated during peak sunlight hours for use during periods of low generation. This synergy between string inverters and energy storage systems is becoming increasingly important as consumers seek energy independence and reliability. The integration of these technologies is expected to drive market growth, as more homeowners and businesses recognize the benefits of combined solar and storage solutions.

The growing awareness of energy efficiency and sustainability among consumers is a key driver for the Global String Inverter Market Industry. As individuals and businesses become more conscious of their carbon footprints, the demand for solar energy solutions, including string inverters, is increasing. Educational campaigns and environmental initiatives are fostering a culture of sustainability, prompting more consumers to invest in renewable energy technologies. This shift in consumer behavior is expected to contribute to the market's expansion, as more people seek to reduce their reliance on fossil fuels and embrace cleaner energy alternatives.

Innovations in inverter technology are enhancing the efficiency and performance of string inverters, thereby propelling the Global String Inverter Market Industry. Recent developments include the integration of smart technology, which allows for real-time monitoring and optimization of energy production. For example, advanced algorithms can adjust the inverter's operation based on changing environmental conditions, maximizing energy output. This technological evolution not only improves the reliability of solar energy systems but also reduces maintenance costs, making string inverters more appealing to consumers. As these advancements continue, they are likely to attract further investments in the market.

By Region, the study shows market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific String Inverter market area will dominate this market. The major contributors to string inverter market growth will be China, India, and ASEAN, amongst which China will ho approximately one-third of the total market share.

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

Figure 2: String Inverter Market Share By Region 2022 (%)

Source: Market Research Future Database, Secondary Research, Primary Research, and Analyst Review

Europe String Inverter market accounts for the second-largest market share. Expiring FiTs coupled with the increasing adoption of battery energy storage systems over the Region is considerably driving the demand for string inverters. Further, the German String Inverter market held the largest market share, and the UK String Inverter market was the fastest-growing market in the European Region.

The North American String Inverter Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rise in demand for electricity and solar systems by the urban and rural populations in this Region. Moreover, the USA String Inverter market held the largest market share, and the Canada String 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 String Inverter market grow even more. Market participants are also undertaking a variety of strategic activities to enlarge their footprint, with important market developments including new product launching, contract-based agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the String Inverter industry must offer cost-effective products.

Manufacturing narrowly to minimize operational costs is one of the key business strategies used by manufacturers in the String Inverter industry to benefit clients and increase the market sector. In recent years, the String Inverter industry has offered some of the most significant advantages to people. Major players in the String Solar Inverter market, including SolarMax, Huawei Technologies, Sungrow Power Supply, Fronius International, KOSTAL Solar Electric, Growatt New Energy Technology, and others, are attempting to increase market demand by investing in research and development operations.

Fimer S.p.A. was founded in 1942. The Company's line of business includes manufacturing welding apparatus products. The company welders are universally recognized for their high quality, perfection of operation, adherence to continual progress, wide range, and functional line. In March 2020, Fimer Group acquired ABB's solar inverter business, making the Company the 4th largest solar inverter manufacturer across the globe. This acquisition strategy will help the Company to boost its presence globally.

Huawei Technologies Co Ltd (Huawei), a subsidiary of Huawei Investment & Holding Co Ltd, is a provider of information and communication technology (ICT) infrastructure and smart devices. The Company's product portfolio includes laptops, tablets, routers, wearables, headphones, enterprise wireless products, enterprise optical transmission and access products, networking products, and cloud and computing products. It also offers services and software for carrier networks and smart services for enterprises. Huawei serves education, finance, healthcare, internet services providers, manufacturing, oil and gas, public safety, retail, smart city, smart grid, and transportation industry.

In March 2022, Huawei Technologies signed a strategic cooperation agreement with Meienergy Technology Co, Ltd to provide a smart PV and energy storage system for the 1 GW utility PV plant and 500 MWh energy storage system in Ghana, which was developed by Meienergy.