PV Inverter Market Size Worth USD 16,194 Million By 2030 | CAGR of 5.85%

Introduction

Solar PV power generating systems are environmentally friendly and inexhaustible. They have proven to be a lucrative option for energy production throughout the European Union, the Americas, and Asia-Pacific. The numerous benefits of solar PV, such as effectiveness to sustainability, a decrease in ecological footprint, and low-cost power generation, are likely to drive the technology market in the following years. Rising demand for renewable energy due to increased power usage and lower renewable power generation costs will likely cause a market expansion in the coming years.

Market Dynamics

Increasing Demand for Electric Power through Clean and Green Energy Sources

According to the United Nations, the world's population will be 7.8 billion in 2020, with around 1 billion people without electricity access. The world population is expected to reach 8.6 billion by 2030, increasing the energy demand even more. To meet the need for electricity and raise awareness about alternative energy sources, the electricity sector has shifted its focus to large-scale integration of renewable energy generation. 

Renewable power generation has grown incredibly over the last decade, consistently exceeding assumptions, with significant yearly records and an increasing number of firms investing in their energy transitions. The shifting consumer desire for a sustainable built environment, ambitious government targets, and sufficient planning and policies have driven much progress in renewable energy. 

The ASEAN Plan of Action for Energy Cooperation held in 2016 announced a target to achieve 23% power generation through renewable energy sources by 2025. Governments in the Asia Pacific are likely to promote the renewable energy sector by providing preferable tariffs and tax benefits. These factors are expected to drive the market for PV inverters during the forecast period.

Impact of COVID-19 

The supply chain of PV inverter systems was majorly affected due to the shutdown of production facilities, especially in China, which was the epicenter of the pandemic, and one of the worst affected regions. The manufacturing of most devices in the energy and power sector experienced a considerable slowdown. Additionally, the local and international travel restrictions, quarantine requirements, and lockdowns further delayed shipments of manufactured parts that were in the process of delivery. Installers and system providers usually hold stock of equipment in inventory. However, manufacturers faced bottlenecks and shortages owing to limited production in countries severely affected by COVID-19.

COVID-19 resulted in a halt of new construction activities around the globe owing to the lockdown, reducing the demand for solar power system installation in residential and commercial applications since these systems are preferred in new construction for captive consumption of power and to reduce the carbon footprint of buildings. Further, demand from prospective residential and commercial customers is expected to be on the lower side owing to funds being diverted to combat the pandemic.

Market Recovery Timeline

COVID-19 hampered the international market for PV inverters due to supply chain risks, causing delays for existing sites. Furthermore, demand for PV inverters from business and residential end-users has decreased due to constrained new construction activities and redirecting of available finances by residential and commercial end-users to survive during the COVID-19 outbreak. 

Nonetheless, governments in some major nations, like the United States, Germany, and India, have taken measures to prolong the deadline for new and underdeveloped solar power plants to qualify for subsidies and tax credits. Due to the supportive measures adopted by the government, the influence of COVID-19 on the PV inverter industry is likely to be moderate, increasing demand for PV inverters shortly.

Regional Insights

Asia-Pacific is expected to account for the largest market share in the regional market, accounting for USD 8,986 million at a CAGR of 8.02% by 2030. China is the major contributor to Asia-Pacific’s rapid growth in the PV inverter market. A growing number of solar installations in the region’s developing nations have also significantly contributed to the development of the Asia-Pacific solar PV inverter market.

North America accounts for the second-largest position in the regional market, with the US being the major revenue generator. North America is expected to reach USD 3,862 million at a CAGR of 5.25% by 2030. The US is among the early adopters of clean energy solutions in the world for power generation and others. This can be attributed to the increased importance of clean energy solutions as per the energy act introduced by the US government. Moreover, relevant policies and regulations have been established based on these acts to cater to different aspects of distinct sectors such as power generation

Key Highlights

• The global PV inverter market size was valued at USD 9,708 million in 2021. It is expected to reach a value of USD 16,194 million by 2030, growing at a CAGR of 5.85% during the forecast period (2022–2030). 
• Based on product, the PV inverter market has been categorized into central PV inverters, string PV inverters, micro-PV inverters, and others. String PV inverter accounted for the largest market share in 2021 and is projected to grow at the highest CAGR of 6.05% to reach USD 8,814 million during the forecast period.
• Based on end-user, the PV inverter market has been segmented into residential, commercial and industrial, and utility. The utility segment of the solar PV inverters accounted for the largest market share in 2021 and is expected to reach USD 7,716 million by 2030 at a CAGR of 5.95%. 

Competitive Players

1. SMA Solar Technology
2. Fimer Group
3. SunPower
4. Siemens Energy
5. OMRON Corporation
6. Delta Electronics Inc
7. Emerson Electric Co
8. Power Electronics S.L
9. Eaton

 

Recent Developments

• In September 2022, The diversity, equity, and inclusion (DE&I) commitments of SunPower (NASDAQ: SPWR), a leading residential solar technology and energy services provider, have made progress toward their goals of giving historically marginalized families, job seekers, and businesses greater access to the many advantages of solar and energy storage.
• In December 2022, The tender offer time for Siemens Gamesa minority stockholders was successfully concluded by Siemens Energy.
• In November 2022, Ireland's electrical grid will be initially connected to continental Europe by Siemens Energy.
• In October 2022, OMRON will debut its wireless weather sensor and IoT gateway at IoT World 2022 for the first time in the United States.

Segmentation

1. By Product
   1. Central inverters 
   2. String inverters 
   3. Micro-PV inverters
   4. Others
2. By End-User
   1. Residential
   2. Commercial and Industrial
   3. Utility