Home Energy And Power Solar PV Inverter Market Size, Demand & Analysis to 2031

Solar PV Inverter Market

Solar PV Inverter Market Size, Share & Trends Analysis Report By Inverter Type (Central Inverters, String Inverters, Micro Inverters), By Applications (Residential, Commercial and Industrial, Utility-scale) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP55394DR
Study Period 2019-2031 CAGR 4.53%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 12.30 Billion
Forecast Year 2031 Forecast Year Market Size USD 18.32 Billion
Largest Market Asia Pacific Fastest Growing Market North America
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Market Overview

The global solar PV inverter market size was valued at USD 12.30 billion in 2022. It is estimated to reach USD 18.32 billion by 2031, growing at a CAGR of 4.53% during the forecast period (2023–2031). The global community is currently shifting towards using renewable energy sources, such as solar power, due to the numerous advantages associated with this change. Due to its sustainable nature, solar energy has attracted significant investments and ambitious targets from governments worldwide, leading to notable growth in the global solar PV inverter market.

A solar photovoltaic (PV) inverter is an essential component of solar energy systems that transforms the variable direct current (DC) output of a photovoltaic solar panel into utility-frequency alternating current (AC) that can be supplied to a commercial electrical grid or utilized by a local, off-grid electrical network. It is a crucial component of a photovoltaic system's balance of system (BOS), allowing the use of standard AC-powered appliances. Solar power inverters with photovoltaic arrays feature maximum power point tracking and anti-islanding protection.

A solar PV inverter consists of essential elements such as power transistors, transformers, and sophisticated software controls. The solar PV inverter has applications in numerous fields, including residential housing, commercial buildings, grid support, agricultural operations, transportation, space technology, remote power systems, urban planning, and environmental conservation efforts. It enables the practical use of solar energy, promotes energy independence, provides a renewable energy source, offers the possibility of income via feed-in tariffs, and reduces carbon footprints.

Market Dynamics

Global Solar PV Inverter Market Drivers:

Increasing Investments and Ambitious Solar Energy Targets 

The installed capacity of solar photovoltaic (PV) projects has been expanding significantly over the past decade due to surging investments in the renewable energy industry supported by favorable government policies and ambitious renewable energy targets set by several countries. According to SolarPower Europe, the cumulative global installed solar PV capacity grew by 22%, i.e., from 772.2 GW in 2020 to 940.0 GW in 2021.

Countries like China, the United States, Japan, Germany, India, and Australia account for most of the installed PV capacity globally. They are expected to play a significant role in the solar PV inverters market. Furthermore, in early 2022, the China Photovoltaic Industry Association (CPIA) declared that the industry is expected to add between 83 GW-99 GW of new capacity annually by 2025. This will likely result in massive deployments within the Chinese solar PV industry during the forecast period, increasing the demand for solar PV inverters. In the first four months of 2022, solar investments in China reportedly reached RMB 29 billion (USD 4.4 billion).

Growing Adoption of Rooftop Solar PV Installations

The adoption of rooftop solar PV has been increasing significantly over the past couple of years in residential, commercial, and industrial (C&I) applications due to the government's favorable policies, financial benefits, subsidies, tax benefits, incentives, etc. Moreover, the overall costs associated with the installation and electricity generation of solar energy have already demonstrated a lower magnitude when compared to the prevailing pricing of wholesale electricity.

For instance, China's rooftop solar PV installations increased to 27.3 GW in 2021 from 19.4 GW in 2017. The increased adoption of rooftop solar PV is mainly due to the incentives and favorable policies introduced by the government to augment solar energy projects; one driving policy is feed-in tariffs, which guarantee an above-market price for solar energy producers. Moreover, the Chinese government plans to cover half of the newly built public institutions with rooftop solar panels in 2025. This is expected to create a huge demand for solar PV inverters during the forecast period.

Global Solar PV Inverter Market Restraints:

Technical Drawbacks of String Inverters

Selecting an appropriate solar inverter is crucial in creating a solar PV system. After solar PV panels, inverters are the essential equipment in the solar power system. The string inverter is commonly used with solar arrays to convert the direct current (DC) into usable electricity alternating current (AC). It is generally used for distributed solar PV systems, with sizes that range from 1 kW to 100 kW. Despite the various benefits associated with inverters in terms of maintenance, troubleshooting, and cost-effectiveness, the string inverter technology also presents certain limitations that are anticipated to impede the expansion of the string inverters segment in the foreseeable future.

Global Solar PV Inverter Market Opportunities:

Strategic Initiatives by Key Players

The major players have adopted various strategies to remain competitive in the solar inverter market, including product introduction, acquisition, agreement, partnership, and business expansion. For instance, in September 2021, Sungrow signed a contract with Pakistani distributor Energy for You. This agreement aims to offer residential and commercial inverter solutions for powering installations in Pakistan within one year.

In addition, in July 2021, EMTP Alliance and SMA Solar Technology AG announced their partnership to model SMA manufacturer products in EMTP. PGSTech's support with SMA Solar Technology AG would provide a comprehensive portfolio of EMTP models. Moreover, Fronius International GmbH introduced the Primo GEN24 plus single-phase hybrid inverter in March 2021. It was introduced in categories ranging from 3.0 to 6.0 kW, combining maximum output, top flexibility, and user-friendliness in a stylish and compact high-tech device. Therefore, these strategic initiatives by key players are expected to create opportunities for market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific is the most significant global solar PV inverter market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific's substantial consumer base and the presence of key participants account for the dominant share of the region. The market is expected to experience significant development in the coming years due to the expansion of the renewable energy sector, increased investment in revamping outdated power infrastructure, and rapid industrialization in the region. In addition, it is anticipated that China will see the greatest demand for solar PV inverters. China is the largest market for solar PVs and one of the largest markets for solar inverters. According to IRENA, China's total installed solar capacity in 2020 was 254.36 GW. Despite the COVID-19 pandemic, China installed nearly 50 GW of solar capacity in 2021. The nation has developed extensive plans for expanding its renewable energy capacity to aid in its green energy transition. The installed energy capacity has increased by 81 times over the past decade. This has been made possible by strong government support and a robust domestic Chinese solar manufacturing industry. All these factors drive the regional market growth.

In North America, the utilization and prevalence of solar electricity have shown a notable increase in accessibility and adoption. Fossil fuel generation in the United States decreased from 70% in 2010 to 58.6% in 2021, while renewable power generation grew from roughly 10% to 41% during the same period. Therefore, with government policies supporting the penetration of distributed solar power generation in the energy mix, demand for solar PV inverters is expected to grow during the forecast period. In addition, the demand for residential and commercial solar installations is surging across the region, which is driving the demand for solar PV inverters. For instance, according to the Canadian Renewable Energy Association, commercial and residential solar generation has increased from a few megawatts a decade ago, which was sufficient to power a few hundred homes, to more than one gigawatt in 2020, which will provide enough electricity for more than 100,000 homes. Therefore, the increasing solar PV installations in the residential and commercial sectors will likely expedite the solar PV inverters market in the region during the forecast period.

Europe is growing at a significant pace. On March 4, 2020, the European Commission submitted a proposal for the "Climate Law," pledging to become the first climate-neutral continent. The implementation of the initiative led to a significant expansion in the utilization of solar energy throughout the area. The government in the region is taking several initiatives for the higher adoption of solar energy. For instance, Under the Renewable Energy Act of 2021, in Germany, solar PV installations on rooftops exceeding 750 kilowatts peak (kWp) must participate in tenders. In contrast, all systems between 300 and 750 kW can either participate in a tender or reap the advantage of fixed feed-in tariffs and consume some of their electricity. They will only receive feed-in payments for fifty percent of their electricity. In 2020, the government removed the subsidy cap for solar installations going beyond 52 GW to accelerate the deployment of solar power. The move is likely to promulgate the growth of the market.

Brazil is the largest solar energy market in the South American region and is subsequently one of the largest solar PV inverter markets. According to ABSOLAR, in 2021, Brazil's solar PV capacity nearly doubled from 7.7 GW in 2020 to 14 GW in 2021. However, though 45% of Brazil's electricity was produced from renewables in 2021, solar PV only accounted for 1.7% of the total production. The solar sector in the country has been restrained by competition from other renewables, and the growth of alternate renewable energy sources, such as bioenergy, hydro, and wind, is expected to significantly restrain the demand for solar energy and solar PV inverters during the forecast period.

Report Scope

Report Metric Details
By Inverter Type
  1. Central Inverters
  2. String Inverters
  3. Micro Inverters
By Applications
  1. Residential
  2. Commercial and Industrial
  3. Utility-scale
Company Profiles FIMER SPA Schneider Electric SE Siemens AG Mitsubishi Electric Corporation Omron Corporation General Electric Company SMA Solar Technology AG Enphase Energy Inc. Delta Energy Systems Inc. SolarEdge Technologies Inc. Huawei Technologies Co. Ltd.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global solar PV inverter market is segmented by inverter type and application.

Based on inverter type, the global market is bifurcated into central inverters, string inverters, and micro-inverters. 

The central inverters segment dominates the global market. The central inverter is a huge grid feeder. It is commonly used in solar photovoltaic systems with rated outputs greater than 100 kWp. Typically, floor- or ground-mounted inverters convert the DC power generated by a solar array into AC power for grid connection. The power of these devices varies from around 50 kilowatts to 1 megawatt, and they are suitable for indoor and outdoor use. In general, a central inverter comprises a solitary step for converting direct current (DC) to alternating current (AC). Certain inverters are equipped with a supplementary DC-DC boost stage to augment their Maximum Power Point (MPP) voltage range. In some instances, low-frequency transformers increase the AC voltage and provide isolation at the output. This decreases efficiency and increases the inverter's size, weight, and price.

A string inverter is used with solar arrays to convert the energy generated (DC) to usable electricity for a household (AC). It is connected to multiple solar panels, forcing the performance to be equal. This type of inverter is usually used for residential and commercial systems, with sizes that range from 1kW to 100kW. These inverters are classified into three types, i.e., on-grid, off-grid, and hybrid. The use of each class depends on the project's specific requirements. As for string inverters, the maximum DC power is more than the total rated capacity, but the specified capacity value is usually per MPP input. For example, if a string inverter has 2 MPP inputs, the maximum DC power showcased is half of the inverter's total full DC power. The demand for string inverters has been increasing among solar developers as these are typically used in the distributed solar segment.

Based on application, the global market is segmented into residential, commercial and industrial (C&I), and utility-scale. 

The utility-scale segment owns the highest market share. The number of utility-scale projects around the globe is increasing rapidly, and choosing the best inverter is increasingly important to generate a massive amount of energy efficiently for the solar PV project. Moreover, utility-scale solar has generated clean, reliable electricity at a stable cost for decades. Developing utility-scale solar power is amongst the quickest ways to reduce carbon emissions, which is one of the major drivers for the widespread installation of PV inverters over the forecast period. For instance, in 2022, under the Renewable Energy Power European Union (REPowerEU) plan, the European Commission aims to increase renewable energy, and solar energy will be the kingpin of this effort. In addition, this strategy aims to bring 320 GW of solar photovoltaic online by 2025, and it will directly aid the development of the utility-scale solar PV inverter market in the region.

A residential solar photovoltaic (PV) inverter is a device designed to transform the direct current (DC) generated by solar panels into alternating current (AC). It is used in domestic appliances and is installed in all solar PV systems. Similarly, the rapid adoption of residential solar PV systems across the globe due to the lower costs of solar PV systems, government aid and support for renewable energy, and consumers looking for energy security will aid the demand for residential solar PV inverters market. For instance, residential solar PV installation increased significantly in the US from 2.28 GW in 2013 to roughly 23.28 GW in 2021, a 30% increase over 2021, according to the Solar Energy Industries Association.

Market Size By Inverter Type

Market Size By Inverter Type
  • Central Inverters
  • String Inverters
  • Micro Inverters
  • Recent Developments

    Top Key Players

    Solar PV Inverter Market Share of Key Players

    Solar PV Inverter Market Share of Key Players
    FIMER SPA Schneider Electric SE Siemens AG Mitsubishi Electric Corporation Omron Corporation General Electric Company SMA Solar Technology AG Enphase Energy Inc. Delta Energy Systems Inc. SolarEdge Technologies Inc. Huawei Technologies Co. Ltd. Others

    Frequently Asked Questions (FAQs)

    How big is the solar PV inverter market?
    The global solar PV inverter market size was valued at USD 12.30 billion in 2022. It is estimated to reach USD 18.32 billion by 2031, growing at a CAGR of 4.53% during the forecast period (2023–2031).
    North America has the highest growth in the global market.
    Key verticals adopting the market include: FIMER SPA, Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation, Omron Corporation, General Electric Company, SMA Solar Technology AG, Enphase Energy Inc., Delta Energy Systems Inc., SolarEdge Technologies Inc., Huawei Technologies Co. Ltd.
    Increasing investments and ambitious solar energy targets and growing adoption of rooftop solar pv installations are the key driver for the growth of the global market.
    Strategic initiatives by key players is one of the upcoming key trends in the global market.

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