The global solar PV inverter market size was valued at USD 16.3 billion in 2024 and is estimated to reach USD 35.4 billion by 2033, growing at a CAGR of 10.2% during the forecast period (2025–2033).
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. Furthermore, the key players in this market are involved in several strategic initiatives to enhance their market share, thereby creating opportunities for global market growth.
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.
Highlights
Over the past decade, the capacity of solar photovoltaic (PV) projects has been growing substantially. This growth is driven by increased investments in the renewable energy industry, which are encouraged by favorable government policies and the ambitious renewable energy goals set by many 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 and driving global market growth.
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.
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, string inverter technology also presents certain limitations that are anticipated to impede the expansion of the string inverter segment in the foreseeable future.
The major players have adopted various strategies to remain competitive in the solar inverter market, including product introduction, acquisition, agreement, partnership, and business expansion.
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.
| Study Period | 2021-2033 | CAGR | 10.2% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 16.3 billion |
| Forecast Year | 2033 | Forecast Year Market Size | USD 35.4 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
Asia Pacific is the most significant global market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region dominates the solar PV inverter market, owing to the rapid adoption of renewable energy sources and favorable government policies. According to the International Energy Agency's (IEA) Photovoltaic Power Systems Programme (PVPS), in 2021, the Asia-Pacific region will account for 63% of global installed solar PV capacity, with China leading the way as the largest market. The Indian Ministry of New and Renewable Energy (MNRE) reported that India's cumulative solar PV installed capacity had reached 57.7 GW as of March 2023, demonstrating the country's commitment to renewable energy targets.
Additionally, according to the Chinese National Energy Administration (NEA), China will add 87.4 GW of solar PV capacity in 2022, bringing the total installed capacity to 392.7 GW and solidifying its position as the world's largest solar PV market. Furthermore, the Asia-Pacific region's dominance in the solar PV inverter market can be attributed to a number of factors, including government subsidies, favorable policies, and rising demand for clean energy sources. Also, countries such as Japan, Australia, and South Korea have also made significant strides in solar PV technology adoption, helping to drive regional market growth.
Europe is a sub-dominant region in the global solar PV inverter market, owing to the European Union's (EU) ambitious renewable energy targets and favorable policies. According to SolarPower Europe, the region installed 41.4 GW of solar PV capacity in 2022, setting a new annual record. The European Commission's "REPowerEU" plan aims to increase the proportion of renewable energy in the EU's energy mix to 45% by 2030, creating significant opportunities for the solar PV inverter market. According to the International Renewable Energy Agency (IRENA), Germany, Spain, and the Netherlands are among the European countries with the most solar PV installations.
Additionally, the European solar PV inverter market places a strong emphasis on innovation, efficiency, and quality. Major European inverter manufacturers, including SMA Solar Technology AG (Germany), Fronius International GmbH (Austria), and Sungrow Power Supply Co., Ltd. (Germany), are at the forefront of technological advancements in the industry, helping to boost the region's competitiveness. Furthermore, the European Union's commitment to reducing greenhouse gas emissions and achieving net-zero targets by 2050 has created an enabling environment for the adoption of solar PV technology and the associated inverter market. Moreover, initiatives such as the European Green Deal and the Renewable Energy Directive have played critical roles in propelling the solar PV inverter market in Europe.
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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 kW. 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.
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 efficiently generate a massive amount of energy 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.
