Home > Energy And Power > String Inverter Market Demand, Manufacturers, Trends, Report to 2031
Straits Research

String Inverter Market

String Inverter Market: Information by Connection Type (On-Grid and Off-Grid), Phase (Single-Phase and Three-Phase), End-User (Residential, and Utilities), Region – Forecast Till 2031

Table of Content Download Sample

Market Overview

The global string inverter market size was valued at USD 3.50 billion in 2022 and is estimated to reach USD 6.02 billion by 2031, with a CAGR of 6.2 % during the forecast period (2023–2031).

A string inverter is a system that converts DC power into AC power. Inverters are considered to be the main part of the solar system. It is gaining popularity over central inverters (type of solar inverter) in small utility projects nearly less than 1 MW. Sting inverters have been increasingly used in the commercial, industrial, and utility sectors in the past five years. More than one string inverter is present in the solar system, depending on the size of the system. 

A string inverter is an important device in the solar system, which converts DC power flowing from solar panels to AC power in residential applications. Besides the conversion, solar inverters track voltage and allow grid connecting communication and shut down during emergencies. String inverters are most commonly used in residential and commercial applications and are increasingly used in small utility projects across the globe.

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
CAGR
: 6.2 %
Fastest Growing Market
: North America
Largest Market
: Asia Pacific
Market Size
: USD 6.02 billion by 2031
Get more information on this report Download Sample Report

Market Dynamics

What Factors are the Driving the Global String Inverter Market?

The significant growth rate in the renewable energy sector is expected to propel the growth of the string inverter market during the forecast period. Asia-Pacific has registered the highest growth rate and market share in renewable energy, owing to the increase in investment in renewable energy projects, capacity, and utilization. Rapid growth in the renewable energy sectors such as hydropower, wind, and solar fulfills the need for electricity from residential, commercial, industrial, and utility consumers. Advantages such as bulk availability, clean source of energy, and others boost the demand for solar energy, resulting in the development of the solar energy sector, thereby fueling the growth of the string inverter market during the forecast period.

In addition, String inverters are connected to more than five to ten solar panels in a series connection each. Hence, there is only one string inverter for more than five solar panels, making it easier to install for the workers. Most of the string inverters are installed near the switchboard. Contractors first install wire boxes efficiently, then integrate string inverters with the wire box. After the wire box installation, it is easy to install the string inverters for less skilled workers or lower-cost workers. With the increased use of large-sized string inverters in the utility system and other commercial and industrial sectors, installation for such a large solar system is easier because it can connect with multiple solar panels, fueling the global string inverter market growth.

What are the Restraints for the Global String Inverter Market?

The string inverter generates heat during the conversion from DC to AC power. This heat is getting added to the ambient temperature of the inverter structure. It will further dissipate the heat through fans or heat sinks. The heat generated should be below certain limits for properly operating string inverter components. In the large string inverters, heat generated in the system is high, resulting in the degradation of insulation, solders, and fatigue to metal components in the capacitors. This heat generated can cause the system to work falsely or degrade components. Therefore, these factors are expected to hamper the market's growth during the forecast period.

What are the Future Opportunities for the Global String Inverter Market?

Emerging economies such as China, India, and Brazil are the fastest-growing economies engaged in investment in the electrification of remote and rural areas. An increase in population and massive urbanization are the primary drivers for increasing electrification, which fuels the demand for solar energy in these countries, thereby driving the growth of the string inverter market during the forecast period. Countries such as Bhutan, Afghanistan, India, Nepal, and Cambodia in the Asia-Pacific region registered the highest electrification growth rates in the past five years with the help of on-grid and off-grid string inverter solutions. Thus, considering all the factors above, an increase in string inverter demand from emerging economies is expected to provide potential opportunities for market expansion during the forecast period.

Segmental Analysis

The global string inverter market is segmented based on connection type, phase, and end-user.

The market is segmented by connection type into on-grid and off-grid.

An on-grid string inverter is a grid-tied inverter that feeds the energy converted into the main grid. Feeding of energy converted is possible by matching their phase and frequency. The main power grid is used to supply consumers from residential to industrial applications. An increase in demand for sustainable electricity from the end users is driving the growth of the global string inverter market during the forecast period.

Off-grid solar power systems are also called standalone solar power systems. In this type of connection, solar energy is received for conversion from batteries, which are charged with the help of photovoltaic arrays. This type of solar inverter is most widely used in remote or rural areas where grid power is not economical and practical. 

The global string inverter market is segmented by phase into single-phase and three-phase.

Single-phase string inverters are increasingly used in residential applications such as powering home appliances, parking lights, etc. Depending on the installation size, more single-phase string inverters may be used in the applications mentioned above. An increase in demand for single-phase string inverters from residential applications and a reduction in battery cost will drive the market's growth in the upcoming years.

Three-phase solar inverters are used in high commercial and industrial applications. A three-phase solar inverter is one of the current improvements in a solar inverter system. Commercial and industrial applications use their generated power for continuous operation from three-phase solar inverter systems. The rating of three-phase string inverters ranges from a few kilowatts to 200 kW.

Based on the end-use industry, the market is segmented into residential, commercial and industrial, and utilities.

Residential is the most widely used area of applications for string inverters. It is compatible with small installations for residential consumers up to 1 MW. It is the best option for homeowners expecting low-cost PV installations. Solar panels can be installed on the rooftops of the building, and hence they can get consistent sun energy throughout the day. 

String inverters are increasingly used in commercial and industrial applications. An increase in power outages and shutdowns in developing economies is increasing the demand for alternate energy sources such as solar, wind, and other renewable sources. Commercial and industrial manufacturing and other processes require a continuous and stable electricity supply for continued operations. 

Utilities are gaining importance in solar power generation for feeding main grid sources and off-grid connections in remote and rural areas. Thus, there is an increase in the demand for string inverters in utility-scale solar power projects. An increase in investment in utility-scale solar power plants, solar parks, and other solar generation structures drives the market's growth during the forecast period.

Regional Analysis

The global market for string inverters has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

Asia-Pacific is the largest consumer in the global string inverter market, owing to the presence of key developing economies such as China, India, and Japan. A string inverter is used in various applications such as solar parks, solar power plants, charging stations, residential, and other applications. The string inverter market in Asia-Pacific is mainly driven by developing economies, as there is rapid growth in the solar energy sectors. This is owing to many key players and the availability of these countries' manufacturing facilities. In addition, the rise in urbanization and industrialization in the countries such as China, India, and others is increasing the electricity demand, which further drives the growth of the string inverter market during the forecast period. Due to the increasing population, the demand for string inverters in the Asia-Pacific region is due to the need for continuous and stable power. It is expected to fuel the demand for the string inverter market in the upcoming years. Moreover, the increase in the use of string inverters in the commercial and industrial sectors and utility solar power projects is fueling the growth of the string inverter market during the forecast period. According to the International Renewable Energy Agency (IRENA), in the Asia-Pacific region, China, Japan, India, and Australia are among the top ten countries in the world with solar energy installed, which drives the growth of the string inverter market globally.

The U.S., Canada, and Mexico are the three major countries in North America reporting the trend of string inverters. The U.S. is North America's leading manufacturer and consumer of string inverters. Other countries offering high potential for string inverters in the region include Canada and Mexico. An increase in the electricity demand along with sustainable development is rapidly increasing the demand for solar, wind, and other renewable sources, which is anticipated to fuel the market's growth in the upcoming years. Solar energy is a huge source of renewable energy available and thus is very important for the energy sector, further attracting investors. Owing to this, there is an increase in demand for string inverters in energy conversion, which fuels the market growth in the analyzed timeframe. Also, the increase in string inverters in projects of more than 5 MW capacity in the U.S. is driving the market's growth in the upcoming five years. Moreover, stringent regulations toward reducing carbon emissions fuel the growth of the string inverter market during the forecast period.

Europe accounted for the third highest market share in the string inverter market, with predominance in the construction, automotive, and other industries. String inverters are highly used in various applications such as residential, commercial and industrial, and other applications in the European region. Spain is the largest market for solar power in the European region. According to SolarPower Europe, in 2019, 16.7 GW of installations were added in the region, which registered a 104.0% increase compared to 2018. Owing to this rapid increase in solar capacity installed in the year 2019, i.e., after nine years, there is an increase in demand for the string inverter market in the European region during the forecast period. As mentioned above, this increase in regional installations is attributed to solar's cost competitiveness, increasing the demand for string inverters. In addition, an increase in demand for string inverters from electric vehicles, home applications, and other commercial applications fuels the growth of the string inverter market in the upcoming years.

String Inverter Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of String Inverter Market

  1. SMA Technologies AG
  2. Fimer S.p.A.
  3. SolarEdge Technologies Ltd
  4. Ginlong Technologies
  5. Siemens AG
  6. Delta Electronics Public Co., Ltd
  7. Chint Group
  8. SolarMax
  9. Growatt New Energy Technology Co., Ltd
  10. Huawei Technologies Co., Ltd

Report Scope

Report Metric Details
CAGR 6.2%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Connection Type
    1. On-Grid
    2. Off-Grid
  2. By Phase
    1. Single-Phase
    2. Three-Phase
  3. By End-Use Industry
    1. Residential
    2. Commercial and Industrial
    3. Utilities
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Recent Developments

  • February 2020- Ginlong Technologies launched a residential storage hybrid inverter into the U.S. solar market. This product launch will enhance the product portfolio of the company.
  • February 2020- Growatt launched a new inverter, TL-XH, for single-phase residential customers.
  • November 2019- Siemens launched five new string inverters through its subsidiary Kaco New Energy GmbH for large commercial roofs and solar parks. This new launch ranges from 87 to 150 kW of output power. This will enhance the product portfolio of the company.

String Inverter Market Segmentation

By Connection Type

  • On-Grid
  • Off-Grid

By Phase

  • Single-Phase
  • Three-Phase

By End-Use Industry

  • Residential
  • Commercial and Industrial
  • Utilities

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • France
  • The U.K.
  • Italy
  • Spain
  • Netherlands
  • Russia
  • The Rest of Europe

Asia-Pacific

  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Malaysia
  • Singapore
  • Vietnam

Central and South America and the Caribbean

  • Brazil
  • Argentina
  • Colombia
  • The Rest of Central and South America and the Caribbean

The Middle East

  • Saudi Arabia
  • The UAE
  • Oman
  • Bahrain
  • The Rest of the Middle East

Africa

  • Nigeria
  • South Africa
  • Ghana
  • Tanzania
  • The Rest of Africa

Frequently Asked Questions (FAQs)

What are the key drivers for the growth of the market for string inverter?
TRapid development in the renewable energy sectors and the improved use of large-sized string inverters in the utility system are the key drivers for the growth of the market.
The global market size is projected to reach USD 6.02 billion by 2031.
The residential segment is the leading segment of the market during the forecast period.
The key players in the global market include SMA Technologies AG, Fimer S.p.A., SolarEdge Technologies Ltd, Ginlong Technologies, Siemens AG, Chint Group, SolarMax, and Huawei Technologies Co., Ltd.
The global market growing at a CAGR of 6.2% from (2023–2031).
Price Starts From
USD 995

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
LG Electronics
Need Assistance?
+1 646 905 0080 (U.S.)
+44 203 695 0070 (U.K.)
sales@straitsresearch.com

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Report Snapshot
Looking For Custom Report ?
Check Our License Options :

As featured on :

clients
Trusted by Fortune 500
Over 30000+ subscribers