Pv Inverter Market | Acumen Research and Consulting

PV Inverter Market Highlights

• The global PV inverter industry is expected to reach a revenue of USD 29.3 billion by 2032, growing at a CAGR of 9.5% from 2024 to 2032
• The Asia-Pacific PV inverter market was valued at approximately USD 5.7 billion in 2023
• The North American PV inverter market is projected to grow at a CAGR of over 10.3% from 2024 to 2032
• In terms of product type, the string sub-segment accounted for 47% of the market share in 2023
• Rising demand for smart inverters with advanced monitoring and grid support capabilities is driving the adoption of PV inverter is the PV inverter market trend that fuels the industry demand

PV inverter, also known as a photovoltaic inverter, is a critical component in solar power systems that transform direct current (DC) electricity generated by solar panels to alternating current (AC) electricity, which is utilized by most domestic appliances and the grid. It is critical in improving the performance of solar systems by ensuring maximum power extraction from solar panels using maximum power point tracking (MPPT). PV inverters also offer grid connectivity, guaranteeing that the energy generated can be fed into the grid. They generally include monitoring and safety mechanisms to safeguard the system against failures and overvoltage. In bigger installations, they help to balance energy production and increase system efficiency. PV inverters are used for residential, commercial, and utility-scale solar installations.

Global PV Inverter Market Dynamics

Market Drivers

• Rising demand for renewable energy and solar power generation
• Government incentives and supportive policies for solar energy adoption
• Technological advancements enhancing inverter efficiency and durability

Market Restraints

• High initial investment costs for installation and maintenance
• Fluctuations in raw material prices impacting manufacturing costs
• Limited grid infrastructure in developing regions hindering adoption

Market Opportunities

• Growth in emerging markets with untapped solar energy potential
• Integration of AI and IoT in inverters for smart energy management
• Expanding rooftop solar installations in residential and commercial sectors

PV Inverter Market Report Coverage

PV Inverter Market Insights

The growing legislative concern about reducing GHG emissions, along with increased investment in renewable sources, will benefit the PV industry. Increasing R&D efforts to increase PV technology's operational efficiency and cost-effectiveness would exacerbate customer demand.

Some important characteristics influencing item adoption are cost efficiency, long working life, and the ability to function under fluctuating energy conditions. Furthermore, the rising incorporation of intelligent functioning elements, as well as the use of sophisticated cloud approaches, will accelerate corporate dynamics. Rising sector initiatives to improve the effectiveness and operating life of solar inverter technology would have a positive impact on company dynamics. The increasing penetration of large-scale photovoltaic activities to achieve green economy certification will boost consumer adoption.

Demand for solar photovoltaics (PV) inverters is primarily driven by increased demand for solar energy and renewable generation. Solar energy is predicted to dominate new capacity additions in the renewable sector globally. This accounts for the expansion of all PV equipment during installation, including solar inverters used for electricity conversion. Renewable have enjoyed tremendous growth over the last century, consistently outperforming predictions. More firms pledge to switch from traditional to renewable energy sources. The changing customer desire for a sustainable environment, ambitious central government goals, and effective planning and execution of numerous supporting policies have resulted in significant breakthroughs in renewable energy.

Renewable electricity has become the dominating option as civilization reaches a tipping point when the globe is on the verge of adopting clean energy on a massive scale. Solar electricity has rapidly gained popularity. It generates power with no emissions, no fluctuations in fuel prices, and no gas expenses. Moving the world toward affordable, reliable, and cleaner energy sources is also a key development parameter. Such variables resulted in improved solar facilities, which had a direct impact on PV inverter supplies. Solar machinery has undergone continual development in all end-use industries, with prospective development chances in household, industrial, and utility-scale businesses. Utility is one of the solar PV inverter market's fastest growing end-use industries. Industry now accounts for roughly one-third of global energy use.

Industrial and commercial energy demand represented the most significant development prospects, particularly in developing and emerging nations. Photovoltaic inverter solar panel technology is a new industry invention. Companies like Enphase, for example, manufacture inverters at the back of the board for simplicity of connecting. In the previous year, numerous US inverter experts announced agreements with various major panel manufacturers in an attempt to create modules without additional infrastructure.

PV Inverter Market Segmentation

The worldwide market for PV inverter containers is split based on product, bottles phase, connectivity, nominal output power, nominal output voltage, end-use, and geography.

Photovoltaic Inverter Market By Product

• String
• Micro
• Central
• Others

According to the PV inverter industry analysis, string inverters dominate the industry because they are cost-effective and scalable, making them perfect for both residential and commercial solar installations. They effectively connect several solar panels into a string, converting DC electricity to AC power with minimal energy loss. Their modular architecture enables simple installation and maintenance, which appeals to both installers and end users. Furthermore, advances in monitoring and control technology for string inverters improve performance, promoting their broad use over centralized or micro-inverters.

Photovoltaic Inverter Market By Phase

• Single Phase
• Three Phase

According to the PV inverter industry analysis, three-phase PV inverters are predicted to rise significantly in the market, owing to their capacity to handle higher power levels, making them appropriate for commercial and industrial applications. They provide balanced power distribution across phases, lowering energy losses and increasing efficiency. The increased deployment of large-scale solar projects, combined with grid modernization activities, drives higher demand for these inverters. Furthermore, advances in three-phase inverter technology, such as improved grid connectivity and monitoring capabilities, have accelerated their adoption.

Photovoltaic Inverter Market By Connectivity

• Standalone
• On Grid

According to the PV inverter industry analysis, on-grid PV inverters is a popular connectivity because they can link solar systems to the utility grid, allowing excess power generation to be sent back into the grid in exchange for credits or financial incentives. This grid connection makes them excellent for commercial and residential applications that require grid support for energy reliability and cost effectiveness. Standalone (off-grid) inverters, while still useful in distant places, are less popular since they require energy storage systems such as batteries, which makes them more expensive and complex.

Photovoltaic Inverter Market By Nominal Output Power

• ≤ 0.8 kW
• 0.8 - 3 kW
• >3 - 33 kW
• >33 - 110 kW
• > 110 kW

According to the PV inverter industry analysis, PV inverters with a nominal output capacity of more than 110 kW are quite popular because they are ideal for utility-scale solar projects and large commercial installations. They effectively control enormous energy outputs, resulting in optimal power conversion for big solar systems. Their strong architecture and abilities to ensure grid stability make them an ideal choice for current solar farms. Furthermore, advances in power electronics and cost savings in manufacturing lead to their extensive use in the PV inverter market.

Photovoltaic Inverter Market By Nominal Output Voltage

• ≤ 230 V
• 230 - 400 V
• >400 - 600 V
• > 600 V

According to the PV inverter market forecast, PV inverters with nominal output voltage ranges of 400-600 V are gaining popularity due to their compatibility with both residential and commercial solar installations. This voltage range enables efficient power transfer while minimizing energy losses, making it suited for medium-sized to large solar systems. The growing use of distributed energy systems and rooftop solar projects drives up demand in this segment. Furthermore, inverters in this voltage range are flexible and scalable, catering to a wide range of applications in the PV inverter industry.

Photovoltaic Inverter Market By Application

• Residential
• Commercial & Industrial
• Utility

According to the PV inverter market forecast, the utility section experienced a large increase as a result of grid-connected solar installations working in tandem with the traditional utility grid. Industrial and commercial scale installations are among the largest in several parts of the world, demonstrating more valuable retail electricity while remaining cost-effective. With numerous large-scale solar programs worldwide, utilities have experienced the most growth in the last three years.

PV Inverter Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

PV Inverter Market Regional Analysis

For several reasons, in 2023, Asia-Pacific had the biggest market share. This can be directly attributed to the installation of multiple grid-scale solar projects throughout the region, particularly in China and India. Government subsidies and purchase incentives played an important role in promoting the region's solar power plants. The existence of major market participants in China and Japan, together with the technological advancements in their power electronics sectors, aided Asia-Pacific's massive demand. China is the world's largest solar-powered nation and is considered as a driving force in the global solar business. The country changed the global energy landscape with an unprecedented increase in solar investment. Japan has made substantial contributions to the Asian economy as a result of its market players and technological advancements, as well as increased demand for intelligent solar.

North America is a mature US economy and a big contributor. The presence and involvement of significant manufacturers drive market growth in the North American area. For instance, OMRON will make its US debut at IoT World 2022 with its wireless weather sensor and IoT gateway in October 2022. The country is a major market for many types of solar gear.

PV Inverter Market Players

Some of the top PV inverter companies offered in our report include Omron Corporation, Emerson Electric Co., Delta Electronics, Inc, Fimer Group, Hitachi Hi-Rel Power Electronics Private Limited, SMA Solar Technology AG, Siemens Energy, Power Electronics S.L., Eaton, and SunPower Corporation.