Global Solar PV Inverter Market Report and Forecast 2024-2032

Global Solar PV Inverter Market Size

The global solar PV inverter market reached a value of almost USD 8.45 billion in the year 2023. The market is further expected to grow at a CAGR of 5% between 2024 and 2032 and to reach a value of almost USD 13.13 billion by 2032.

Solar PV Inverter Market Outlook

• As per industry reports, the total global solar power capacity reached 1 terawatt (TW) in April 2022.

• In 2022, solar photovoltaics (PV) made up 4.7% of U.S. electricity generation, which represents an increase of almost 21% over the 2021.

• As of November 2022, India had 61.97 gigawatts (GW) of installed solar capacity, placing it fourth globally for solar PV deployment.

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Solar PV Inverter Market Growth

A solar inverter is one of the key elements of a solar electric power plant. It is considered as the brain of the system. Its basic function includes the conversion of direct current (DC) from solar panels into alternating current (AC), which can then be supplied to the power grids or houses for operating various appliances. Other features of these inverters include managing temperature, optimising power, and monitoring all parameters, yields, and operational data of the power plant. Presently, solar PV inverters majorly find applications in the utilities and industrial sectors.

Rising solar PV adoption, driven by improving cost competitiveness and energy transition policies, has been a significant factor for driving solar PV inverter market development. Additionally, the growth of solar PV installations has been fuelled by favourable government policies and technological innovations, such as advancements in smart inverter capabilities and integration with storage, EVs, and distributed energy resources.

Key Trends and Developments

Emergence of grid-forming inverters, rising popularity of hybrid inverters, and advancements in manufacturing technologies are key trends propelling the solar PV inverter market growth

May 2024

SMA Solar Technology reported significant growth in large-scale inverter sales, with a nearly 85% increase from USD 132.9 million in Q1 2023 to USD 245.8 million in Q1 2024. This revenue growth has positively impacted the market’s value.

May 2024

Sungrow, a global leader in PV inverters and energy storage systems, was honoured with the "Top Solar Company Award 2023" by Sunwiz. This prestigious recognition highlights Sungrow's outstanding performance and commitment to the solar industry in Australia.

May 2024

Daewoo has released hybrid battery-inverters for residential PV systems, featuring LiFePO4 batteries. These new inverters combine the functions of a traditional inverter and a battery storage system, enhancing energy efficiency and reliability.

May 2024

Ingeteam has signed a contract with Grenergy to supply 70 INGECON SUN 3Power C Series photovoltaic solar power inverters for a large-scale solar power plant project in the Tabernas Desert. This showcases the growing demand for solar energy and the importance of high-quality inverters in ensuring project’s success.

June 2021

Delta introduced the M125HV Gen2 Solar PV String Inverter for large ground-mounted solar power plants. This three-phase, 140 kVA inverter boasts high efficiency, quiet operation, and a wide range of features suitable for utility-scale PV projects. It also offers enhanced performance and reduced energy loss.

Emergence of grid-forming inverters and smart monitoring

One key trend fuelling the solar PV inverter market expansion is the emergence of grid-forming inverters due to the increasing need for efficient grid management and rising integration of renewable energy sources. SMA Solar Technology AG's Sunny Central UP inverters are a notable example of grid-forming inverters.

Solar-storage integration and hybrid inverters

Hybrid inverters that combine solar PV and energy storage are becoming increasingly popular, especially for residential and commercial applications. These systems enable customers to store excess solar generation and provide backup power during grid outages.

Rising raw material production capacity

The market has been impacted by supply chain disruptions and rising commodity and shipping costs, but increasing polysilicon production capacity is expected to stabilise PV module prices. Longi Solar, a leading polysilicon manufacturer increased its production capacity to 300,000 metric tons in 2023.

Solar PV Inverter Market Trends

Moreover, the U.S. government's Investment Tax Credit (ITC) provides a 30% tax credit for solar-plus-storage systems, incentivising the adoption of hybrid inverters. This trend is expected to have a substantial impact on the market, as it expands the applications of solar energy beyond just power generation. The solar PV inverter market outlook is further being shaped by the rising environmental concerns about greenhouse emissions and the increasing cost of fossil fuels, which has resulted in the growing adoption of economical solar power and hence, solar inverters. In addition to this, the prices of solar inverters have also dropped in the recent years, making them more affordable for consumers.

Furthermore, the increasing adoption of solar energy globally, particularly in regions like China, Europe, and India, has contributed to the market's expansion. The market is expected to sustain strong growth over the next five years as in 2030, the demand for solar PV is projected to be nearly 650 GW, which can be met by the anticipated global solar PV manufacturing capacity of approximately 1,000 GW by 2024.

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Solar PV Inverter Industry Segmentation

The EMR’s report titled “Solar PV Inverter Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Central Inverters

• String Inverters

• Microinverters

• Others

Market Breakup by Voltage

• < 1,000 V

• 1,000 – 1,499 V

• > 1,500 V

• Others

Market Breakup by Application

• Utility Scale

• Residential Scale

• Small Commercial Scale

• Large Commercial Scale

• Industrial Scale

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Solar PV Inverter Market Share

The inverters having < 1,000 V are high in demand due to the growing adoption of rooftop solar systems in residents

The < 1,000 V segment is the most widely used voltage range for solar PV inverters, particularly in residential and small commercial applications. These inverters are designed to handle lower voltages and are known for their efficiency, reliability, and ease of installation. The < 1,000 V segment accounts for the largest market share due to the growing adoption of rooftop solar systems and the increasing popularity of microinverters and string inverters.

The 1,000 – 1,499 V segment is primarily used in large-scale commercial and utility-scale solar projects. These inverters are designed to handle higher voltages and are known for their high efficiency and reduced installation costs. As per solar PV inverter market analysis, the 1,000 – 1,499 V segment is expected to witness significant growth in the coming years due to the increasing deployment of large-scale solar projects and the need for more efficient inverter solutions.

The > 1,500 V segment is the fastest-growing voltage range for solar PV inverters. These inverters are designed to handle even higher voltages and are primarily used in utility-scale solar projects. This segment offers several advantages, including improved efficiency and reduced transmission losses. However, the adoption of > 1,500 V inverters is still relatively low compared to the other voltage ranges due to the higher costs and the need for specialised installation and maintenance.

Utility scale segment holds a significant market share due to rising demand for renewable energy

Utility scale solar power plants are designed to generate electricity on a large scale, typically ranging from 1 MW to 100 MW. The segment is the fastest-growing segment in the solar PV inverter market due to the increasing demand for renewable energy and the need for large-scale power generation.

Residential solar power systems are designed for individual homes and typically range from 2 kW to 10 kW. These systems are often connected to the grid and provide power to the home. The segment’s growth is driven by the growing adoption of solar energy by residential sectors.

The large commercial scale segment is another significant segment in the solar PV inverter market report. Large commercial solar power systems are designed for large businesses and typically range from 50 kW to 500 kW. The segment’s share is growing due to the increasing adoption of solar energy in commercial spaces and the need for energy independence.

Leading Manufacturers in the Solar PV Inverter Market

Market players are focused on innovating smart inverter capabilities and integrating inverters with storage systems, EVs, and distributed energy resources to open new opportunities

Schneider Electric SE was founded in 1836 and is headquartered in Rueil-Malmaison, France. The company offers automation and control products, low voltage products and systems, solar and energy storage solutions, medium voltage distribution and grid automation, and critical power, cooling, and racks.

Siemens AG was founded in 1847 and is headquartered in Munich, Germany. It operates in several key business areas, including automation and digitalisation in manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, rail transport solutions, and digital healthcare services.

Mitsubishi Electric US, Inc. was founded in 1921 and is headquartered in California, United States. The company and its affiliates engage in semiconductor devices, automotive electrical components, elevators and escalators, cooling and heating products, industrial automation, display walls, digital printers, satellite systems, video displays, power equipment, and railway systems.

General Electric Company was founded in 1892 and is headquartered in Massachusetts, United States. The company has a diverse portfolio of products and services, ranging from aircraft engines to healthcare systems, power generation, and financial services.

Other key players in the global solar PV inverter market include Huawei Technologies Co., Ltd, FIMER Group, SolarEdge Technologies Inc, and Toshiba International Corporation, among others.

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Solar PV Inverter Market Analysis by Region

Asia Pacific is the fastest-growing region, driven by the need for energy independence

Asia Pacific is expected to account for the largest solar PV inverter market share, driven by the growing demand for renewable energy and the need for energy independence. The region is home to many developing countries, including China and India, where there is considerable growth in solar photovoltaic (PV) installations. Japan and Australia are other major solar PV installations markets in the region. The region is also the global centre for the manufacture of solar energy systems, with Japan, China, and Taiwan being the major manufacturers and home to some of the top global solar PV supplier companies.

North America solar PV inverter market is also expected to grow at a fast pace during the forecast period as the United States is a significant market for various types of PV inverters. The region’s growth is further driven by favourable government incentives, increasing awareness of clean energy, and declining solar panel costs.

Key Highlights of the Report

Solar PV Inverter Market Report Snapshots

Solar PV Inverter Market Size

Solar PV Inverter Market Growth

Solar PV Inverter Market Trends

Solar PV Inverter Market Share

Solar PV Inverter Manufacturers

Solar PV Inverter Market Regional Analysis