Global Inverters Market Size, Share, Growth Analysis, By Type(Vehicle, Solar), By Connection Type(On-grid, and Off-grid) - Industry Forecast 2024-2031

Global inverters market size was valued at USD 17.17 billion in 2022 and is poised to grow from USD 19.92 billion in 2023 to USD 65.30 billion by 2031, at a CAGR of 16% during the forecast period (2024-2031).

The primary objective of the inverter market is to furnish efficient and dependable power conversion solutions across diverse applications. With the burgeoning demand for renewable energy sources and the escalating adoption of electric vehicles, there is an anticipated substantial surge in the demand for inverters in the foreseeable future. The upsurge in demand for renewable energy sources, encompassing solar and wind power, stands as a key driver propelling the inverter market forward. Additionally, the increasing adoption of electric vehicles serves as another catalyst fuelling the demand for inverters. Furthermore, the growing necessity for dependable power backup solutions and the escalating demand for high-efficiency power conversion technologies further contribute to the expansion of the inverter market. However, several factors restrain the growth of the inverter market, notably the elevated cost of these devices, rendering them financially inaccessible for many consumers. Moreover, the presence of low-cost alternatives such as generators poses a significant challenge for the inverter market. The absence of standardized regulations in the industry also emerges as a significant restraining factor impeding market growth. A notable challenge confronting the inverter market is the lack of standardization, which renders it arduous for manufacturers to produce high-quality and reliable inverters capable of catering to diverse applications. Despite these challenges, the increasing demand for renewable energy sources like solar and wind power is poised to drive market growth in the upcoming years. Moreover, the rising adoption of electric vehicles and the growing need for dependable power backup solutions are anticipated to present significant growth opportunities in the market. The global inverter market, playing a pivotal role in the conversion of DC to AC power for various applications, is witnessing rapid growth. Despite the challenges it faces, the escalating demand for renewable energy sources and the increasing adoption of electric vehicles are projected to fuel substantial growth in the market in the forthcoming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the global inverters market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Inverters Market Segmental Analysis

The global inverters market is segmented based on the product, application and region. By type, the market is segmented into vehicle, solar, and others. By connection type, the market is segmented into on-grid, and off-grid. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Inverters Market

The surge in demand for clean and sustainable energy sources is a key driver propelling the growth of the inverter market. Inverters play a pivotal role in converting DC power generated from renewable sources like solar panels into AC power, which can be utilized in households or fed back into the grid. The escalating adoption of solar power systems and wind turbines is anticipated to drive the demand for inverters in the forthcoming years.

Restraints in the Global Inverters Market

One of the primary constraints for the market is the substantial installation and maintenance expenses linked with inverters. The installation process necessitates specialized equipment and skilled professionals, consequently elevating the overall system cost. Furthermore, regular maintenance is imperative to uphold the optimal performance of inverters, thereby contributing to additional expenses.

Market Trends of the Global Inverters Market

With the increasing awareness of the detrimental effects of fossil fuels on the environment, there is a surging demand for renewable energy sources like solar and wind energy. Inverters play a pivotal role in renewable energy systems by converting the direct current (DC) produced by these sources into alternating current (AC), which is indispensable for powering homes and businesses.