Solar Photovoltaic Inverter Market Forecasts to 2030 - Global Analysis By Product, Connectivity, Phase, Power Rating, Sales Channel, End User and By Geography

According to Stratistics MRC, the Global Solar Photovoltaic Inverter Market is accounted for $14.28 billion in 2024 and is expected to reach $18.94 billion by 2030 growing at a CAGR of 6.8% during the forecast period. A solar photovoltaic inverter is an essential component in a photovoltaic (PV) system that converts the direct current (DC) generated by solar panels into alternating current (AC), which can be used by standard electrical grids and appliances. Inverters also perform functions such as maximizing energy output through maximum power point tracking (MPPT) and ensuring safe system operation. Solar PV inverters enable efficient energy utilization from solar power for residential, commercial, and industrial applications.

According to the Energy Information Administration (EIA), in 2021, solar and wind combined generated 12% of China's electricity.

Market Dynamics:

Driver:

Growing global focus on renewable energy

Governments and organizations worldwide are setting ambitious carbon reduction goals, transitioning to cleaner energy sources. Solar energy, being abundant and sustainable, is a key part of this transition. Policies such as tax credits, subsidies, and renewable energy mandates encourage solar adoption, creating a surge in PV installations. Solar PV inverters, essential for converting solar power into usable electricity, become increasingly in demand, propelling market growth as more consumers and industries turn to solar energy solutions.

Restraint:

Grid compatibility issues

Grid compatibility issues in solar photovoltaic (PV) inverters arise because solar energy is intermittent and fluctuates due to changes in sunlight. Inverters must synchronize the variable DC power from solar panels with the stable AC grid supply, which can be challenging during voltage surges or grid disturbances. Poor grid integration can lead to inefficiencies, power losses, or system shutdowns, requiring advanced technologies for stability. These compatibility issues hamper market growth by increasing costs for grid upgrades.

Opportunity:

Rising demand for decentralized power systems

Decentralized systems, such as residential rooftop solar or microgrids, rely on inverters to convert DC power from solar panels into usable AC power for homes and businesses. This shift encourages the use of grid-tied and off-grid solar systems, which require efficient inverters to convert DC power into usable AC power. Additionally, decentralized systems often leverage smart inverters that enhance grid stability, integrate energy storage, and allow for real-time monitoring and management. As a result, the growing preference for localized energy solutions drives up demand for innovative solar inverters, supporting the overall expansion of the market.

Threat:

Availability of alternative energy sources

The availability of alternative energy sources, such as wind, hydropower, and geothermal energy provides consumers with more diverse and potentially cost-effective options for renewable energy. These alternatives offer advantages such as higher efficiency, lower operational costs, or less reliance on weather conditions. As governments and businesses increasingly invest in a variety of renewable technologies, the competition can divert investments and interest away from solar PV systems, thereby limiting the market potential for solar PV inverters.

Covid-19 Impact

The covid-19 pandemic significantly impacted the solar photovoltaic inverter market, causing disruptions in supply chains, project delays, and reduced demand due to economic uncertainty. Lockdowns hindered manufacturing and installation processes, leading to slower growth in renewable energy adoption. However, the shift towards sustainable energy solutions and government incentives for clean energy post-pandemic helped the market recover, fostering innovation and investment in advanced inverter technologies, ultimately driving a rebound in the sector as economies reopened.

The grid-tied inverters segment is expected to be the largest during the forecast period

The grid-tied inverters segment is projected to account for the largest market share during the projection period. Grid-tied inverters are crucial components in solar energy systems, connecting photovoltaic panels to the electrical grid. These inverters synchronize with grid power, ensuring efficient energy flow and enabling net metering, where excess energy can be sold back to the grid. Their advantages include high efficiency, reliability, and reduced system costs, making them popular for residential and commercial solar installations worldwide.

The residential segment is expected to have the highest CAGR during the forecast period

The residential segment is anticipated to witness the highest CAGR during the forecast period. Solar photovoltaic inverters play a vital role in residential solar energy systems, converting the DC electricity generated by solar panels into AC electricity for home use. These inverters optimize energy production, enhance system efficiency, and allow for grid connection, enabling homeowners to feed excess energy back into the grid. With growing interest in renewable energy, PV inverters are increasingly popular in residential installations, promoting energy independence and sustainability.

Region with largest share:

Asia Pacific is expected to have the largest market share during the forecast period driven by increasing investments in renewable energy, government initiatives, and rising electricity demand. Countries like China, India, and Japan are leading the market, supported by favourable policies and a focus on energy security. Furthermore, the integration of smart grid solutions and energy storage systems is fostering innovation, positioning the Asia-Pacific as a key player in the global PV inverter landscape.

Region with highest CAGR:

North America is projected to witness the highest CAGR over the forecast period, owing to increasing adoption of solar energy and favourable government incentives. The United States and Canada are at the forefront, with states like California leading in solar installations. Additionally, growing environmental awareness and corporate sustainability initiatives are boosting demand. As solar energy becomes more cost-competitive, the North American PV inverter market is poised for robust growth, attracting investments and fostering innovation in renewable energy solutions.

Key players in the market

Some of the key players profiled in the Solar Photovoltaic Inverter Market include ABB Limited, Toshiba Corporation, Schneider Electric SE, Siemens AG, Enphase Energy Inc., Fronius International GmbH, GE Vernova Inc., Allgemeine Elektricitats-Gesellschaft, Delta Electronics Inc., Huawei Technologies Corporation, Ginlong Technologies, Growatt New Energy, SMA Solar Technology AG, SolarEdge Technologies Inc., KACO New Energy GmbH and Sungrow Power Supply Corporation.

Key Developments:

In September 2024, GE Vernova Inc. launched its new 6 MVA, 2000-volt direct current utility-scale inverter, with a multi-megawatt pilot installation in North America. This initiative is aimed at further reducing solar energy costs and accelerating the transition to renewable energy and decarbonization.

In July 2024, Germany's AEG has launched new three-phase hybrid inverters for applications in high-voltage rooftop PV systems. There are five versions of the new products, with power outputs ranging from 6 kW to 15 kW, and the maximum output current ranging from 8.7 A to 21.7 A. The new product also features natural convection cooling and IP66-rated protection.

Products Covered:

• Central Inverters
• String Inverters
• Micro Inverters
• Power Optimizers
• Other Products

Connectivities Covered:

• Standalone Inverters
• Grid-Tied Inverters

Phases Covered:

• Single Phase
• Three Phase

Power Ratings Covered:

• < 10 kW
• 10 kW to 100 kW
• 100 kW to 500 kW
• 500 kW

Sales Channels Covered:

• Direct Sales
• Wholesalers
• Online Channels
• Other Sales Channels

End Users Covered:

• Residential
• Commercial
• Industrial
• Utility-Scale
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances