Global Solar Power Inverter Market Size Likely to Expand at a CAGR of 7.8% By 2033

As per the current market research conducted by the CMI Team, the global Solar Power Inverter Market size is expected to record a CAGR of 7.8% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 7,781.5 Million. By 2033, the valuation is anticipated to reach USD 15,298.1 Million.

Solar Power Inverter Market: Growth Factors and Dynamics

• Rising Demand for Renewable Energy: The global shift towards renewable energy sources, driven by environmental concerns and government policies, is significantly boosting the solar power inverter market. Increasing awareness of climate change and the need to reduce carbon emissions are encouraging the adoption of solar energy systems.

• Technological Advancements: Continuous innovations in inverter technology, such as improvements in efficiency, integration with smart grids, and advancements in energy storage solutions, are enhancing the performance and reliability of solar power systems. These advancements are making solar power more competitive and appealing to a broader range of consumers.

• Government Incentives and Policies: Government initiatives, subsidies, tax incentives, and favorable policies are major drivers for the growth of the solar power inverter market. Programs promoting solar installations in residential, commercial, and industrial sectors are facilitating market expansion by reducing the financial burden on end-users.

• Cost Reduction of Solar PV Systems: The declining cost of solar photovoltaic (PV) systems, including inverters, is making solar energy more affordable. Economies of scale, improved manufacturing processes, and increased competition are contributing to cost reductions, thereby accelerating market growth.

• Increasing Energy Storage Integration: The growing trend of integrating energy storage solutions with solar power systems is driving demand for advanced inverters. Hybrid inverters that can manage both solar panels and battery storage are becoming more popular, providing greater energy independence and reliability.

• Expanding Solar Projects and Investments: Significant investments in large-scale solar projects and the expansion of solar farms are creating a robust demand for high-capacity inverters. Utility-scale projects and commercial installations are particularly driving growth, supported by investments from both public and private sectors.

• Growing Adoption of Smart Inverters: The increasing implementation of smart inverters, which can communicate with the grid and provide real-time data monitoring, is a significant growth driver. These inverters enhance grid stability and energy management, making them highly attractive in modern energy systems. Their ability to support advanced grid functionalities and integration with IoT technologies is further propelling their demand.

Solar Power Inverter Market: Partnership and Acquisitions

• In 2023, LG Energy Solution Ltd. introduced new hybrid inverters for residential use in Europe, capable of handling low-voltage and high-voltage setups. These inverters include a built-in backup function, designed to integrate seamlessly with LG’s range of batteries, enhancing energy reliability for homeowners.

• In 2022, SMA Solar Technology AG, a German inverter manufacturer, introduced a new series featuring 12kW, 15kW, 20kW, and 25kW inverters tailored for rooftop PV systems up to 135kW. This launch expands their product range to meet diverse needs in the residential and small commercial solar market segments.

Report Scope

Solar Power Inverter Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Solar Power Inverter Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The pandemic caused significant disruptions in global supply chains, affecting the production and delivery of solar power inverters. Lockdowns, travel restrictions, and factory shutdowns led to delays in manufacturing and shipping, resulting in project delays and increased costs.

• Project Postponements and Cancellations: Many solar projects, particularly large-scale installations, were postponed or canceled due to uncertainties and economic slowdowns caused by COVID-19. This led to a temporary decline in demand for solar power inverters as investment in new projects slowed down.

• Government Stimulus and Recovery Programs: Governments worldwide have introduced stimulus packages and recovery programs aimed at boosting renewable energy investments. These initiatives include financial incentives, subsidies, and tax breaks for solar projects, helping to revive the market and stimulate demand for inverters.

• Resumption of Supply Chains: As lockdowns have eased and manufacturing facilities have resumed operations, supply chain disruptions have diminished. Improved logistics and increased production capacity are enabling the timely delivery of components, reducing project delays.

• Increased Focus on Sustainability: The pandemic has heightened awareness of the importance of sustainable and resilient energy systems. As a result, there is a growing emphasis on accelerating the transition to renewable energy, including solar power, driving renewed interest and investment in the market.

• Technological Advancements and Innovation: Continued technological advancements in solar inverters, such as enhanced efficiency, integration with smart grids, and better energy storage solutions, are attracting new investments. Innovation is making solar installations more cost-effective and appealing to a broader range of consumers.

• Expansion of Residential Solar Market: The residential solar market has seen a surge in demand as more homeowners invest in solar power to achieve energy independence and reduce utility bills. This trend is supported by favorable financing options and the increased availability of advanced inverter technologies suitable for residential use.

• Corporate Commitments to Renewable Energy: Many corporations have strengthened their commitments to sustainability and renewable energy in the wake of the pandemic. Corporate investments in solar energy projects are increasing, driving demand for solar power inverters and supporting market recovery.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Solar Power Inverter Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Solar Power Inverter Market:

• ABB Ltd.
• SMA Solar Technology AG
• Huawei Technologies Co. Ltd.
• Sungrow Power Supply Co. Ltd.
• Fronius International GmbH
• SolarEdge Technologies Inc.
• Enphase Energy Inc.
• Schneider Electric SE
• TMEIC (Toshiba Mitsubishi-Electric Industrial Systems Corporation)
• Delta Electronics Inc.
• Ginlong Technologies (Solis)
• Growatt New Energy Technology Co. Ltd.
• Advanced Energy Industries Inc.
• Eaton Corporation plc
• Chint Power Systems Co. Ltd.
• Others

The Solar Power Inverter Market is segmented as follows:

By Type

• Central Inverters
• String Inverters
• Microinverters
• Battery-based Inverters
• Others

By System

• On-grid (Grid-tied) Systems
• Off-grid Systems
• Hybrid Systems

By Phase

• Single-phase
• Three-phase

By End-User

• Residential Users
• Commercial Users
• Industrial Users
• Utility Companies

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

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

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America