The global solar inverter market size was accounted at US$ 8.12 billion in 2021 and it is expected to hit around US$ 16.88 billion by 2030 with a CAGR of 8.5% from 2022 to 2030.

Solar buyers continue to gravitate to the top manufacturers in terms of market share, according to new global rankings released by Wood Mackenzie. Global top 10 solar photovoltaic (PV) inverter vendors shored up 82% of market share in 2021, increasing by 2 percentage points compared to 2020.

The global list looks a bit different than the U.S. leaderboard. For the seventh consecutive year, Huawei and Sungrow continue to lead the pack taking the first and second positions, respectively. Huawei's market share stayed at a stable 23% in 2021 while Sungrow ranked a close second at about 21% growing from approximately 19% in 2020. Second runner-up Growatt accounted for 7% of market share, replacing SMA which slid down to sixth position. Together, the top three vendors control over half of the world's solar PV inverter market.

GoodWe jumped four positions to rank at number five in 2021 owing to large shipments to the Asia Pacific region particularly China and South Korea. The company also scored the largest growth in shipments of nearly five-fold between pre-covid 2019 and 2021, and it has the potential to really grow in the U.S. on its own and as the supplier of GE's solar inverter.

Global inverter market insight

Global PV inverter shipments grew 22% or 40,250 MWac to 225,386 MWac in 2021 compared to 2020. This is mainly driven by strong growth in markets in Europe, India, and Latin America where government support increased to meet decarbonization goals.

Wood Mackenzie research analyst Annie Rabi Bernard said: "Despite soaring raw material prices, supply chain challenges and delayed constructions, global PV inverter shipments continue to rise. Leading vendors have become bigger, and the top players continue to consolidate market share in 2021."

The US, however, saw a minor reduction of 360 MWac in inverter shipment in 2021 from 2020, and accounted for 14% of the global market share. Supply chain constraints, record-level raw material costs and rising costs for developers contributed to the slight year-on-year dip. Spanish-headquartered Power Electronics continues to hold the biggest market share in the country. The company is ranked seventh on the leader board.

Areas for growth?

According to report, the global solar inverter market size was valued at US$ 8.12 billion in 2021 and it is expected to hit over US$ 16.88 billion by 2030 with a registered CAGR of 8.5% from 2022 to 2030.

Some takeaways by segment:

A key growth area is hybrid inverters, which connect both PV panels and battery storage systems. This essential function performed by hybrid solar inverters or PV Inverters made it an indispensable item for the success of renewable energy development. Due to cheap labor and higher manufacturing facilities, China is leading in production and export with lower hybrid solar inverter prices than anywhere else.

The easier installation and higher efficiency provided by string inverters are constantly replacing the traditional central inverters in all significant solar firms worldwide. • String inverters also constitute a significant segment of the experiencing increased traction of 5.2% CAGR during the forecast years.
And yet, central PV Inverters will be the dominant segment of the global PV Inverter Market by Product that is poised to reach a market value of US$ 7.7 Bn by 2028 in terms of revenue generated.

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Solar Inverter Market Dynamics

Solar inverter installation is simple, and rapid advancements in renewable energy are the main drivers of market growth throughout the forecast period. Excessive costs, the lack of panel-level monitoring, and high heat loss in large solar inverters are the main problems limiting industry growth during the forecast period. On the other hand, it is expected that increased government initiatives and investments in the electrification of remote & rural areas would present chances for major players in the global solar inverter market.

In the year 2021, the U.S. overtook Canada as North America's largest market. There is a substantial market for several types of PV inverters. The scale of central inverters (1.5 MW or more) and three-phase string inverters are two recent inverter trends in the United States (60 kW). Although string inverters have steadily increased in popularity in the U.S., central inverters are expected to continue to dominate the market. Solar inverter manufacturers, component manufacturers, inverter manufacturers, distributors, sellers, & end users make up the highly complicated value chain. Since panels make up the majority of the solar value chain, followed by inverters & batteries, different parts generate varying amounts of revenue. Given that solar devices have relatively high efficiency, there is minimal potential for technical distinction due to the complexity of the supply chain.

Unlocking the growth potential of the solar Inverter Industry:

Manufacturers must separate themselves from rivals in the highly competitive solar inverter market to survive. According to MMR report analysis, price pressure and intense competition caused the Top 5 global inverter makers' total revenue to drop 10% last year. ABB paid Fimer to take over its inverter company, Schneider Electric quit the utility-scale inverter market, and KACO sold its string and central inverter operations to Siemens and OCI Power, respectively. These are just a few of the many acquisitions and departures that have occurred in 2019 alone. Yaskawa Solectria Solar, an American inverter maker, believes it has the responsive local customer service and visionary leadership necessary to remain competitive.

One of only three major manufacturers of solar power electronics that is based entirely in the United States is Solectria. The others are hybrid inverter vendor Pika Energy, power optimizer producer Alencon Systems, and manufacturer of microinverters Chilicon Power (which was recently acquired by another U.S. company, Generac). Although Solectria assembles its goods in the United States, its inverters contain certain foreign parts. While combiners and earlier inverter types are produced in Oak Creek, Wisconsin, Yaskawa America facilities in Buffalo Grove, Illinois, manufacture its new inverters. Solectria wants to maintain its position as a Made-in-USA choice for installers in the New England region & beyond by staying at the front of technological and Cybersecurity improvements.

Investment in Solar Inverter Industry:

Many people find solar inverters to be attractive alternative investments. When used by businesses or local governments, these technologies are at the front of enabling continuous improvement in energy production and consumption, which can substantially improve environmental conditions and save costs. Solar inverters combine innovation and efficiency in production to provide smart renewable energy with low consumption costs, making them, particularly appealing to companies with environmental, social, and governance (ESG) portfolios. In the solar inverter business, SMA Solar Technology of Germany held 30% of the market share just 11 years ago; today, Huawei and Sungrow of China control the majority of the market.

Despite losing 4% of its global market share, the Chinese string inverter powerhouse maintained its position as the top provider for the fourth consecutive year, according to an MMR study report. With 64% of all sales globally, Asia-Pacific was once again the largest inverter market in 2019. The second and third-largest providers were Sungrow and SMA, respectively.

Connection Type Insights

In 2021, the on-grid segment dominated the solar (PV) inverter market. This is due to growing investments in the electricity and power generation. The on-grid solar (PV) inverter is cost effective in nature. The on-grid solar (PV) inverters are mostly installed in residential areas.

The off-grid segment, on the other hand, is predicted to develop at the quickest rate in the future years. The off-grid solar (PV) inverters are increasingly common and often come with a backup power supply. The solar (PV) inverters that are not connected to the grid are known as off-grid inverters.

End User Insights

The utilities segment accounted market share of 44% in 2021. The factors such as surge in demand for renewable energy and rising government initiatives are driving the growth of the segment. In addition, the solar (PV) inverter is cost effective solution for various utilities.

The residential segment is fastest growing segment over the forecast period. The people living in residential areas use large number of home gadgets and appliances. It means that the people require more amount of electricity for these gadgets. This factor is creating demand for electricity in residential areas on a large scale. Thus, the expansion of the segment is expected due to this factor.

Region Insights

Asia-Pacific accounted largest revenue share of around 43% in 2021. The factors such as rising government initiatives and presence of major market players in the region are propelling the expansion of solar (PV) inverter market in Asia-Pacific.

North America is expected to develop at the fastest rate during the forecast period. The U.S. dominated the solar (PV) inverter market in North America region. The U.S. is dominating the solar (PV) inverter market in North America region. Since few years, the region has seen substantial growth in the sales of central inverter and string inverter.

Some of the prominent players in the Solar Inverter Market include:

• Omron Corporation


• ABB Ltd


• Mitsubishi Electric Corporation


• Siemens AG


• Schneider Electric SE


• SMA Solar Technology AG


• Delta Electronics Inc.


• SunPower


• Hitachi Hi-Rel Power Electronics Pvt. Ltd


• Power Electronics S.L.

By Product Type

• Central Inverter


• String Inverter


• Micro Inverter


• Others

By Connection

• On-grid


• Off-grid

By Phase

• Single phase


• Three phase

By End User

• Residential


• Commercial


• Industrial


• Utilities

By Nominal Power Output

• ≤ 0.5 kW


• 0.5 - 3 kW


• 3 - 33 kW


• 33 - 110 kW


• 110 kW

By Nominal Output Voltage

• ≤ 230 V


• 230 - 400 V


• 400 - 600 V


• 600 V

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