Solar Inverter Market: Rising Demand for Clean Energy Driving Growth

The increased use of renewable energy sources and the rising demand for clean energy have caused the market for solar inverters to expand significantly in recent years. Having a compound annual growth rate (CAGR) of 8.5% throughout the forecast period, the global market for solar inverters, which was valued at $8.12 billion in 2021, is anticipated to reach $ 16.88 billion by 2030.

Market Overview


The global solar inverter market was valued at $8.12 billion in 2021 and is expected to reach $ 16.88 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.5% during the forecast period. This growth is primarily attributed to the increasing installations of solar PV systems, government incentives and initiatives, and technological advancements in solar inverters. The solar inverter market has experienced significant growth in recent years, driven by the increasing adoption of renewable energy sources and the rising demand for clean energy. Surging need for rural electrification, increasing initiatives taken by the government and rising investment is anticipated to propel the market growth.

What is Solar Inverter Market?

A Solar Inverter also known as photovoltaic inverter is a kind of power inverter that converts the variable direct current output of a photovoltaic solar panel into the utility frequency altering current. A solar inverter is an essential component of a solar panel system, as it converts the direct current (DC) produced by the solar panels into alternating current (AC) that can be used by households and businesses.

Growth Drivers

One of the key drivers of the solar inverter market is the increasing installations of solar PV systems. The global solar PV installations are expected to reach 155 GW in 2022, which is a 3% increase from 2021. This growth is primarily driven by the decreasing cost of solar panels and government incentives and initiatives to promote the adoption of solar energy.

Governments around the world are offering various incentives and initiatives to promote the adoption of solar energy. For instance, in the United States, the federal government offers a 26% tax credit for residential and commercial solar installations. Similarly, countries such as China, India, and Germany are offering subsidies and feed-in tariffs to encourage the adoption of solar energy.

Technological advancements in solar inverters have also contributed to the growth of the solar inverter market. Manufacturers are focusing on developing advanced inverters with higher efficiency, better reliability, and enhanced features. For instance, micro-inverters and power optimizers are gaining popularity due to their ability to improve the performance of solar panel systems by minimizing the impact of shading and module mismatch.

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Pandemic declined the market growth

The outbreak of COVID-19 pandemic declined the growth of almost every industry. The worldwide restrictions imposed by the government of the country led to the decline in demand for energy. Pause on construction activities reduced the demand for solar inverters in residential and commercial sector.

Asia Pacific to lead the market

Asia Pacific acquired the prominent share during 2020 and is expected to continue its dominance during the upcoming years as well. The region is anticipated to account for the largest share of over 43% during the upcoming years. Surging solar installation in various developing economies triggers the potential growth of the market.

North America is the largest market for solar inverters, followed by Europe and Asia Pacific. US also contributed majorly during the past years. The increasing adoption of solar energy in residential, commercial, and utility-scale applications is driving the growth of the solar inverter market in these regions. The Asia Pacific region is expected to witness the fastest growth during the forecast period, driven by the increasing installations of solar PV systems in countries such as China, India, and Japan.

Due to the presence of supportive government policies and the provision of subsidies like home feed-in tariffs (FITs), which encourage consumers to invest in renewable energy, Europe is predicted to have a substantial CAGR over the projected period. Due to the high-tech nature of the inverters, Germany is a global leader in the production of solar inverters.

Central inverters segment is to lead the market

A significant grid feeder is a central inverter. It is widely utilised in solar photovoltaic systems with rated outputs of 100 kWp. Solar array DC power is converted into AC power for grid connection by floor- or ground-mounted inverters. These gadgets can be employed indoors or outdoors and have capacities ranging from about 50kW to 1MW.

One DC-AC conversion stage makes up a central inverter. A DC-DC boost stage is also included in certain inverters to extend their MPP (maximum power point) voltage range. Sometimes, low-frequency transformers are employed to increase the output isolation and AC voltage. However doing so lowers efficiency and increases the size, weight, and price of the inverter. Increasing advancement of technology along with introduction of central inverters with 1500V input voltage is expected to create lucrative opportunities in the market growth.

Both monolithic (using a single power train and several MPPT trackers) and modular central inverters are possible (using multiple power trains). Modular inverters can employ either a multi-MPPT or a master-slave control technique and are more complicated, but they can sustain a reduced power output if one or more modules fail. The multi-MPPT system increases overall energy harvest under partial shade situations by using a different converter and MPPT for each floating sub-array. The controller module is always active in the master-slave configuration. In low-insolation settings, it instructs the slave modules to turn on when more power is available from the array, maximizing inverter efficiency.

When employed for utility-scale applications, central inverters should output the same voltage and frequency as the local electric grid. While there are a lot of various electric grid standards worldwide, manufacturers are free to adapt these characteristics to satisfy the unique requirements in terms of the number of phases; most central inverters created are three-phase inverters.

Conclusion

In conclusion, the solar inverter market is expected to witness significant growth during the forecast period, driven by the increasing adoption of solar energy, government incentives and initiatives, and technological advancements in solar inverters. Manufacturers are expected to focus on developing advanced inverters with higher efficiency and enhanced features to meet the growing demand for solar inverters.

Market Share Insights

Due to the presence of numerous market competitors, the market is extremely competitive and consolidated. Vertical integration, which protects against market power and lessens competition, is the prevalent trend in the business operations of these solar enterprises. Technological sourcing, skilled people, and strong R&D are among the major aspects influencing the competitiveness of the PV inverters business. The Fimer group purchased the solar inverter division of ABB in March 2020, elevating the firm to the position of fourth-largest global producer of solar inverters. The company's global reach will grow thanks to this acquisition strategy. A few significant participants in the worldwide PV inverter industry include:
  • Siemens Energy

  • Fimer Group

  • SMA Solar Technology AG

  • Delta Electronics, Inc

  • SunPower Corporation

  • Omron Corporation

  • Eaton

  • Emerson Electric Co.

  • Power Electronics S.L.

  • Hitachi Hi-Rel Power Electronics Private Limited

Latest Developments

  • Sungrow introduced their new 1+X central modular inverter with a 1.1MW output capacity at the Global Future Energy Summit in Abu Dhabi in January 2022. This 1+X modular inverter has a DC/ESS interface for connecting energy storage devices and may be divided into eight components to produce 8.8MW of electricity (ESS).

  • In April 2022, SMA Solar Technologies AG, a German inverter manufacturer, announced a new range of four inverters with power ratings of 12kW, 15kW, 20kW, and 25kW for usage in rooftop PV systems up to 135kW in capacity.

  • A solar-plus-storage project in Gujarat, India, with an 18MWh battery energy storage system, received 1 Mega Volt Ampere (MVA) inverters from Fimer Spa, an Italian company that manufactures solar PV inverters, in May 2022. The business provided its inverters to the Modhera Integrated Solar Energy Project. Gujarat Electricity Corporation Limited, the state's utility, awarded the project to Indian solar PV engineering, procurement, and construction (EPC) solution provider Mahindra Susten Pvt. Ltd. (GPCL)

Segments Covered in the Report
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

By Geography

  • North America
    • U.S.

    • Canada

  • Europe
    • U.K.

    • Germany

    • France

  • Asia-Pacific
    • China

    • India

    • Japan

    • South Korea

    • Malaysia

    • Philippines

  • Latin America
    • Brazil

    • Rest of Latin America

  • Middle East & Africa (MEA)
    • GCC

    • North Africa

    • South Africa

    • Rest of the Middle East & Africa

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