Inverter Market: Global Industry Analysis and Forecast (2024 -2030)

Inverter Market size was valued at USD 19.15 Billion in 2023 and the total Inverter revenue is expected to grow at a CAGR of 16 % from 2024 to 2030, reaching nearly USD 55.17 Billion by 2030.
Inverter Market Overview:
An inverter is a device that converts direct Current (DC) power into alternating contemporary (AC) energy. The conversion is critical in diverse programs, inclusive of renewable power structures, uninterruptible strength materials (UPS), and electric-powered automobile powertrains. The function of an inverter is to supply AC power. The need for uninterrupted and reliable power supply in residential, commercial, and industrial sectors boosts the Inverter Market. Technological advances such as the development of smart inverters with grid-support functionality and improved performance are driving the Inverter market growth. Key players in the inverter industry include SMA Solar Technology AG, ABB Limited, Huawei Technologies Co., Ltd., Enphase Energy, Inc. and others. A major focus of inverter manufacturers has been on increasing power density, which allows more power to be produced from a smaller, lighter device. It is achieved through improvements in switching topologies and semiconductor materials. Transistors have been primarily made of silicon MOSFET (metal oxide semiconductor field-effect transistor) and IGBT (insulated-gate bipolar transistor.) India exports most of its Inverter batteries to Bangladesh, Nigeria, and Lebanon and is the 2nd largest exporter of Inverter batteries in the World. The top 3 exporters of Inverter batteries are China with 3,160 shipments followed by India with 1,908 and Vietnam at the 3rd spot with 567 shipments.

1. Inverter exports in October 2023 were 3.1107 million units, down 28.7% YoY and 20.4% MoM. Conversely, imports hit 2.271 million units, up 0.7% YoY and 21.9% MoM. Cumulative exports from January to October 2023 rose 12.66% YoY.

2. In October 2023, inverters were exported to 184 countries. Europe received 539,800 units, 17.35% of total exports, down 43.86% MoM. Africa got 748,000 units, 24.05% of total exports, down 25.2% MoM. The top ten countries took in 1.2523 million inverters, 40.26% of total exports.

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Inverter Market Dynamics:
Renewable Energy, Technological Innovations, and Demand of the Inverter Market

Rising need for renewable energy, technological progress, and growing demand for uninterrupted power supply are fuelling the growth of the Inverter Market. Inverters are vital for the conversion of DC power from sources like solar panels and batteries into internal AC power for grid or standalone use. The commercial and industrial sectors are seeing a rise in the use of solar energy systems owing to the demand for dependable and effective energy management solutions.

Inverters used by automotive & residential end users are easy to use and install. The inverters procured are mostly installed by end users themselves. Factors like increasing global electric vehicle production & rise in the adoption of microinverters & hybrid inverters that are integrated with small or medium-sized rooftop solar installations by the residential and commercial end users contribute to the growth of the inverter market through the forecast period.



In addition, Government policies and incentives, such as updated standards such as IEEE 1547 and UL 1741, mandate the use of advanced inverters, increasing the demand. Various forms of energy are stored through power generation new hybrid systems that integrate multiple energy sources such as solar and wind. It is necessary to use an inverter with multiple-maximum-power-point monitors (MPPT) to monitor the inputs properly. Environmental benefits of renewable energy, such as reduced greenhouse gas emissions and air pollution, and decreased energy costs are factors that drive Inverter Industry growth. Renewable Energy System also improves independence, which makes it attractive for remote, coastal, or isolated communities.

operational Challenges and Economic Barriers in the Inverter Market

Regular maintenance and scheduled replacements are essential to guarantee that these systems operate correctly, leading to higher overall operating expenses. Proficient technicians are needed to address all technical issues that arise, as any error leads to extensive periods of inactivity, impacting energy generation and financial success, and hindering the growth of the Inverter Market. Ensuring that all components, such as solar panels and air conditioners, work harmoniously with a sophisticated inverter in renewable energy systems involves thorough testing and adjustment, which is both expensive and time-consuming. Additionally, longer payback periods affect the adoption rate among residential and small commercial users.



Emerging Opportunities in the Inverter Market Amidst Renewable Energy Growth


The increasing use of battery storage systems in renewable energy setups presents opportunities for inverters that efficiently manage and convert stored energy.


The continuous increase in solar and wind energy projects provides significant opportunities for inverter manufacturers to supply essential components for these installations.


Development of new inverter technologies, such as multi-level inverters, improve efficiency and reliability, attracting more customers.


The growing trend of smart grid technology offers opportunities for inverters with advanced communication and control features.


The rapid increase in electric vehicle adoption creates a growing need for inverters in EV charging stations.


Inverters enable V2G technology, allowing EVs to supply power back to the grid, creating new revenue streams.


Supportive policies and incentives for renewable energy adoption in various countries boost the demand for inverters.



Inverter Market Segment Analysis:
By types, the String Inverters segment held the largest market share in 2023 for the Inverter Market. A string inverter is an important device in the solar system, which converts DC power flowing from solar panels to AC power in residential applications. Besides the conversion, solar inverters track voltage and allow grid connecting communication and shut down during emergencies. The solar inverter eliminates the high cost of utility bills and provides superior long-term efficiency. Key players in the power generation industry are seeking ways to decrease their carbon emissions by shifting towards renewable energy sources for power generation, resulting in an increased demand for string inverters in the Inverter market. A string inverter is utilized in a range of settings including solar parks, solar power plants, charging stations, residential, and other areas. Rising adoption of string inverters in commercial and industrial sectors as well as utility solar power projects is driving the Inverter Market.

September 2022, Sineng Electric announced that it is partnering with Power n Sun for its portfolio of string PV inverters in the South African market. Sineng launched their new generation series of three-phase string inverters of varying focused on the commercial and industrial segment of the South African market. The string inverters' capacities are 50kW, 120kW, 250kW, and 275kW, respectively.


Inverter Market Regional Insight:
Asia Pacific held the largest market share in 2023 for the Inverter Market. The rapid growth of industries and urban areas in nations such as China, India, Japan, and South Korea is increasing the need for energy, leading to a required transition to more effective and eco-friendly energy choices. China's substantial investments in renewable energy have propelled it to become the world's leading producer of solar panels and wind turbines.

The Asia Pacific's domination has been strengthened by advancements in technology and the participation of Inverter market leaders. The area houses numerous top inverter manufacturers that continuously innovate, providing affordable solutions to match Inverter market demands. The area earns the advantages of economies of scale, such as extensive manufacturing and cost-efficient exports, that fuel the growth of the Inverter Market. Advancements in smart grid technology and energy storage investments in nations like South Korea and Australia drive the demand for advanced inverters, as well as enhance solar inverters Industry share through favourable weather conditions like sunlight. The domestic market for solar inverters has been growing with the rapid rise in solar deployment across all end-user segments. As domestic electricity prices have risen, many consumers in off-grid or remote areas with unreliable electricity supply have opted for solar inverters for backup. India has set a target of 175 GW of non-fossil fuel capacity by 2022 and a target of 500 GW of non-fossil fuel capacity by 2030; the government has been rapidly increasing the installed capacity base, especially solar.

North America held xxx% share in 2023 for the Inverter Market. In the region, the government has introduced several new incentive programs to encourage the use of solar and other renewable technologies. In August 2022, the U.S. government initiated the Inflation Reduction Act, dedicating USD 369 billion to support the renewable energy industry. Numerous companies are now building new solar photovoltaic plants and expanding the capacities of their current plants. In February 2023, Silicon Ranch declared its plans to boost the energy generation capacity of its solar power plant. First Solar has secured a deal to provide 1.5 GW of innovative American thin-film solar modules, on top of existing contracts totaling 4 GW of solar PV panels to be installed by 2027.



1. The top 3 importers of Power inverters are Vietnam with 21,276 shipments followed by Russia with 7,989 and India at the 3rd spot with 7,799 shipments.

2. India imports most of its Power inverters from China, Germany, and Japan and is the 3rd largest importer of Power inverters in the World.

Inverter Market Recent Developments:

1. In November 2023, Diamond Foundry created a 250W EV inverter based on its diamond wafer technology, with a power electronics unit six times smaller than that of a Tesla 3.

2. In November 2023, Enphase Energy started the shipment of IQ8P Microinverters, boasting a peak output AC power of 480 W, to Mexico to support the latest high-powered solar modules. Additionally, the company initiated commercial production of IQ8 Microinverters in North America, Europe, and Romania.

3. In October 2023, At REI 2023, SUNGROW demonstrated its complete range of renewable energy solutions and unveiled new products in India. With India's energy transformation at a critical juncture, SUNGROW's innovative products and solutions are poised to enhance the country's energy infrastructure and promote the adoption of efficient, safe, and clean energy sources.

4. In July 2023, Sungrow entered into a framework agreement with Sonnedix, an international renewable energy manufacturer, to supply inverter solutions for 750 MWp PV projects. As part of the agreement, Sungrow will deliver string inverters, central inverters, and medium-voltage stations to Sonnedix, while also providing professional services such as personnel training to support Sonnedix's growth plans in Europe.
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Global Inverter Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 19.15 Bn.


Forecast Period 2024 to 2030 CAGR:
16%
Market Size in 2030:
US $ 55.17 Bn.


 Segments Covered:
by Types
String Inverters
Central Inverters
Microinverters
Others


by Connection Type
Grid-Tied
Off-grid
Others


by End User
Residential
Commercial
Others



Global Inverter Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Inverter Market Key Players:
1. Solar Edge Technologies (Milpitas, California, USA)
2. SunPower Corporation ( San Jose, California, USA)
3. Schneider Electric (Andover, Massachusetts, USA)
4. General Electric (GE Renewable Energy)
5. TBEA Sunoasis Co., Ltd. (Urumqi, China)
6. Sungrow Power Supply Co., Ltd. v Hefei, China)
7. Huawei Technologies (Shenzhen, China)
8. SMA Solar Technology AG (Niestetal, Germany)
9. Fronius International GmbH (Pettenbach, Austria)
10. ABB (Zurich, Switzerland)
11. Ingeteam (Zamudio, Spain)
12. Siemens (Munich, Germany)
13. Kostal Solar Electric (Freiburg, Germany)
14. FIMER (Terranuova Bracciolini, Italy)
15. Delta Electronics (Hoofddorp, Netherlands)
16. Kaco New Energy (Neckarsulm, Germany)

FAQs:
1] What is the growth rate of the Inverter Market?
Ans. The Global Inverter Market is growing at a significant rate of 16 % during the forecast period.

2] What is the expected Inverter market size by 2030?
Ans. The Inverter Market size is expected to reach USD 55.17 Billion by 2030.

3] What segments are covered in the Inverter Market report?
Ans. The segments covered in the market report are Types, Connection Types, and End-users.

4] What are the factors driving the Inverter Market growth?
Ans. Rising need for renewable energy, technological progress, and growing demand for uninterrupted power supply are fuelling the growth of the Inverter Market.

5]Which are the top Key Players in the Inverter Market?
Ans. The major players in the Inverter market are Huawei Technologies Co., Ltd. (China), SUNGROW (China), SMA Solar Technology AG (Germany), Power Electronics S.L. (Spain), and Fimer Group (Italy).