Power Inverter Market: Rapid Urbanization with Increasing Electrification Rates, and Dependence of People on Electronic Appliances and Gadgets to boost the Power Inverter Market Growth

The Power Inverter Market size was valued at USD 76.14 Billion in 2021 and is expected to grow by 5.38% from 2022 to 2029, reaching nearly USD 115.79 Billion.

A power inverter is an electric device that transforms direct current (DC) into alternating current (AC). Power inverters have a low running cost and do away with the hassle of change-over switches. The sales of power inverters are expected to rise as a result of the rising demand for electricity, and the widening gap between that need and supply across the world. With the capacity to convert Direct Current (DC) to Alternating Current (AC), which enables them to offer electricity similar to that found in households, power inverters are likely to experience a rise in demand. This makes it possible for electricity to flow smoothly into the intended device.

Analysis from MMR Analysts shows global inverter demand grew by more than 22% last year. The ten largest inverter suppliers including players like Huawei, Sungrow Power Supply, SMA, and Power Electronics accounted for more than 60% of the global share. Additionally, The power inverter industry is dominated by a number of companies, which has created intense price competition. Unorganized players typically charge far cheaper rates for their goods, organized players typically charge higher prices. The higher product quality and superior after-sales services provided by the more well-known brands are responsible for the price disparity. It is also getting harder for players to maintain constant product prices due to increased raw material costs and inflationary pressures.

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Power Inverter Market Analyst Insights
Although the inverter market is currently comparatively steady, it is still important to keep an eye out for emerging trends in cutting-edge electronics, such as Internet of Things-based and smart grid-connected devices. Inverters would be seen as more than just power suppliers as a result, giving the business a unique and futuristic perspective.

The market for power inverter systems has made R&D one of its primary focus areas. It has become crucial for companies to invest in R&D operations so as for the industry to flourish generally and for players to be able to boost profitability. Greater revenue would result from making power inverter equipment less sized, particularly from the SME and SOHO groups. Companies can also test with doorstep delivery services and e-commerce business models.

Superior after-sales services are another growing industry. A large service center network will assist businesses in establishing credibility and securing repeat business, enhancing their goodwill and brand value. Additionally, platforms for cross-selling low-voltage items across dispersed channels are expected to increase their exposure among end users and boost sales.
Power Inverter Market Dynamics:
Economic Growth and Rising Disposable Income:

Individuals all over the world are now willing to spend more on products like power inverters, which enhance their lifestyles and provide comfort, thanks to continuous economic growth and rising disposable incomes. For instance, in comparison to other nations, the United States has the greatest average disposable income. In 2022, the average gross disposable income in the US is $54,854. Most people these days rely on electronic devices and appliances due to growing urbanization and rising electrification rates. This has led to a significant requirement for a constant power supply increasing the need for power inverters as a replacement backup solution for power outages. Additionally, as they don't emit carbon dioxide and eliminate the need for gasoline, which is needed to drive generators, they are noiseless and environmentally beneficial.

Growing Dependence on Electronics Devices to boost the Power Inverter Market Growth

Thanks to the higher electrification rate and rapid urbanization, the majority of the population is now dependent on electronic appliances and devices like air conditioners, televisions, computers, and refrigerators. The demand for Power Inverters to deliver a consistent electricity supply and a trustworthy backup option in the case of a power loss has significantly increased as a result. In addition, inverters are far quieter than conventional generators and emit no emissions when producing energy. Manufacturers in the industry are spending money on R&D to create new technologies that would enhance the capabilities of these inverters. As a result, these factors are driving the power inverter market growth across the world.

Government-led Incentives and Programs and a Rising number of Solar Installations are Driving the Power Inverter Market Growth

The increase in solar PV installations for various uses around the world is being attributed to quick advancements in the solar energy sector in terms of power generation and utilization. According to MMR analysis, the world's solar fleet's capacity doubled in just three years from 2018 to reach one Terawatt in April 2022. Over half of the 302 GW of renewable energy capacity installed globally in 2021 had come from solar, the renewable energy with the fastest rate of growth. Major markets with the biggest number of new solar installations in 2019 and 2020 are China, the US, Germany, and Japan. Growing solar energy markets, such as those in China, Brazil, and India, are expected to offer prospects for market growth. Additionally, a surge in the installation of PV power plants globally is generating significant growth possibilities for the power inverter market.

To promote the use of inverters in industrial applications, several programs and efforts are launched by the governments of various nations. For instance, as part of the 14th Five-year Plan (2021-2025), China's national energy agency (NEA) established a target in 2020 for renewable energy to account for more than 50% of all installed capacity by 2025. Solar energy and energy storage are appealing options for commercial end users thanks to the Self-generation Incentive Program (SGIP - California only) and US tax benefits. Incentives offered by various governments of different countries to encourage residential and small commercial PV installations have fueled the market growth for power inverter systems.

Increasing Demand for Electric Vehicles Driving the Power Inverter Market Growth

Automotive applications, such as EV power trains, use inverters. These inverters transform the DC electricity extracted from a vehicle's batteries into usable AC. Motors and onboard electronic systems of vehicles are operated by use of vehicle inverters. Some of the leading producers and suppliers of car inverters include Continental (Germany), Samlex Europe (Netherlands), Delphi Technologies (UK), Toyota Industries (Japan), Sensata Technologies, and BESTEK (US). The demand for electronic systems in vehicles has increased as a result of technological developments in the automotive sector and the emergence of trends like connected, autonomous, and electrified vehicles. The electric car market has grown very well across the globe as a result of the emphasis placed on various environmental regulations. The market for vehicle inverters is expected to be driven by consumers' rising preference for electric automobiles. The reduction in EV costs, the extension of vehicle range, and improvements in charging infrastructure brought about by ambitious EV objectives set by governments of various nations and the necessary policy backing have increased demand for EVs globally. These factors are expected to create huge opportunities for the providers of vehicle inverters during the forecast period.
Power Inverter Market Segment Analysis:
By Type, the Power Inverter Market is segmented into <5KW, 5KW to 100KW, 100KW to 500KW, and Above 500KW. The 5KW to 100KW segment accounted for the largest market share in 2021. The main applications for power inverters from 5 KW to 100 KW are electric vehicles and rail traction. The 100 KW electric vehicles are expected to be introduced in 2023, which would be able to go roughly 400 miles. An electric vehicle can travel about 100 miles on 30 KW of electricity. As more electric vehicles need 100 KW of power, demand for power inverters is expected to rise significantly. Additionally, it performs the function of a traction inverter in rail traction, transforming AC power into DC power for the DC motors used in locomotives. The demand for power inverters has increased as the electric vehicle industry has grown.By End User, the Power Inverter Market is segmented into Utility, Residential, Commercial, and Industrial. The Residential segment held the largest market share accounting in 2021. The adoption of power inverters among residential users has been fuelled by increased public spending on infrastructure construction and electrification. Additionally, the deployment of power inverters in residential units around the world is attributed to the increase in residential construction and urbanization. The growing popularity of various consumer gadgets among customers is also boosting the demand for power inverters across the world.

The Commercial segment is expected to witness significant growth through the forecast period. The segment’s growth is attributed to the rise in demand for a steady supply of electricity in commercial buildings like shopping malls, fitness centers, and other commercial venues. The smooth running of business activities depends on a consistent power supply, and any disruption in that supply could cost the commercial units significantly more money. As a result, it is expected that through the forecast period, the adoption of power inverters in commercial units would increase significantly.
Power Inverter Market Regional Insights:
Asia Pacific held the largest market share of the global Power Inverter Market in 2021. The region's growth is attributed to rapid industrialization, rapid urbanization, rising disposable income, improving lifestyle, and rising standard of living. The increased government programs and investments in rural development and electricity are also boosting the need for power inverters. As a result of the erratic power supply in rural areas, the increasing number of real estate projects is expected to increase the demand for power inverters. Additionally, the simple accessibility of power inverters in rural and sub-urban parts of Asia Pacific, along with the growing awareness of them, are expected to significantly contribute to the power inverter market’s growth through the forecast period.

North America is expected to grow at a significant growth rate through the forecast period. Power inverter use in North America is expected to rise thanks to the region's rapid growth in a number of industries, including IT, IoT, healthcare, etc. Additionally, residents of this region spend the majority of their time using various electronic devices to consume content. In Europe, the market is expected to be supported by rising investments made by notable manufacturers in product capabilities and business growth.
Power Inverter Market Competitive Landscape
The market players are working on different development strategies to take advantage of the current market opportunities and get an advantage over rivals. The need for green electricity generation has increased, which has increased investment in solar and wind power facilities and increased demand for power inverters. Key developments in the global power inverter market trends have been attained through the use of additional growth strategies, including the increase of storage capacities, acquisitions, partnerships, and research & innovation in the optimization and improvement of the efficiency and reliability of power inverters.

The major players are primarily concentrating on boosting the production capacity in response to the increase in demand for power. These companies are supporting the growth of the renewable energy sector and boosting their own operations by doing this. For Instance, in order to increase its manufacturing capacity and strengthen the solar industry, the French multinational Schneider Electric in June 2021, announced plans to invest about Rs 350-400 crore in Luminous Power Technologies, a subsidiary in India. The capital will be utilized to pursue Luminous' high growth ambitions, which include tripling its capacity to produce batteries and inverters and expanding its business.
Some of the major players in the power inverter market are Huawei Technologies Co., Ltd, ABB, Omron Corporation, ABB Ltd, Tabuchi Electric Co., Ltd, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Advanced Energy Industries, Inc, Enphase Energy, Inc, Schneider Electric SE, SolarEdge Technologies Inc, Sungrow Power Supply, Power Electronics, Fronius International, Altenergy Power System, and Darfon Electronics.
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Power Inverter Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 76.14 Bn.


Forecast Period 2022 to 2029 CAGR:
5.38%
Market Size in 2029:
US $ 115.79 Bn.


 Segments Covered:
by Type
• <5KW
• 5KW to 100KW
• 100KW to 500KW
• Above 500KW


by Application
• Motor Drives
• Uninterruptible Power Supply (UPS)
• Rail Traction
• Wind Turbines
• Electric Vehicles/Hybrid Electric Vehicles (EVs/HEVs)
• Solar PVs
• Others


by End User
• Utility
• Residential
• Commercial
• Industrial



Power Inverter Market Key Players are:
• Huawei Technologies Co., Ltd
• ABB
• Omron Corporation
• ABB Ltd
• Eaton
• Tabuchi Electric Co., Ltd
• Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC)
• Advanced Energy Industries, Inc
• Enphase Energy, Inc
• Schneider Electric SE
• SolarEdge Technologies Inc
• Sungrow Power Supply
• Power Electronics
• Fronius International
• Altenergy Power System
• Darfon Electronics
• Continental AG
• CWB Automotive Electronics Co., Ltd.
• Delphi Technologies
• Schneider Electric
• Valeo Group
• Delta Electronics
• Yaskawa Solectria Solar
• Kaco New Energy

FAQs:

1. What was the global market size of the Power Inverter Market in 2021?
Ans. The Global Power Inverter Market size was valued at USD 76.14 Billion.

2. What is the study period for the Power Inverter Market?
Ans. 2017-2029 is the study period for the Power Inverter Market.

3. What is the growth rate of the Power Inverter Market?
Ans. The Power Inverter Market is growing at a CAGR of 5.38% over forecast the period.

4. What are the major key players in the Global Power Inverter Market?
Ans. The major key players in the Global Power Inverter Market are Siemens AG, Alpiq, SmartCloud Inc., ABB, General Electric, Hazama Ando Corporation, ATOS SE, AppOrchid Inc., Zen Robotics Ltd., Origami Energy Ltd., and Flex Ltd.

5. What is the forecast period for the Power Inverter Market?
Ans. The forecast period for the Power Inverter Market is 2022-2029.