On Grid String Inverter Market Expected to Reach $3.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “On Grid String Inverter Market," The on grid string inverter market was valued at $1.9 billion in 2021, and is estimated to reach $3.7 billion by 2031, growing at a CAGR of 6.9% from 2022 to 2031.

An on-grid string inverter is a type of solar inverter that is commonly used in grid-tied solar photovoltaic (PV) systems. It is called a "string" inverter because it is designed to convert the DC power generated by a string of solar panels into AC power that can be fed directly into the electrical grid. The on-grid string inverter operates by connecting the solar panels in series (a string) and feeding the DC power from the string to the inverter, which converts it to AC power that is synchronized with the grid. The AC power is then fed directly into the grid, where it is used by the electrical loads in the building or sold back to the utility company. On-grid string inverters are often used in residential and commercial solar PV systems because they are relatively inexpensive and easy to install. They are also efficient and reliable, with high conversion efficiencies and low failure rates. However, because they are designed to operate in parallel with the grid, they do not provide backup power in the event of a power outage.

One of the key benefits of on-grid string inverters is that they are cost-effective and relatively easy to install. They are designed to be connected in parallel with the grid, which means that they do not require batteries or other backup systems. This reduces the overall cost of the system and simplifies the installation process. Another benefit of on-grid string inverters is that they are highly efficient. They are designed to operate at high conversion efficiencies, which means that they can convert a large percentage of the DC power produced by the solar panels into usable AC power. This helps to maximize the overall energy output of the system and reduce energy costs. On-grid string inverters are also designed to be reliable and durable. They are built to withstand harsh environmental conditions, such as extreme temperatures and humidity, and they have a low failure rate. This means that they require little maintenance and can operate for many years without the need for repair or replacement.

The on grid string inverter market share is expected to witness notable growth during the forecast period, owing to increase in demand for renewable energy with rise in price of fossil fuels, growing popularity of distributed energy systems, and ease of installation. Moreover, government initiatives & investment on electrification of remote and rural area using solar energy and increase in use of string inverters for utility-scale solar plants is expected to provide lucrative opportunities for the growth of the on grid string inverter market analysis during the forecast period. On the contrary, competition from other renewable energy sources is the restraint for on grid string inverter market growth during the forecast period.

The on grid string inverter market size is segmented on the basis of phase, end user industry and region. On the basis of phase, the market is divided into single phase and three phase. In 2021, the three phase segment dominated the market, in terms of revenue, and will acquire major market share till 2031. On the basis of end user industry, the market is segregated into industrial, commercial, residential, and utilities. The utilities segment acquired the largest share in 2021 and is expected to grow at a significant CAGR from 2022 to 2031. Region-wise, the on-grid string inverter market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). Asia-Pacific remain significant participants in the on grid string inverter market.

KEY FINDINGS OF THE STUDY

• The on grid string inverter industry is expected to witness significant growth in the coming years, driven by the increasing demand for compact and reliable electronic inverters, particularly in end use industries such as industrial, commercial, residential, and utilities.
• On-grid string inverters offer several advantages over other types of inverters, making them a popular choice for solar power installations. However, the choice of inverter depends on the specific needs and requirements of the solar power system in question.
• Asia-Pacific is expected to be the fastest-growing market for on grid string inverters, driven by the increasing demand for electricity in rural areas in countries such as China, India, and Japan.
• The on grid string inverter market trends are highly competitive, with several major players operating globally. To remain competitive, companies are focusing on product innovation, strategic partnerships, and expanding their distribution networks.

The key players profiled in the report include ABB, Chint Group, Delta Electronics, Inc., Fronius International GmbH, Ginlong Technologies, Huawei Technologies Co., Ltd., KACO new energy, Schneider Electric, SMA Solar Technology ag, SolarEdge Technologies, and Sungrow Power Supply Co., Ltd. Market players have adopted various strategies such as product launch, product development, collaboration, partnership, joint venture, and acquisition to expand their foothold in the On-grid string inverter Market.