Solar (PV) Inverter Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product Type, Connection Type, Phase and End User : Global Opportunity Analysis and Industry Forecast, 2021-2030

Solar (PV) Inverter Market Outlook - 2030

The global solar (PV) inverter market size was valued at $7.7 billion in 2020, and is expected to reach $17.9 billion by 2030, registering a CAGR of 8.8% from 2021 to 2030. Solar inverter is an important device in the solar system, which converts DC power flowing from solar panels to AC power. Apart from the conversion, solar inverters track voltage, allow grid connecting communication, and shutdown during emergency condition. On-grid solar inverters produce pure sine wave of AC electricity than off-grid inverters; hence, increased use of on-grid solar inverter ensures the safety and efficiency of home appliances. Solar inverters are most commonly used in residential and utilities applications, and nowadays are increasingly used in the commercial & industrial projects across the globe.

Rapid development in the renewable energy sector and easy installation of solar inverters are the key factors that drive the growth of the market during the forecast period. However, high heat loss in large sized solar inverters, high cost, and absence of panel level monitoring are the key factors that restrain the growth of the market in the upcoming years. On the contrary, increase in government initiatives and investments in the electrification of rural and remote areas are anticipated to create opportunities for key players in the solar inverter market globally.

For purpose of analysis, the solar (PV) inverter market is segmented into product type, connection type, phase, end user, and region. Depending on product type, the market is segmented into central inverter, string inverter, and micro inverter. On the basis of connection type, it is categorized into on-grid and off-grid. As per phase, it is classified into single phase and three phase. The end users covered in the study include residential, commercial & industrial, and utilities users. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global solar (PV) inverter market analysis covers in-depth information of the major solar (PV) inverter industry participants. Some of the major players in the market include Delta Electronics, Inc., Fimer S.p.A., Fronius International GmbH, Ginlong Technologies, Huawei Technologies Co., Ltd., Shenzhen Growatt New Energy Co., Ltd., Siemens AG, SMA Solar Technology AG, SolarEdge Technologies, Inc., and Sungrow Power Supply Co., Ltd.

Other players that operate in the value chain of the global solar (PV) inverter market are Goodwe, Canadian Solar, Sunpower Corporation, Sineng Electric Co., Ltd., SunPower, Omron Corporation, and others.
The key players have adopted numerous strategies such as product launch, acquisition, agreement, partnership, and business expansion, to stay competitive in the solar inverter market.

For instance, in September 2021, Sungrow signed an agreement with local distributor Energy for You in Pakistan. This agreement aimed at supplying featured residential and commercial inverter solutions to power Pakistani installations within a year.

In addition, in March 2021, Fronius International GmbH launched single phase hybrid inverter named the Primo GEN24 plus. It was launched in categories from 3.0 - 6.0 kW and combined maximum yield, top flexibility, and ease of use in one compact and stylish high-tech device.

Solar (PV) inverter market, by product type

By product type, the central inverter segment held the highest market share of about 50.9% in 2020, and is expected to maintain its dominance during the forecast period. This is due to rise in demand for central inverters from large industrial and utility applications across the globe. Moreover, rapid industrialization and construction of renewable power infrastructure in the developing economies such as China, India, Japan, and others are further expected to fuel the demand for central inverters from 2021 to 2030.

Solar (PV) inverter market, by connection type

On the basis of connection type, the on-grid segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to rise in investment for direct supply of electricity rather than storing it in batteries. In addition, advantages of being used as on-grid solar inverters include easy feeding of energy, easy installation, cost-efficiency, and managing high electricity demand, which are expected to fuel the growth of the market in the upcoming years.

Solar (PV) inverter market, by phase

By phase, the three-phase segment holds the largest share, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This growth is attributed to the gaining importance from power generation, distribution, and transmission sector. In addition, rise in trend from 1,000-volt solar arrays to 1,500-volt solar arrays resulted in increased size of PV power plants in the large commercial & industrial and utility installations; thereby, fueling the growth of the three-phase solar (PV) inverter market during the forecast period.

Solar (PV) inverter market, by end user

By end user, the utilities segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 8.3%. This is due to increase in investment in the utility scale solar power plants, solar parks, and other solar structures. In addition, rise in construction projects such as decentralized solar power plants, rural electrification projects, solar power plants on the water body & rooftops, commercial buildings, and others drive the growth of the solar (PV) inverter market for the utilities segment across the globe.

Solar (PV) inverter market, by region

Asia-Pacific garnered the highest share in the solar (PV) inverter market in 2020, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, expansion of the renewable energy sector, rise in investment toward upgradation of aged power infrastructure, and rapid industrialization in the region is further anticipated to fuel the growth of the market in the upcoming years.

COVID-19 impact on the market

Lockdowns imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries that decreased the demand for power equipment, which hampered the solar (PV) inverter market. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the PV inverter market is expected to recover by the end of 2021 as COVID-19 vaccination has started in various economies across the globe, which is expected to improve the situation globally.

Key Benefits For Stakeholders

• The report provides an extensive qualitative and quantitative analysis of the current solar (PV) inverter market trends and future estimations of the global market from 2021 to 2030 to determine the prevailing solar (PV) inverter market opportunities.
• A comprehensive solar (PV) inverter market analysis of the factors that drive and restrict the market growth is provided.
• Estimations and solar (PV) inverter market forecast are based on factors impacting the market growth, in terms of value.
• Profiles of leading players operating in the solar inverter market are provided to understand the global competitive scenario.
• The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable solar (PV) inverter market growth.

  Solar (PV) Inverter Market Report Highlights

Aspects	Details
By Product Type	Central Inverter String Inverter Micro Inverter
By connection type	On-grid Off-grid
By phase	Single-phase Three-phase
By End User	Residential Commercial & Industrial Utilities
By Region	North America  (U.S., Canada, Mexico) Europe  (Germany, France, UK, Spain, Italy, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific) LAMEA  (Brazil, Saudi Arabia, UAE, Rest of LAMEA)

Analyst Review

Rapid industrialization and growth of renewable energy sector are the key factors attributed to the leading position of Asia-Pacific. The huge potential in Asia-Pacific to set up renewable energy plants & industries and surge in solar power transmission and distribution networks are expected to provide lucrative opportunities to leading solar inverter manufacturers.

Rapid development in the renewable energy sector and easy installation of solar inverters are the key factors that drive the growth of the market during the forecast period. In addition, increase in demand for reliable and continuous power supply is expected to boost the growth of the global solar (PV) inverter market during the forecast period. However, high heat loss in the large-sized solar inverter and absence of panel level monitoring are expected to hamper the growth of the market during the analyzed time frame. On the contrary, increase in government initiatives and investment in the electrification of rural &remote areas are anticipated to provide remunerative opportunity for the key players to maintain the pace in the solar (PV) inverter market in the upcoming years.

Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market throughout the forecast period, followed by North America, Europe, and LAMEA.

Author Name(s) : Saurabh Dixit | Eswara Prasad

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