The PV inverter market is primarily driven by the increasing demand for renewable energy sources across the world. Solar PV inverters are an integral part of solar PV systems as they convert the direct current produced by solar PV panels into alternating current which can be utilized by end users or fed into the electricity grid. They play a vital role in maximizing the power generation from solar PV systems and ensuring compatibility with existing electrical infrastructure. Advances in power semiconductor technology have allowed manufacturers to develop high efficiency micro-grid or string inverters that optimize power output from PV panels. The increasing global focus on reducing greenhouse gas emissions and transitioning to clean energy has boosted investments in renewable energy which in turn has driven the demand for PV inverters.
The Global PV Inverter Market is estimated to be valued at US$ 15.28 BN in 2024 and is expected to exhibit a CAGR of 18.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the PV Inverter Market Size are Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, SunPower Corporation, Omron Corporation.
The residential PV market is witnessing strong growth globally supported by initiatives to bring down prices of solar panels and inverters along with innovations in solar financing. Countries in Europe and Asia Pacific have witnessed rising residential installations which has contributed to increasing demand for solar PV inverters catering to the residential segment. Rapid proliferation of rooftop solar is expected to drive continued strong demand over the coming years.
Major international PV inverter manufacturers have been expanding their geographical footprint by establishing manufacturing plants across Asia Pacific, Latin America, Middle-east and Africa to cater to the strong regional demand. Strategic partnerships with regional distributors have also been formed to leverage local expertise for greater market penetration. Emerging markets offer significant growth opportunities considering their increasing emphasis on renewable energy development.
Market drivers
The declining cost of solar photovoltaic systems coupled with advancements in energy storage technologies and power electronics is a key driver boosting adoption of solar PV technology globally. In addition, supportive government policies promoting use of renewable sources through various fiscal and regulatory incentives are encouraging investments in solar rooftop projects which in turn is driving demand for PV inverters. With the cost of renewable energy technologies becoming competitive with conventional sources, it is expected that the distributed renewable energy market will grow significantly in the coming decade providing a thrust to the global PV inverter market.
Impact of geopolitical situation on PV Inverter market growth
The current geopolitical instability across some parts of the world is negatively impacting the growth of the global PV Inverter market. The ongoing Russia-Ukraine conflict has disrupted the supply chain of raw materials and components required for manufacturing PV inverters. Both Russia and Ukraine are major exporters of commodities like neon, which is a key input in the production of chips used in PV inverters. The supply shortage of such vital inputs has squeezed margins of PV inverter manufacturers globally. Moreover, macroeconomic uncertainties arising from the war is deterring large scale investments in renewable energy projects worldwide. However, governments across developing nations are committed to achieve their decarbonization goals by scaling up solar installations, which could drive the demand for PV inverters in the long run despite short term challenges. For sustained growth, PV inverter producers will need to diversify their supplier base, localize production wherever possible, and strive to reduce dependency on crisis-hit regions for raw materials.
Geographical regions with maximum PV Inverter market value concentration
Currently, Asia Pacific region accounts for the largest share of the global PV Inverter market in terms of value, estimated at over 45% in 2024. China is the dominant market as it is the world's foremost producer and consumer of solar modules as well as installation undertaking nation. Other major country-level PV Inverter markets in Asia Pacific are Japan, India and South Korea. Europe is the second largest regional PV Inverter market, with Germany, Italy and France holding prominent positions. In Americas region, United States has developed into a bankable solar market and is expected to drive additional installation of PV inverters. Middle East and Africa are relatively smaller at present but hold considerable future growth potential.
Fastest growing region for PV Inverter market
The PV Inverter market is projected to witness the fastest growth in the Latin America region from 2024-2031. Countries such as Chile, Brazil, Mexico and Argentina are proactively increasing investments in renewable energy to reduce carbon footprint. As solar emerges as a competitive clean energy source, large utility-scale PV projects are being commissioned at a brisk pace, thus scaling up demand for inverters from both commercial and industrial sectors. Government incentives and subsidies alongside private capital inflows are facilitating quicker deployment of solar PV in many nations. Moreover, growth opportunities for solar mini-grids and off-grid applications in rural electrification will further drive regional market revenues during the forecast timeframe. With numerous renewable capacity expansion plans under implementation, Latin America signifies an attractive expansion arena for PV inverter manufacturers.
Get more insights on PV Inverter Market
The Global PV Inverter Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2027 gives an evaluation of the market developments based on historical studies and comprehensive research respectively.
The market segments are also provided with an in-depth outlook of the competitive landscape and a listing of the profiled key players.The comprehensive value chain analysis of the market will assist in attaining better product differentiation, along with detailed understanding of the core competency of each activity involved.
The market attractiveness analysis provided in the report aptly measures the potential value of the market providing business strategists with the latest growth opportunities.
The report classifies the market into different segments.
These segments are studied in detail incorporating the market estimates and forecasts at regional and country level.
The segment analysis is useful in understanding the growth areas and probable opportunities of the market.Browse the complete Global PV Inverter Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2027 @ https://www.decisiondatabases.com/ip/830-pv-inverter-market-report The report also covers the complete competitive landscape of the global PV Inverter market with company profiles of key players such as: Sungrow PowerHuaweiTBEASiNENGKSTARKehua HengshenEASTChint PowerDeltaSamil PowerGrowattJFY Tech.GrandglowShenzhen INVTGoodWeSAJGinLongNorthern Electric & Power Inc.APsystemsOmnik New EnergySMAABBOmronTMEICTabuchiAEG Power SolutionsKACOSchneider ElectricIngeteamFroniusClenergyThe detailed description of each has been included, with information in terms of H.Q, future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launches, new product developments and other latest industrial developments.SEGMENTATIONS IN THE REPORT: By Type0-20 KW20-200KW200KW-5000KWBy ApplicationResidential Roof PV SystemCommercial Building Roof PV SystemGround PV Power PlantBy Geography:North America (NA) – US, Canada, and MexicoEurope (EU) – UK, Germany, France, Italy, Russia, Spain & Rest of EuropeAsia-Pacific (APAC) – China, India, Japan, South Korea, Australia & Rest of APACLatin America (LA) – Brazil, Argentina, Peru, Chile & Rest of Latin AmericaMiddle East and Africa (MEA) – Saudi Arabia, UAE, Israel, South AfricaDownload Free Sample Report of Global PV Inverter Market @ https://www.decisiondatabases.com/contact/download-sample-830The Global PV Inverter Market has been exhibited in detail in the following chapters –Chapter 1 PV Inverter Market Preface Chapter 2 Executive SummaryChapter 3 PV Inverter Industry AnalysisChapter 4 PV Inverter Market Value Chain AnalysisChapter 5 PV Inverter Market Analysis By TypeChapter 6 PV Inverter Market Analysis By ApplicationChapter 7 PV Inverter Market Analysis By GeographyChapter 8 Competitive Landscape Of PV Inverter CompaniesChapter 9 Company Profiles Of PV Inverter IndustryPurchase the complete Global PV Inverter Market Research Report @ https://www.decisiondatabases.com/contact/buy-now-830Other Reports by DecisionDatabases.com:Global Compact Inverter Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2027Global Automotive On-board Power Inverter Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2027Global Inverter Duty Motors Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026About-Us:DecisionDatabases.com is a global business research reports provider, enriching decision makers and strategists with qualitative statistics.
