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PV Inverter Market Size, By Product (String, Micro, Central), By Phase (Single Phase, Three Phase), By Connectivity (Standalone, On-grid), By Nominal Output Power, Phase, Application (Residential, Commercial & Industrial, Utility) & Forecast, 2022 - 2028

  • Report ID: GMI234
  • Published Date: May 2023
  • Report Format: PDF

PV Inverter Industry Analysis

PV Inverter Market size surpassed USD 28.6 billion in 2022 and is projected to grow at 10.8% CAGR from 2023 to 2032 on account increasing rate of electrification in remote areas coupled with the rising demand for distributed energy.

PV Inverter Market

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A surging need for clean & sustainable energy owing to the growing concerns pertaining to harmful GHG emissions will positively influence the product demand. In addition, several government initiatives for the deployment of renewable power generation to reduce the carbon footprint globally is further projected to sway the business scenario.

Increasing investments from both public & private sectors, stringent mandates, and energy conservation measures to curtail carbon emissions will stimulate the PV inverter market landscape. For instance, the Ministry of Power, exempted all the inter-state transmission losses and charges for the electricity generated from solar to encourage the adoption of renewable sources of energy. Moreover, the rising demand from the large-scale solar power plants along with the gradual shift from local grids will further demonstrate the diverse and sustained growth of solar energy.

The solar industry in the recent years has gained utmost regulatory and economic proliferation, but the availability of competitive auxiliary generation technologies has consistently been a bottleneck. Although solar technologies have witnessed a significant decline with respect to component prices, tax incursions, and the overall plant ownership costs, technologies including wind and hydro have still been providing lower Levelized Cost of Electricity (LCOE).

In addition, the advancing technological performance across biomass and CSP technologies has also set investments on hold due to their effective plant availability and load handling characteristics. However, as regulators have consistently been framing reforms and initiatives to support the solar PV deployments coupled with positive consumer tendencies, it will reinforce the PV inverter market dynamics by 2032.

COVID-19 Impact

In the past two years, the global economy has been significantly impacted due to the widespread outbreak of coronavirus. The COVID-19 also had an impact on the supply chain, which increased the cost of raw materials & components. However, the solar PV inverter industry witnessed a positive impact in its installation trend in 2020 on account of favorable government schemes including Feed-in Tariffs (FiTs) combined with surging rooftop installations. Furthermore, the developed economies are focusing on over-compensating the recent impacts of COVID-19 by fast tracking the construction activities of their existing solar PV projects.

PV Inverter Industry Trends

Increasing public and private funding for the electrification across off-grid or grid-isolated areas in developing regions will positively influence the PV inverter market share. In 2021, International Energy Agency (IEA) proclaimed an overall investment of USD 775 billion for electrification worldwide. Furthermore, rural establishments in the developing economies due to the lack of effective grid infrastructure have continuously been suffering from power lags and blackouts. Encouraging regulatory interventions coupled with an increasing number of industry participants will further stimulate the business growth.

Ongoing funding activities have instituted a positive economic scenario toward the deployment of sustainable electrical systems globally, will further boost the product demand. Renewable capacity in ASEAN countries is projected to grow by around 52 GW during 2021-2026 attributed to the expiring FIT scheme and the release of draft national long-term energy plans. As of now several emerging economies in the region are urging the espousal of off grid solar systems to cater daily energy requirements.

PV Inverter Product Segmentation

Global PV Inverter Market Size, By Product,

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The string inverter segment exceeded majority of market value of over USD 15 billion in 2022. Ability to provide appreciable operational flexibility in a tandem of applications including power back-up and auxiliary line support will enable the installers to increasingly deploy these units. Rapid industrial expansion favored by commercialization in the developing economies will offer significant growth potential. Moreover, growing micro inverters in the U.S. led by its various features, which include maximum potential and limited maintenance, will drive the PV inverter market statistics.

PV Inverter Phase Segmentation

The three phase PV inverter industry dominated market share of around 77% in 2022 and is expected to grow at a lucrative pace by 2032 backed by the flexible product specifications and the ability to integrate single-phase inverter units project a significant growth potential. Manufacturers and installers have consistently been focusing on the development of enhanced three-phase PV inverter units, which has resulted in the utmost penetration of these circuits across the global electrical infrastructure. In addition, declining component costs coupled with stringent reforms mandating the integration of effective inverters will foster the product demand.

PV Inverter Connectivity Segmentation

In the recent years, ongoing utility-aided expansion of solar energy networks has consequently gained a significant proliferation attributed to the appreciable industry potential of on grid solar deployments. However, favorable reforms including FITs, soft loans, incentives, subsidies, and tax rebates and the increasing demand for uninterrupted and reliable power supply will drive the growth of standalone systems. Moreover, large-scale contracts with manufacturers to avail the potent technologies across regions with sustainable potential will favor the PV inverter market outlook of on grid systems.

PV Inverter Nominal Output Power Segmentation

Utility-based and industrial deployment of solar inverters is set to grow owing to mandates toward energy mix and independency regarding conventional fuel. As solar installations are inherent to frequency fluctuations and voltage dispositions, these fallouts compel industries and utilities to abide by the installation of effective inverter technologies. Henceforth, an increasing demand for utility-aided grid-tied electrification networks favored by incentives including net metering and FITs will boost the demand for high output power systems.

PV Inverter Nominal Output Voltage Segmentation

The increasing deployment of distributed generation technologies preferred by the increasing low-voltage solar consumer base because of the increasing rooftop deployments and small-scale residential installations will boost the demand for lower output voltage inverters. Growing energy consumption across small-scale commercial establishments favored by government incentives and subsidy schemes will augment the PV inverter market growth.

PV Inverter Application Segmentation

Global PV Inverter Market Revenue Share, By Application

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Residential solar PV inverter market gained a significant momentum in recent years owing to rapid technological expansion together with promising government schemes. For instance, Brazilian government introduced Convenio ICMS 16/15), which exempts solar power service providers and manufacturers from paying the Brazilian state sales tax. There has been a significant decline in the cost to install solar, which has shifted residential consumers toward the adoption of PV systems.

Various programs including SolSmart and Solar Automated Permit Processing (SolarAPP) have been initiated by the U.S. government to reduce local barriers for the solar deployment. Reforms including feed-in tariff, subsidies, incentives for grid-tied solar installations favored by stringent mandates toward manufacturing and integration of effective inverter technologies will further streamline the product adoption.

PV Inverter Regional Analysis

Asia Pacific PV Inverter Market Size,

Asia Pacific PV inverter industry is estimated to amass USD 33 billion by 2032. In the recent years, the region has observed a steep progression across the solar industry landscape in relation to  regulatory reforms and rising renewable investments in the region. Renewable integration targets, feed-in tariff, self-consumption schemes, investment subsidies, and favorable regulatory reforms have significantly nourished the industry expansion.

The majority of solar PV expansion is anticipated to be led by the commissioning of pre-approved FiT capacity. Deployment of new FiT and auction schemes and the various government initiatives towards reducing carbon emissions has led to a significant expansion in the ASEAN countries including Vietnam, Indonesia, and Philippines.

PV Inverter Industry Leaders

Some of the major participants operating in the PV inverter market are General Electric, SMA Solar Technology AG, Sungrow, Growatt New Energy, Darfon Electronics Corp., Schneider Electric, Enphase Energy, Siemens, Fimer Group, Eaton, SolarEdge Technologies, Inc., Huawei Technologies Co., Ltd., Fronius International GmbH, Delta Electronics, Inc., Altenergy Power System, Inc., Hitachi Hi-Rel Power Electronics Private Limited, TMEIC, Sineng Electric Co., Ltd., Tabuchi Electric Co., Ltd., Canadian Solar, and Panasonic Corporation. Major manufacturers across the U.S., Asia Pacific, and the Middle East & Africa are inclined toward acquisitions, strategic collaborations, joint ventures, and partnerships to further gain a competitive advantage in the market.

PV Inverter Industry News:

  • In November 2021, Sungrow Power entered into an agreement with Hudaco Energy, a South African energy cleaning company, to distribute the company's solar energy storage products for residential, commercial & industrial purposes in the Southern Africa market. This agreement will support the company’s long-term power backup and sustainable development in the region.
  • In August 2021, Delta Electronics announced an agreement between Delta and TCC Green Energy Corporation for the annual procurement of 19 million kWh green electricity purpose. This step will contribute to its Renewable Energy goal to reach 100% usage of renewable energy along with carbon neutrality in its global operations by 2030.

This PV inverter market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in MW & USD Million from 2019 to 2032, for the following segments:

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Market, By Product

  • String
  • Micro
  • Central

Market, By Phase

  • Single Phase
  • Three Phase

 Market, By Connectivity

  • Standalone
  • On Grid

Market, By Nominal Output Power

  • ≤ 0.5 kW
  • 0.5 - 3 kW
  • 3 - 33 kW
  • 33 - 110 kW
  • > 110 kW

Market, By Nominal Output Voltage

  • ≤ 230 V
  • 230 - 400 V
  • 400 - 600 V
  • > 600 V

 Market, By Application

  • Residential
  • Commercial & Industrial
  • Utility

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Italy
    • Poland
    • Netherlands
    • Austria
    • UK
    • France
  • Asia Pacific
    • China
    • Australia
    • India
    • Japan
    • South Korea 
  • Middle East & Africa
    • Israel
    • Saudi Arabia
    • UAE
    • South Africa
    • Egypt
    • Nigeria 
  • Latin America
    • Brazil
    • Chile
    • Mexico


Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of PV inverter exceeded USD 28.5 billion in 2022 and is expected to grow at 10.5% CAGR from 2023 to 2032, propelled by the increasing rate of electrification in remote areas and the rising demand for distributed energy.

The string PV inverter industry size surpassed of USD 15 billion in 2022 as a result of the product’s ability to provide appreciable operational flexibility across a tandem of applications, including power backup & auxiliary line support.

The three-phase inverter segment held over 77% industry share in 2022, owing to declining component costs coupled with stringent reforms mandating the integration of effective inverters.

The APAC PV inverter industry is estimated to amass USD 33 billion by 2032, attributed to renewable integration targets, feed-in tariffs, self-consumption schemes, investment subsidies, and favorable regulatory reforms in the region.

General Electric, SMA Solar Technology AG, Sungrow, Growatt New Energy, Darfon Electronics Corp., Schneider Electric, Enphase Energy, Siemens, Fimer Group, Eaton, SolarEdge Technologies, Inc., Huawei Technologies Co., Ltd., and others are some of the prominent PV inverter industry manufacturers.

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  • Base Year: 2022
  • Companies covered: 24
  • Tables & Figures: 1343
  • Countries covered: 23
  • Pages: 500
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