PV Inverter Market Size, By Product (String, Micro, Central), By Phase (Single Phase, Three Phase), By Connectivity (Standalone, On-grid), By Nominal Output Power (≤ 0.5 kW, 0.5 - 3 kW, 3 - 33 kW, 33 - 110 kW, > 110 kW), By Phase (≤ 230 V, 230 - 400 V, 400 - 600 V, > 600 V), By Application (Residential, Commercial & Industrial, Utility), Industry Analysis Report, Regional Outlook Application Potential, Competitive Market Share & Forecast, 2022 – 2028

Industry Overview

PV Inverter Market size exceeded USD 19.18 billion in 2021 and is projected to grow at a CAGR of over 5.3% between 2022 and 2028. The rising need for clean & sustainable energy on account of increasing concerns of harmful GHG emissions will stimulate the business landscape. A PV inverter is one of the most crucial components of a solar power system as it transforms variable Direct Current (DC), which is the output of a solar panel, into Alternating Current (AC), which operates residential appliances. Various government initiatives to implement renewable power generation for the mitigation of carbon footprint are set to encourage the overall market outlook.
 

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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 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.
 

Increasing adoption of string inverters across the commercial and utility sectors owing to better operational feasibility and lower failure rates will drive the PV inverter market outlook

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String inverters can be used in all applications including residential, commercial & industrial, and large-scale utility projects. These inverters offer individual connections with a single PV module for low-cost incursion and lower failure rates. Rising regulatory concerns related to the provision of effective interconnection with on-grid solar installations will increase deployment potential compared to its counterparts. Moreover, these products provide high operational feasibility across a wide range of applications including auxiliary line support, power back up, and among others, which further stimulates the industry landscape.
 

Microinverters are highly expensive compared to string and central due to their relative specifications. There has been a growing use of string inverters in PV farms owing to their several benefits including higher efficiency, easier installation, and user-friendly O&M. Furthermore, central inverters are mostly preferred for utility-scale applications owing to their lower costs, ability to develop higher power, and reliability as they are placed in protective environments.
 

Growing home renovation projects along with net metering schemes will sway the residential PV inverter industry trends

An increasing shift toward the combination of meticulous energy efficiency concord and renewable energy sources is set to encourage the business outlook. There has been an increase in product adoption across the residential and small commercial sectors, which is attributed to rising investments for the implementation of rooftop solar coupled with increasing energy demand globally.
 

In addition, restructuring of various government policies including trade investments across developing nations is anticipated to positively influence the industry expansion. For instance, in June 2021, the Chinese government announced its plans for a new policy program to encourage rooftop development in major countries, consisting of more than 20% rural residences.
 

The growing adoption of solar power by several business owners to reduce electricity costs is surging product usage in the commercial sector. Governments offer federal & state financial incentives to businesses on solar conversion, further driving the industry size. Furthermore, excellent tax benefits, reduction in overhead costs, and future longevity are other factors supplementing the market statistics.
 

North America PV inverter market is estimated to grow on account of ongoing retrofitting and refurbishment of the existing grid infrastructure

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North America PV inverter market will reach USD 4 billion by 2028. Solar is more accessible, prevalent & affordable in the North American sub-continent as it is economically competitive compared to traditional power sources. The solar energy market has been an accredited incubator for employment growth across the region. Additionally, government initiatives toward subsidized solar implementation along with the consistent fall in component prices have developed a favorable scenario for market expansion. Facilitation of fund flow through the federal investment tax credit for enhanced distributed generation techniques is further accelerating product deployment. For instance, in December 2020, the U.S. government extended the ITC, providing 26% tax credit for systems installed between 2020 & 2022 and 22% for deployments in 2023.

Investments in the production of highly efficient systems will enhance the overall industry presence

Major industry players are focused on the economies of scale and sustainability of the product’s quality to significantly increase their competitive market share. Crucial participants across the Middle East & Africa, Asia Pacific, and the U.S. are focusing on the reduction of carbon footprints through their products. 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.
 

For instance, 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.
 

Major players operating in the PV inverter market include Growatt New Energy, SMA Solar Technology AG, Sungrow, Darforn Electronics Corp., Siemens, Enphase Energy, Fimer Group, Schneider Electric, SolarEdge Technologies, Inc., Eaton, Fronius International GmbH, Delta Electronics, Inc., Hitachi Hi-Rel Power Electronics Private Limited, Altenergy Power System, Inc., TMEIC, Tabuchi Electric Co., Ltd., Sineng Electric Co., Ltd., Panasonic Corporation, Canadian Solar, and among others.
 

The PV inverter market research report includes in-depth coverage of the industry with estimates & forecast in terms of MW & ‘USD Million’ from 2018 to 2028 for the following segments:

By Product

• String
• Micro
• Central

By Phase

• Single Phase
• Three Phase

By Connectivity

• Standalone
• On-grid

By Nominal Power Output

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

By Nominal Output Voltage

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

By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been 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