String Inverter Market
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String Inverter Market size was valued at USD 18.3 billion in 2023 and is projected to grow at over 10.6% CAGR from 2024 to 2032. Growing adoption of renewable energy sources, particularly solar PV deployment, has significantly boosted the demand for solar components in the recent years. Increasing targets and initiatives by developing countries to reduce the dependence on fossil fuels and enhance the energy security is expected to encourage the need for solar energy systems. There is an increasing demand for string inverters owing to their high efficiency, which can maximize the amount of energy produced by a solar energy system. Moreover, the introduction of several incentives and regulatory measures to encourage the adoption of sustainable technologies will propel the market demand.
A string inverter is a type of solar inverter that is used in photovoltaic (PV) solar energy systems. The main function of a string inverter is to convert the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity that can be used in homes or businesses or fed into the electrical grid. Manufacturers are continuously developing new technologies to improve the efficiency and reliability of string inverters. For instance, manufacturers across the globe are focusing on their R&D activities to develop string inverters with built-in monitoring and diagnostic tools, which can improve overall system performance and reduce maintenance costs. Furthermore, increasing demand for string inverters with integrated battery energy storage is set to positively influence the string inverter market growth.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| String Inverter Market size in 2023: | USD 18.3 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 10.6 |
| 2023 Value Projection: | USD 47.4 Billion |
| Historical Data for: | 2019 to 2023 |
| No of Pages: | 400 |
| Tables, Charts & Figures: | 1315 |
| Segments Covered: | Phase, Connectivity, Nominal Output Power, Nominal Output Voltage, Application |
| Growth Drivers: |
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| Pitfalls Challenges: |
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In the recent years solar PV industry has gained considerable momentum on account of supportive government policies, declining costs, and increasing consumer awareness regarding eco-friendly technologies. String inverter is the most common technology across the residential and commercial sector. However, increasing adoption of available counterparts including central inverter, micro inverter, and power optimizer may hamper the growth of string inverter in the coming years. On the contrary, the growing focus on self-electricity generation coupled with developments across distributed generation systems is anticipated to upscale the string inverter market value.
The COVID-19 pandemic has substantially impacted the global economy. The pandemic has disrupted supply chains around the world, causing delays and shortages of components and materials used in the manufacture of string inverters. This has led to production delays and increased costs for manufacturers. Moreover, the economic downturn caused by the pandemic has led to a reduction in demand for string inverters, as many businesses and households have had to delay or cancel solar energy projects due to financial constraints. However, the installation trend of the solar has been on a positive side during the year 2020 owing to favorable scenario for schemes including FiT.
With the increasing adoption of solar energy systems, there is a growing need for energy storage solutions to store excess energy produced by these systems. String inverters that are compatible with energy storage solutions are in high demand. Declining cost of solar energy has made it increasingly competitive with traditional fossil fuels. This has led to increased demand for string inverters, as more households and businesses seek to install solar energy systems. Many governments around the world are implementing policies and incentives to support the adoption of solar energy, including tax credits, feed-in tariffs, and net metering programs. These policies are helping to drive demand for string inverters.
The string inverter market is continually evolving, with manufacturers developing new technologies to improve the efficiency and reliability of string inverters. This includes advancements in materials science, electronics, and software that are helping to drive down costs and improve performance. There is a growing focus on energy efficiency around the world, as households and businesses seek to reduce their energy consumption and costs. In addition, string inverters are a critical component of solar energy systems as they assist in reducing the overall energy consumption and costs, which is further set to stimulate the industry landscape.
The three phase segment held majority of string inverter market value of over USD 11 billion in 2022. Supportive measures and policies coupled with the consumer engagement in the clean energy transformation will boost the share of renewables in the overall energy mix. Additionally, growing utility scale solar projects owing to the rapid decline in the solar energy costs along with increasing rooftop solar PV deployment in the commercial sector for distributed generation is set to encourage the adoption of three phase inverters.
The standalone installations segment accounted for 16% string inverter market share in 2022. Standalone applications are majorly deployed in regions where there is limited electric grid or the cost of connecting to the grid is high. Policymakers, end users, and private investors have encouraged off-grid solar products as a sustainable and affordable solution for electricity access. Furthermore, off grid solar solutions have played a crucial role in expanding energy access, especially in South Asia and Sub-Saharan Africa, which will positively sway the market expansion.
Stringent mandates across developed economies for low-power residential installations have driven the demand for ≤ 3 kW systems. Increasing awareness regarding environment-friendly systems along with strong regulatory measures to ensure energy security and provision of uninterruptible power will fuel the string inverter market revenue.
Rapid commercialization across developing economies along with the increasing number of 24*7 commercial establishments pose immense expansion potential for string inverter technologies. In addition, solar installations across these commercial establishments provide a reliable measure of energy optimization and cost savings. Henceforth, positive consumer outlook coupled with various fiscal benefits associated with the deployment of solar components will positively influence the string inverter market demand.
The string inverter market from > 600 V systems segment have witnessed a significant growth in 2022, as the adoption of solutions with higher Vdc offer low overall costs. Higher voltage systems allow longer strings, which require less wiring & trenching and fewer combiner boxes, and therefore less labor. These potential savings have increased the adoption of string inverters for 1500 V PV systems. Moreover, the increasing demand from residential consumers on account of expiring FiTs in several countries will boost the low voltage product penetration.
Various government initiatives, expiring feed in tariff (FiT), and clean energy targets have significantly boosted the string inverter market size. For instance, in January 2022, Germany launched the new version of the renewable energy law (EEG), which mandates the deployment of solar for new commercial and residential buildings. Regulators have been continually focusing on decentralized energy storage systems along with PV units through the provision of investment grants. For instance, in December 2021, EBRD provided over USD 11 million loan for the construction of five on-grid PV plant. Furthermore, strong inclination of the industrial sector toward the utilization of non-conventional sources of energy to minimize carbon footprint and reduce the cost of energy conversion is witnessed to further bolster the market penetration.
Some of the leading companies operating across the string inverter market are
Major manufacturers across Asia Pacific, the U.S., and the Middle East & Africa are inclined toward mergers & acquisitions, strategic collaborations, partnerships, and joint ventures to further gain a competitive advantage in the market.
Market, By Phase
Market, By Connectivity
Market, By Nominal Output Power
Market, By Nominal Output Voltage
Market, By Application
The above information has been provided for the following regions and countries:
Standalone installations recorded 16% of the industry share in 2022 and will expand exponentially through 2032, driven by the growing need for sustainable and affordable solutions for electricity access.
Europe market is expected to gain significant traction through 2032, owing to the influx of government initiatives and clean energy targets in the region.
The market size of string inverter crossed USD 18.3 billion in 2023 and will showcase over 10.6% CAGR from 2024 to 2032, due to the rising adoption of renewable energy sources, including solar PV.
Demand for three phase string inverters is estimated to record more than USD 11 billion in 2022, owing to the rise in the number of utility scale solar projects.