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Utility Scale PV Inverter Market Size – By Product (String, Central), By Voltage (< 1500 V, ≥ 1500 V), Regional Insights, Growth Opportunity & Global Forecast, 2023 – 2032

  • Report ID: GMI5270
  • Published Date: Jun 2023
  • Report Format: PDF

Utility Scale PV Inverter Industry Analysis

Utility Scale PV Inverter Market size was valued at USD 12.1 billion in 2022 and is projected to grow at a CAGR of 9.1% from 2023 to 2032. Solar power has become increasingly cost-competitive with conventional power sources, such as fossil fuels. The declining costs of solar panels, advancements in technology, and economies of scale associated with large-scale installations have contributed to the cost competitiveness of solar power. This cost advantage makes solar a compelling choice for utility-scale projects and attracts investments in the industry.

Utility Scale PV Inverter Market

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A utility PV inverter, also known as a solar inverter or photovoltaic inverter, is an electrical device that converts the direct current (DC) electricity generated by a photovoltaic (PV) solar panel array into alternating current (AC) electricity suitable for use in the utility grid. The introduction of new product designs equipped with Gallium Nitride (GaN) and Silicon Carbide (SiC) switching components is driving advancements in the utility PV inverter market. These advanced materials offer several benefits, including reduced cooling requirements and increased power densities, resulting in lower overall system costs.

In recent years, the solar industry has experienced substantial regulatory and economic growth. However, the availability of competitive auxiliary generation technologies has remained a challenge. Despite the significant decline in solar component prices, tax incentives, and overall plant ownership costs, other technologies including wind and hydro continue to offer a lower Levelized Cost of Electricity (LCOE). However, ongoing advancements and innovation in solar technology, along with supportive policies and incentives, are expected to address the existing challenges and enhance the competitiveness of utility scale PV inverter market. The global market of residential solar PV inverter is set to surpass USD 15.9 billion by 2032.

COVID-19 Impact

The global economy has faced severe repercussions from the unexpected outbreak of the novel coronavirus, COVID-19. The virus emerged in China's Hubei province in December 2019 and quickly spread to become a global health crisis. The World Health Organization (WHO) has reported cases in 140 countries, leading governments to implement various degrees of social distancing measures. These measures have had a significant impact on the economies of North America, Europe, the Middle East, and the Asia Pacific region, with numerous commercial and industrial establishments and facilities being affected. However, as governments have implemented guidelines and safety measures, many companies in the solar industry have been able to resume their operations.

Utility Scale PV Inverter Market Trends

The increasing allocation of public and private funding for electrification initiatives in off-grid or grid-isolated areas in developing regions is expected to have a positive impact on the string inverter market. Many rural areas in developing economies suffer from power lags and blackouts due to the lack of effective grid infrastructure. Favorable regulatory interventions and the growing number of industry participants are further stimulating the growth of the utility scale PV inverter market. In 2020, Avaada Energy Private Limited and the Asian Development Bank (ADB) announced a collaboration to invest over USD 15 million in scaling up photovoltaic solar energy generation capacity in India. Such funding activities contribute to a favorable economic environment for the deployment of sustainable electrical systems globally, thereby boosting the demand for PV inverters.

In the ASEAN region, the renewable capacity is projected to grow by around 52 GW during the period of 2021-2026. This growth can be attributed to the expiration of feed-in-tariff (FIT) schemes and the release of draft national long-term energy plans. Several emerging economies in the region are adopting off-grid solar PV to meet their daily energy requirements. For example, the South African Photovoltaic Industry Association is promoting the safe and quality installation of solar PV systems in residential, commercial, and utility-scale settings. In Egypt, the New and Renewable Energy Authority has created a favorable environment for small-scale solar PV projects. The country has set a target to achieve a 22% renewable share in the energy mix by 2035. The global market of micro inverter will cross USD 10.4 billion by 2032.

Utility Scale PV Inverter Product Segmentation

Global Utility Scale PV Inverter Market Size, By Product, 2021 - 2032 (USD Billion)

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The central utility scale PV inverter market held over USD 9.8 billion revenue in 2022, on account of the rising focus toward the distributed generation technologies with the expansion of sustainable energy systems. Low operating & maintenance costs, easy installation, and upgradation of manufacturing facilities will surge the product adoption. These systems consist of centralized power control, which allow product easy management and cost optimizations, which will further stimulate the market growth. Utility-scale solar projects have gained momentum worldwide. These large-scale installations require central inverters with high power ratings to accommodate the higher capacities.

As a result, central inverter manufacturers focused on developing and optimizing their products for utility-scale applications. Central inverter manufacturers are continuously investing in research and development to enhance the efficiency, reliability, and performance of their products. Technological advancements included improvements in power density, thermal management, and grid integration capabilities. Additionally, some manufacturers started incorporating advanced features like data analytics, remote monitoring, and grid support functionalities into their central inverters.

Utility Scale PV Inverter Voltage Segmentation

Global Utility Scale PV Inverter Market Revenue Share, By Voltage, 2022

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The utility scale PV inverter market from < 1500 V inverter segment is anticipated to record 9% CAGR through 2032. Rising awareness toward the use of low CO2-intensive products to mitigate GHG emissions will stimulate the industry growth. 1500 V string inverters have gained significant traction for utility scale projects. String inverters offer various advantages including module-level MPPT, simplified installation, and improved system monitoring capabilities. These inverters were particularly popular in residential and commercial applications, where smaller to medium-sized PV arrays were deployed. These systems offer low management and maintenance, which is anticipated to sway the utility scale PV inverter market demand. The market of utility scale string inverter will reach USD 6.8 billion by 2032.

Policymakers, private investors, and end users have embraced innovative solutions for less than 1500 V applications as sustainable and reliable solution for electricity access. Moreover, there have been a large number of projects which have utilized 1500 V technology including 300 MW Sakaka solar PV plant in Saudi Arabia.

Utility Scale PV Inverter Regional Analysis

 Asia Pacific Utility Scale PV Inverter Market Size, 2021 - 2032 (USD Billion)

The Asia Pacific utility-scale PV inverter market will witnessed substantial growth till 2032, due to favorable regulatory reforms and increasing investments in renewable energy. However, despite the high solar capacity in these regions, there is a projected shift in the market towards other regions such as the Middle East, Africa, and Latin America. This shift is driven by factors such as favorable solar densities, economies of scale, flexible financing and delivery models, effective government policies, tax incentives, and declining technology costs. In recent years, China's solar PV installations faced challenges including limited availability of land, grid connection issues, financial constraints, and delays in policy execution, resulting in a shortfall.

However, the country experienced a significant surge in solar installations in 2020, followed by the commissioning of ongoing PV projects. China's solar market is expected to continue growing due to a shift in investment priorities resulting from the COVID-19 crisis and an increased focus on larger project developments to achieve lower bids and economies of scale benefits. Nevertheless, the development schedule for solar PV projects in China may face cancellations or postponements due to emerging financial issues, the absence of subsidies, and insufficient penalties for non-completion. These factors can impact the pace of solar PV project implementation in the country. Overall, the Asia Pacific region has been a key driver of the utility-scale solar industry, but a shift in market dynamics towards other regions is anticipated.

Utility Scale PV Inverter Industry Leaders

Some of the key companies operating across the utility scale PV inverter market are SMA Solar Technology AG, Sungrow, Growatt New Energy, Darfon Electronics Corp., Schneider Electric, Siemens, Fimer Group, Eaton, SolarEdge Technologies, Inc., Huawei Technologies Co., Ltd., Fronius International GmbH, Delta Electronics, Inc., Hitachi Hi-Rel Power Electronics Private Limited, Sineng Electric Co., Ltd., Tabuchi Electric Co., Ltd., Canadian Solar, Panasonic Corporation, Ginlong Technologies, GoodWe, and SHENZHEN SOFARSOLAR CO., LTD. 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.

Utility Scale PV Inverter Industry News:

  • In December 2021, Fimer Group and ENIE has signed a joint venture for the local production of PV inverters to support all national government tenders with the purpose of accomplishing a local installed base of 13 GW by 2030. The collaboration includes the production of various types of solar inverters which will aid the Algerian market.
  • In April 2021, SMA Solar Technology AG has completed the supply of Sunny Highpower PEAK1 solar inverters to solar energy producer, GreenYellow Thailand for the SPM floating solar project This will support green solar energy generation up to 2.73 GWh of along with CO2 emission reduction of 1,380 tons per year. The power produced from this floating solar plant will be totally self-consumed by the factory. Moreover, this project will aid the customer shift up to 25% of the plant’s electricity utilization from conventional sources.

This utility scale 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
  • Central

Market, By Voltage

  • < 1500 V
  • ≥ 1500 V

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


Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of utility-scale PV inverter was reached USD 12.1 billion in 2022 and will record a CAGR of 9.1% till 2032.

The central inverter segment was over USD 9.8 billion in 2022, on account of the rising focus on distributed generation technologies with the expansion of sustainable energy systems.

The industry for utility-scale solar inverter in the Asia Pacific region has witnessed substantial growth during the forecast period, due to favorable regulatory reforms and increasing investments in renewable energy.

Growatt New Energy, Darfon Electronics Corp., Schneider Electric, Siemens, SMA Solar Technology AG, Fimer Group, Eaton, SolarEdge Technologies, Inc., Fronius International GmbH, Hitachi Hi-Rel Power Electronics Private Limited, and Delta Electronics, Inc.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 508
  • Countries covered: 23
  • Pages: 200
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