PV Inverter Market Size By Product, By Phase, By Connectivity, By Nominal Output Power, By Nominal Output Voltage, By Application, 2025 - 2034

PV Inverter Market Size

The global PV inverter market was valued at USD 34.6 billion in 2024 and is estimated to grow at a CAGR of 9.5% from 2025 to 2034. The paradigm shift toward the integration of renewable energy resources will fuel the adoption of efficient systems. Photovoltaic inverters in the last decade have emerged as the core components across the modern-day solar power plants owing to the enhanced efficiency of these systems. Additional funding from the public and private sectors, together with more stringent mandates and energy conservation policies, will enhance the business environment by minimizing carbon emissions.
 

Evolving regulatory environment and ongoing technological proliferation owing to various research and development programs will support the deployment of the inverter units. For instance, in February 2022, German consortium of SMA Technology and research institutes initiated the work on applying semiconductors including Gallium Nitride (GaN) and Silicon Carbide (SiC) to reduce the weight of the units while providing them with higher efficiency. In addition, the installation cost of solar has dropped by more than 70% over the last decade, leading the industry to expand into new markets, thereby boosting deployment of the PV systems.
 

Another significant driver is the declining cost of solar PV technology, including inverters. Rising technological improvements and economies of scale have lowered production costs, making solar systems more affordable and financially viable across residential, commercial, and utility-scale segments. This affordability encourages wider product adoption, especially in developing regions that are energy-deficient but rich in solar resources.
 

The rise in grid modernization efforts and the evolution of smart grids also foster inverter demand. Companies are launching modern PV inverters, especially smart or grid-tied inverters, that offer advanced functionalities such as voltage regulation, frequency support, and remote monitoring, which align with the needs of intelligent energy networks. For instance, at Intersolar 2024, SolarEdge Technologies unveiled a new three-phase solar inverter and a dedicated home battery aimed at the European residential sector. Set for launch in the latter half of 2025, the inverter will offer power capacity of up to 20kW and is engineered to support complete home backup. Additionally, increasing demand for energy storage solutions, particularly lithium-ion battery systems, also propels inverter adoption.
 

PV Inverter Market Trends

• The worldwide efforts to integrate renewable energy sources to counter global warming will spur the industry trend. Governments around the world are incentivizing, subsidizing, and providing tax rebates for solar installation, which directly increases the demand for PV inverters, essential to transform the DC power from solar panels into AC. Additionally, the development of decentralized energy systems such as solar panels set up on rooftops, microgrids, and community solar programs increases the need for flexible modular solutions and consequently enhances the demand for PV inverters to control energy flow, storage, and two-way power transfer with the grid.
   
• Increasing companies' investments in developing new product lines in developing economies will complement the business outlook. For instance, in October 2024, Solis launched a range of high-capacity hybrid PV inverters, available in 8kW, 15kW, and 50kW models, designed to support energy storage needs in both residential and commercial settings. Additionally, the company introduced new grid-tied inverters in 3kW, 5kW, 150kW, and 350kW capacities, catering to applications across residential, commercial, and utility-scale sectors.
   
• Growing convergence of solar energy systems with energy storage and electric vehicle (EV) infrastructure has also accelerated inverter demand. With the rise of solar-plus-storage systems, hybrid inverters that manage both PV generation and battery charging/discharging are becoming essential. Additionally, bidirectional inverters that support vehicle-to-grid (V2G) and home backup power are gaining traction, especially in regions promoting EV adoption and grid resilience leading to business growth.
   
• Continuous collaborations with global industry leaders toward the adoption of sophisticated inverters will further expand the industry. For instance, in May 2025, Sungrow signed an 835MW inverter supply agreement with Juniper Green Energy, a solar, wind, and hybrid project renewable power company. The contract incorporates the latest generation high-efficiency SG320HX-20 string inverters and SG4400UD-20 central inverters with increased energy output and greater reliability for the system over time.
   
• Moreover, improvements in the global supply chain and prevailing lower prices that result from large-scale production have made significant strides in lowering the cost of PV inverters, which, in turn, enhances their affordability for a wider range of people and markets.
   

PV Inverter Market Analysis

• Based on the product, the industry is segmented into string, micro, and central categories. The PV inverter market was valued at USD 25.5 billion, USD 29.9 billion, and USD 34.6 billion in 2022, 2023, and 2024, respectively.
   
• The string inverter market is expected to grow at a CAGR of 9.8% between 2025 and 2034 due to their cost-effectiveness, scalability, and ease of installation. Their versatile architecture enables simple system extension and easier fault diagnosis, making them suitable for both domestic and commercial use. Key players are announcing additional new product lines to further drive market expansion. In September 2024, GoodWe launched the GT Series Strung Inverter with power ratings greater than 100 kW, expanding its C&I portfolio. Also, lower price, better thermal management, and greater integration with energy storage systems supports the adoption.
   
• The global market for central inverters is anticipated to be over USD 30.8 billion by 2034. These inverters have been categorized as stationary inverters primarily serving across a large-scale solar farm or a utility-aided solar deployment. As utilities across the globe subject to national solar integration targets have consistently been promoting solar technology integration across the globe; this in turn will favor the deployment of inverter units. Furthermore, large voltage bearing capacity coupled with the handling of large current flows makes these products suitable for high-rated solar establishments.
   
• Microinverters are valued at USD 2.9 billion in 2024 on account of their improved energy harvesting efficiency in comparison to traditional inverters, coupled with real-time monitoring and data collection at the individual panel level. Companies are supporting the product by introducing high-power micro inverters for C&I applications. For instance, in October 2023, Hoymiles launched the HMT-2000-4T-208-NA microinverter, designed for commercial and industrial solar applications. Capable of supporting high-power PV modules with a maximum output of 2000 VA, the device features a 4-in-1 design that enhances installation efficiency and reduces overall system costs.
   

• Based on phase, the PV inverter market is segmented into single phase and three phase. The three phase segment held 86% market share in 2024, owing to swift industrial development favored by commercialization throughout the emerging countries, along with considerable operational flexibility across various applications.
   
• Rising collaborations, partnerships, and customer response with a focus on solar energy infrastructure development will propel the industry landscape. For instance, in September 2024, SOFAR has seen strong market interest in India for its 350kW three-phase utility-scale PV inverter. The product has gained attention for its high capacity and suitability for large-scale solar installations, reflecting growing demand for advanced inverter solutions in the country’s utility solar segment. Moreover, shifting consumer awareness and acceptance of cost reduction and commercial viability will positively influence product deployment.
   
• Single phase is set to grow at a CAGR of 5.2% by 2034, driven by increasing residential solar installations, especially in regions with low to moderate energy demands. Their cost-effectiveness, compact size, and ease of installation make them ideal for small-scale rooftop systems. Ongoing technological advancements aimed at improving product efficiency and reliability, while rising electricity costs push homeowners toward self-consumption solutions, will uplift the industry trend.
   

• The U.S. PV inverter market was valued at USD 4.8 billion, USD 5.5 billion, and USD 6.1 billion in 2022, 2023, and 2024, respectively. As of 2024, North America holds a market share of 18.1%, which is expected to improve further by 2034.
   
• The product demand is fueled by the growing residential and commercial rooftop installations in the U.S. as well as utility-scale projects. Also, the integration of energy storage systems, especially with California’s Self-Generation Incentive Program, adds to the inverter’s attractiveness. Decentralization and development of the smart grid also preserves the wide utilization of inverters. Furthermore, corporate and utility sustainability initiatives, together with efforts to upgrade the grid architecture, are rapidly advancing the demand for PV inverters across various applications.
   
• The Asia Pacific industry is estimated to grow at a CAGR of 7.9% by 2034, driven by rapid urbanization, energy access initiatives, and favorable government policies. Presence of key players in the region and growing investments in improving their product features will escalate the business growth. In June 2025, Solavita launched a new line of three-phase hybrid inverters with power ratings from 29.9 kW to 50 kW in response to an accelerating market for C&I rooftop solar and large scale residential systems. Also, increasing interest in EVs and energy storage is boosting the need for smart and hybrid PV inverters in residential, commercial, and utility-scale projects.
   
• The European market is expected to reach a value in excess of USD 37.9 billion by 2034 due to strong climate commitments under the EU Green Deal, as well as national decarbonization pledges. Germany, Spain, and the Netherlands are investing considerably in solar energy to reduce their dependence on fossil fuels. Rising policies that encourage rooftop and utility-scale installations include feed-in tariffs, subsidies, and net metering will uplift the product growth. Additionally, smart, grid-supportive inverters are in high demand due to the trend toward energy decentralization and prosumer models.
   

PV Inverter Market Share

• The top 3 companies, including Huawei, Sungrow, and Ginlong Technologies, account for around 44.2% market share. Key players in the market sustain growth and competitiveness using various strategies. These include continuous product advancements such as string, hybrid, and even more powerful inverters, as well as expanding offerings for residential, commercial, and utility-scale projects. SolarEdge and Sungrow are adding auxiliary grid support systems and integrating more storage into the system.
   
• The major stakeholders are also opting for digitalization, AI-powered energy management systems, and remote monitoring to enhance operational productivity and value-added services while simultaneously complying with international decarbonization goals and other shifting compliance obligations. In addition, strategic partnerships, mergers and acquisitions, and further diversification into new highly developing Asia Pacific and U.S. regions are also primary approaches utilized by the companies.
   

PV Inverter Market Companies

• Eaton is advancing new inverter technologies with energy storage to aid in grid resilience and adoption of solar technologies. This moves the company further into the PV inverter market. In 2024, Eaton claimed revenues of USD 24.9 billion, which underscores the firm’s position in power management as well as its growing focus in solar infrastructural solutions.
   
• Through its subsidiary, CSI Solar, Canadian Solar provides solar solutions which include PV inverters and turnkey EPC services and battery storage under the e-STORAGE brand. It posted a revenue of USD 1.5 billion in Q4 2024. The company is still growing its inverter and energy storage systems to simplify utility and business-grade solar power installation.
   

Eminent players operating in the PV inverter market are:

• Altenergy Power System
• Canadian Solar
• Darfon Electronics
• Delta Electronics
• Eaton
• Enphase Energy
• Fimer Group
• Fronius International
• General Electric
• Ginlong Technologies
• GoodWe
• Growatt New Energy
• Huawei Technologies
• Panasonic Corporation
• Schneider Electric
• Siemens
• Sineng Electric
• SMA Solar Technology
• SolarEdge Technologies
• Sungrow
• Tabuchi Electric
• TMEIC
   

PV Inverter Industry News

• During WFES 2025, Sungrow plans to release its energizing string inverter set to revolution renewable energy in the MENA region. This inverter comes with cutting-edge added value features aimed at addressing the energy problems in the MENA region and easing their shift to cleaner energy systems.
   
• In July 2023, Enphase Energy reported the start of production of its IQ Microinverters and Flex systems in Colombia. This action aligns with the Enphase corporate cleaner energy policy system strategies regarding industry advanced technology, strategic local manufacturing, and further technological innovation. The move also extends the company’s leadership on the microinverter market while increasing business and benefits the company overall.
   

PV Inverter market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MW)” from 2021 to 2034, for the following segments:

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 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
• Latin America
  • Brazil
  • Mexico
  • Chile