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Solar Inverter Market Trends

ID: MRFR//2739-CR | 185 Pages | Author: Priya Nagrale| October 2020

Global Solar Inverter Market Overview:

Solar Inverter Market Size was valued at USD 12.15 billion in 2021. The solar (PV) inverter market industry is projected to grow from USD 12.84 Billion in 2022 to USD 18.93 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2024–2030). Rapid development in the renewable energy sector and easy Installation in case of string inverter are the key market drivers enhancing the market growth.

Global Solar Inverter Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The governments of several countries have started a number of initiatives and campaigns to encourage the use of inverters in industrial applications. For instance, China's National Energy Agency (NEA) set a target in 2020 for renewable energy to represent more than 50% of total installed capacity by 2025 as part of the 14th Five-year Plan. (2021–2025).

To remain competitive in the solar inverter market, the major competitors have implemented a variety of methods, including product launches, acquisitions, agreements, partnerships, and corporate development.

  • In July 2023, Spinkraft Ventures Private Limited, Roofsol Energy Pvt Ltd, and Wattpower Systems Pvt Ltd together signed a ground-breaking 60 MW supply agreement. Inverters, crucial parts that transform the direct current (DC) generated by solar panels into alternating current (AC) for use in electrical systems, are to be delivered as part of the deal. As it involves one of India's top open-access developers, this project is of utmost importance. Open access permits the direct delivery of electricity from renewable energy projects to particular customers or entities, eschewing the use of the established grid infrastructure.

Solar Inverter Market Trends

  • Rapid development in the renewable energy sector boost market growth

Solar inverter installation is simple, and rapid developments in renewable energy are the main drivers of market expansion during the projection period. However, the main problems limiting the market's growth in the next years include high heat loss in large-sized solar inverters, increased cost, and a lack of panel level monitoring. On the other hand, it is projected that increased government efforts and investment in the electrification of remote and rural areas would present chances for major players in the solar inverter market. The surge in solar PV installations for multiple applications around the world is being attributed to rapid advancements in the renewable energy sector in terms of power production and usage. According to Market Outlook for Solar Power/2022-2026 research, which was released by SolarPower Europe, the world's solar fleet's capacity doubled in just three years from 2018 to reach one Terawatt in April 2022.

Additionally, to promote the adoption of inverters in industrial applications, several initiatives and efforts are launched by the governments of various nations. For instance, as part of the 14th Five-year Plan, China's national energy administration (NEA) established a target in 2020 for renewable energy to account for more than 50% of all installed capacity by 2025. (2021–2025). In 2020, China has the largest PV market in the world. Solar energy and energy storage are attractive options for commercial end users because to the Self-generation Incentive Program (SGIP - California only) and US tax benefits. Incentives offered by various governments of different nations to encourage residential and commercial PV installations have fueled the market for distributed PV in Europe. Therefore, rising adoption of solar inverters in various industries applications has enhanced the solar inverter market CAGR across the globe in the recent years.

An essential component of the entire solar system are solar PV inverters. The effectiveness of the entire solar system is thus determined by these inverters, which convert DC electricity to alternating current. Different factors impacting the output of solar systems are taken into consideration by the various types of solar PV inverters that are available. A few of the important parameters that affect the needed output are shade, roof orientation, roof inclination, summer versus winter production, tilting panels, and many others are another factor driving the growth of the solar inverter market revenue.

Solar Inverter Market Segment Insights:

Depending on the fusion type, the solar inverter market includes Central Inverters, Micro Inverters, and String Inverters. 

On-Grid and Off-Grid are covered in the market segmentation for solar inverters based on System Type.

The residential, commercial, and utilities segments of the solar inverter market have been segregated by application. The residential use of solar inverters has been picking up pace lately, making it the top segment in the market.    

  • A well-known producer of PV inverters, SolaX Power, had a notable New Product Launch in India in March 2023, bringing its most recent grid-tied household inverters, the X1-BOOST G4, and X1-MINI G4, to the nation's rapidly expanding solar sector. The two models, X1-BOOST G4 and X1-MINI G4, are perfect for home use and have a stylish new appearance. With two MPPT channels and a voltage range of 40-560V, the X1-BOOST G4 ensures exceptional yield efficiency.

Solar Inverter Type Insights

The solar inverter market segmentation, based on fusion type, includes Central Inverter, Micro Inverter, and String Inverter. The Central Inverter segment held the majority share in 2021 contribution to around ~48-53% in respect to the solar inverter market revenue. The increase in demand for central inverters from significant industrial and utility applications around the world is responsible for this. From 2021 to 2030, it is also anticipated that fast industrialization and the development of renewable energy infrastructure in developing nations like China, India, Japan, and others will increase demand for central inverters.

January 2022: Sungrow announced the brand-new 1+X Modular central inverter at the World Future Energy Summit in Abu Dhabi. The 1+X inverter's "modularity" can be evaluated at the component, system, and inverter levels. Sungrow expects that three-level modularization will lead to more adaptable power plant designs and more convenient O&M in the future.

Solar Inverter System Type Insights

The solar inverter market segmentation, based on System Type, includes On-Grid and Off-Grid. The On-Grid segment dominated the market in 2021. This growth is linked to increased investment in direct electricity supply rather than battery storage. Additionally, benefits of being utilized as on-grid solar inverters includes simple energy feeding, simple installation, cost effectiveness, and managing high electricity demand. These benefits are anticipated to drive the market's expansion in the following decades. Hence, rising utilization of on-grid systems for enhance the capabilities of the production are anticipated to positively impacts the market growth.

Solar Inverter Application Insights

The solar inverter market data has been bifurcated by Application into Residential, Commercial and Utilities. The Utilities segment held the majority share in 2021 contribution to around ~40-45% in respect to the solar inverter market revenue. The utility sector is expanding for several reasons, primary including the rising demand for renewable energy, the decreasing cost of solar energy and equipment, and the emergence of government subsidies. The segment is growing as a result of the presence of major players who provide customers market-leading utility-scale solutions through their pre-integrated power plants to increase efficiency and lower balance-of-system costs.

June 2022: V- Guard Industries Ltd has launched a new broad variety of On-Grid solar power inverters called Solsmart. A built-in DC switch that offers additional safety benefits is one of the advanced safety features included with the Solsmart On-Grid PV Inverter. The inverter is offered in single-phase and three-phase configurations and has a ten-year warranty. This development has further broadened the growth opportunity for the solar panel inverter industry.

Figure 2: Solar Inverter Market, by Application, 2024 & 2030 (USD Billion)

Solar Inverter Market, by Application, 2021 & 2030

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Solar Inverter Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific Solar Inverter market is anticipated to account for the largest market revenue share of 40%-45% during the forecast period. The solar market in this region is growing rapidly, and China is both a key competitor as well as its largest provider. The expansion of the industry in the region has also been significantly aided by the rising number of solar installation in developing countries.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Solar Inverter Market Share By Region 2021 (%)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe solar inverter market is anticipated to witness significant growth CAGR over the projected period attributed to the existence of favorable government policies and the availability of subsidies like residential feed-in tariffs (FITs) which encourages consumers to invest in renewable energy. Further, the Germany solar inverter market held the largest market share, and the UK solar inverter market was the fastest growing market in the European region

In 2021, North America solar inverter market held a significant revenue share, with the U.S. being the main driver of market expansion. A significant market for various types of solar inverters is the United States. In addition, string inverters saw strong growth in North America, central PV inverters are anticipated to continue holding the biggest market share during the projected period. Moreover, United States solar inverter market held the largest market share, and the Canada solar inverter market was the fastest growing market in the North American region.

Solar Inverter Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the solar inverter market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the solar inverter industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the solar inverter industry to benefit customers and expand the market sector is to manufacture locally to reduce operating costs. In recent years, solar inverter industry has provided solar inverter with some of the most significant benefits. The solar inverter market major player such as SMA Solar Technology AG (Germany), Canadian Solar Inc. (Canada), ABB Ltd (Switzerland) and others are working to expand the market demand by investing in research and development activities.

SMA Solar Technology AG is a German manufacturer of solar energy equipment with its headquarters in Niestetal, Northern Hesse. Solar inverters for photovoltaic systems with grid connection, off-grid power delivery, and backup operations are produced and manufactured by SMA. The company provide wide range of products such as PV Inverter Market, Hybrid Inverter, Battery Inverter, DC technology, System Solution & Packages and more. In April 2022, SMA Solar Technology AG has launched a new three-phase inverter series for uses in commercial and residential Solar pv systems with outputs up to 135 kW. Four new models with rated power of 12kW, 15kW, 20kW, and 25kW are part of the line. Six string inputs and three separate MPP trackers are also included. The inverters allow for up to 150% over-dimensioning of PV systems and offer energy power control of complete systems.

Also, A publicly traded firm called Canadian Solar Inc. manufactures solar PV modules and manages major solar projects. The company established in 2001 and it headquarters is in Guelph, Canada. The company provides wide range of products and solution such as Inverters, Modules, System kits, Energy Storage for commercial, residential, and utility. In September 2022, Canadian Solar Inc., a solar developer and manufacturer, launched a new battery storage solution for utility-scale applications called the SolBank and intends to increase its battery manufacturing capacity from the current 2.5 GWh to 10 GWh by the end of 2023. A lithium iron phosphate chemistry-based battery with a capacity of up to 2,800 kWh is produced by CSI Energy Storage, a majority-owned subsidiary of Canadian Solar called CSI Solar Co Ltd. It is now made in China's Jiangsu Province at the workshops of CSI Energy Storage, which have a 2.5 GWh annual production capacity.

Key Companies in the solar inverter market includes

  • SMA Solar Technology AG (Germany)

  • Canadian Solar Inc. (Canada)

  • ABB Ltd (Switzerland)

  • SunPower Corporation (US)

  • Delta Electronics (Taiwan)

  • SolarEdge Technologies Inc. (Israel)

  • Sineng Electric Co. Ltd. (China)

  • Power Electronics (Spain)

  • Solectria Renewables LLC (US)

  • Hitachi Hi-Rel Power Electronics Pvt. Ltd (India)

Solar Inverter Industry Developments

October 2023- Fuji Electric India, a leader in the automation industry and cutting-edge energy-efficient solutions for industry operations showed the Central solar inverter PV 1500 series at the Renewable Energy India Expo held from October 4th to 6th at Greater Noida.

September 2023- WattPower, one of the major renewable energy firms globally, unveiled a modernized solar inverter production plant located in Tamil Nadu’s district of Chennai as a significant move forward in India’s solar energy sector. With its new string PV inverters, it desires to make an impact on the Indian solar PV industry.

In July 2023, LG Energy Solution Ltd., a South Korea-based battery manufacturer, introduced new hybrid inverters suitable for private electric power plants. These inverters are designed to work on both low-voltage and high-voltage setups and come with an integrated backup feature that will easily blend with their own line of batteries.

In April 2023, SolaX Power, which is famous for manufacturing solar inverters, publicized X1-Hybrid LV, another single-phase low-voltage hybrid inverter meant for residential applications. This new technology has been devised for the efficient operation of low-voltage solar photovoltaic (PV) systems.

In April 2022, SMA Solar Technology AG launched four new inverters with capacities of 12kW,15kW,20kW and 25kW for rooftops up to 135kW size, which is less than that recommended by most other manufacturers.

In (May 2022), Fimer Spa made deliveries of its Mega Volt Ampere (MVA) inverters into an Indian project consisting of a solar-plus-storage system with a battery capacity of about eighteen-megawatt hours (MWh) located within Gujarat. At Modhera’s Integrated Solar Energy Project, Mahindra Susten Pvt. Ltd was able to supply their inverters to the end user of the project. The contract was awarded by Gujarat Power Corporation Limited (GPCL), the state’s utility, to an Indian solar PV engineering, procurement and construction (EPC) company.

November 2019: SMA Solar Technology AG partnered with LG Chem. Through this partnership, SMA and LG Chem will combine its SUNNY BOY Battery storage inverters and RESU 10M batteries to create new home storage solutions. It is anticipated that the combination of SMA battery inverters and RESU 10M batteries will lead to the creation of integrated DC/DC converters that can raise the operational voltage of batteries.

March 2022: Huawei Technologies has signed a partnership agreement with Meienergy Technology Co., Ltd for integrating smart PV and energy storage for the 1 GW utility solar plant and 500 MWh energy storage system in Africa which is developed by Meienergy.

Solar Inverter Market Segmentation:

Solar Panel Inverter Type Outlook

Solar (PV) Inverter System Type Outlook

  • On-Grid

  • Off-Grid

Solar Inverter Phase Outlook

  • Single-Phase

  • Three-Phase

Solar Inverter Application Outlook

  • Residential

  • Commercial

  • Utilities

Solar Inverter Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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