| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 14.08 Billion |
| CAGR (2023-2028) | 12.06% |
| Fastest Growing Segment | Central Inverters |
| Largest Market | Asia Pacific |
Market Overview
The Global Solar PV Inverter Market was valued at USD 14.08 billion 2022 and is expected to grow at a CAGR of 12.06% during the forecast period.
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Solar PV inverters essentially serve as bridges connecting solar panels to the electrical grid or end-use applications. They guarantee that the electricity produced by solar panels can run a variety of gadgets and appliances and is compatible with conventional electrical systems. Additionally, solar inverters track the solar panels' maximum power point to maximize energy generation and monitor grid connection circumstances to ensure safety. Power optimizers, string inverters, central inverters, and microinverters are just a few of the many items that are part of the global solar PV inverter market. The capacity, design, efficiency, and applications of these goods differ. Government regulations and incentives that encourage the use of solar energy, improvements in inverter technology, declining costs, and growing public knowledge of the environmental advantages of renewable energy sources all have an impact on the market. Because solar energy is becoming more and more popular as a clean and sustainable power source, the industry is vibrant and has grown significantly over time. An essential part of this shift to renewable energy sources and the mitigation of carbon emissions is solar PV inverters. Manufacturers, distributors, suppliers, and service providers are all participants in the global solar PV inverter market. In order to enhance inverter functionality, efficiency, and dependability as well as to provide new features like intelligent monitoring and integration capabilities, major firms frequently participate in research and development projects. It's crucial to remember that the data shown here is predicated on knowledge as of September 2021; since then, the market for solar PV inverters may have changed.
Key Market Drivers
Throughout the forecast period, the market for solar PV inverters is anticipated to increase as a result of the rising demand for solar power. It is anticipated that rising investments and aggressive solar energy goals will propel the market under study's expansion. Nonetheless, it is anticipated that during the projected period, string inverters' technological shortcomings may impede the market expansion for solar PV inverters.
The highly intricate value chain of solar inverters consists of component manufacturers, inverter manufacturers, distributors, sellers, and end users. Since panels make up a sizable chunk of the solar value chain, inverters and batteries come in second and third, respectively, and generate varied amounts of money. Since solar devices have a relatively high efficiency, there is minimal opportunity for technical differentiation due to the complexity of the value chain. An essential component of the larger solar system are solar PV inverters. The effectiveness of the entire solar system is determined by these inverters, which transform DC electricity into alternating current. Different aspects affecting solar system production are considered by solar PV inverters, which have unique features and qualities. Some of the crucial elements that affect solar system production include shade, roof orientation, roof inclination, summer versus winter production, tilting panels, and many other factors that contribute to the desired output. The cost of producing renewable energy has drastically decreased, and it is now very competitive to satisfy the need for more capacity. For example, when compared to other renewable energy sources like wind, solar photovoltaics has shown one of the largest cost reductions, reducing the levelized cost of electricity (LCOE) by about 72%. As a result of lower installation costs for solar modules, cells, inverters, and associated equipment, the cost of producing solar power has decreased. Global PV inverter market expansion was hampered by the COVID-19 epidemic for a number of reasons, including supply chain interruption. Due to limited new construction activities and the fact that household and commercial end users diverted finances to survive the COVID-19 epidemic, there is also less demand for PV inverters from these end users.
Key Market Challenges
Conventional PV systems activate PV panels, cables, and other components with high DC voltages. Firefighters, maintenance workers, and installers are at risk from these high DC voltages. Using DC isolation switches to separate DC electric devices from PV arrays is challenging since solar inverters with PV arrays entail large DC voltages. PV modules linked in series may pose a risk to installers due to the high voltage they generate. Electric arcs could occur in the event of a short circuit current, which could lead to a fire and endanger anyone nearby a photovoltaic system. Firefighters are at risk because these DC arcs are challenging to put out. Inverters may automatically shut down while manually separating DC cables and other components if the fire damages the DC wires in PV arrays. The US National Electric Code (NEC) and Electrical Safety Authority (ESA) require safety measures, however they do not completely eliminate all dangers, which hinders the inverter market's expansion.
Key Market Trends
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Battery Advancements in the Market
The growing demand for clean and sustainable power sources to combat climate change and manage energy security issues has caused a rapid evolution of the global energy landscape in recent years. Solar photovoltaic (PV) systems have become a major force in this regard, offering a practical and expandable way to capture solar energy and turn it into electrical power. Solar PV inverters are essential to the effective operation of solar PV installations. The global solar PV inverter market is being shaped in large part by these devices, which transform the direct current (DC) produced by solar panels into useful alternating current (AC) electricity.
Rising Demand for Renewable Energy
The global transition to renewable energy sources is one of the key factors propelling the solar PV inverter industry. Countries all over the world are establishing aggressive renewable energy goals as worries about the effects of fossil fuels on the environment increase. Solar energy has become very popular because of its abundance and natural sustainability. The growing use of solar electricity has coincided with an increase in demand for solar PV inverters, which are essential components of solar energy systems. The market for solar PV inverters is expanding as a result of governments, corporations, and consumers realizing the financial and environmental advantages of solar energy.
Technological Advancements
The market for solar PV inverters has been significantly shaped by technological progress. To improve the functionality, dependability, and efficiency of solar inverters, manufacturers have been making significant investments in research and development. The creation of smart inverters, which provide sophisticated monitoring and control capabilities, is one noteworthy achievement. With features like reactive power control and voltage regulation, these inverters allow for real-time communication with the grid, promoting grid stability. Furthermore, smart inverters offer better insights into system performance, making maintenance and troubleshooting more effective. We anticipate that as the energy environment becomes more digital, smart inverters will become a standard component, propelling the industry forward.
String vs. Central vs. Microinverters
The variety of inverter types to accommodate different system sizes and applications is another noteworthy trend in the solar PV inverter market. Among the alternatives are power optimizers, microinverters, string inverters, and central inverters. Due to their affordability, string inverters—which link several solar panels in series—have become very popular. Conversely, utility-scale projects use central inverters because of their great efficiency and power conversion capabilities. Installed at the panel level, microinverters maximize energy harvest by reducing the effects of shade or panel-level fluctuations. System size, shading, and intended performance are some of the variables that influence the choice of inverter type, which spurs market innovation and competitiveness.
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Efficiency Improvements
One important factor in the market for solar PV inverters is efficiency. Increased efficiency guarantees that a larger portion of the solar energy captured is transformed into electrical power that can be used, which lowers waste and improves system performance overall. Higher energy yields and a quicker return on investment for solar installations are the results of manufacturers' constant efforts to increase inverter efficiency. Better designs and enhanced heat management brought about by advanced semiconductor technology have all helped to increase efficiency. Efficient inverters are essential to the economic viability of solar energy as it becomes more affordable when compared to traditional sources.
Global Market Dynamics
The market for solar PV inverters is intrinsically linked to global market factors, such as changes in regulations, the state of the economy, and industrial partnerships. Government initiatives like feed-in tariffs, tax breaks, and renewable energy goals have a big impact on how solar energy is adopted, which in turn affects how much demand there is for solar inverters. Economic drivers that drive market expansion include the declining cost of solar panels and improvements in manufacturing techniques, which lower the entire cost of the solar PV system. Furthermore, partnerships between producers of inverters, solar panels, and energy utilities are stimulating creative solutions and propelling market growth.
Segmental Insights
Technology Type Insights
A big grid feeder is a central inverter. Solar photovoltaic systems with rated outputs greater than 100 kWp frequently employ it. Inverters installed on the ground or floor transform solar array DC power into AC power for grid connection. These devices can be utilized both indoors and outdoors and have capacities ranging from about 50kW to 1MW. One stage of DC-AC conversion makes up a central inverter. A DC-DC boost stage is another feature that some inverters have to extend their MPP (maximum power point) voltage range. Occasionally, low-frequency transformers are employed to increase the AC voltage and offer output isolation. However, this results in a decrease in efficiency and an increase in the size, weight, and cost of the inverter. The maximum input voltage of a central inverter is normally 1,000V. Nonetheless, some more recent central inverters already have an input voltage of 1,500V. With a maximum voltage of 1,500V, these inverters enable PV arrays while using fewer BOS (balance of system) components.
Regional Insights
The Asia Pacific region has established itself as the leader in the Global Solar PV Inverter Market with a significant revenue share in 2022.
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Recent Developments
- In April 2022, SMA Solar Technology AG, a German inverter manufacturer, launched a new line of four inverters with power ratings of 12kW, 15kW, 20kW, and 25kW for use in rooftop PV systems up to 135kW in size.?
- In May 2022, Fimer Spa, an Italy-headquartered solar PV inverter manufacturer, supplied 1 Mega Volt Ampere (MVA) inverters to a solar-plus-storage project with an 18MWh battery energy storage system in Gujarat, India. The company supplied its inverters to the Integrated Solar Energy Project in Modhera. The project belonged to Indian solar PV engineering, procurement, and construction (EPC) solution provider Mahindra Susten Pvt. Ltd and was awarded by the state’s utility, Gujarat Power Corporation Limited (GPCL).
Key Market Players
- Siemens Energy
- Fimer Group
- SMA Solar Technology AG
- Delta Electronics, Inc
- SunPower Corporation
- Omron Corporation
- Eaton Corporation plc
- Emerson Electric Co.
- Power Electronics S.L.
- Hitachi Hi-Rel Power Electronics Private Limited.
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