Solar PV Inverter Market Outlook, Segments, Geography, Dynamics, Recent Developments, and Strategic Insights by 2030

The solar PV inverter market size is projected to reach US$ 8,673.56 million by 2030 from US$ 17,041.24 million in 2022. The market is expected to register a CAGR of 7.8% in 2022–2030. Rapid investment in the solar energy sector, technological advancements or development of solar inverters, and the rise in installation of utility-based solar plants are among the key factors driving the solar PV inverter market.

Solar PV Inverter Market Analysis

The solar PV inverter market is projected to experience considerable growth during the analyzed timeframe owing to the rising number of solar energy projects as well as the discovery of advanced solar PV inverter solutions. In addition, smart solar PV inverters are a technologically advanced type of power electronics which can make autonomous decisions to keep the power grid stable and reliable. Smart solar inverters work while ensuring uninterrupted electricity flow without voltage fluctuations. Advanced features including voltage and frequency sensors allows smart solar inverters to detect grid abnormalities and send feedback to utility operators. Moreover, smart solar inverters ensure two-way communication with power utility control centers, thereby enhancing their efficiency across residential and commercial applications which in turn is expected to drive the market growth in the coming years.

Solar PV Inverter Market Overview

Solar installations across the globe attributed to government-led incentives and schemes, along with growing residential solar rooftop installations, positively influence the solar PV inverters market growth. Further, the increasing investments in the renewable energy sector to reduce fossil fuel consumption to lower carbon emissions, coupled with technological innovations in solar inverters, are among the factors driving the market growth. However, the risks associated with high DC voltages in solar inverters are restraining the market growth. Governments worldwide are launching various schemes to encourage the use of solar power as a primary energy source. Installing solar rooftop systems helps people produce electricity and utilize it for different applications, including residential, commercial, and even industrial.

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Solar PV Inverter Market: Strategic Insights

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Solar PV Inverter Market Drivers and Opportunities

Increasing Installations in Residential and Utility applications is expected to be the Prime Driver for the Solar PV Inverter Market.

The increasing pursuit of green electricity to achieve sustainability and energy security is the main factor driving the deployment of solar PV to meet the increasing demand and replace fossil fuel-based power generation sources. The growth is mainly due to increasing government initiatives and incentives, technological advancements, constant cost reductions, and electrification of rural areas. Residential solar roof systems are easy to install and require minimal maintenance. The excess power generated is sold to the grid through a net metering facility, helping to reduce electricity bills. Given the depletion of fossil fuel reserves, accelerating environmental degradation, and pressure on electricity generation infrastructure, several governments have provided subsidies or incentives to enhance the adoption of solar energy by providing residential solar solutions.

Raising Investments in the Solar Energy Sector

According to the International Energy Agency (IEA), the global power demand will increase by 8% in 2022. The upswing in investments in 2022 is a mixture of a cyclical response to recovery and a structural shift in capital flows toward cleaner technologies. Some of the recent investments are mentioned below:

• According to the Solar Power Organization of Europe, the region installed 41.4 GW of solar plants in 2022, showcasing an increase of 47% in 2021.
• The Saudi Arabian Ministry in January 2023 announced an investment of US$ 226 billion for the development of clean energy across the country. This investment will be utilized for developing wind and solar energy infrastructure for generating power to meet the country-wide demand.
• China’s National Energy Administration in 2022 installed 106 gigawatts (GW) solar infrastructure showcasing a 100% year-on-year growth.

Thus, the increasing investments in the renewable energy sector help create opportunities for solar (PV) inverter market players during the forecast period.

Solar PV Inverter Market Report Segmentation Analysis

Key segments that contributed to the derivation of the solar PV inverter market analysis are product type, phase, connectivity, application, and capacity.

• On the basis of product type, the solar PV inverter market has been divided into string, micro, and central. The central segment held a larger market share in 2022.
• Based on the phase, the solar PV inverter market has been divided into single-phase and three-phase. The three-phase segment held a larger market share in 2022.
• On the basis of connectivity, the market has been segmented into standalone, and on-grid. The on-grid segment dominated the market in 2022.
• Based on the application, the solar PV inverter market has been divided into residential and community, commercial and industrial, and utility. The utility segment held a larger market share in 2022.
• Based on the capacity, the solar PV inverter market has been divided into below 5 kW, 5 - 15 kW, 15 - 25 kW, 25 - 50 kW, and above 50 kW. The above 50 kW segment held a larger market share in 2022.

Solar PV Inverter Market Share Analysis by Geography

The geographic scope of the solar PV inverter market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America.

Asia Pacific will dominate the solar PV inverter market in 2022. The Asia Pacific region includes Australia, China, India, South Korea, Japan, & the Rest of Asia Pacific. In Asia Pacific, the solar PV inverters market growth is owing to the significant developments in the renewable energy industry owing to increased government strategies and initiatives towards climate change and net-zero emission targets. The increasing investments in solar photovoltaic (PV) plants and the growth of solar power plant establishment in the residential sector across Asia Pacific countries such as China, India, Australia, and Japan are creating lucrative opportunities for the solar inverter market players. In China, most PV products, or solar panels, are installed in remote areas in huge solar farms that sell the energy produced to utilities. Satellite images show a rise in these large solar farms across China. The drastic increase in solar energy in the country is due to the country's electricity demand and severe air pollution crisis. The Government of China is aimed at encouraging financial institutions to incentivize solar installations.

Solar PV Inverter Market Regional Insights

The regional trends and factors influencing the Solar PV Inverter Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Solar PV Inverter Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Solar PV Inverter Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Solar PV Inverter Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Solar PV Inverter Market are:

1. Delta Electronics, Inc.
2. FIMER S.P.A.
3. FRONIUS International GmbH
4. GINLONG Technologies
5. Huawei Technologies Co., Ltd.
6. SMA Solar Technology AG

Disclaimer: The companies listed above are not ranked in any particular order.

Solar PV Inverter Market News and Recent Developments

The solar PV inverter market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for solar PV inverter market and strategies:

• In February 2023, SolarEdge Technologies Inc. signed a multi-year agreement with Freedom Forever, the US residential solar installation company. This agreement aimed at supplying residential smart energy products and solutions. Through this multi-year agreement between the companies, Freedom Forever will offer the products of SolarEdge Home Smart Energy Ecosystem, including the Home Hub Inverter, Power Optimizers, Home Battery, Backup Interface, Smart Energy Devices such as the SolarEdge EV Charger and Load Controllers.
• In April 2022, SMA expanded its product line by adding a new line of four inverters having power ratings of 12, 15, 20 and 25 kW. It would be used in rooftop applications up to 135kW in size.

Solar PV Inverter Market Report Coverage and Deliverables

The “Solar PV Inverter Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, & country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed Porter’s Five Forces analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles with SWOT analysis