The solar inverters market size is projected to reach US$ 21.87 billion by 2031 from US$ 10.65 billion in 2023. The market is expected to register a CAGR of 9.4% during 2023–2031. The growing need for clean energy solutions and the rise in government initiatives to install solar inverters are likely to remain key trends in the market.
Solar Inverters Market Analysis
The rise in investment in solar energy is one of the major factors fuelling the solar inverters market. For example, in April 2024, the US Department of the Interior announced a US$ 19 million investment from President Biden’s Investing in America agenda to install solar panels over irrigation canals in California, Oregon and Utah, simultaneously decreasing evaporation of critical water supplies and advancing clean energy goals. In addition, the growing installation of rooftop solar technology in the residential sector is driving the market growth. The government providing subsidies over the installation of solar technology further fosters the solar inverters market growth.
Solar Inverters Market Overview
A solar inverter, also known as a photovoltaic
(
PV) inverter, is a type of power inverter that sources energy from sunlight. It converts the variable photovoltaic DC current into the AC current that provides the energy to the commercial electrical grid or is used by a local, off-grid electrical network. The need for clean energy is growing worldwide to lessen the negative environmental effects. This factor fosters the demand for solar power, which further fuels the solar inverters market.
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Solar Inverters Market: Strategic Insights
Market Size Value in US$ 9,806.67 Million in 2022 Market Size Value by US$ 16,327.06 Million by 2028 Growth rate CAGR of 8.9% From 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Solar Inverters Market: Strategic Insights
| Market Size Value in | US$ 9,806.67 Million in 2022 |
| Market Size Value by | US$ 16,327.06 Million by 2028 |
| Growth rate | CAGR of 8.9% From 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Solar Inverters Market Drivers and Opportunities
Rise in demand for energy to Favor the Market.
Electricity is considered one of the largest and fastest growing industries. One of the driving factors for the rising demand for electric power is the growing population. For example, according to Exxon Mobil Corporation, in October 2022, the global energy demand will rise by approximately 15% in 2050 as compared to 2021 due to a rise in population. Thus, to meet the energy demand, the production of clean energy becomes essential to address the soaring environmental concerns. This factor has fostered the demand for solar technology, which drives the solar inverter market to power the residential, commercial, and industrial sectors.
The government focuses on creating clean energy.
The rising environmental concerns and focus on using clean energy are some of the government’s aims to promote the use of clean. For this, government authorities are taking initiatives, introducing schemes, and encouraging their local businesses and citizens to install solar technology. In July 2022, The Biden-Harris Administration, through the U.S. Department of Energy (DOE), launched new initiatives to fuel the solar industry. DOE, in collaboration with the U.S. Department of Health & Human Services (HHS), announced the five states and Washington, D.C., that will support the pilot of the Community Solar Subscription Platform to connect families to solar energy and lower electricity bills through the Low-Income Home Energy Assistance Program (LIHEAP) and other low-income assistance programs. Such an initiative aims to reach a carbon-free electricity sector by 2035. Thus, such government focus on the solar industry will further foster the solar inverters market.
Solar Inverters Market Report Segmentation Analysis
Key segments that contributed to the derivation of the solar inverters market analysis are type, system type, and end user.
- Based on the type, the solar inverters market is divided into central, string, and micro. The central segment held the largest share of the market in 2023.
- By system type, the market is segmented into on-grid and off-grid. The on-grid held the largest share of the market in 2023.
- By end user, the market is segmented into residential, commercial, and utility. The utility held the largest share of the market in 2023.
Solar Inverters Market Share Analysis by Geography
The geographic scope of the solar inverters market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
Asia Pacific region is expected to grow with the highest CAGR during the forecast period. The economic aspect is the biggest incentive for installing home rooftop solar panels. Solar energy has emerged as one of the most promising and widely accepted renewable energy sources across the region. Residential solar solutions can provide free, uninterrupted electricity for the years while simultaneously contributing to a greener environment. For example, the government of India had targeted the rooftop solar installations installation of 40 GW by 2022 in the country, per the article published by Mercom India in August 2021. Such government efforts are driving the solar industry in the region, which is further driving the market growth.
Solar Inverters Market Report Scope
Solar Inverters Market News and Recent Developments
The solar inverters market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the solar inverters market are listed below:
- INVTSolar successfully launched the latest product XG1-5kW-S on-grid inverter, at the SolarQuarter State Business Meet 2023 held in India. INVTSolar won the "State Leadership Awards 2023- Gujarat" award that proved its deep technical accumulation, strong R&D strength, and outstanding achievements - XG1-5KTL-S single-phase on-grid solar inverter. (Source: NTT Ltd, Press Release, December 2023)
- Colt Data Centre Services (DCS), a global provider of hyperscale and large enterprise data center solutions, announced the launch of its first data center in India. The flagship Navi Mumbai data center marks Colt DCS’ strategic expansion and commitment to supporting the increasing demand of hyperscale cloud service providers and large enterprise businesses in the fast-growing Indian data center market. The data center boasts a highly resilient 220kV GIS substation onsite with LILO configuration. (Source: Colt Data Centre Services Holdings, Press Release, September 2023)
Solar Inverters Market Report Coverage and Deliverables
The “Solar Inverters Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- solar inverters market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- solar inverters market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- solar inverters market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the solar inverters market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, System Type, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, SAM, South Korea, Spain, United Kingdom, United States
Frequently Asked Questions
The global solar inverters market is estimated to register a CAGR of 9.4% during the forecast period 2023–2031.
The growing need for clean energy solutions and the rise in government initiatives to install solar inverters are the key driving factors impacting the solar inverters market.
Advancement in solar inverters is considered a key trend in the solar inverters market.
FIMER SpA.; Delta Electronics, Inc.; Enertechups; GOODWE; Power Electronics S. L.; Powerone Micro Systems Pvt. Ltd; Sineng Electric; SMA Solar Technology AG; Solaredge Technologies Inc.; and Hitachi Hi-Rel Power Electronics Pvt Ltd are some of the key players operating in the solar inverters market.
The estimated value of the solar inverters market will be US$ 21.87 billion by 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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