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Global PV Inverter Market - Outlook and Forecast 2023-2028
The global PV inverter market exhibited a value of USD 6.52 billion in 2022 and is projected to reach USD 13.98 billion by 2028, growing at a CAGR of 13.54% during the forecast period. This growth is primarily driven by the increasing number of solar power plants integrated into the grid through on-grid solar inverters. Additionally, the installation of off-grid solar panels in various sectors, including industrial, commercial, and residential, has significantly contributed to the demand for reliable and secure power source converters.
Buildings are accountable for approximately 24% of greenhouse gas emissions and more than 40% of primary electricity consumption worldwide. These figures continue to rise due to population growth and improved living standards. As a result, the world is expected to face energy shortages in the future, along with the evident negative impacts of climate change. The current energy generation system is deemed unsustainable, requiring a transition towards renewable energy sources like solar power to achieve clean and sustainable energy. These factors will drive the growth of the PV inverter market. Furthermore, renovations, infrastructure development, and remodeling of existing commercial and residential buildings will also contribute to the market’s expansion.
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USD 6.5 billion in 2021
Product Type, Phase Type, Connection Type, Power Output, End User, Distribution Channel, and Geography
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In 2020, Sungrow Power Supply (Sungrow) surpassed Huawei to become the leading player in the global PV inverter market, capturing a 24% market share based on shipment volume. Sungrow aims to achieve an international market share of 30% through capacity expansions overseas. Since 2015, new solar-powered PV capacity installations have been increasing worldwide, marking 2022 as the beginning of the inverter replacement cycle.
According to the European Construction Industry Federation (FIEC), total investment in European construction was expected to grow by 2.4% in 2022, driven by new home construction and civil engineering projects. The US Department of Energy encourages the integration of energy-efficient PV inverters to reduce electricity consumption and reliance on nonrenewable energy sources for electrical appliances. PV inverters can reach up to 96% energy efficiency, making them an effective solution for reducing energy consumption and achieving the country’s energy efficiency goals in residential and commercial buildings.
As sustainability becomes a global trend, governments worldwide are implementing regulations to promote energy efficiency and reduce energy consumption across all stages of the energy chain. This includes generation, transmission, distribution, and end-use. These policies encourage consumers to adopt renewable energy sources and minimize their electricity usage. The PV inverter market plays a crucial role in this era of sustainable living and eco-friendly energy by powering various electrical appliances. In 2021, the European Commission introduced the Energy Efficiency Directive to promote energy efficiency and achieve energy savings to combat climate change.
Green buildings are constructed using environmentally sustainable and resource-efficient processes throughout their lifecycle, from design and construction to operation, maintenance, renovation, and deconstruction. Solar panels are an effective means for buildings to meet these sustainability standards, as they provide abundant eco-friendly energy resources while reducing or eliminating the need for electricity consumption.
The market is segmented based on various factors, including product type, phase type, connection type, power output, end user, distribution channel, and geography.
Segmentation by Product Type
Segmentation by Phase Type
Segmentation by Connection Type
Segmentation by Power Output
Segmentation by End User
Segmentation by Distribution Channel
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain
Asia-Pacific – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, UAE
PV inverters are available in various types and designs, including string, central, micro, and others. In 2022, string inverters dominated the global PV inverter market, mainly due to their ease of installation and cost-effectiveness. Unlike traditional inverters, string inverters are directly connected to the grid and usually do not have battery backup capabilities. They are particularly suitable for commercial and residential sectors, especially for small utility installations under 1 MW. Homeowners looking for lower-cost PV systems or properties with uncomplicated roofs can benefit from string inverters, as they provide consistent renewable electricity throughout the day.
In solar systems, inverters are used to convert DC power from solar panels into AC power. They can produce either three-phase or single-phase output. Residential users typically utilize single-phase power supply, while industrial locations often use three-phase power supply due to its ability to transfer more power and accommodate large equipment such as heaters, machines, and electric car chargers. The global three-phase PV inverter market holds the largest market share and is expected to continue growing. Three-phase inverters enable end users to supply excess electricity back to the grid and allow for increased power consumption. Therefore, high-end commercial buildings are particularly interested in the three-phase PV inverter market.
The global PV inverter market can be categorized by grid type as on-grid and off-grid. The on-grid PV inverter market surpassed USD 5.1 billion in 2022. On-grid solar inverters play a crucial role in converting DC to AC power in on-grid solar systems. They offer various advantages, including energy conversion, system safety, grid assistance, and tracking power production.
PV inverters are classified based on three power output ranges, with the (<0.5-33) kW power output type holding the largest global market share. The utility end-user segment dominated the global PV inverter market in 2022. Solar power equipment and technologies are increasingly being integrated into the power generation, transmission, and distribution industry to enhance efficiency, productivity, and safety. With digital technologies like sensors, smart grids, and smart meters, both companies and customers have real-time and accurate information about power usage. While utility plant construction and expansion drive the PV inverter market, there is also significant demand from house renovation projects driven by the desire for improved aesthetics and products like PV inverters. The offline distribution channel was the dominant sales channel in the global PV inverter market in 2022. It is expected to continue growing during the forecast period, primarily due to its broad reach in areas with limited connectivity and strong brand loyalty. However, the online channel is expected to grow at a higher CAGR, driven by the increasing popularity of e-commerce and the convenience it offers through discounts and occasional offers. The Asia-Pacific (APAC) region dominated the global PV inverter market in 2022, holding over 46% market share. India, China, Australia, South Korea, and Japan are the key drivers of market growth in this region. Strong economic growth, increased construction activities, and rising disposable income contribute to the market's success. China, in particular, is experiencing a surge in real estate projects and public-private investments due to urbanization. In North America, PV inverter market growth is supported by installations in new construction activities and renovations. The US, in particular, is witnessing a rapid increase in solar energy utilization. In mature markets like North America and Europe, product innovations introduced by key players drive market growth. Infrastructural construction projects in Europe are expected to reach a total investment of approximately USD 14.8 trillion, creating significant demand for PV inverters in the region by 2040.
The global PV inverter market is characterized by intense competition, with a significant number of private and public companies operating in the industry. These vendors engage in competition based on product design, reliability, quality, support services, and pricing. Rapid technological advancements have a direct impact on industry vendors as consumers’ expectations for continuous innovation and product upgrades rise. In this current landscape, vendors are compelled to adapt and enhance their unique value propositions in order to establish a strong presence in the industry.
Leading vendors in the global PV inverter market include SMA Solar Technology AG, HUAWEI Technologies Co., LTD., and Delta Electronics, Inc. These brands boast diverse product portfolios and enjoy a widespread global presence. Given the highly competitive nature of the market, research and development (R&D) investments in the PV inverter sector tend to be limited and are primarily made by large vendors. Additionally, the market presents challenges such as short time-to-market and limited acceptance of new technologies, further impacting PV inverter vendors. R&D investments are primarily focused on cost reduction in the production process and the improvement of existing product technologies to add value, rather than the development of new products.
Key companies profiled in this report include SMA Solar Technology AG, Sungrow, Siemens AG, Delta Electronics, INC, Solaredge technologies, Inc, HUAWEI Technologies Co, Fimer Group, Emerson Electric Co, GINLONG Technologies, Power Electronics S.L, HITACHI HI-REL Power Electronics PVT. LTD, Bosch, SunPower Corporation, Samsung, Johnson Controls, Panasonic, Fronius International GMBH, Lennox, TSI Incorporated, Enertronica Santerno SpA.
Key Questions Answered
What is the market size of the PV inverter industry?
The global PV inverter market was valued at USD 6.52 billion in 2022 and is anticipated to reach USD 13.98 billion by 2028.
What is the growth rate of the global PV inverter market?
The global PV inverter market is projected to grow at a compound annual growth rate (CAGR) of 13.54% from 2022 to 2028.
Who are the key players in the global PV inverter market?
The key players in the global PV inverter market include SMA Solar Technology AG, Sungrow, Siemens AG, Delta Electronics, Inc., Solaredge Technologies, Inc., and HUAWEI Technologies Co.
What are the significant trends in the PV inverter market?
Significant trends in the PV inverter market include the increasing demand driven by energy efficiency regulations, advancements in PV inverters for smart homes, and the modernization of airports.
Which region dominates the global PV inverter market share?
The Asia-Pacific (APAC) region holds the largest market share in the global PV inverter market, accounting for over 46% in 2022.