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.
The solar PV inverter market is expected to witness significant growth over the forecast period, driven by the increasing number of solar energy projects and the development of advanced inverter technologies. Among these, smart solar PV inverters represent a major innovation in power electronics, capable of making autonomous decisions to help maintain grid stability and reliability.
These inverters ensure a continuous flow of electricity while minimizing voltage fluctuations. Equipped with advanced features such as voltage and frequency sensors, they can detect grid anomalies and communicate feedback directly to utility operators. Their ability to enable two-way communication with power utility control centers enhances operational efficiency in both residential and commercial settings. As a result, the adoption of smart solar inverters is anticipated to be a key driver of market growth in the coming years.
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.
The escalating global commitment to sustainable energy and energy security is serving as a primary catalyst for the rapid expansion of solar photovoltaic (PV) deployment. As nations seek to reduce their reliance on fossil fuel-based power generation, solar energy is increasingly viewed as a critical component in the transition toward cleaner, renewable electricity sources. This growth is underpinned by several key factors, including proactive government policies, ongoing technological innovations, continual cost reductions, and focused efforts to electrify remote and rural regions. One of the most attractive segments within the solar PV market is residential rooftop solar systems, valued for their ease of installation, relatively low maintenance requirements, and direct consumer benefits. Homeowners adopting solar panels can not only reduce their dependence on grid electricity but also potentially generate surplus power. Through net metering arrangements, this excess electricity can be fed back into the grid, enabling consumers to offset their energy costs, thus providing both financial incentives and environmental benefits. The depletion of conventional fossil fuel reserves, coupled with escalating concerns over environmental degradation such as air pollution and climate change, has intensified pressure on electricity infrastructure worldwide. Governments across various regions are responding with robust subsidy programs, tax incentives, and favorable regulatory frameworks designed to accelerate the adoption of solar energy technologies. These policy measures are particularly effective in lowering the initial investment barrier for residential solar installations, making sustainable energy accessible to a broader population.
Technological advancements continue to improve solar panel efficiency, durability, and integration capabilities. Innovations such as bifacial panels, smart inverters, and energy storage solutions are enhancing the performance and flexibility of solar systems. These developments not only increase the return on investment for end-users but also contribute to grid stability and resilience by enabling decentralized energy generation. Moreover, the electrification of rural and underserved areas through off-grid and hybrid solar solutions is addressing energy access challenges, supporting socio-economic development, and reducing carbon footprints in these communities. This trend further expands the market potential for solar PV, especially in emerging economies. Looking ahead, the solar PV market is poised for sustained growth driven by escalating demand for clean energy, evolving government policies, and technological progress. As costs continue to decline and consumer awareness grows, residential solar adoption will remain a significant growth driver. Companies offering innovative, cost-effective, and scalable solar solutions will be strategically positioned to capitalize on these emerging opportunities, fostering a greener and more resilient energy future.
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:
Thus, the increasing investments in the renewable energy sector help create opportunities for solar (PV) inverter market players during the forecast period.
Key segments that contributed to the derivation of the solar PV inverter market analysis are product type, phase, connectivity, application, and capacity.
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.
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.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 17,041.24 Million |
| Market Size by 2030 | US$ 8,673.56 Million |
| Global CAGR (2022 - 2030) | 7.8% |
| Historical Data | 2020-2021 |
| Forecast period | 2022-2030 |
| Segments Covered |
By Product Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
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:
Disclaimer: The companies listed above are not ranked in any particular order.
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:
The “Solar PV Inverter Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas: