Solar Inverters Market Analysis, Size, and Share by 2031

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

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Solar Inverters Market: Strategic Insights

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.

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

Solar Inverters Market Report Scope

Solar Inverters Market Players Density: Understanding Its Impact on Business Dynamics

The Solar Inverters 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.

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