[Research Report] The solar PV inverter market is expected to grow from US$ 8,673.56 million in 2022 to US$ 17,041.24 million by 2030; it is estimated to register a CAGR of 7.8% from 2023 to 2030.
Residential solar solutions can provide free, uninterrupted electricity for years while contributing to a greener environment. Residential solar rooftop systems are easy to install and require minimal maintenance. The electricity produced in excess can be sold to the grid through a net-metering facility, which help in reducing the electricity bills. With depleting fossil fuel reserves, accelerated environmental degradation, and pressure on the power generation infrastructure, several governments have taken various steps in the form of subsidies to accelerate the adoption of solar energy by providing residential solar solutions.
As per Solar Energy Industries Association in June 2022, the US installed 3.9 gigawatts (GW) of solar photovoltaic (PV) capacity in Q1 2022 to reach 126.1 GW of total installed capacity, enough to power 22 million American homes. Solar power accounted for 50% of all power generating capacities through renewable sources added in the US in Q1 of 2022.
Impact of COVID-19 Pandemic on Solar PV Inverter Market
During the COVID-19 pandemic, multiple supply chain disruptions occurred across various industries in 2020. The solar PV inverter market was adversely affected due to the discontinuation of operations of several industries, including process and discrete industries. In regions, such as Europe, the temporary discontinuation of new housing project constructions in 2020 in urban areas hampered the growth of the real estate industry in the region. This inflated real estate prices and created unfair competition among licensed accommodation providers. Further, France and Spain reported a decline in housing permits in 2020. Thus, the solar PV inverter market experienced a slowdown in 2020. As per the World Manufacturing Production Statistics by the United Nations Industrial Development Organization (UNIDO) for the second quarter (April–June) of 2020, the manufacturing operations of Europe declined by 19.3%, making it the worst-affected industrialized region. Most manufacturing companies temporarily closed their factories or minimized production operations, which resulted in global trade loss. These factors hampered the solar PV inverter market in Europe in 2020.
Solar PV Inverter Market -
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Solar PV Inverter Market: Strategic Insights
Market Size Value in US$ 8,673.56 million in 2022 Market Size Value by US$ 17,041.24 million by 2030 Growth rate CAGR of 7.8% from 2023 to 2030 Forecast Period 2023-2030 Base Year 2022
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Solar PV Inverter Market: Strategic Insights
| Market Size Value in | US$ 8,673.56 million in 2022 |
| Market Size Value by | US$ 17,041.24 million by 2030 |
| Growth rate | CAGR of 7.8% from 2023 to 2030 |
| Forecast Period | 2023-2030 |
| Base Year | 2022 |
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Lucrative Regions for Solar PV Inverter Market
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Market Insights – Solar PV Inverter Market
In Asia Pacific, the solar PV inverter market growth is attributed to significant developments in the renewable energy sector owing to increased government initiatives toward climate change and net-zero targets. The rising investments in photovoltaic (PV) plants and the growth of solar power installations in the residential sector across APAC countries such as China, India, Australia, and Japan are creating lucrative opportunities for the solar PV inverter market players.
In North America and Europe, the solar PV inverter market is expanding due to substantial growth for string inverters, favorable government policies, and subsidy provisions. With the US being the major contributor, North America occupied a significant revenue share in the solar PV inverter market size.
Favorable government policies and subsidies such as residential feed-in tariffs (FITs) encourage customers to invest in renewable energy across Europe. Germany is leading in manufacturing solar inverters in tandem with the hi-tech advancements in inverters. German solar companies thus pose a competitive advantage over other players.
Application-Based Insights
Based on application, the solar PV inverter market is segmented into residential and community, commercial and industrial, and utility. The utility segment accounted for the largest market share in 2022. A utility-scale solar facility generates solar power and feeds it into the grid, supplying a utility with energy. Almost all utility-scale solar installations have a power purchase agreement (PPA) with a utility, ensuring a market for their electricity for a specific period of time. The most widely used solar inverters in the utility sector are the central and string inverters. Increased renewable energy demand, emerging government subsidies, and declining cost of solar power and equipment are major reasons for the development of the utility sector which in turn is driving the solar PV inverter market growth. The presence of key market players providing consumers with industry-leading utility-scale solutions to achieve higher efficiency and reduced balance-of-system costs with their pre-integrated power stations is one of the factors driving the segment's growth.
The global solar PV inverter market is segmented into product type, phase, connectivity, application, capacity, and geography. Based on product type, the solar PV inverter market is segmented into string, micro, and central. By phase, the solar PV inverter market is categorized into single phase and three phase. In terms of application, the solar PV inverter market is classified into residential and community, commercial and industrial, and utility. By connectivity, the solar PV inverter market is segmented into standalone and on-grid. Based on capacity, the solar PV inverter market is segmented into below 5 kW, 5–15 kW, 15–25 kW, 25–50 kW, and above 50 kW. Geographically, the solar PV inverter market is segmented into North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW).
Huawei Technologies Co., Ltd.; Sungrow Power Supply Co., Ltd.; SMA Solar Technology AG; Power Electronics S.L.; and FIMER S.p.A are among the key solar PV inverter market operating in the industry.
The solar PV inverter market players are mainly focused on the development of advanced and efficient products.
- In 2023, GoodWe, a producer of solar inverters and energy storage systems, is pleased to announce its collaboration with Jubaili Bros, a major provider of power solutions across the Middle East, Africa, and Asia. GoodWe and Jubaili Bros have established a strategic alliance with the goal of growing GoodWe's market share in the Middle East and Africa.
- In 2023, SolarEdge Technologies Inc announced that it entered into a multi-year agreement with Freedom Forever, the US residential solar installer, for the supply of residential smart energy products and solutions. As part of the multi-year agreement between the companies, Freedom Forever will offer its customers the SolarEdge Home Smart Energy Ecosystem, including the SolarEdge Home Hub Inverter, SolarEdge Power Optimizers, SolarEdge Home Battery, Backup Interface, Smart Energy Devices such as the SolarEdge EV Charger and Load Controllers.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type, Phase, Connectivity, Application, and Capacity
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The solar PV inverter market is expected to reach US$ 17041.24 Mn by 2030.
The incremental growth, expected to be recorded for the solar PV inverter market during the forecast period, is US$ 6,996.88 million.
The key players holding majority shares in solar PV inverter market includes Huawei Technologies Co., Ltd.; Sungrow Power Supply Co., Ltd.; SMA Solar Technology AG; Power Electronics S.L.; FIMER S.p.A.
The global solar PV inverter market was estimated to be US$ 8,673.56 million in 2022 and is expected to grow at a CAGR of 7.8% during the forecast period 2023 - 2030.
Advanced features such as voltage and frequency sensors allow smart inverters to detect grid abnormalities and send feedback to utility operators. Moreover, smart inverters allow two-way communication with utility control centers, thereby enhancing their efficiency across residential and commercial applications.
The growing residential solar rooftop installations, and rising number of solar installations attributed to government-led incentives and schemes are few driving factors of the solar PV inverter market .
The List of Companies - Solar PV Inverter Market
- Fimer Group
- Delta Electronics, Inc.
- EnerTech UPS Pvt Ltd.
- GoodWe Technologies Co Ltd
- Hitachi Hi-Rel Power Electronics Private Limited
- SL Power Electronics Corp.
- Power-One Micro Systems Pvt. Ltd.
- Sineng Electric
- SMA Solar Technology AG
- Ginlong Technologies
- Sungrow Power Supply Co., Ltd.
- Huawei Technologies Co.Ltd.
- Growatt New Energy Technology CO.,LTD
- TMEIC
- SolarEdge Technologies, Inc
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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