Power Inverter Market Size, Share & Industry Analysis, By Product (String Inverter, Micro Inverter, Central Inverter, Others), By Output Voltage (Low, Medium, High), By End-user (Residential, Commercial, Utility, Automotive, Others), and Regional Forecasts, 2024-2032

The global power inverter market size was valued at USD 46.57 billion in 2023. The market is projected to grow from USD 53.49 billion in 2024 to USD 209.74 billion by 2032, exhibiting a CAGR of 18.62% during the forecast period.

A power inverter converts Direct Current (DC) to Alternating Current (AC). The power inverter market growth is attributed to the growing solar industry. For instance, a car's battery uses direct current to electrical power components; many household electronics, on the other hand, use alternating current. The power inverter allows one to power these devices using electricity from the vehicle by converting it into usable electricity. The rising electricity demand, an increasing gap between the demand and supply of electricity, and many other factors are expected to increase the product demand.

The COVID-19 pandemic led to a decline in year-on-year growth, but the market didn’t witness negative growth. There were some renewable energy projects delayed, which impacted the market. In addition, companies in various regions have had to shut down their manufacturing facilities and services as partial or full lockdowns have been imposed to contain the pandemic. This closure of plants led to increased procurement costs of raw materials due to supply bottlenecks, ultimately leading to delays in order completion. The pandemic has therefore had a short-term impact on demand for inverters.

Power Inverter Market Trends

Increasing Technological Developments and Rising Disposable Incomes to Emerge as a Noticeable Trend

Rapid economic development and increasing disposable incomes of people worldwide have enabled them to spend more on products such as inverters that improve their lifestyles and provide convenience. In addition, with rapid urbanization and increasing electrification, most people rely on electronic devices and gadgets. This factor has created a significant need for uninterruptible power supplies, which has increased sales of inverters as an alternative backup solution in the event of outages. They are also silent and environment-friendly as they emit net CO2 emissions and eliminate the gasoline needed to run generators.

In addition, manufacturers invest in Research & Development (R&D) activities to introduce new technologies and improve their operational characteristics. In March 2022, Huawei introduced an intelligent string energy storage system with a Smart I-V Curve Diagnosis Tool, which performs comprehensive, real-time, and remote detection of PV systems at the string level. It generates automatic detection reports of underperforming PV arrays and helps utility-scale PV systems reduce O&M costs.

Power Inverter Market Growth Factors

Increasing Demand for Uninterrupted Power Supply Will Boost Market Growth

In today’s digital age, there is a growing reliance on electronic devices and equipment across various sectors, such as telecommunication, healthcare, and automotive. These critical applications require a constant and reliable power supply to ensure uninterrupted operations. Power inverters play a crucial role in providing backup power during grid outages or heavy fluctuations. By converting the DC power from batteries of solar panels into AC power, power inverters enable continuous operation of essential equipment, thereby preventing downtime, data loss, and equipment damage. The heavy usage of UPS is responsible for the constant growth of the power inverter market. Major players are launching new products in the market. For instance, in February 2024, Schneider Electric, a global leader in energy management and automation, launched the Easy UPS 3-Phase 3M Advanced in Mumbai, India. This robust uninterruptible power supply is specifically designed to safeguard critical loads and stands out in terms of reliability, scalability, and simplicity.

Increasing Investment in Renewable Energy May Boost Market Growth

The importance of solar energy cannot be denied. Investing in PV systems leads to significant economic value, benefits, public health, and environment-friendliness. Furthermore, solar energy is becoming increasingly popular among home and business owners as people learn about its many benefits and installation costs decrease continuously. China, Japan, Germany, India, and the U.S. are actively investing in renewable energy to reduce carbon emissions. India has approved the launch of a Production-Linked Incentive (PLI) program for high-efficiency P.V. modules to improve India's manufacturing capacity of solar panels and increase exports – Atmanirbhar Bharat. The government has allocated USD 2.57 billion to the PLI program to facilitate producing high-efficiency solar panels.

According to the U.S. DOE, 173,000 terawatts of solar energy strike the earth continuously, more than 10,000 times the world's total energy use.

Germany aims to fulfill all its energy demand with supplies from renewable sources by 2035, compared to its previous target to abandon fossil fuels well before 2040. Furthermore, Europe's topmost economy has been under pressure from others.

RESTRAINING FACTORS

High Installation and Maintenance Costs of Power Inverter Systems May Hamper Market Growth

The solar inverter cost is based on its brand and size. A string inverter can cost anywhere from USD 1,000 to over USD 2,000. Furthermore, if a battery inverter is used, the overall cost of the installation will generally increase by around USD 2,000 to USD 3,000.

Residential consumers in emerging nations do not want to spend large sums of money on maintaining equipment. This factor might slow down the adoption of power inverters. In addition, consumers are cautious about shifting from existing alternatives due to the price war between different technologies. This factor might hamper the market.

Governments globally are offering some incentives to facilitate the adoption of power inverter systems to support the evolution of the usage of the product. Countries such as India support in covering some product costs, which may help consumers. These factors are impacting the development of the market in developing countries over the next few years. Although technological advances help cut product prices to ideal levels.

The Government of India subsidizes the residential sector only. According to the Department of New and Renewable Energy, the central government pays 40% of the standard fitting rate as a subsidy for installing rooftop solar panels in the general states.

Power Inverter Market Segmentation Analysis

By Product Analysis

String Inverter Segment to Expand Rapidly Owing to its Adoption in a Wide Range of Residential and Commercial Sectors

Based on product, the market is classified into string inverter, micro inverter, and central inverter, and others. The string inverter segment is one of the fastest-growing segments during the forecast period. This growth is attributed to the increasing adoption of renewable sources to supply electricity and the widespread adoption of string inverters across the residential and commercial sectors.

Central inverter is also one of the dominant segments, and this inverter is highly reliable, timely maintained, and protected during installation. They are integrated into large arrays installed in field installations, industrial plants, and buildings. Inverters take DC power from all PV panels and convert it to AC power, becoming a central point for power distribution. Additionally, some government policies introducing renewable power generation to reduce carbon emissions will add industrial value.

Micro inverters are module-level electronics and have become popular in commercial and industrial environments. These inverters have high reliability, increased efficiency, and performance through Maximum Power Point Tracker (MPPT), easy installation, no space limitations, and low costs.

By Output Voltage Analysis

High Segment Dominates Due to Rising Adoption from the Utility Sector

The high segment is dominating the market due to the growing importance of the power generation, distribution, and transmission sectors. In addition, the increased size of PV power plants in significant commercial & industrial and utility installations is fueling the growth of the high output voltage inverter market during the forecast period.

By End-user Analysis

Utility Segment Dominates Due to Increasing Investments in Renewable Energy by Various Regions Globally

Based on end-user, the market is categorized into residential, commercial, utility, automotive, and others.

The utility segment is one of the fastest-growing segments during the forecast period. According to the United Nations, the global demand for renewable energy is gradually increasing, especially in developing countries. Production with global installed capacity and all renewable energy technologies is also growing. In addition, various countries are setting renewable energy and energy efficiency goals and support policies. The increasing demand for renewable energy will impact the demand for power inverters in the global market.

REGIONAL INSIGHTS

Asia Pacific dominates the global market. This dominance is attributed to key regional players in countries such as China, India, Japan, and others. In addition, Asia Pacific is one of the major players in the production of power inverters as well as one of the major regions in terms of demand as it has rising consumers of electric vehicles, solar energy, and others.

North America is also one of the significant regions in the market due to the presence of key players in the U.S. Additionally, the U.S. has some major inverter manufacturers and one of the world's best research and development infrastructures that helps them develop and manufacture inverters.

Europe is also one of the dominating regions due to the presence of an established consumer base such as the electric vehicle industry, solar, and others. Furthermore, Latin America and the Middle East & Africa are also expected to grow at a noteworthy rate. This growth is attributed to the rising demand from end-users such as utility, residential, and automotive.

Besides, the North American market is dominated by the U.S. The U.S. accounts for maximum share in the region. The presence of favorable regional policies and regulations, coupled with government initiatives to boost renewable energy generation in the U.S., drives the North American market. Further, initiatives taken by the government to enhance the use of clean energy technologies have driven the market in the country.

Furthermore, the usage of electric vehicles has increased in several regions/countries due to increasing fuel prices. Electric vehicles are a substitute for traditional vehicles powered by lithium-ion batteries. The rising number of electric vehicles in the region consequently boosts the product demand.

Furthermore, Germany dominates the Europe power inverter market share. Customers understand energy technology development’s importance while also recognizing its impact on the power and energy industries. Furthermore, due to rapidly increasing energy demand from various sectors, a positive outlook for clean energy deployment and an encouraging regulatory framework are key factors boosting regional expansion.

Germany's National Climate Protection Strategy is defined in the Climate Protection Plan 2050, which specifies long-term pathways to sector-specific emission reductions as part of the energy transition. Compared to the base year of 1990, the main goal is to reduce greenhouse gas (GHG) emissions by at least 40% by 2020, 55% by 2030, 70% by 2040, and 80-95% reduction. This strategy will increase the number of solar plants while power plants might increase the product demand.

The Asia Pacific market is studied across China, India, Japan, Australia, Southeast Asia, and the rest of Asia Pacific. The increasing investments in photovoltaic (PV) plants, the rise of solar panel installations in the commercial sector, and the shift in transportation toward electric vehicles in China, India, Australia, and Japan might boost the market in the region.

The Latin American market for inverters is studied in Brazil, Mexico, and the rest of Latin America. Mexico dominates in the Latin America power inverter market share due to ongoing urbanization and population, and energy demands have skyrocketed, requiring alternative energy sources to meet those demands. In addition, the demand for electric trucks in South America is increasing. Factors such as achieving energy efficiency by reducing emissions, the need to meet future energy needs, an expected increase in EV adoption for logistics and municipal applications, and investment by OEMs to start EV production in the region are driving the development of the market for inverters.

The Middle East & Africa market is studied across G.C.C., South Africa, and the rest of the Middle East & Africa. Due to various government policies to support the renewable energy sector, G.C.C. is expected to grow with the highest CAGR during the projected timeframe.

List of Key Companies in Power Inverter Market

Huawei Technologies Co., Ltd. is Expected to Dominate with its Competitive Pricing and High-quality Products

The company has a broad range of power inverters used across all industries. In addition, another strength of Huawei is innovation in its technology. Since its inception, the company has focused strongly on research and innovation. It invests significant sums in research and development every year. More and many innovative technologies come from this brand. For instance, in June 2022, Huawei launched residential inverters and Energy Storage Systems (ESS) for households. This product launch has reinforced its product portfolio.

LIST OF KEY COMPANIES PROFILED:

• SMA Solar Technology AG (Germany)


• SUNGROW (China)


• Enphase Energy (California)


• Fimer Group (Italy)


• GOODWE (China)


• Huawei Technologies Co., Ltd (China)


• General Electric (U.S.)


• Growatt New Energy (China)


• Luminous India (India)


• KACO New Energy (Germany)

KEY INDUSTRY DEVELOPMENTS:

• In April 2022, SMA Solar Technology AG launched a new line of four inverters with rated outputs of 12kW, 15kW, 20kW, and 25kW for use in PV rooftop systems up to 135kW. The inverter guarantees grid-compliant power control for the entire system, allowing up to 150% larger PV generators. This product launch has reinforced its product portfolio.


• In March 2022, Sungrow inaugurated a new factory with an annual production capacity of 10GW. The new plant is located in Bengaluru, India. In addition, Sungrow launched a new string type and center type inverter named Sungrow's SG350HX and 1 + X modular inverters. This new facility and product launch has reinforced its position in the Indian Market and strengthened its product portfolio. 


• In March 2022, Growatt launched a new series of inverters for residential use. The new series was launched in February in China and is now available in the European market with the name MOD3-10KTL3-XH. It is available in eight different versions with power ratings from 3kW to 10kW. Their efficiencies range from 98.3% to 98.6% and European efficiency ratings range from 97.5% to 98.1%. With this product launch, the company will strengthen its business in the European market and expand its product portfolio.


• In May 2021, KACO New Energy started shipping next-generation inverters. The blueplanet NX1 M2 is a single-phase device with an output power of 3-5kVA. Along with nominal power, it is flexible in terms of application, as it can be used in small PV systems.


• In May 2022, Luminous Power Technologies announced the launch of " li-ON,” a new series of inverters. It is equipped with lithium-ion batteries, is compact, safe, and efficient, and offers high performance with zero maintenance. This product launch reinforced its product portfolio.

REPORT COVERAGE

The research report highlights leading regions worldwide to understand the user better. Furthermore, the report provides insights into the latest industry trends and analyzes technologies being deployed at a rapid pace globally. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

Report Scope & Segmentation