The global solar inverter market was surpassed at USD 8.85 billion in 2022 and is expected to hit around USD 20.05 billion by 2032, growing at a CAGR of 8.53% from 2023 to 2032.
Key Pointers
Report Scope of the Solar Inverter Market
| Report Coverage | Details |
| Revenue Share of Asia Pacific in 2022 | 36.17% |
| Revenue Forecast by 2032 | USD 20.05 billion |
| Growth Rate from 2023 to 2032 | CAGR of 8.53% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Omron Corporation, ABB Ltd, Mitsubishi Electric Corporation, Siemens AG, Schneider Electric SE, SMA Solar Technology AG, Delta Electronics Inc., SunPower, Hitachi Hi-Rel Power Electronics Pvt. Ltd, Power Electronics S.L |
A solar inverter is defined as a device that turns the energy produced by solar panels into usable electricity that can be used in a house or office. A solar inverter which is a significant part of the solar power system converts the variable direct current, or 'DC' power from your solar panels into alternating 120V/240V current, or 'AC' power.
The main types of solar inverters include central inverters, micro-inverters, and string inverters. Central solar inverters are used for systems that require hundreds of kilowatts (or even megawatts) of volume. They are not intended for domestic usage and resemble big metal cabinets, with each 'cabinet' capable of handling approximately 500kW of power. They are typically employed in commercial applications for large-scale installations or utility-scale solar farms. By system, types of solar inverter systems include on-grid and off-grid. The main end-uses of solar inverters include residential, commercial, and utilities.
Rapid development in the renewable energy sector is significantly driving the growth of the solar inverter market. Solar power's rapid growth in recent years has given new life to global efforts to reduce greenhouse gas emissions and mitigate the worst effects of climate change. Solar inverters are the engines of renewable energy growth. For instance, according to the International Energy Agency (an intergovernmental organization), global renewable electricity capacity is expected to increase by more than 60% from 2020 levels to over 4,800 gigawatts (GW) by 2026, equalling the total global power capacity of fossil fuels and nuclear power combined. Additionally, solar PV continues to be the engine of renewable energy growth, with capacity additions expected to rise by 17% in 2022 to a new high of nearly 160 GW. Therefore, the rapid development in the renewable energy sector is projected to boost the growth of the solar inverter market.
Technological advancement is a key trend gaining popularity in the solar inverter market. The key players in the solar inverter market are focusing on developing new technological solutions to strengthen their position in the market. For instance, in March 2022, Fronius, an Austrian solar inverter manufacturer, launched the Primo GEN24 Plus hybrid inverter for residential use. The single-phase, 230 V device comes in six power classes ranging from 3 to 6 kilowatts (kW) and a DC input voltage range of 65 to 600 V. This inverter has a feature called PV Point, which acts as a backup power socket, providing backup power without the use of a battery. This can be used to power essential household items such as laptops, smartphones, and small freezers.
In March 2020, FIMER SpA, an Italy-based company, acquired ABB’s solar inverter business. FIMER expects to expand its global reach as a result of this acquisition, from Latin America, where it already has a presence, to key strategic geographic regions such as Asia, Europe, the Middle East, Africa, Asia-Pacific, in particular Japan, and North America. ABB is a Switzerland-based technology company that manufactures pollution control equipment, solar inverters, switch gears, and high current rectifiers.
Product Type Insights
Based on product type, the market can be segmented into Central Inverter, Micro Inverter, and String Inverter. The Central Inverter segment held the majority share in 2022 contribution to around 49-54% in respect to the solar inverter market revenue. The increase in demand for central inverters from significant industrial and utility applications around the world is responsible for this. From 2023 to 2032, it is also anticipated that fast industrialization and the development of renewable energy infrastructure in developing nations like China, India, Japan, and others will increase demand for central inverters.
Connection Insights
The On-Grid segment dominated the market in 2022. This growth is linked to increased investment in direct electricity supply rather than battery storage. Additionally, benefits of being utilized as on-grid solar inverters includes simple energy feeding, simple installation, cost effectiveness, and managing high electricity demand. These benefits are anticipated to drive the market's expansion in the following decades. Hence, the rising utilization of on-grid systems to enhance the capabilities of production is anticipated to positively impacts market growth.
End User Insights
The solar inverter market data has been bifurcated by end user into Residential, Commercial and Utilities. The Utilities segment held the majority share in 2022 contribution to around 40-45% in respect to the solar inverter market revenue. The utility sector is expanding for several reasons, primary including the rising demand for renewable energy, the decreasing cost of solar energy and equipment, and the emergence of government subsidies. The segment is growing as a result of the presence of major players who provide customers market-leading utility-scale solutions through their pre-integrated power plants to increase efficiency and lower balance-of-system costs.
Regional Insights
Asia Pacific is projected to acquire the largest market share during the year 2022 with a share of 36.17%. China is the main contributor to the Solar Inverter Market's quick expansion in this region, as well as a major global competitor. A growing number of solar installations in developing countries has also helped to propel the market forward in the area. Increased investments in industrial automation solutions, increased emphasis on regulations that demand operational and workforce safety, expansion of power generation capacities of plants, electrification of the transportation sector, and reduction in the production and operational costs of power plants due to technological advancements in APAC's emerging economies are driving the Solar Inverter Market's growth.
Moreover, India contributes to the second largest share to the growth in the APAC region. Other major factors contributing to the growth of the Solar Inverter Market in India include rising consumer awareness, increasing participation of residential and commercial segments in solar system installations, supportive government policies and solar schemes, and increasing private sector involvement. However, due to a drop in market demand during the lockdown period across the country, the ongoing pandemic COVID-19 decreased the growth rate of market revenues in 2022. Furthermore, the market began to show indications of progress in the second part of the year, with the gradual opening of the economy and removal of lockdown measures and is expected to return to a normal development trajectory in the future years.
Solar Inverter Market Segmentations:
By Product Type
By Connection
By Phase
By End User
By Nominal Power Output
By Nominal Output Voltage
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Nominal Output Voltage Procurement Analysis
4.3.2. Sales and Distribution Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Solar Inverter Market
5.1. COVID-19 Landscape: Solar Inverter Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Solar Inverter Market, By Product Type
8.1. Solar Inverter Market, by Product Type, 2023-2032
8.1.1. Central Inverter
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. String Inverter
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Micro Inverter
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Others
8.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Solar Inverter Market, By Connection
9.1. Solar Inverter Market, by Connection, 2023-2032
9.1.1. On-grid
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Off-grid
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Solar Inverter Market, By Phase
10.1. Solar Inverter Market, by Phase, 2023-2032
10.1.1. Single phase
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Three phase
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Solar Inverter Market, By End User
11.1. Solar Inverter Market, by End User, 2023-2032
11.1.1. Residential
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Commercial
11.1.2.1. Market Revenue and Forecast (2020-2032)
11.1.3. Industrial
11.1.3.1. Market Revenue and Forecast (2020-2032)
11.1.4. Utilities
11.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global Solar Inverter Market, By Nominal Power Output
12.1. Solar Inverter Market, by Nominal Power Output, 2023-2032
12.1.1. ≤ 0.5 kW
12.1.1.1. Market Revenue and Forecast (2020-2032)
12.1.2. 0.5 - 3 kW
12.1.2.1. Market Revenue and Forecast (2020-2032)
12.1.3. 3 - 33 kW
12.1.3.1. Market Revenue and Forecast (2020-2032)
12.1.4. 33 - 110 kW
12.1.4.1. Market Revenue and Forecast (2020-2032)
12.1.5. 110 kW
12.1.5.1. Market Revenue and Forecast (2020-2032)
Chapter 13. Global Solar Inverter Market, By Nominal Output Voltage
13.1. Solar Inverter Market, by Nominal Output Voltage, 2023-2032
13.1.1. ≤ 230 V
13.1.1.1. Market Revenue and Forecast (2020-2032)
13.1.2. 230 - 400 V
13.1.2.1. Market Revenue and Forecast (2020-2032)
13.1.3. 400 - 600 V
13.1.3.1. Market Revenue and Forecast (2020-2032)
13.1.4. 600 V
13.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 14. Global Solar Inverter Market, Regional Estimates and Trend Forecast
14.1. North America
14.1.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.1.2. Market Revenue and Forecast, by Connection (2020-2032)
14.1.3. Market Revenue and Forecast, by Phase (2020-2032)
14.1.4. Market Revenue and Forecast, by End User (2020-2032)
14.1.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.1.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.1.7. U.S.
14.1.7.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.1.7.2. Market Revenue and Forecast, by Connection (2020-2032)
14.1.7.3. Market Revenue and Forecast, by Phase (2020-2032)
14.1.7.4. Market Revenue and Forecast, by End User (2020-2032)
14.1.8. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.1.8.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.1.9. Rest of North America
14.1.9.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.1.9.2. Market Revenue and Forecast, by Connection (2020-2032)
14.1.9.3. Market Revenue and Forecast, by Phase (2020-2032)
14.1.9.4. Market Revenue and Forecast, by End User (2020-2032)
14.1.10. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.1.11. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.1.11.1.
14.2. Europe
14.2.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.2.2. Market Revenue and Forecast, by Connection (2020-2032)
14.2.3. Market Revenue and Forecast, by Phase (2020-2032)
14.2.4. Market Revenue and Forecast, by End User (2020-2032)
14.2.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.2.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.2.7.
14.2.8. UK
14.2.8.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.2.8.2. Market Revenue and Forecast, by Connection (2020-2032)
14.2.8.3. Market Revenue and Forecast, by Phase (2020-2032)
14.2.9. Market Revenue and Forecast, by End User (2020-2032)
14.2.10. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.2.10.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.2.11. Germany
14.2.11.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.2.11.2. Market Revenue and Forecast, by Connection (2020-2032)
14.2.11.3. Market Revenue and Forecast, by Phase (2020-2032)
14.2.12. Market Revenue and Forecast, by End User (2020-2032)
14.2.13. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.2.14. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.2.14.1.
14.2.15. France
14.2.15.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.2.15.2. Market Revenue and Forecast, by Connection (2020-2032)
14.2.15.3. Market Revenue and Forecast, by Phase (2020-2032)
14.2.15.4. Market Revenue and Forecast, by End User (2020-2032)
14.2.16. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.2.16.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.2.17. Rest of Europe
14.2.17.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.2.17.2. Market Revenue and Forecast, by Connection (2020-2032)
14.2.17.3. Market Revenue and Forecast, by Phase (2020-2032)
14.2.17.4. Market Revenue and Forecast, by End User (2020-2032)
14.2.18. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.2.18.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.3. APAC
14.3.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.3.2. Market Revenue and Forecast, by Connection (2020-2032)
14.3.3. Market Revenue and Forecast, by Phase (2020-2032)
14.3.4. Market Revenue and Forecast, by End User (2020-2032)
14.3.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.3.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.3.7. India
14.3.7.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.3.7.2. Market Revenue and Forecast, by Connection (2020-2032)
14.3.7.3. Market Revenue and Forecast, by Phase (2020-2032)
14.3.7.4. Market Revenue and Forecast, by End User (2020-2032)
14.3.8. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.3.9. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.3.10. China
14.3.10.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.3.10.2. Market Revenue and Forecast, by Connection (2020-2032)
14.3.10.3. Market Revenue and Forecast, by Phase (2020-2032)
14.3.10.4. Market Revenue and Forecast, by End User (2020-2032)
14.3.11. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.3.11.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.3.12. Japan
14.3.12.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.3.12.2. Market Revenue and Forecast, by Connection (2020-2032)
14.3.12.3. Market Revenue and Forecast, by Phase (2020-2032)
14.3.12.4. Market Revenue and Forecast, by End User (2020-2032)
14.3.12.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.3.12.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.3.13. Rest of APAC
14.3.13.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.3.13.2. Market Revenue and Forecast, by Connection (2020-2032)
14.3.13.3. Market Revenue and Forecast, by Phase (2020-2032)
14.3.13.4. Market Revenue and Forecast, by End User (2020-2032)
14.3.13.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.3.13.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.4. MEA
14.4.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.4.2. Market Revenue and Forecast, by Connection (2020-2032)
14.4.3. Market Revenue and Forecast, by Phase (2020-2032)
14.4.4. Market Revenue and Forecast, by End User (2020-2032)
14.4.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.4.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.4.7. GCC
14.4.7.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.4.7.2. Market Revenue and Forecast, by Connection (2020-2032)
14.4.7.3. Market Revenue and Forecast, by Phase (2020-2032)
14.4.7.4. Market Revenue and Forecast, by End User (2020-2032)
14.4.8. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.4.9. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.4.10. North Africa
14.4.10.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.4.10.2. Market Revenue and Forecast, by Connection (2020-2032)
14.4.10.3. Market Revenue and Forecast, by Phase (2020-2032)
14.4.10.4. Market Revenue and Forecast, by End User (2020-2032)
14.4.11. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.4.12. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.4.13. South Africa
14.4.13.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.4.13.2. Market Revenue and Forecast, by Connection (2020-2032)
14.4.13.3. Market Revenue and Forecast, by Phase (2020-2032)
14.4.13.4. Market Revenue and Forecast, by End User (2020-2032)
14.4.13.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.4.13.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.4.14. Rest of MEA
14.4.14.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.4.14.2. Market Revenue and Forecast, by Connection (2020-2032)
14.4.14.3. Market Revenue and Forecast, by Phase (2020-2032)
14.4.14.4. Market Revenue and Forecast, by End User (2020-2032)
14.4.14.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.4.14.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.5. Latin America
14.5.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.5.2. Market Revenue and Forecast, by Connection (2020-2032)
14.5.3. Market Revenue and Forecast, by Phase (2020-2032)
14.5.4. Market Revenue and Forecast, by End User (2020-2032)
14.5.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.5.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.5.7. Brazil
14.5.7.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.5.7.2. Market Revenue and Forecast, by Connection (2020-2032)
14.5.7.3. Market Revenue and Forecast, by Phase (2020-2032)
14.5.7.4. Market Revenue and Forecast, by End User (2020-2032)
14.5.8. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.5.8.1. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
14.5.9. Rest of LATAM
14.5.9.1. Market Revenue and Forecast, by Product Type (2020-2032)
14.5.9.2. Market Revenue and Forecast, by Connection (2020-2032)
14.5.9.3. Market Revenue and Forecast, by Phase (2020-2032)
14.5.9.4. Market Revenue and Forecast, by End User (2020-2032)
14.5.9.5. Market Revenue and Forecast, by Nominal Power Output (2020-2032)
14.5.9.6. Market Revenue and Forecast, by Nominal Output Voltage (2020-2032)
Chapter 15. Company Profiles
15.1. Omron Corporation
15.1.1. Company Overview
15.1.2. Product Offerings
15.1.3. Financial Performance
15.1.4. Recent Initiatives
15.2. ABB Ltd
15.2.1. Company Overview
15.2.2. Product Offerings
15.2.3. Financial Performance
15.2.4. Recent Initiatives
15.3. Mitsubishi Electric Corporation
15.3.1. Company Overview
15.3.2. Product Offerings
15.3.3. Financial Performance
15.3.4. Recent Initiatives
15.4. Siemens AG
15.4.1. Company Overview
15.4.2. Product Offerings
15.4.3. Financial Performance
15.4.4. Recent Initiatives
15.5. Schneider Electric SE
15.5.1. Company Overview
15.5.2. Product Offerings
15.5.3. Financial Performance
15.5.4. Recent Initiatives
15.6. SMA Solar Technology AG
15.6.1. Company Overview
15.6.2. Product Offerings
15.6.3. Financial Performance
15.6.4. Recent Initiatives
15.7. Delta Electronics Inc.
15.7.1. Company Overview
15.7.2. Product Offerings
15.7.3. Financial Performance
15.7.4. Recent Initiatives
15.8. SunPower
15.8.1. Company Overview
15.8.2. Product Offerings
15.8.3. Financial Performance
15.8.4. Recent Initiatives
15.9. Hitachi Hi-Rel Power Electronics Pvt. Ltd
15.9.1. Company Overview
15.9.2. Product Offerings
15.9.3. Financial Performance
15.9.4. Recent Initiatives
15.10. Power Electronics S.L.
15.10.1. Company Overview
15.10.2. Product Offerings
15.10.3. Financial Performance
15.10.4. Recent Initiatives
Chapter 16. Research Methodology
16.1. Primary Research
16.2. Secondary Research
16.3. Assumptions
Chapter 17. Appendix
17.1. About Us
17.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers