April 17, 2024
PV Inverter Market

PV Inverter Market Poised to Grow at a Robust Pace Due to Rising Installations of Rooftop Solar PV Systems

The PV inverter market plays a crucial role in maximizing the efficiency and reliability of solar PV systems. PV inverters help convert the direct current (DC) produced by solar panels into usable alternating current (AC) power that can be fed into the electric grid or used by a local, off-grid network. Over the past few years, there has been a significant rise in rooftop solar installations across both residential and commercial sectors owing to declining prices of solar panels and supportive government policies promoting clean energy use. The growing trend of distributed renewable energy generation is thus fueling demand for PV inverters globally.

The global PV inverter market is estimated to be valued at US$ 15.28 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2031.

Key players operating in the PV inverter market include Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, SunPower Corporation, and Omron Corporation.

Key Takeaways

Key players: Key players operating in the PV Inverter Market Growth are Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, and SunPower Corporation. These players are focusing on developing advanced inverter solutions with high efficiency and reliability.

Key opportunities: Rapid capacity additions in the distributed solar sector across both residential and commercial segments are expected to offer significant opportunities for PV inverters manufacturers over the coming years. In addition, technological advancements in inverter design for enhancing system performance are also boosting the prospects of this market.

Global expansion: Leading PV inverter suppliers are eyeing high growth markets such as the U.S., China, India, Japan and European nations to establish new manufacturing plants and testing facilities. Partnerships with EPC players are also helping these firms strengthen their foothold across different regions.

Market drivers

The rising installations of rooftop solar PV systems are a key driver bolstering the demand for PV inverters globally. Government incentives and falling prices have increased the affordability of distributed solar projects involving residential rooftops, commercial buildings, and industrial facilities. As PV inverters play an indispensable role in solar energy harvesting, their demand rises in tandem with the capacity additions in the distributed generation sector. Furthermore, the push for carbon emission reductions and focus on energy independence are encouraging greater flexibility of solar power, thus augmenting the uptake of PV inverters worldwide.

PEST Analysis

Political: Governments around the world are introducing regulations and policies to promote the adoption of renewable energy sources like solar energy to reduce dependence on fossil fuels. This will drive the growth of the PV inverter market.

Economic: Rising energy costs and falling prices of solar panels is making solar energy more affordable and competitive compared to conventional sources. Economic incentives and subsidies by various governments are also boosting investments in solar energy projects.

Social: Growing social and environmental awareness among public regarding the need to adopt clean and sustainable sources of energy is driving the demand for solar energy.

Technological: Rapid technological advancements in power electronics and digital control systems are enabling the development of more efficient and reliable PV inverters with improved performance. The development of advanced solar inverters with capabilities like integrated energy storage, monitoring and internet connectivity is also taking place.

Geographical concentration

The Asia Pacific region accounts for the largest share of the global PV inverter market in terms of value primarily due to the presence of populous and rapidly growing economies like China and India. China dominates the global solar PV installations due to large-scale government investments and initiatives in the renewable energy sector. Europe is another major regional market driven by stringent emission norms and the EU’s green deal policies.

Fastest growing region

Latin America is poised to emerge as the fastest growing regional market for PV inverters during the forecast period. This can be attributed to favorable government policies supporting solar energy expansion, increasing investment in clean energy projects and fall in solar power costs in the region which is improving economics. The growth will be led by Brazil and Mexico which have gained traction as major solar power markets in recent years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it