NEW YORK, Aug. 7, 2024 /PRNewswire/ — The global photovoltaic (PV) inverter market size is estimated to grow by USD 3.96 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.78% during the forecast period. Rising demand for renewable energy is driving market growth, with a trend towards rapid growth of smart cities. However, high initial investment and maintenance costs for solar PV systems poses a challenge. Key market players include ABB Ltd., Canadian Solar Inc., Danfoss AS, DARFON ELECTRONICS CORP., Delta Electronics Inc., Eaton Corp. Plc, Enphase Energy Inc., Fronius International GmbH, General Electric Co., Huawei Technologies Co. Ltd., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Siemens AG, Sineng Electric Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., SunPower Corp., and Yaskawa Solectria Solar.
Technavio has announced its latest market research report titled Global photovoltaic (PV) inverter market 2024-2028
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Photovoltaic (PV) Inverter Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 3965.4 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
6.23 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 47% |
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Key countries |
China, US, India, Japan, and Vietnam |
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Key companies profiled |
ABB Ltd., Canadian Solar Inc., Danfoss AS, DARFON ELECTRONICS CORP., Delta Electronics Inc., Eaton Corp. Plc, Enphase Energy Inc., Fronius International GmbH, General Electric Co., Huawei Technologies Co. Ltd., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Siemens AG, Sineng Electric Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., SunPower Corp., and Yaskawa Solectria Solar |
Market Driver
The global photovoltaic (PV) inverter market is experiencing significant growth due to the increasing demand for smart cities. These cities prioritize sustainability, energy efficiency, and improved quality of life, leading to the integration of renewable energy sources, particularly solar energy. Photovoltaic inverters are essential for converting DC power generated by solar panels into AC power for powering buildings and infrastructure. Advanced energy management systems in smart cities utilize data and analytics to optimize energy use and reduce costs. Photovoltaic inverters contribute to these systems by enabling solar power integration into the grid and providing real-time data on energy generation and consumption. Additionally, smart cities require dependable and resilient power supplies, making photovoltaic inverters an attractive choice due to their high efficiency and reliability. They help reduce energy costs, provide backup power during emergencies, and support the integration of other renewable energy sources like wind and battery storage systems. The market for advanced and high-capacity PV inverters, designed for utility-scale applications, is particularly thriving due to the growing number of smart cities and urban areas adopting renewable energy sources like solar power. This trend is expected to continue, positively impacting the growth of the global PV inverter market during the forecast period.
The solar photovoltaic (PV) market, specifically the PV inverter segment, is experiencing significant growth due to increasing adoption of solar PV systems in homes and businesses. The Inflation Reduction Act in the US is boosting the solar industry, with companies like Silicon Ranch and First Solar leading the way. Central inverters from Sungrow dominate utility-scale solar power projects, while microgrids and local grids benefit from the flexibility and shading tolerance of solar inverters. Enhanced efficiency and cost-effective solutions are key trends, as the solar PV industry focuses on capturing more sunlight to produce usable electricity. Regulatory interventions and favorable customer preferences drive product adoption, with overall system performance and energy yields influencing solar PV deployments. The supply chain, including prices of components and raw materials, remains a critical factor in the industry’s healthy growth.
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Market Challenges
The photovoltaic (PV) inverter market faces challenges due to the high initial investment and maintenance costs associated with solar PV installations. Solar panels require a large area to generate significant electricity, leading to higher upfront costs. Intermittency issues necessitate installing more panels than necessary to meet energy needs, increasing both the initial investment and ongoing maintenance costs. Solar panels are primarily used for business purposes, and the owner is responsible for maintenance. Household inspections cost around USD0.023-USD0.03/Watt/year, posing a significant burden on residential users. This high cost may hinder the growth of the global PV inverter market during the forecast period.
The Photovoltaic (PV) Inverter market is experiencing remarkable momentum due to the growing energy consumption and favorable solar conditions. Challenges such as energy management systems, higher power density, and improved efficiency require advanced technology solutions. Enphase Energy, a key player in the market, offers user-friendly and aesthetically pleasing Enphase IQ Microinverters with enhanced monitoring through mobile apps. Grid support features, reactive power control, and grid stabilization are essential for grid compatibility. Favorable incentive programs like net metering, FITs, and supportive governmental initiatives drive the growth of medium-scale solar installations in commercial and utility-scale sectors. Strict mandates and environmental regulations necessitate grid-supportive features, communication capabilities, and large-scale deployment. Inverter technologies like Enphase PVS-100 Inverters and Flex offer cost-efficient products and strategic local manufacturing for the microinverter industry. The clean energy transition continues with technological advancement and the integration of PV systems into smart homes.
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Segment Overview
This photovoltaic (pv) inverter market report extensively covers market segmentation by
Product
1.1 String
1.2 Central
1.3 Micro
Type
2.1 On-grid
2.2 Off-grid
Geography
3.1 APAC
3.2 Europe
3.3 North America
3.4 Middle East and Africa
3.5 South America
1.1 String- The Photovoltaic (PV) Inverter market is experiencing significant growth due to the increasing adoption of solar energy solutions. These inverters convert DC power from solar panels into AC power for use in homes and businesses. Key players in this market include SMA Solar Technology, Huawei Technologies, and Fronius International. They offer various product types such as string inverters, micro inverters, and power optimizers to cater to diverse customer needs. The market’s growth is driven by government incentives, falling solar panel prices, and technological advancements.
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The global Solar Photovoltaic Services market is witnessing robust growth, driven by increasing demand for renewable energy solutions. With advancements in technology and favorable policies, the market is expanding rapidly. Concurrently, the Solar PV Balance Of Systems (BOS) market is also thriving, as it includes essential components like inverters, mounting systems, and wiring that are crucial for solar installations. Together, these markets reflect a significant shift towards sustainable energy, with the Solar PV BOS market playing a pivotal role in optimizing system performance and efficiency.
Research Analysis
The Photovoltaic (PV) inverter market refers to the segment of the solar industry that produces and supplies inverters for solar photovoltaic (PV) systems. These inverters convert the direct current (DC) electricity generated by solar panels into alternating current (AC) power, which is compatible with the electrical systems used in homes and businesses. The market has seen significant growth due to the increasing adoption of solar energy systems worldwide. The Inflation Reduction Act in the US, for instance, provides incentives for renewable energy projects, including solar PV installations. Central inverters, manufactured by companies like Sungrow, are commonly used in large-scale solar power plants, while solar inverters are used for residential and commercial installations. First Solar, Solar Energy, and Silicon Ranch are among the leading solar energy companies that incorporate PV inverters in their projects. The utility frequency of AC power produced by these inverters must match the grid’s frequency for seamless integration.
Market Research Overview
The Photovoltaic (PV) inverter market is experiencing healthy growth as the adoption of solar PV systems continues to gain momentum in both industrialized economies and emerging countries. Solar PV inverters convert direct current (DC) electricity generated by solar panels into usable alternate current (AC) electricity for electrical systems in homes, businesses, and industries. The Inflation Reduction Act in the US, among other government programs, is driving the product adoption, with central inverters being a popular choice for utility-scale solar installations. Sungrow, Siemens, and Huawei are some notable industry participants in the market. The solar PV industry is witnessing a shifting consumer awareness towards cost reduction and commercial viability, leading to collaborations, investments, and regulatory interventions. The market is also seeing the emergence of microgrids, off-grid applications, and grid support features, including reactive power control and grid stabilization. The overall system performance, energy yields, and favorable incentive programs, such as net metering and FITs, are contributing to the remarkable momentum in the solar PV industry. With the growing energy consumption and the need for rural electrification projects, the market for solar PV inverters is expected to continue its swift industrial development. The market is also witnessing the emergence of residential PV inverters with user-friendly designs, smart home integration, and enhanced monitoring features. The use of batteries and energy management systems is becoming increasingly common to optimize the performance of solar PV systems. The industry is also seeing higher power density, improved efficiency, and enhanced grid compatibility, making solar PV inverters a cost-effective and flexible solution for various applications, including water pumping, telecommunications, and remote cabins.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Product
String
Central
Micro
Type
On-grid
Off-grid
Geography
APAC
Europe
North America
Middle East And Africa
South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
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SOURCE Technavio