Global PV Inverter Market 2025 – 2034

Reports Description

As per the PV Inverter Market analysis conducted by the CMI team, the global PV inverter market is expected to record a CAGR of 21.43% from 2025 to 2034. In 2025, the market size was USD 21.46 Billion. By 2034, the valuation is anticipated to reach USD 123.73 Billion.

Overview

Renewable power generation has been witnessing constructive turbulence for the last 10 years. As per the International Energy Agency (IEA), the year 2022 witnessed close to 1,300 TW-h generation of solar PV energy in the U.S. alone, which was a rise of 26% as compared to the year 2021.

The governments of the U.S., India, and China are encouraging the production of PV inverters, thereby driving the PV inverter market. The International Renewable Energy Agency (IRENA) has estimated that renewable energy resources would grow by a 100% magnitude over the next three decades. The two significant attributes are inclusive of lowered prices of solar components that permit building of wind and solar power in higher quantity. As per the Solar Energy Industries Association (SEIA), the costs of solar PV installations have declined by nearly 43% since the past 10 years in California (U.S.).

Concerns pertaining to excessive carbon emissions due to applications of traditional fuels for power generation and transportation purposes have compelled the countries to go for more efficient and cleaner power sources. Also, under the Paris Climate Agreement, economies such as Germany, the U.S., Japan, India, and the U.K. have collectively pledged to cut down on their carbon footprints.

With the power industry shifting its emphasis toward incorporation of electricity generation using renewable energy, the demand for PV inverters is bound to escalate during the forecast period.

Key Trends & Drivers

• Rise in Demand for Renewable Energy Solutions

Rise in demand for renewable energy worldwide to address the concerns pertaining to environmental pollution coupled with the depletion of fossil fuels has rendered solar energy a good alternative. In spite of it being clean and abundant, solar energy is subject to inconsistency due to sunlight’s intermittent nature. PV inverters do play a vital role in addressing the issue by convertingsolar PV modules’ DC into ac for buildings or electrical grids.

The demand for PV inverters is expected to rise on a significant note with declining prices of modules along with government policies. The countries across the globe are offering incentives in line with the ambitious targets set by them for increasing the share of renewables in their provision of energy resources. Siemens, in August 2023, did announce that it would start producing PV string inverters at Kenosha (Wisconsin).

• Rise in Demand for Electricity Worldwide

It has been reported that the demand for electricity is expected to rise threefold during the forecast period. This could be attributed to a growing focus on distributed power as well as utility projects. Coal does serve as the main source of electricity at the global level, but there are concerns related to environmental hazards on its account coupled with depleting reserves. This has, in turn, resulted in a shift toward wind power and natural gas for the generation of electricity.

What’s trending in the PV Inverter market?

Smart inverters are gaining traction. They, with advanced grid support, aid in stabilizing the grid, thereby facilitating better monitoring as well as control of the solar power systems. The demand for hybrid inverters (combining capacities of solar and battery storage) is also increasing due to increased energy management options and flexibility. Utility-scale solar farms are significantly driving the PV inverter market, especially with growing demand for renewable energy.

Key Threats

• Non-uniformity in Regulatory Standards

The efficiency of PV inverters is adversely affected by non-uniformity in regulations and guidelines throughout. Moreover, lack of stringent supervision and low enforcement worldwide is impeding the evolution of quality inverters. As such, non-compliant or semi-standard inverters are bound to result in safety concerns and grid instabilities over the period of time. This could reduce the confidence of consumers in PV technology.

Opportunities

• Upcoming Residential PV Industry

The PV inverter market has a good potential for expansion, particularly with the emerging PV sector. With concerns regarding climate change mounting, homeowners are increasingly switching to rooftop solar panels for reducing electricity and carbon footprint costs. The residential PV installations let households transform their roofs into energy generators. This contribution toward maximization of the efficiency of residential solar systems does drive demand for more investment in independent renewable energy production.

Category Wise Insights

By Product

• String PV Inverter

String PV inverters, when used in unshaded, bigger installations, do offer a higher level of efficiency during the conversion of DC power from the solar panels into ac power that can be usable. Plus, string PV inverters are conducive to large-scale projects inclusive of utility-scale and commercial installations, wherein solar panels are involved in a higher number. They are also more reliable and relatively simpler to troubleshoot in comparison with more complicated systems.

• Central PV Inverter

Integrating digital control systems and smart features in central PV inverters is improving their reliability and functionality. The next-generation inverters are into the incorporation of energy storage as well as backup power capabilities, thereby making way for improved resilience through grid support. With the world transforming through the application of sustainable energy sources, central PV inverters are bound to be one of the key components with regard to modernization of grids.

• Micro PV Inverter

Enhancements in the grid-connected monitoring pertaining to micro PV inverters, along with access to IoT performance management at every level are driving the demand for micro PV inverters. Smart features translate to easy diagnosis remotely apart from the ability to make a phone call, that too, with a reduction of cost and time.

By End-use

• Commercial & Industrial

The commercial & industrial (C&S) applications are among the major drivers of the PV inverter market. This could be attributed to various businesses adopting solar energy and the industrial sector seeking to cut down on costs and enhance sustainability. The ability to integrate inverters with energy storage systems lets businesses store excessive solar energy for usage later, thereby optimizing consumption of energy. Also, supportive policies such as renewable energy mandates and net metering are boosting the PV inverter market.

• Utilities

Utilities are playing a vital role in expanding the PV inverter market by handsomely investing in the large-scale solar installations that need specialized inverters. This is inclusive of the adoption of central and string inverters to execute utility-scale projects. The government policies and incentives, coupled with declining costs of solar equipment drive this growth further by rendering solar energy economically viable.

• Residential

The residential sector is increasingly adopting solar panels. This could be attributed to rising costs of electricity, incentives provided by the governments, and longing for energy independence. Moreover, innovations such as the development of smart hybrid inverters equipped with storage capacities and higher energy efficiency ratings are bolstering adoption by the residential sector.

What are the Latest Happenings in PV Inverter Market?

String inverters hold more than 40% of the PV inverter market share. However, it’s on-grid inverters dominating the market with ~70% of the overall share. Also, smart inverters are increasingly being adopted with advanced grid support. Besides, there is a rise in demand for hybrid inverters that combine solar power and energy storage solutions.

Report Scope

Regional Perspective

The PV inverter market is classified into North America, Europe, Asia Pacific, and LAMEA.

• North America

North America holds a significant market share. This could be credited to the U.S. majorly contributing to the growth of the market. Some of the ongoing trends with regard to PV inverters include the dominance of 1.5 MW plus capacity central inverters and 60 kW plus capacity three-phase string inverters. The Solar Energy Industries Association has stated that the U.S. alone witnessed cumulative installation of 153 GWdc of solar capacity during the first half of the year 2023.

• Asia Pacific

The Asia Pacific leads the PV inverter market with China topping the chart of solar installations. As per the Energy Information Administration (EIA), the year 2021 witnessed wind and solar energy together contributing 12% of electricity generated in China. Also, as per the Ministry of New and Renewable Energy, the end of the year 2022 witnessed solar power installed capacity reaching close to 61.97 GW.

• Europe

Europe is actively contributing to the growth of the PV inverter market via conducive government policies, technological advancements, and a rise in energy security concerns. The government subsidies, incentives, and investments in solar energy are accelerating the demand for several kinds of PV inverters. Also, persuasion in the direction of energy security, especially after the recent turn of geopolitical events, has catalyzed adoption of solar energy.

• LAMEA

Governments in LAMEA are promoting investments in renewable energy through various policies such as net metering and solar auctions. This, in turn, boosts string inverters’ adoption in the distributed solar systems. Various LAMEA countries are emphasizing expansion of energy access, especially in the rural areas where hybrid and off-grid inverters are important.

Key Developments

The PV inverter market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In February 2024, SMA Solar Technology AG announced that it had entered into a strategic partnership with ENGIE with the objective of speeding up deployment as well as development of distributed storage and solar systems all through Europe.

• In February 2024, Sungrow Power Supply Co. Ltd. did float its series of string inverters called SG iNext, wherein it claimed noticeable efficiency gains and enhanced grid support features.

• In April 2023, SolaX Power announced the launch of X1-Hybrid LV, an innovative single-phase low-voltage hybrid inverter especially meant for residential applications.

Leading Players

The PV inverter market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• Delta Electronics Inc.
• Eaton
• Emerson Electric Co.
• Fimer Group
• Hitachi Hi-Rel Power Electronics Private Limited
• Omron Corporation
• Power Electronics S.L.
• Siemens Energy
• SMA Solar Technology AG
• SunPower Corporation
• LG Energy Solution Ltd.
• Sofarsolar Co. Ltd.
• Ginlong Technologies (Solis)
• Enphase
• Growatt
• Others

These firms apply numerous strategies to enter the market, including innovations, mergers and acquisitions, and collaboration. The PV inverter market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The PV Inverter Market is segmented as follows:

By Product

• String PV Inverter
• Central PV Inverter
• Micro PV Inverter

By End-use

• Commercial & Industrial
• Utilities
• Residential

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America