The global power inverter market was valued at USD 74,741.2 million as of 2022 and is anticipated to be valued at USD 77,880.3 million in 2023. FMI predicts the overall market to register a CAGR of 5.8% during the forecast period from 2023 to 2033. By growing at this fair annual growth rate, the net worth of the total power inverters sold globally in 2033 is expected to reach USD 137,290.5 million.
The increasing demand for electricity, coupled with a rising gap between the demand and supply of electricity, along with many other factors, are expected to surge the sales of power inverters. The demand for power inverters is expected to surge because they can convert Direct Current (DC) to Alternating Current (AC), which makes them supply electricity- the kind of electricity we have in our house. This allows a seamless flow of electricity in the device to be used.
Moreover, the input voltage, output voltage, frequency, and other parameters depend on the architecture of the device and the circuit, as a result of which the power inverters are available in many sizes and power ranges.
The anticipated increase in the market share can also be predicted by the fact that previously, the CAGR for this market was 4.2%. But with the expected surge, the anticipated CAGR for the forecast period is expected to be 5.5%.
| Report Attributes or Data Points | Details |
|---|---|
| Global Power Inverter Market Valuation in 2022 | USD 74,741.2 million |
| Estimated Global Market Share in 2023 | USD 77,880.3 million |
| Forecasted Global Market Size by 2033 | USD 137,290.5 million |
| Projected Global Market Growth Rate from 2023 to 2033 | 5.8% CAGR |
| Historical Market Growth Rate from 2018 to 2022 | 3.7% |
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Rapid urbanization is a significant reason why the demand for power inverters is expected to increase. Rapid urbanization may lead to a rapid increase in the demand for electricity as well for the seamless performance of industries, factories, and other facilities.
Moreover, leading to an insufficient supply of electricity in certain areas, power cuts are often seen in such places. To ensure uninterrupted power supply, power inverters are installed in these areas. This is expected to increase the sales of power inverters.
Additionally, the increased consumption of electronic gadgets like television, laptops, air conditioners, etc., is also expected to surge the adoption of power inverters. Governments across the world are taking proactive steps to provide uninterrupted electricity in rural areas. For example, Deen Dayal Upadhyaya Gram Jyoti Yojana is one such initiative that has been started by the Indian government to provide electricity in rural areas across India.
Likewise, many nations have their initiatives. The increase in such initiatives is expected to boom the market size. An increase in disposable incomes has ultimately resulted in the power inverters being affordable to a rise in people. This is expected to increase the sales of power inverters.
| Category | By Type |
|---|---|
| Top Segment | 5 KW to 95 KW |
| Market Share in Percentage | 34.4% |
| Category | By Application |
|---|---|
| Top Segment | Motor Drive |
| Market Share in Percentage | 20.4% |
Moreover, the power inverters are noise-free, unlike power generators, which create a lot of noise while operating. There are also rapid developments shaping up in the field of electrical and electronics-based technology, because of which the power inverters might further evolve to improved versions. This as well is expected to increase the adoption of power inverters.
However, the high production cost of the power inverter remains a key cause of concern for the market. Moreover, the lower lifespan of the battery also poses a challenge to the market because, in such a case, the customers need to shell out their money for changing the battery, and this might lead to a huge amount being spent during the entire life cycle of the product.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| North America | 26.5% |
| Europe | 23.4% |
North America, which currently has a market share of 35.3%, is expected to be one of the largest markets for power inverters during the forecast period. The rapid growth of several industries, like IT, IoT, Healthcare, etc., in the region is expected to surge the adoption of power inverters in North America.
Moreover, people in this region spend most on time-consuming content from various electronic gadgets. This as well is a key driving force for the market in North America.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| United States | 18.4% |
| Germany | 10.4% |
| Japan | 5.3% |
| Australia | 2.4% |
Europe, which currently has a market share of 24.1%, is expected to be one of the most significant markets for power inverters during the forecast period.
Apart from the growth of various industries, people in this region are generally looking for ways to reduce noise pollution. The power inverters help them achieve that, as they operate without making any noise.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 3.2% |
| China | 4.3% |
| India | 8.5% |
With rapid urbanization and almost every sector requiring uninterrupted electricity for their smooth operation, the start-up community of the market is looking for ways to deliver continuous power supply. Some of the start-ups are Oxy Neuron, BREK Electronics, and SenMuLeiShi.
These start-ups are working towards creating innovative devices that help store electricity and reduce carbon footprint at astronomical levels. This technology is expected to offer a plethora of benefits to rural areas.
The start-ups are also working on power inverters, which can be used as EV charging stations as well. The start-ups have also developed silicon carbide-based composite architecture for solar inverters, which improves thermal conductivity and power in packages compared to conventional silicon-based inverters.
Some key players in the market are Omron Automation PVT Ltd, TMEIC, Tabuchi Electric Co., LTD., SMA Solar Technology, Schneider Electric SE, ABB Ltd., Samlex America Inc., Enphase Energy Inc., Thor Manufactures, and PowerBright.
With the increase in the demand for electricity, the leading players are mainly focusing on increasing production capacity. By doing so, these firms may be able to serve the growth of the renewable sector and also further strengthen their operations.
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| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 5.8% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Type, Application, End Use, Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Argentina, Germany, United Kingdom, France, Spain, Italy, Australia & New Zealand, China, India, ASEAN, GCC, South Africa |
| Key Companies Profiled | Omron Automation PVT Ltd; TMEIC; Tabuchi Electric Co., LTD.; SMA Solar Technology; Schneider Electric SE; ABB Ltd.; Samlex America Inc.; Enphase Energy Inc.; Thor Manufactures; PowerBright. |
| Customization & Pricing | Available Upon Request |
The power inverter market is valued at USD 77,880.3 million in 2023.
Some of the key power inverter market players are SMA Solar Technology AG, ABB & Delta Electronics.
On-grid inverters are likely to remain preferred through 2033.
The players opt for mergers and acquisitions.
India, Japan, and China dominate the Asian market.
| Market Size (2022) | USD 3,843.4 Million |
|---|---|
| Market Size (2032) | USD 6,754.2 Million |
| Value CAGR (2022 to 2032) | 5.8% |
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