The global residential solar PV inverter market is poised to increase at a consistent CAGR of 5.2%. The market is projected to reach USD 6,566.3 million by 2033 from USD 3,955.1 million in 2023.
Central PV inverters are predicted to increase significantly throughout the projection period due to various advantages over other inverters. Such as relatively affordable price range, dependability, etc.
Central PV inverters are highly efficient, and they work well with various PV off-grid inverters in fluctuation management, balancing, and so on. These inverters are well-suited for big commercial and industrial systems. The manufacturers of solar PV inverters often struggle since they include their storage area, exhaust system, and other components.
Central PV inverters are contained in protective enclosures, which reduces the chance of failure due to exposure to a hostile environment. However, the central PV inverters market has a few drawbacks that may limit their expansion relative to other types of inverters, although the situation is projected to improve shortly.
The residential solar PV inverter market is shifting away from traditional inverters and toward string inverters. This trend is prominently seen in the increasing number of project planners and developers considering string inverters with a central architectural design. This is referred to as the virtual central inverter idea by Sungrow. It combines 1,500-volt string inverters with control typically associated with central PV inverters.
For example, in January 2022, Sungrow announced the debut of a new 1+X central modular inverter with a 1.1 MW output that is compatible with energy storage systems. The 1+X modular inverter may be stacked to provide 8.8 MW of power and includes a DC/ESS interface for connecting energy storage devices.
| Attributes | Details |
|---|---|
| Residential Solar PV Inverter Industry CAGR (2023 to 2033) | 5.2% |
| Residential Solar PV Inverter Industry Size (2023) | USD 3,955.1 million |
| Residential Solar PV Inverter Market Size (2033) | USD 6,566.3 million |
| Residential Solar PV Inverter Industry Attraction | Cost-effective, reliability, and durability |
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Solar PV inverter demand has been steadily increasing over the last few years. The growing environmental concerns about greenhouse emissions and the relevance of solar and other renewable energy sources in reducing these emissions.
As the cost of fossil fuels rises, solar electricity becomes a more cost-effective energy source. In addition, solar PV inverter costs have decreased in recent years, making them more accessible to the general public. As a result, there has been a significant increase in the installation of solar power systems in both established and developing countries across the world.
Other factors propelling the residential solar PV inverter industry include the demand for rural electrification, technical improvements, rising government backing, and increased renewable energy investments.
The increased demand for solar equipment has put a lot of strain on testing companies. Like Underwriters Laboratories, to ensure solar PV inverter security and keep up with technological advancements. However, residential solar PV inverter market development has been hampered by a lack of awareness. Moreover, the high cost of infrastructural improvements and recent government payment reductions on solar panels in the Asia Pacific area.
The lack of auxiliary technologies is a crucial impediment to market expansion. Nonetheless, increased environmental concerns about energy generation from traditional sources. Such as coal and natural gas are expected to provide an opportunity for the solar PV inverter industry.
Principal Consultant
Expanding the deployment of solar PV inverters to strengthen the microgrid network. Additionally, phasing out conventional storage technologies is anticipated to energize the business dynamics. Significant modifications and enhancements to current procedures, along with cost-competitiveness, are projected to have a beneficial effect on industry dynamics.
Residential solar PV inverter solutions account for two-thirds of the industry's distributed photovoltaic capacity. This can be attributed to the widespread acceptance of renewable energy sources in the housing sector and the growth of net metering schemes.
Smart communication ensures network dependability in conjunction with an equilibrium of electrical demand and supply. Smart communication is projected to stimulate residential solar PV inverter adoption.
Increasing regulatory concerns about the effectiveness of grid-tied solar installations are expected to encourage the adoption of string-based household solar PV inverter systems.
Following paradigm changes are likely to continue to affect the corporate landscape:
Historical Figures Vs Forecast Figures
| 2018 | USD 3,158.71 million |
|---|---|
| 2023 | USD 3,955.1 million |
| 2022 | USD 3,781.2 million |
| 2033 | USD 6,566.3 million |
As per FMI estimates, the market is projected to showcase a 5.2% CAGR between 2023 and 2033. In the historical period, the market grew at 4.6% CAGR.
The demand for renewable energy is going up because more people are using electricity, and the cost of making renewable energy is going down. This is going to help in the solar PV inverter market growth during the forecast period. The cost of making renewable energy has gone down a lot in recent years, so it is now a good option for people who need more electricity.
Due to favorable government programs, the market for solar PV inverters is projected to grow. People around the world are working to improve the quality of their lives by building more infrastructure in their countries. The government of the United Arab Emirates, for example, focuses a lot on the Smart Dubai project. This project aims to make Dubai the world's smartest city. Such booming construction activities are expected to elevate the solar PV inverter market.
Solar PV inverters are pushed even more by the rise in greenhouse gas emissions and environmental problems. The solar PV inverter market is expected to grow as more people learn about global warming.
Many companies in the solar PV inverter market are getting into artificial intelligence and machine learning, as well as other smart-energy fields. This, in turn, is expected to help the solar PV inverter market expand further.
People are increasingly using solar energy to power their homes, appliances, and other things. Due to this, the residential section of the solar PV inverter market is expected to grow a lot over the next few years. Increasing the use of renewable energy sources and enforcing efficient energy use rules are projected to help the business thrive.
The global and domestic participants in the industry have had a big impact on the way the industry works. It is projected to be easier for people to use the product if there are more regulations and people want to use a more efficient PV system inverter. The cost of solar panels is projected to go down because more parts can be made, and primitive technology is being used to make them more efficient.
| Year | Market Size |
|---|---|
| 2025 | USD 4,377.12 million |
| 2028 | USD 5,096.08 million |
| 2033 | USD 6,566.3 million |
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| Category | Type |
|---|---|
| Top Segment | Micro-inverter |
| Market Share (2023) | 43% |
| Category | Application |
|---|---|
| Top Segment | Three Phase |
| Market Share (2023) | 59% |
Three-phase Segment to Account for Sizeable Market Share
| Segment | Three Phase |
|---|---|
| Market Share (2023) | 59% |
| Market Size (2023) | USD 2,333.51 million |
| Market Size (2033) | USD 3,874.12 million |
The three-phase sector has the prominent revenue share and is expected to continue dominating over the forecast period. This rise is related to the electricity generating, distribution, and transmission sectors.
Large commercial & industrial, and utility PV power plants have grown in scale. This can be credited to the increasing preference for 1,000-volt to 1,500-volt solar arrays. Thus, supporting the three-phase solar PV inverters market growth throughout the projection period.
| Segment | Micro-inverter |
|---|---|
| Market Share (2023) | 43% |
| Market Size (2023) | USD 1,700.69 million |
| Market Size (2033) | USD 2,823.50 million |
The micro-inverter segment dominated the market by product type, and this dominance is projected to continue. The segment is projected to acquire a total of 43% over the forecast period. Micro-inverters are compact and portable, containing core elements of central inverters. Due to their high performance and compact size, micro-inverters are increasingly used in diverse applications.
From 2023 to 2033, significant industrialization and renewable energy infrastructure expansion is projected to be witnessed. This is projected to considerably take place in rising nations like China, India, Japan, and others, thus driving the demand for micro-inverters.
Market Evaluation: Computed Residential Solar PV Inverter Market Share and Size
| Country | The United States |
|---|---|
| Value Share (2023) | 23% |
| Market Size (2023) | USD 909.67 million |
| Market Size (2033) | USD 1,510.25 million |
| Country | Germany |
|---|---|
| Value Share (2023) | 3.6% |
| Market Size (2023) | USD 142.38 million |
| Market Size (2033) | USD 236.39 million |
| Country | Japan |
|---|---|
| Value Share (2023) | 5.8% |
| Market Size (2023) | USD 229.39 million |
| Market Size (2033) | USD 380.8 million |
| Country | Australia |
|---|---|
| Value Share (2023) | 1.5% |
| Market Size (2023) | USD 59.33 million |
| Market Size (2033) | USD 98.49 million |
| Country | Forecast CAGR (2023 to 2033) |
|---|---|
| China | 6.4% |
| India | 6.9% |
| The United Kingdom | 3.5% |
The Asia Pacific captured a significant revenue share of the solar PV inverters market in 2022 and is expected to observe increasing sales during the forecast period. This is due to the region's existence of significant players and a sizable customer base.
Factors expected to fuel the residential solar PV inverter industry growth in the future years:
The global market is fragmented. ABB Ltd, Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation, and Omron Corporation are the market's leading companies. Some recent market developments in the residential solar PV inverter industry include:
Over the long run, top players in the market are considering various tactics to ensure they grab a huge share of the entire market. These include contracts, inorganic growth ventures, and new product innovations. For instance, in March 2022, Delta introduced new solar inverter series for commercial and residential PV. This new in-series product can achieve an efficiency of 98.7%, in addition to the European efficiency rating of 98.5%. Its power spans from 15 to 20kW.
Suppliers of residential solar PV inverter solutions are also finding great opportunities in the Asia Pacific region. Owing to the large customer pool in the region, suppliers are considering scaling their businesses in developing countries. Increasing investment to change aged power infrastructure with modern is also pushing business growth.
Vendors can also take advantage of subsidies and favorable government policies in Europe. Due to these initiatives, consumers are investing in renewable sources. Additionally, companies can develop high-tech inverters to upscale their business over the forecast period.
Advertisement of clean energy sources to achieve a clean energy economy can also help businesses to increase their sales. This may help stimulate sales of the product among the discerning population.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Countries Covered | The United States, Canada, Mexico, Brazil, Peru, Argentina, Chile, Colombia, Rest of Latin America, Germany, Italy, France, the United Kingdom, Spain, India, GCC, South Africa, Japan, China, South Korea, etc. |
| Key Regions Covered | North America; Latin America; the Asia Pacific; Europe; the Middle East; and Africa |
| Key Segments Covered | Type, Application, and Region |
| Key Companies Profiled | ABB Ltd; Schneider Electric SE; Siemens AG; Mitsubishi Electric Corporation; and Omron Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization and Pricing | Available upon Request |
Manufacturers are producing energy-efficient inverters made of recyclable materials.
Growing integration of energy storage systems and smart and hybrid solar inverters.
Grid-tied segment dominates the market for residential solar PV inverters.
The market is expected to be worth USD 3,955.1 million by 2023.
North America and Europe are leading in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. String Inverter 5.2. Central Inverter 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Single Phase 6.2. Three Phase 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. SMA Solar Technology AG 15.2. ABB Group 15.3. Huawei Technologies Co. Ltd. 15.4. SolarEdge Technologies Inc. 15.5. Fronius International GmbH 15.6. Sungrow Power Supply Co. Ltd. 15.7. Enphase Energy Inc. 15.8. TMEIC Corporation 15.9. Mitsubishi Electric Corporation 15.10. Schneider Electric SE 16. Assumptions & Acronyms Used 17. Research Methodology
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Residential Solar PV Inverter Market
