Solar Inverter Market

Solar Inverter Market Outlook for 2023 to 2033

The solar inverter market is set for significant expansion, with an anticipated valuation of USD 11,660.98 million by 2023. The market displays a significant trend, featuring a rise in CAGR of 6%, which is expected to sustain until 2033. The consistent growth forecasts indicate that the global solar inverter market will achieve an impressive valuation of USD 20,883.04 million by 2033.

Key Market Trends and Highlights

• Micro inverters have gained prominence in the solar inverter market, offering advantages such as improved performance in shaded environments and scalability. These inverters, positioned next to each solar panel, allow for immediate DC to AC conversion at the panel level, enhancing overall system efficiency.
• Micro inverters are preferred for complex solar array designs and roofs with regular shading issues. By maximizing the performance of each panel individually, they mitigate the impact of shading and provide consumers with the ability to monitor the output of each panel.
• Micro inverters facilitate easy system expansion as each additional panel incorporates its own inverter. Unlike string inverters, typically sized for the initial panel count and not designed for future expansion, micro inverters offer flexibility for growing energy generation needs.
• While micro inverters offer numerous benefits, they tend to be more expensive compared to string inverters. The higher initial cost can be a limiting factor for some consumers.
• As micro inverters are installed on the roof, maintenance, and access can be more challenging than string inverters. Ensuring proper functioning and addressing issues may require additional effort.

Attributes	Key Insights
Market Estimated Size in 2023	USD 11,660.98 million
Projected Market Size in 2033	USD 20,883.04 million
Value-based CAGR from 2023 to 2033	6%

Historical Analysis vs. 2023 to 2033 Market Forecast Projections

In 2022, the solar inverter market demonstrated its resilience and vitality. The market value reached USD 11,087.02 million. String inverters, known for their cost-effectiveness and durability, continued to be a popular choice for many solar installations. Their installation in easily accessible locations such as basements and garages contributed to their reputation as low-maintenance solutions.

Looking forward to the period from 2023 to 2033, the solar inverter market is poised for further growth. The projected market value for 2023 stands at USD 11,660.98 million. The growth is driven by several key factors, including the continued demand for solar energy solutions, advancements in inverter technology, and a shift towards more efficient and sustainable energy sources.

As the world embraces the importance of renewable energy, the solar inverter market is expected to play a pivotal role in converting solar power into usable electricity. The market trajectory remains positive, offering opportunities for consumers and businesses to harness the power of solar energy while contributing to a greener and more sustainable future.

Smart Inverters Boosting Market Demand

• Smart inverters represent the future of solar energy integration. They have evolved from one-way communication with the grid to two-way interactions, enabling advanced grid-support activities. These inverters offer enhanced functionalities such as voltage and frequency control and improved communication capabilities.
• A pivotal driver in the market is the grid resilience provided by smart inverters. These advanced devices can ride through minor disruptions, including voltage changes. When faced with such disturbances, they can enter standby mode, monitor the situation, and respond accordingly, helping maintain grid stability and minimizing disruptions caused by distributed energy resources.
• Smart inverters contribute to grid stability by executing various grid-support functions. These functions encompass voltage and frequency regulation, efficient communication with the grid, and advanced control capabilities. The multi-functionality enhances the reliability of solar energy systems and bolsters their integration into the broader energy grid.
• The market is benefitting from significant advancements in software that empower smart inverters with their sophisticated capabilities. These innovations allow for seamless interactions with the grid and efficient management of energy resources, propelling the adoption of these inverters.

Country-wise Insights

The below table showcases CAGRs in terms of the five countries spearheaded by the United States, China, the United Kingdom, Germany, and Japan.

CAGR by 2033

The United States	5.20%
The United Kingdom	6.60%
Germany	5.80%
Japan	6%
India	7%

Surge in Awareness Regarding Renewable Energy in the United States by Driving Sales of Solar Inverters

By 2033, the United States is poised to witness substantial growth in the solar inverter market with a projected CAGR of 5.2%. The increasing awareness and emphasis on renewable energy sources drive this expansion.

Manufacturers in the United States are contributing to this growth through the development of innovative and advanced products. The push for renewable energy and the introduction of new solar inverter solutions will be key factors propelling the market forward.

Solar Inverter Market in the United Kingdom Raises a Bright Future in Renewable Energy

The United Kingdom is poised for significant growth in its solar inverter market, with a CAGR of 6.60% by 2033. The market is expected to expand steadily with a growing emphasis on renewable energy sources. Government incentives, subsidies, and policies promoting solar power adoption are driving the demand for solar inverters.

Manufacturers in the United Kingdom are focusing on developing advanced and efficient inverter solutions to meet the evolving needs of consumers. The market is expected to see a notable increase in the adoption of solar inverters for residential, commercial, and industrial applications.

Leading the Way in Sustainable Energy Solutions of the Solar Inverter Market in Germany

Germany remains a frontrunner in the solar inverter market within Europe and expands with a CAGR of 5.80% through 2033. The commitment of the country to clean energy and sustainable practices continues to boost the demand for solar inverters.

Germany strong industrial sector and large-scale solar installations contribute to the growth of the solar inverter market. Manufacturers in Germany are at the forefront of technological advancements, offering high-quality and reliable solar inverter solutions. As solar power generation becomes increasingly integrated into the German energy landscape, the market is set to experience sustained growth.

Boost in Demand for Solar Inverters in Japan Will Fuel Growth

Japan is expected to hold a significant share of the East Asia solar inverters market, with sales anticipated to grow at a notable CAGR of 6.0%. The growth is attributed to several factors, including the presence of some of the world largest solar inverter manufacturers and the strict enforcement of energy consumption regulations within the country. Japan commitment to sustainable energy practices and stringent energy guidelines will lead to increased sales of solar inverters in the coming years.

Increasing Preference for Cost-Effective Inverters in India Spurs Demand for Solar Inverters

The Indian market is projected to experience a remarkable increase in sales, with an impressive CAGR of 7% by 2033. The driving force behind this growth is the high demand in India for cost-effective and energy-efficient solar inverters.

As the country prioritizes renewable energy and sustainable power solutions, the market for solar inverters is expected to witness substantial expansion. The preference for economical and efficient inverters aligns with India sustainable energy goals, contributing to market growth.

Category-wise Insights

The table below highlights how central inverter is projected to lead the type market, expanding at a market share of 78.9% in 2023. The table further details how the on-grid system is anticipated to witness a market share of 69.2% in 2023.

Category	Market Share in 2023
Central	78.9%
On-Grid	69.2%

The Dominance of Central Inverters Continues to Rise

The demand for central inverters continues to remain high in the solar inverter market due to their advantages over string inverters. String inverters, while cost-effective, tend to introduce complexity into the system, potentially leading to latency as more devices are connected and controlled.

Central inverters are favored for their ability to efficiently manage larger systems without sacrificing responsiveness. The report highlights that the central inverters segment is expected to represent a significant absolute dollar opportunity, capturing a substantial market share of 78.9% in 2023. The preference for central inverters underlines their crucial role in meeting the evolving needs of the solar energy sector.

Advancing Sustainable Energy Integration and Performance Monitoring in On-Grid Systems

On-grid system solar inverters are engineered to convert direct current (DC) electricity generated by solar panels into alternating current (AC) power. Their ability to seamlessly synchronize with the existing electrical grid, allowing excess solar power to be fed back into the grid, ensuring efficient use, and even potential financial benefits for solar power system owners, leading to a market share of 69.2% in 2023.

On-grid system solar inverters align perfectly with the objectives of sustainable energy integration. They enable the transition from traditional fossil fuel-based electricity generation to clean, renewable solar energy, contributing to a greener and more sustainable future.

Modern on-grid solar inverters often come equipped with sophisticated monitoring and control features. These enable system owners to keep a close eye on the performance of their solar power installations, track energy production, and detect any issues promptly, ensuring the system operates at peak efficiency.

Competitive landscape

Many key solar inverters are inclined to invest significantly in innovation, research, and development practices to uncover increased applications solar inverter market. With the use of technology, players are also focusing on ensuring safety, quality, and customer satisfaction to captivate an increased customer base. Some of the latest developments include

• In August 2023, Siemens revealed plans to add manufacturing capacity in the United States with a new factory that will produce 800 MW of utility-scale string inverters per year.
• In June 2022, FIMER Group expanded its best-selling cloud-connected, high-power, three-phase string solution, the PVS100/120 range. The latest version enables installers to choose the set-up of one or two MPPTs for east-west orientation, helping to deliver total flexibility, enabling the installer to select parallel inputs during the installation and commissioning phase, and delivering a truly responsive system to improve yields ultimately.
• In February 2023, Delta Electronics Inc., a global leader in energy management and industrial automation solutions, presented a wide portfolio of IoT-based Smart Green Solutions at ELECRAMA 2023, which included a smart microgrid-based Green EV Charging Station and the new Open-Loop Variable-Torque Standard Drive VP3000 Series.

Report Scope

Attributes	Details
Estimated Market Size in 2023	USD 11,660.98 million
Projected Market Valuation in 2033	USD 20,883.04 million
CAGR Share from 2023 to 2033	6%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in USD million
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East and Africa
Key Market Segments Covered	Type, System Type, Phase, End-Use, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Siemens AG; Fimer Group; SMA Solar Technology AG; Delta Electronics Inc.; SunPower Corporation; Omron Corporation; Eaton; Emerson Electric Co.; ABB Ltd; Mitsubishi Electric Corporation; Schneider Electric SE

Global Solar Inverter Market by Category

By Type:

• Central Inverter
• Micro-Inverter
• String Inverter

By System Type:

• Off Grid
• On Grid

By Phase:

• Single Phase
• Three Phase

By End-Use:

• Residential
• Commercial and Industrial
• Utilities

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East and Africa

Frequently Asked Questions

What is the expected market value for solar inverter in 2023?

The solar inverter market is expected to reach a valuation of USD 11,660.98 million in 2023.

How is the solar inverter market expected to perform in Germany until 2033?

A CAGR of 5.8% is expected for solar inverter sales in Germany from 2023 to 2033.

What is the Projected CAGR for the Solar Inverter Market through 2033?

The solar inverter market is set to expand by a CAGR of 6% by 2033.

How big will the Solar Inverter Market be in 2033?

The solar inverter market is forecasted to reach USD 20,883.04 million by 2033.

Which is the Leading Type in the Solar Inverter market?

Central Inverters are preferred and are expected to rise at a market share of 78.9% through 2033.