Solar (PV) Inverter Market Size
Solar (PV) Inverter Market Overview
A photovoltaic (PV) inverter, or solar inverter,
is a electrical converter that alters variable direct current (DC) into
alternating current (AC) from a photovoltaic (PV) solar module that can be
supplied to commercial power grid or local off-grid electrical network. This is
an important balance of system (BOS) component of a PV system that allows the
use of regular AC power supplies. Solar inverters have special features
suitable for use in PV arrays, such as anti-islanding protection and maximum
power point tracking.
Apart from the conversion, the solar inverter can
also be helpful in tracking the voltage and it allows communication with the
grid connection and shuts down in an emergency. The on-grid solar inverter
produces a pure sine wave of alternating current unlike an off-grid inverter.
Therefore, growing use of on-grid solar inverters guarantees the efficiency and
safety of home appliances. Solar inverters are widely used in utility and residential
applications and are now increasingly used in industrial and commercial
projects around the world.
COVID-19 Impact Analysis on Solar (PV) Inverter Market
The COVID-19 pandemic has affected every aspect
of business as well as life. It has emerged as a global pandemic which has affected
almost all countries across the globe and disrupted various business functions
around the world. A drastic change in sales channel across different industries
is observed. Economic slowdown has been experienced across multiple industries
or sales decline as a result of COVID-19 crisis. Energy and power also
experienced multitude of challenges across supply chains, business and
manufacturing operations. US, India, Italy, Spain, UK, Brazil, Russia and Germany
are most severely affected countries and have experienced sharp rise in
COVID-19 cases.
Lockdown and travel restrictions have severely
impacted overall businesses in China, India, Spain, Germany, U.S. and many
parts across the globe. Partial or complete lockdown and social distancing
norms had to be imposed in manufacturing plants, R&D centers and across
other business units as well. Labor shortage, logistics and transportation
restrictions have severely affected supply chains leading to production loss
resulting in sales decline. Similarly, the solar (PV) inverter market also
witnessed multiple challenges during this pandemic.
The COVID-19 pandemic has affected almost every
aspect of the economy and life. It has emerged as a pandemic that has affected
almost every country in the world and has disrupted various business functions
around the world. There have been dramatic changes in sales channels in
different industrial sectors. Some industries are experiencing economic
slowdowns or declines as a result of the COVID19 crisis. The energy and power
sector also faced a variety of supply chain, business, and manufacturing
challenges. The United States, Italy, India, the United Kingdom, Spain, Russia,
Brazil, and Germany have been hit hardest, with a surge in COVID 19 cases.
Across the energy and power industry, businesses
are dealing with various challenges owing to decrease in electricity prices
post the COVID-19 pandemic. Since China is the leading market for generation of
solar energy, the slowdown in its economic growth has impacted the renewable
energy investment and overall energy generation across the globe. China is a
leader in terms of the production of solar inverters, PV panels and solar
photovoltaic installations. As per to Global Energy Data, more than 35% of the
global solar installations are contributed by China. Additionally, the US is largely
dependent on China for solar PV production.
The COVID-19 pandemic outbreak emerged from China
has led to supply shortage in the US and across the globe. Moreover, Enphase
and SolarEdge, two leading solar inverter manufacturers offering residential
solar inverters in the US, cautioned decline in the growth rate and decrease in
power demand.
Solar (PV) Inverter Market Dynamics
The global solar (PV) inverter market growth is estimated
to be driven by various factors such as the ease of installation of solar
inverters and the rapid development of the renewable energy sector. Also, favorable
government initiatives such as energy-saving certificates and government focus
to improve quality of life through infrastructure development are other major
factors that boost the solar (PV) inverter market growth along with growing environmental
concerns and impact of greenhouse gases.
A large number of companies are focusing on
developing solar inverters with internet-of-things platforms, artificial
intelligence (AI) and machine learning, and also other smart-energy verticals.
However, high cost, the high heat loss for larger solar inverters, and lack of
monitoring at the panel level are major factors that are expected to hinder the
market growth over next few years. On the other hand, increase in number of
government initiatives and investment in remote and rural area electrification
are expected to create opportunities for market players in the global solar
inverter market.
Solar (PV) Inverter Market Drivers
- Increasing advancements
in the renewable energy sector
- Increasing
demand for uninterrupted power supply
- Government initiatives
to promote the use of solar power system
- Growing number
of solar power system installations across the globe
Solar (PV) Inverter Market Restraints
- High cost of
operation and maintenance
- High heat loss
for larger solar inverters and lack of monitoring at panel level
Solar (PV) Inverter Market Opportunities
- Electrification
of remote and rural unelectrified areas in emerging economies
- Growing focus
on infrastructure development
- Increased
awareness about environmental concerns and greenhouse gases
Solar (PV) Inverter Market, Segmental Analysis
The global solar (PV) inverter market is
segmented based on Product Type, Phase, Connection Type, End User and region.
Solar (PV) Inverter Market Analysis, by Product
Type
Central Inverter to Remain Dominant Segment in the Coming Years
Based on Product Type, the market is segmented
into Micro Inverter, Central Inverter, String Inverter and Others.
In 2021, the Central Inverter segment garnered the largest
market share of about 50% and is projected to hold its dominant share in
the coming years. The growth and large market share of central inverter segment
is mainly attributed to increasing demand from utility and large industrial
applications. Additionally, development of renewable power infrastructure and rapid
industrialization in the developing economies further boost the market growth
of central inverters. String Inverter product type segment is expected
to register fastest growth in the coming years due to increasing preference
from residential and commercial end users.
Solar (PV) Inverter Market Analysis, by Phase
Three Phase Segment Dominated Market in 2021
Based on Phase, global solar (PV) inverter
market is categorized into Three Phase, and Single Phase. Three
Phase segment held largest revenue share in 2021 owing to increasing
importance from power generation, transmission, and distribution sector. Additionally,
an increased trend to 1,500-volt solar arrays from 1,000-volt solar arrays
yielded bigger size of PV power plants in large industrial, commercial and
utility installations, which has resulted in increased demand for three phase solar
(PV) inverter.
Solar (PV) Inverter Market Analysis, by Connection
Type
Three Phase Segment Dominated Market in 2021
Based on Connection Type, global solar
(PV) inverter market is categorized into On-grid and Off-grid. In
2021, On-grid segment held largest market share and is projected
to hold its dominance in the coming years. This large share is attributed to
increasing investment for direct supply of power instead of storing it in
batteries. Also, on-grid solar inverters offer advantages such as easy
installation, easy feeding of energy, managing high electricity demand and cost-efficiency which will further boost
their market demand in the coming years.
Solar (PV) Inverter Market Analysis, by End User
Utilities End User Dominated Market with Revenue Share of about 50% in 2021
Based on End User, market is segmented
into Commercial & Industrial, Residential and
Utilities. Utilities end user segment dominated the market in 2021
with revenue share of more than 50%. This segment is also expected to
register lucrative growth in the coming years. This is attributed to growing
investment in the utility scale solar parks, solar power plants, and other
solar structures. Additionally, increasing focus on rural electrification
projects, development of decentralized solar power plants, solar power plants
on the commercial buildings, water body & rooftops and others are projected
to drive the market growth for utilities segment.
Solar (PV) Inverter Market, Regional Analysis
Asia Pacific accounted for Largest Revenue Share in 2021 and will remain Fastest Growing regional Market
At regional level, market is segmented into North
America, Europe, Asia Pacific, Latin America and Middle East and Africa. Asia
Pacific was the largest regional market in 2021. Growth in Asia
Pacific solar (PV) inverter market is attributed to growing investments in construction
sector, rising investments in solar power projects, escalating demand for solar
power energy sources and rapid demand for solar energy over conventional energy
sources as a viable renewable substitute. Favorable government initiatives such
as energy-saving certificates and incentives in China, Malaysia, Thailand etc.
and growing focus to reduce carbon emission are major factors that are expected
to drive the market growth in Asia Pacific.
Europe is estimated to register slow growth in the coming years due to rise in the anti-dumping tariffs imposed on Chinese made components, depreciation of the Euro and a downward trend on minimum import prices. North America will be another significant regional market for solar (PV) inverters in the coming years. Latin America and Middle East and Africa regions are forecasted to register moderate growth in the coming years.
Solar (PV) Inverter Market, Key Players
- ABB Ltd
- Shenzhen Growatt New Energy Co., Ltd.
- Siemens AG
- Sungrow Power Supply Co., Ltd.
- Canadian Solar Inc.
- SMA Solar Technology AG
- Fronius International GmbH
- Ginlong Technologies
- Delta Electronics, Inc.
- Fimer S.p.A.
- GoodWe
- Huawei Technologies Co., Ltd.
- SunPower Corporation
- Sineng Electric Co., Ltd.
- Power Electronics
- Hitachi Hi-Rel Power Electronics Pvt. Ltd
- SolarEdge Technologies Inc.
- Solectria Renewables, LLC
- Others
Solar (PV) Inverter Market Scope
| ATTRIBUTE |
DETAILS |
| Market Size in 2021 | USD 9.24 billion |
| Market Size in 2029 | USD 16.73 billion |
| CAGR (%) | 7.7% from 2022 to 2029 |
| Historic Period | 2018 – 2020 |
| Base Year | 2021 |
| Forecast Period | 2022 – 2029 |
| Segments Covered | Connection Type, Phase, Product Type, End User |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Key Companies Profiled | ABB Ltd, Shenzhen Growatt New Energy Co., Ltd., Siemens AG, Sungrow Power Supply Co., Ltd. , Canadian Solar Inc., SMA Solar Technology AG, Fronius International GmbH, Ginlong Technologies, Delta Electronics, Inc., Fimer S.p.A., GoodWe, Huawei Technologies Co., Ltd., SunPower Corporation, Sineng Electric Co., Ltd., Power Electronics, Hitachi Hi-Rel Power Electronics Pvt. Ltd, SolarEdge Technologies Inc., Solectria Renewables, LLC |
Solar (PV) Inverter Market Segmentation
Solar (PV) Inverter Market, By Product Type
- Central Inverter
- String Inverter
- Micro Inverter
- Others
Solar (PV) Inverter Market, By Phase
- Single-phase
- Three-phase
Solar (PV) Inverter Market, By Connection Type
- On-grid
- Off-grid
Solar (PV) Inverter Market, By End User
- Residential
- Commercial & Industrial
- Utilities
Solar (PV) Inverter Market, By Region
- North America
- U.S.
- Rest of North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East and Africa