Solar Inverter Market Forecasts from 2023 to 2028

The solar inverter market is expected to grow at a CAGR of 8.09% from US$12.467 billion in 2021 to US$21.485 billion in 2028.

The solar inverter market is expected to grow at a strong rate during the forecast period. A solar inverter, also known as a photovoltaic inverter, is an electrical device that transforms the fluctuating direct current produced by a solar panel into a consistent alternating current. This converted electricity is seamlessly integrated into the existing electrical grid or utilized within a self-sustained local network that operates independently from the main power grid. High demand from residential and commercial coupled with grid infrastructure development is increasing the solar inverter market size.

High end-user demand is propelling the solar inverter market growth.

Households and businesses embrace solar energy for powering their day-to-day applications owing to which solar energy adoption has surged among these end-users. This increasing adoption of solar power systems has propelled the solar inverter market demand. According to the International Energy Agency, in 2021, solar photovoltaic (PV) generation experienced a surge of 179(TWh), registering a remarkable growth rate of 22%. This achievement placed solar PV as the second-fastest growing renewable energy technology. Moreover, solar PV is emerging as the most cost-effective choice for new electricity generation in the majority of the world.

Government initiatives to develop grid infrastructure drive the solar inverter market.

Government initiatives focusing on the development of grid infrastructure can significantly boost the growth of the solar inverter market as improving and modernizing the grid infrastructure allows for better integration of renewable energy sources, including solar power, into the existing grid system. Enhanced grid infrastructure enables the seamless integration of solar PV systems, creating a favorable environment for the growth of the solar inverters industry. According to the Ministry of New and Renewable Energy, on December 2022, the Government of India started a scheme called "Development of Solar Parks and Ultra Mega Solar Power Projects", the currently ongoing initiative is focused on simplifying the setup of extensive solar power projects connected to the grid. The target is to achieve a capacity of 40 GW by March 2024 through this initiative.

Asia-Pacific region is anticipated to dominate the lifting station market.

The Asia Pacific region has witnessed a remarkable surge in solar power installations with countries like China, India, Japan, and Australia leading the way. This widespread adoption of solar panels has created a thriving market for solar inverters. = Additionally, according to the Ministry of New and Renewable Energy, as of November 2022, in India the installed capacity of solar power had reached approximately 61.97 GW.

Alternative source availability restrains the lifting station market growth.

The solar inverter industry encounters competition from various renewable energy technologies, including wind power and hydropower, which can present cost-competitive alternatives. The preference for these alternative sources over solar energy depends on the specific region and its energy resource availability. Factors such as wind resources, hydrological conditions, and geographical features play a role in determining the suitability and economic viability of different renewable energy options. In regions with abundant wind or hydro resources, stakeholders may prioritize these technologies due to their cost-effectiveness or established infrastructure.

Key Developments

• May 2023:SolaX launched a new hybrid inverter called the X1-Hybrid LV3-6kW, designed specifically for residential applications. This single-phase, low-voltage inverter offers a unique advantage by operating at significantly lower voltage levels compared to conventional inverters. The lower voltage operation of the X1-Hybrid LV3-6kW enhances its compatibility and suitability for residential solar PV systems.
• May 2023:Solis introduced its latest cutting-edge power hybrid inverter, the 'S6'. This advanced inverter offers a range of impressive features, including automatic UPS switching and a remarkable power backup overload capability of up to 10 seconds at 200% surge capacity. Moreover, the S6 inverter is designed to seamlessly integrate with both single-phase and three-phase connections, providing flexibility and compatibility for various installation scenarios.
• January 2023:SOFAR launched its latest string inverter solution, the 100-125KTL-G4, which showcases several advanced features including industry-leading ultra-high current, simplified installation, and intelligent protection. This product stands out with its incorporation of 10*40A multiple maximum power point tracking (MPPT) technology, combined with ultra-high current capability.
• February 2022:Reliance Industries announced the successful completion of its planned acquisition of a 40% equity stake in Sterling and Wilson Renewable Energy (SWREL). This strategic acquisition enables Reliance to gain valuable access to a diverse range of capabilities in renewable energy, including expertise in design, procurement, and project management. With this investment, Reliance aims to strengthen its position in the renewable energy sector.

Company Products

• UNO-2.0/2.5-I:ABB’s UNO-2.0, is a highly advanced inverter featuring a high-speed and precise Maximum Power Point Tracking (MPPT) algorithm. This innovative technology enables real-time power tracking, resulting in enhanced energy harvesting and improved overall efficiency of up to 96.3%.
• FLEXINVERTER SOLAR:General Electric offers the FLEXINVERTER SOLAR, an advanced solar inverter solution that is FLEXiq enabled. With a power range of 3.0 – 3.9 MW, this inverter stands out for its high-power density and impressive efficiency. The FLEXINVERTER SOLAR delivers optimal performance, utilizing the FLEXiq technology to ensure seamless integration and flexibility in solar power systems.

Segmentation

By Type

• String Inverters
• Micro-Inverters
• Grid-Tie Inverters
• Others

By Solar Panel Type

• Monocrystalline
• Polycrystalline
• Thin-Firm Solar Panel

By End-User

• Residential
• Commercial
• Industrial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others