Battery Storage Inverter Market Size

Battery Storage Inverter Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global market for battery storage inverters is growing at a fast pace. In 2024, the market is expected to be worth $27.2 billion, and it is projected to grow to $58.3 billion by 2032. This represents a CAGR of 10.0% during the forecast period. The increasing demand for renewable energy sources, combined with the growing need for energy storage, is driving this growth. Further growth is expected to be driven by technological developments in the field of energy storage, which are resulting in improved efficiencies and lower costs. Several companies, such as Tesla, ABB, and Siemens, are investing in the development of new products and in forming strategic alliances to improve their offerings. These strategic initiatives are reshaping the market. For example, the development of advanced battery management systems by Tesla and the integration of smart grids by ABB are some examples. The market for battery storage inverters is expected to play a critical role in the transition towards sustainable energy.

Regional Market Size

Regional Deep Dive

The Battery Energy Storage Inverter Market is a growing market across the globe, owing to the increasing demand for energy storage and the increasing penetration of renewable energy. In North America, the market is characterized by the government’s strong push towards achieving its sustainable energy goals. Europe is characterized by the adoption of battery storage systems, which are facilitated by the stringent regulations on the reduction of CO2 emissions. The Asia-Pacific region is expected to be the largest market for battery energy storage, owing to the rapid industrialization and the government’s support. The Middle East and Africa are gradually adopting the technology, mainly driven by the need for energy security and diversification of energy sources. Latin America is also starting to explore the market for battery energy storage, especially in countries with abundant natural resources such as Brazil and Chile.

North America

• The Department of Energy has initiated a series of projects to promote energy storage, including the Energy Grand Challenge, which aims to accelerate the development and commercialization of batteries.
• A new state program in California, the Self-Generation Incentive Program, is promoting the use of storage batteries. The program, which provides financial incentives for the installation of battery systems in homes and businesses, has led to a dramatic increase in the use of these batteries.
• A lot of innovation is going on in the battery inverter market, with the big players such as Tesla and Enphase Energy, focusing on improving the efficiency of the inverter and reducing the cost of the inverter.

Europe

• The Green Deal of the European Union aims at making Europe the first climate-neutral continent by 2050, which is why the use of batteries is to be increased to complement the use of solar and wind energy.
• The EEG, which provides for the development of renewable energy, has promoted the use of batteries in the interest of stability and energy independence.
• ABB and Siemens are in the forefront of developing high-voltage inverters, which are designed to optimize energy management and storage.

Asia-Pacific

• China is the largest market for battery inverters, driven by the government's support for the development of new energy and electric vehicles, and the emphasis on the development of energy storage in the 13th Five-Year Plan.
• The RET has stimulated considerable investment in battery storage, and Redback has been at the forefront of inverter technology.
• The National Energy Storage Mission aims at deploying batteries for energy storage with the objective of reducing the dependence on fossil fuels and improving the resilience of the grid.

MEA

• The UAE’s Energy Strategy 2050 aims to increase the share of clean energy in the total energy mix, and this is reflected in the investment in battery storage to support solar energy projects.
• Vision 2030 is a programme of diversification of energy sources, which includes the development of batteries for the storage of solar energy.
• Large-scale battery storage projects are being developed by ACWA Power, which is to enhance the security of supply and to help the integration of the electricity grid with the use of renewable energy.

Latin America

• The National Agency for Electricity (ANEEL) is promoting the use of batteries to stabilize the grid and facilitate the integration of renewable energy sources.
• Chile has ambitious goals for the development of its renewable energy sources, and this has led to the development of many batteries, including those of companies like Enel Green Power, which are investing in innovative energy storage solutions.
• In Latin America, the growing interest in electric vehicles is increasing the demand for storage inverters, while the countries are developing the necessary structures for the transition.

Did You Know?

“The energy storage market is expected to reach a capacity of more than 300 GWh by 2023, a significant part of which will be attributed to technological advances in inverter technology, which have increased efficiency and reduced costs.” — International Energy Agency (IEA)

Segmental Market Size

The battery storage inverter plays a key role in the energy landscape, enabling the integration of batteries with wind and solar power. This market is currently experiencing strong growth, as a result of the rising demand for energy self-sufficiency and the transition to sustainable energy. The main drivers of this growth are: the increasing need for consumers to have reliable electricity supplies, government incentives for the adoption of sustainable energy and the advancements in inverter technology that enhance efficiency and performance.

At the present time, the battery inverter market is in the stage of commercial deployment, with the most prominent products being the Powerwall from Tesla and the RESU from LG Chem. These products are being used on a large scale in places such as California and Germany. The main applications are in residential solar systems, in commercial energy management, and in grid stabilization. There are several drivers that are driving the market forward. The first is the increasing demand for energy from renewable sources, while the second is the trend towards greater use of smart grids.

Future Outlook

The market for battery storage inverters is expected to grow significantly from 2024 to 2032. The market is expected to grow from $27.21 billion to $58.3 billion, at a robust compound annual growth rate (CAGR) of 10.0%. This growth is driven by the growing demand for renewable energy sources, especially solar and wind, which require efficient energy storage solutions. Since more and more consumers and businesses are acquiring batteries to ensure their energy supply and reduce their costs, the penetration of battery storage inverters is expected to reach about 25% of the total inverter market by 2032, compared to about 15% in 2024. In addition, the inverter technology will continue to develop, and the efficiency of the inverter will improve, and the inverter will be integrated with smart grids to optimize the management and use of energy.

A new generation of inverters will be developed with enhanced functions such as real-time monitoring and grid support functions, which will accelerate the market growth. Furthermore, the policy support for the promotion of green energy will be an important factor in the market. The emergence of electric vehicles, the trend of energy conservation and independence, will also stimulate the demand for battery storage inverters. However, the regulatory environment will also change, and the technology will change, and the market will also change.