Renewable Energy Inverters Market Size

Market Size Snapshot

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

The global market for inverters for converting solar energy is valued at approximately $11.84 billion in 2023 and is projected to reach $21.15 billion by 2032, at a robust CAGR of 7.76 percent from 2024 to 2032. This growth is due to the rising use of renewable energy, particularly solar and wind, and the growing need for inverters that can efficiently convert and manage the energy. The demand for inverters is soaring, as countries are aiming for ambitious carbon reduction goals and converting their energy systems to a sustainable one. The growth of the market is also being driven by technological developments, such as the development of smart inverters that help stabilize the grid and optimize energy management. Also, government initiatives and subsidies for the installation of solar and other renewable energy sources are helping to spur the market growth. Leading companies such as SMA Solar Technology AG, ABB Ltd., and Enphase Energy are also collaborating and launching new products to strengthen their market positions. These companies have launched inverters with integrated energy storage and enhanced grid compatibility.

Regional Market Size

Regional Deep Dive

Despite the fact that the world's population is growing and the demand for energy is growing, the inverter market for the generation of renewable energy is growing at a steady pace. In each region, the inverter market is influenced by a different combination of investment in the renewable energy industry, regulations and social attitudes towards the environment. In order to achieve the goals of climate protection, the transition to the use of inverters for the generation of renewable energy is becoming an important part of the energy conversion strategy, which is based on the efficiency and stability of the energy system.

Europe

• In the first place, the European Union’s Green Deal is aimed at making Europe the first climate-neutral continent by 2050. This will increase investment in all renewable energy sources, including inverters. The leading companies in this field are SMA Solar Technology and Fronius.
• Germany's ambitious plans to phase out coal by 2038 and increase the share of renewables in its energy mix are prompting innovations in inverter technology, particularly in energy storage solutions that complement solar and wind energy.

Asia Pacific

• China is the world's largest inverter market, and Sungrow Power Supply and Huawei have been developing inverters for both the domestic and overseas markets.
• India's government initiatives, such as the National Solar Mission, are fostering a favorable environment for inverter manufacturers, with a focus on local production and technology transfer to enhance energy access in rural areas.

Latin America

• Brazil's growing interest in solar energy, supported by the government's net metering policy, is leading to increased demand for inverters, with local companies like WEG and international players like ABB expanding their presence in the market.
• Chile's ambitious renewable energy targets, including a goal to generate 70% of its electricity from renewable sources by 2050, are driving innovations in inverter technology, particularly in energy storage and grid integration.

North America

• The U.S. has seen a surge in solar energy installations, with companies like Enphase Energy and SolarEdge Technologies leading the inverter market by innovating with smart inverter technologies that enhance grid stability and energy management.
• California's recent legislation mandating that all new homes be equipped with solar panels and inverters is expected to significantly boost the demand for residential inverters, setting a precedent for other states to follow.

Middle East And Africa

• The UAE's commitment to diversifying its energy sources is exemplified by the Mohammed bin Rashid Al Maktoum Solar Park, which is expected to drive demand for high-efficiency inverters as the country invests in large-scale solar projects.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is attracting global inverter manufacturers to participate in the growing renewable energy sector, emphasizing the need for reliable inverter technology.

Did You Know?

“In 2022, the global market for solar inverters reached a capacity of over 200 GW, highlighting the rapid adoption of solar energy technologies worldwide.” — International Energy Agency (IEA)

Segmental Market Size

The inverters for the conversion of the energy of the sun and wind are the most important sub-markets in the broader renewable energy industry, and the market is currently experiencing rapid growth due to the increasing demand for solar and wind energy solutions. There are a number of factors driving this growth, including the stricter regulations in place to reduce carbon emissions and the growing preference of consumers for sustainable energy sources. In addition, technological advancements in inverter efficiency and the integration of smart grids have increased the appeal of renewable energy systems. The inverter market is now in the process of being developed at a large scale. The market leaders in terms of inverter innovation are SMA Solar Technology and Enphase Energy. The main growth regions are Europe and North America, which have ambitious targets for the uptake of renewable energy. Inverters are used in a wide range of applications, including in the residential sector, in commercial applications and in large-scale utility-scale projects. The future of the inverter market is shaped by the technological developments in power electronics and digital technology.

Future Outlook

The global market for inverters in the renewable energy sector is expected to grow at a CAGR of 7.76% from 2023 to 2032. This is due to the increasing shift towards the use of green energy sources, driven by rising energy demands, environmental concerns, and government policies to reduce CO2 emissions. The rising adoption of solar and wind energy systems in countries pursuing their climate goals is also expected to lead to a rise in the demand for inverters that can efficiently and reliably convert renewable energy into electricity. Meanwhile, the development of smart inverters and the integration of inverters with energy storage systems are expected to further boost market growth. Inverters that are equipped with advanced features such as grid support and real-time monitoring are becoming increasingly necessary to manage the complexities of modern energy systems. Also, the growing trend towards decentralized energy production and the increasing popularity of electric vehicles and energy storage solutions are expected to create new opportunities for inverter manufacturers. As the market evolves, the players must be nimble and responsive to take advantage of the emerging trends and to meet the growing demand for sustainable energy solutions.