Solar Inverter Market Size

Market Size Snapshot

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

The global market for solar inverters was valued at about $13.69 billion in 2022 and is projected to reach $18.93 billion by 2030, growing at a CAGR of 5.7% from 2024 to 2030. This growth will be driven by the increasing demand for solar energy solutions. The shift toward renewable energy sources, coupled with government initiatives to promote the installation of solar panels, is driving the growth of the market. Also driving the growth of the market is the technological advancements in inverters, such as the development of smart inverters that enable effective energy management and grid integration. The growing awareness of the importance of sustainable development and the need for energy self-sufficiency is encouraging the residential and commercial sectors to invest in solar energy systems. The major players, such as SMA Solar Technology AG, Enphase Energy, and SolarEdge, are focusing on launching new products and launching strategic collaborations to enhance their market presence and meet the evolving demands of consumers. These efforts will further drive the growth of the market and cement the role of inverters in the global energy sector.

Regional Market Size

Regional Deep Dive

The solar inverter market is growing at a fast pace across the globe, owing to the growing demand for clean energy, technological advancements, and supportive government policies. Each region has its own characteristics that influence the market dynamics. The solar inverter market is expected to grow in regions that are focusing on reducing carbon emissions and achieving their national sustainability goals. Technological advancements and integration with energy storage systems are expected to play a crucial role in improving the efficiency and reliability of the inverters.

Europe

• The European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050, driving demand for solar inverters as countries like Germany and Spain ramp up their solar capacity.
• Innovations in smart inverter technology are being spearheaded by companies such as SMA Solar Technology and Fronius, enhancing grid stability and enabling better integration of renewable energy sources.

Asia Pacific

• China remains the largest market for solar inverters, with government initiatives like the 14th Five-Year Plan promoting solar energy as a key component of the country's energy transition.
• India's Solar Mission aims to achieve 100 GW of solar power by 2022, leading to increased demand for efficient inverter solutions from local manufacturers like Tata Power Solar and international players like ABB.

Latin America

• Brazil's National Solar Plan aims to increase solar capacity, with regulatory support from the government encouraging investments in solar inverter technology.
• Chile's solar market is booming, with projects like the El Romero Solar Plant showcasing the need for high-efficiency inverters to manage large-scale solar energy production.

North America

• The U.S. has seen a surge in solar installations, with the Biden administration's commitment to clean energy and the extension of the Investment Tax Credit (ITC) significantly boosting the solar inverter market.
• California's ambitious goal to achieve 100% clean energy by 2045 has led to increased investments in solar technology, with companies like Enphase Energy and SolarEdge Technologies leading the charge in innovative inverter solutions.

Middle East And Africa

• The UAE's commitment to diversify its energy sources has led to significant investments in solar projects, with the Mohammed bin Rashid Al Maktoum Solar Park being a flagship initiative that drives demand for advanced solar inverters.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has attracted global players, fostering competition and innovation in the solar inverter market.

Did You Know?

“In 2020, the global solar inverter market was estimated to be worth over $10 billion, with a significant portion driven by advancements in smart inverter technology that enhances grid management.” — International Energy Agency (IEA)

Segmental Market Size

The solar inverter market is a critical segment of the renewable energy sector, and is currently experiencing robust growth, owing to the increasing demand for solar energy solutions. The factors driving the growth of the solar inverter market are the growing focus on sustainable energy, supportive government policies such as tax incentives and renewable energy mandates, and advancements in inverter technology which enhance efficiency and reliability. Among the countries where the adoption of solar inverters is highest are California and Germany. In terms of applications, the primary ones for solar inverters are in residential, commercial, and utility-scale solar energy systems. In the case of residential solar energy systems, for instance, smart inverters are used for better energy management and grid interaction. The current trend of decarbonization and energy independence, combined with government initiatives promoting clean energy, is driving the market for solar inverters. Among the key developments in the solar inverter market are the introduction of microinverters and string inverters, which enable more efficient energy conversion and management, and enhanced performance of solar energy systems.

Future Outlook

The Solar Inverter Market is expected to show a strong growth from 2022 to 2030. The market is expected to increase from USD 12.84 billion to USD 18.93 billion, with a robust compound annual growth rate (CAGR) of 5.7%. The growth of the market is mainly driven by the rapid development of the solar inverter industry, the rising demand for energy, the growing concern for the environment, and the favorable policies of governments to promote the development of new energy sources. By 2030, the share of solar inverters in the global market for new energy will exceed 27%, and in North America, Europe and Asia-Pacific, the penetration rate will exceed 31%. In addition, the development of string inverters and microinverters, which have better performance and lower costs, will also drive the market growth. The combination of smart technology and energy storage solutions will optimize the performance of solar power systems, and the system will become more popular among consumers and businesses. As the world's decarbonization momentum continues to accelerate, more and more investment in solar power will be made, which will make the solar inverter market a key industry in the future energy landscape.