Global Inverter Market - 2022-2029

Global Inverter Market - 2022-2029

Market Overview

The global inverter market size was worth US$ XX million in 2022 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

A power inverter is a circuit or device that transforms direct current (DC) to alternating current (AC). The equipment utilized determines the frequency of the generated AC. Inverters are the opposite of converters, large electromechanical devices used to convert AC to DC. The device or circuitry design determines various process parameters such as input voltage, output voltage, frequency, and total power handling.

The inverter does not create power; instead, it receives it from the DC source. A power inverter might be entirely electronic or comprised of mechanical and electronic components. Inverters that do not use moving parts in the conversion process are called static inverters. Power inverters are typically utilized in electrical power applications with large currents and voltages; oscillators are circuits that provide a similar job for electronic signals with very low currents and voltages. Rectifiers are circuits that perform the reverse purpose, converting AC to DC.

Market Dynamics

The growing demand for material handling equipment in various end-user industries mainly drives the need for inverters. It is the most important driver for the market. High costs involved in the adoption of solar energy are a key factor in limiting the growth of this market.

Growing global adoption of solar energy

Humanity is experiencing peril due to the consequences of man-made climate change. It has caused ecological disruption, altered weather patterns and global warming, among other things. An urgent movement to decarbonize global energy is underway to mitigate the worst effects of man-made climate change. World governments announced a historic pledge to achieve carbon neutrality by 2050 at the COP26 session in November 2021.

To reach carbon neutrality within the agreed-upon timeframe, massive investments in renewable energy must be made. The investments are also viewed as an economic stimulus to aid in the recovery of the country's economies following the economic downturn caused by the pandemic. Several countries worldwide have set aside large funds for renewable energy development.

Solar energy is the most attractive option for the adoption of renewable energy. It can be deployed on residential and commercial premises and through the construction of large solar power plants. Wind energy requires significant capital investment and land resources and is, therefore, a less attractive option. Governments worldwide are providing various subsidies, tax credits and acquisitions that have encouraged the adoption of solar energy.

The rise in the adoption of solar energy has been beneficial for the inverter market. Inverters convert the direct current (DC) produced by solar panels into an alternating current (AC) suitable for the electricity grid and domestic usage, making them a critical component of the solar energy system. The growing adoption of solar energy is a key driver of the growth of the global inverter market.

High costs involved in the adoption of solar energy

Solar energy has several concrete benefits, not the least being a clean energy source. In the previous decade, the cost of solar electricity has plummeted by more than 90%, from approximately US$359 per GW to less than US$ 40 per GW. Cost reductions have been aided by economies of scale, continuous investment in renewable energy and substantial technology advancements. However, due to other variables, solar energy still has greater costs.

Today, solar panels have an average efficiency of 17-19%, depending on kind and technology. As a result, many solar panels are necessary to generate a considerable amount of energy. Solar power facilities require a lot of land resources, which drives up costs because land acquisition is a costly procedure. Furthermore, even for residential solar projects, rooftop solar panel mounting is expensive due to the high cost of solar panels and the high cost of the installation process, which necessitates the use of a qualified specialist.

Inverters were mainly used as battery backup systems, however, with advances in modern grid technology, the grid's stability has improved and the usage of inverters for battery backup has declined considerably. Inverters are now mainly used in solar energy systems to transfer the produced electricity to the grid and for commercial use. The high costs involved in the adoption of solar energy are a key challenge to the growth of the global inverter market.

COVID-19 impact analysis

The COVID-19 pandemic caused a severe impact on the global inverter market starting in 2020. The pandemic prompted governments worldwide to impose lockdowns and other forms of movement restrictions. It has severely affected manufacturing activities, resulting in a depression in the production of inverters.

Manufacturers outsource the numerous components required to construct inverters to offshore subcontractors. The supply chain is global, encompassing various small, medium and large businesses. As a result, the supply chain is fragile and highly susceptible to external shocks. The global epidemic has wreaked havoc on the worldwide supply chain and logistics, jeopardizing inverter manufacturing. The construction backlog is unlikely to be cleared until the end of 2021. Many new solar energy projects are now on hold due to material shortages and logistical issues in the supply chain.

The COVID-19 epidemic has had a significant short-term impact on the inverter industry. New projects were delayed due to major cuts to capital expenditures and new investments in reaction to the epidemic's economic crisis. The pandemic will modestly influence the global inverter market's medium to long-term growth as governments prioritize energy sector investment to assure energy security. Investment is also considered a method to stimulate national economies after the economic decline experienced during the pandemic. The demand for inverters is still high and it is likely to continue to rise in the coming years.

Segment Analysis

The global inverter market is segmented into type, power rating, voltage, end-user and region. The inverter market is segmented into below 10 kW,10-50 kW, 50-100 kW and above 100 kW and double-acting inverters based on power rating. Below 10 kW is leading in this segmentation since it is the most widely used power rating of inverters. Inverters with a power rating of below 10 kW are mainly used for various domestic and commercial applications

Geographical Analysis

Asia-Pacific accounts for the largest share of the global inverter market because key nations such as China and India have developed massive solar energy capacity. Governments are making large investments in solar energy and many major projects are under construction in the Asia-Pacific.

With almost 253 GW of existing capacity and plans to develop 1200 GW of total solar energy capacity by 2030, China has the world's greatest solar energy capacity. The Huanghe Golmund solar park, the Longyangxia Dam solar park and the Tengger Desert solar park are among the world's largest solar parks. India is another country in the region that has made major investments in solar energy development.

In 2022, India's total solar capacity was nearly 50 GW, with an almost 450 GW capacity increase projected by 2030. The Bhadla solar park in India, which has a capacity of 2245MW, is the world's largest solar power facility. Another big solar power project in India is the Pavagada solar park. Because of India and China's continuous investment in solar energy, the Asia-Pacific region will continue to have the largest share of the global inverter market.

Competitive Landscape

The global inverter market is competitive due to various operational technologies and solutions that cater to different types of industrial and commercial requirements. Some of the major players contributing to the growth in the segment are Sungrow SMA, Solar Technology AG, SolarEdge Technologies Inc., Fronius International GmbH, ENF Ltd., Enphase Energy, Darfon, Samlex America, BESTEK and BorgWarner Inc. The major players in the inverter market adopt several growth strategies such as joint ventures, research tie-ups, up-gradation of existing products, new product launches, collaborations, mergers and acquisitions, thereby contributing to global growth in the industry.

Sungrow

Overview: Sungrow Power Supply Co. Ltd is an engineering company specializing in designing and producing inverters and other energy storage systems for residential, commercial and industrial applications. The company's products are sold in more than 150 countries globally. Sungrow was founded by a group of university students in 1997. The company is headquartered in Hebei, China.

Product Portfolio

SG8.0/9.0/10RS is Sungrow's main string inverter system for residential and commercial rooftop solar applications. It has a maximum input power of 12kW and a maximum input voltage of 600V. The inverter system is compliant with all existing IEC regulations.

Key Developments

In 2022, Sungrow power announced it was providing inverter and energy storage systems for Stratega Energy's 362 MW renewable energy project in UK. The company hopes to expand its footprint in the European market with the new business.

Why Purchase the Report?

Visualize the composition of the inverter market segmentation by the type, power rating, voltage, end-user and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the inverter market by analyzing trends and co-development deals.

Excel data sheet with thousands of global inverter market-level 4/5 segmentation data points.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Type mapping in excel for the critical product of all major market players

The global inverter market report would provide access to an approx.: 65 market data tables, 68 figures and 220 pages.

Target Audience 2022

Inverter manufacturing companies

Renewable energy technology companies

Utility companies

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals