Solar Inverters Market Forecasts to 2028 – Global Analysis By Product Type (String Inverter, Micro Inverter, Central Inverter and Other Product Types), Connection (Off-Grid and On-Grid), Phase (Single Phase and Three Phase), Power Output (? 0.5 kW, 0.5 - 3 kW and Other Power Outputs), Power Voltage (? 230 V, 230 - 400 V and Other Power Voltages), End User and Geography
According to Stratistics MRC, the Global Solar Inverters Market is accounted for $8.97 billion in 2022 and is expected to reach $16.33 billion by 2028 growing at a CAGR of 10.5% during the forecast period. Solar inverters transform the DC electricity generated by solar panels into AC power. In addition to converting power, solar inverters track voltage, permit communication with the grid, and shut down in emergency situations. As a result, greater usage of on-grid solar inverters protects the security and effectiveness of household appliances. On-grid solar inverters create pure sine wave of AC energy as opposed to off-grid inverters. Electricity is provided by the solar inverter in places like commercial, industrial, and residential ones. And, solar inverters are being employed in more and more commercial and industrial applications worldwide nowadays.
According to the Paris Agreement commitments, the Government of India set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. Out of the 175 GW, 100 GW was earmarked for solar capacity with 40 GW (40%), which was expected to be achieved through decentralized and rooftop-scale solar projects.
Market Dynamics:
Driver:
Growing consumer awareness
The relevance of the solar inverter is increasing internationally due to rising environmental concerns and rising consumer awareness of solar inverters. The solar inverter is regarded as a crucial component in the production of power. Solar energy is both free and plentiful in nature. Key market participants find the manufacture and manufacturing of solar inverters to be rather simple. Because there are just two costs, installation and operation costs, it is also advantageous for end users. This is highly sought for worldwide and is extremely financially possible.
Restraint:
High cost
High costs, high heat loss in large-scale solar inverters, and the lack of panel-level monitoring are the primary problems limiting industry growth in the upcoming years. Rising prices caused by demand and supply chain disruption, as well as access to next-generation auxiliary technologies, are some of the constraints restraining the solar inverter market's growth.
Opportunity:
Technological advancements
The global market for solar inverters is expected to expand and flourish as a result of technical innovation and improvements. The solar inverters are being equipped with the most recent and cutting-edge characteristics. This aids consumers in meeting the rising demand for power. The installation of a solar inverter is seen to be necessary and lucrative in hot climates. As a result, during the anticipated period, this will fuel the expansion and development of the worldwide solar inverter market.
Threat:
Availability of substitute technologies for power generation
An expansion in the use of natural gas for power generation has been brought on by the abundance of the fuel and comparatively low cost, particularly in North America, China, and Thailand. The global energy mix is predicted to include more gas-fired power generation as a result of growing attention on producing electricity from cleaner sources and the depletion of coal reserves, which will constrain the expansion of the solar inverter market.
Covid-19 Impact
Due to the worldwide COVID-19 pandemic breakout and government-imposed lock down measures, there has been a fall in demand for solar panels. This has had a detrimental effect on the worldwide solar inverter market. Residential and commercial end-user demand for the solar inverter has decreased as a result of limited new building activities and the utilisation of available finances by residential and commercial end-users to survive during the COVID-19 epidemic.
The central inverter segment is expected to be the largest during the forecast period
The central inverter segment is estimated to have a lucrative growth, due an increase in demand for central inverters from significant industrial and utility applications worldwide. It is also anticipated that fast industrialization and the development of renewable energy infrastructure in developing nations like China, India, Japan, and others would increase demand for central inverters. When properly maintained and installed, these inverters are very dependable and are kept in a secure position. The inverters take the DC electricity from all the PV panels and convert it into AC power, forming a single point for power distribution. The inverters are integrated with big arrays put on field sites, industrial facilities, and buildings.
The utilities segment is expected to have the highest CAGR during the forecast period
The utilities segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increased investment in utility-scale solar power plants, solar parks, and other solar structures. The central & string inverter is the solar inverter that is most frequently utilised in the utility industry. The utility industry is expanding for several reasons, chief among them the rising demand for renewable energy, the falling cost of solar energy and equipment, and the emergence of government subsidies. The category is growing as a result of the presence of major companies who provide customers market-leading utility-scale solutions through their pre-integrated power plants to increase efficiency and lower balance-of-system costs.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period due to factors including escalating governmental activities and the existence of significant market participants in the area. The solar market in this region is expanding quickly, and China is both a key worldwide competitor and its greatest provider. The expansion of the industry in the area has also been greatly aided by the rising number of solar installations in emerging countries.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to the existence of pro-renewable-energy government policies and the availability of incentives like residential feed-in tariffs (FITs) that motivate consumers to make such investments. Due to the high-tech nature of the inverters, Germany is a global leader in the production of solar inverters. As a result, German solar businesses have an edge over other players.
Key players in the market
Some of the key players profiled in the Solar Inverters Market include Power Electronics S.L, Fimer Group, SunPower, ABB Ltd, Hitachi Hi-Rel Power Electronics Pvt Ltd., Sineng Electric, Mitsubishi Electric Corporation, Siemens AG, Delta Electronics, Inc., Schneider Electric SE, SMA Solar Technology AG, Omron Corporation, Solaredge Technologies Inc., Powerone Micro Systems Pvt.Ltd, Enertechups
Key Developments:
In March 2020,the Fimer group acquired ABB’s solar inverter business making the company the 4th largest solar inverter manufacturer globally. This acquisition strategy will help the company to boost its presence globally.
In November 2019, Power Electronics received an international award from Camara Valencia. The award was presented due to its effort to make itself a strong leader in marketing solar inverters and making its strong foothold across America, Spain, and United Kingdom.
In July 2019, SUNGROW announced that the company became the largest supplier of Central and string inverters across the American region. This progress will help the company provide non-stop post-sale and service support to its clients across the region.
Product Types Covered:
• String Inverter
• Micro Inverter
• Central Inverter
• Other Product Types
Connections Covered:
• Off-Grid
• On-Grid
Phases Covered:
• Single Phase
• Three Phase
Power Outputs Covered:
• ? 0.5 kW
• 0.5 - 3 kW
• 3 - 33 kW
• 33 - 110 kW
• 110 kW
Output Voltages Covered:
• ? 230 V
• 230 - 400 V
• 400 - 600 V
• 600 V
End Users Covered:
•Commercial
•Industrial
•Utilities
•Residential
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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