Solar Inverters Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Central, String, and Micro), System Type (On-Grid and Off-Grid), and End User (Residential, Commercial, and Utility)

Solar Inverters Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Central, String, and Micro), System Type (On-Grid and Off-Grid), and End User (Residential, Commercial, and Utility)

The global solar inverters market is expected to grow from US$ 9,153.73 million in 2021 to US$ 16,327.06 million by 2028. It is estimated to grow at a CAGR of 8.9% during 2022–2028.

Investment in solar energy have improved significantly along with economic growth, however, there are significant country-by-country variations. Further, global energy demand had increased by 4.6% in 2021, more than offsetting the 4% contraction in 2020, according to the International Energy Agency (IEA) estimates. The anticipated growth in investments in 2021 is a mixture of a cyclical response to recovery in economy and a structural shift in capital flows towards cleaner technologies. After staying flat in 2020, global power sector investment had increase by around 5% in 2021 to more than US$ 820 billion, according to the IEA estimates. Renewables energy sector dominates investment in new power generation and is expected to account for 70% of 2021's total of US$ 530 billion spent on all new generation capacity, according to the latest IEA estimates. Renewable energy sector investment has grown in markets due to well-established supply chains and where lenders and financiers that understand these sectors are seeking sustainable projects to support.

Further, investment in the renewable energy sector in India surged more than 125% year-on-year to touch a record US$ 14.5 billion in the financial year 2021-22 (FY22), a report released by the Institute for Energy Economics and Financial Analysis (IEEFA) in June 2022. Conglomerates such as Reliance Industries (RIL) and the Adani group have ambitious plans to ramp up their renewable energy capacity.

Thus, with the increasing investment towards renewable energy sector help in cresting opportunities for solar inverters market players because with the rapid development of the renewable energy sector, the solar inverters market will also grow respectively.

Impact of COVID-19 Pandemic on North America Solar Inverters Market

The need for solar inverters was prevalent during the pre-COVID-19 era because of the growing urban population. Due to the increasing population, infrastructural development was increasing. According to the article published by the Journal of Commerce Online, the US Department of Transportation (DOT) allocated grants of ~US$ 856 million to Infrastructure for Rebuilding America (INFRA) for constructing 20 projects across the US. Thus, the need for developing infrastructure supported the growth of the solar inverters market in North America.

In North America, the US, Canada, and Mexico witnessed a significant rise in COVID-19 patients in 2020. The pandemic resulted in economic challenges due to subsequent lockdowns. In 2020, the manufacturing industries were severely affected due to a drastic decrease in product demand, falling prices, and storage shortages. A swift decline in manufacturing revenues due to virtually nonexistent manufacturing demand and slow production capabilities has limited the expenditure on installing or upgrading existing solar inverters across the industries in North America. Moreover, periodic maintenance and discontinuation of operation among existing manufacturing plants have hampered the demand for solar inverters. Thus, the COVID-19 pandemic has adversely affected the North America solar inverters market.

In 2021, the manufacturing industry started recovering from the significant labor and supply chain challenges that triggered the adoption of solar inverters. In 2022, solar inverters will have a higher demand in North America due to the continued progress in the renewable energy sector.

Based on type, the solar inverters market is segmented into central, string, and micro. The central segment led the market with the largest share in 2021. Based on system type, the market is bifurcated into on-grid and off-grid. The on-grid segment led the market with a larger share in 2021. Based on end user, the market is segmented into residential, commercial, and utility. The utility segment led the market with the largest share in 2021. By geography, the solar inverters market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). The APAC segment led the market with the largest share in 2021.

The overall solar inverters market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the solar inverters market with respect to all the segments.

The study offers the overview and forecast for the market based on all the segmentation provided with respect to 5 major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the solar inverters market.

The key companies operating in the solar inverters market are ABB Ltd; Delta Electronics, Inc.; Enertechups; GOODWE; Power Electronics SL; Powerone Micro Systems Pvt.Ltd; Sineng Electric; SMA Solar Technology AG; Solaredge Technologies Inc.; and Hitachi Hi-Rel Power Electronics Pvt Ltd.

Factors such as a rising number of solar installations attributed to government-led incentives & schemes and growing residential solar rooftop installations influence the solar inverters market growth. Further, the increasing investments in the renewable energy sector and technological innovations in solar inverters are among the factors contributing to the solar inverters market growth. However, the safety risks associated with high DC voltages in solar inverters are restraining the solar inverters market growth.

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