by The power voltage inverter (PV) inverter market is poised to grow exponentially in coming years owing to increasing reliance on renewable energy sources for power generation. PV inverters act as a crucial link between solar panels and the electricity grid as they convert the direct current (DC) generated by solar panels into alternating current (AC) that can power home appliances or be fed into the larger utility grid. Majority of residential and commercial-scale solar power systems rely on small and medium power PV inverters respectively to maximize the potential of solar energy available from the sun.
The Global PV Inverter Market is estimated to be valued at US$ 15.28 BN in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the PV Inverter Market Demand are Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, SunPower Corporation, Omron Corporation.
Growing environmental concerns and supportive government policies promoting adoption of renewable energy have led to surging demand for solar power globally. Reliability and efficiency of PV inverters is critical to ensure maximum utilization of solar energy generated. Leading inverter manufacturers are focusing on developing advanced inverter solutions with higher conversion efficiency and power density.
Countries in Asia Pacific, Latin America, Middle East and Africa present vast untapped growth opportunities for solar power plants owing to abundance of sunshine. PV inverter manufacturers are expanding their distribution networks and setting up manufacturing facilities in these emerging solar markets to capitalize on the growing worldwide shift towards clean energy.
Market Key Trends
Governments are offering attractive subsidies and tax incentives for residential solar projects which use solar inverters to feed surplus energy into the grid. This is a major demand driver for grid-tie PV inverters with higher power ratings. Additionally, data from satellites is enabling the development of solar forecasts which help solar inverters optimize energy harvest and distribution according to changing solar conditions. This emerging technology trend is set to enhance total energy generation capability from solar assets.
Porter’s Analysis
Threat of new entrants: Entry into PV Inverter market requires substantial investments in R&D and manufacturing facilities which limits threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated products offered by vendors.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternative component suppliers and commoditization of raw materials.
Threat of new substitutes: Threat of substitutes is low as PV Inverters have few alternatives for efficient solar power generation.
Competitive rivalry: Market is competitive with major global players competing on product quality, features, pricing and service.
Geographical Regions
Asia Pacific region holds the largest share of global PV Inverter market in terms of value owing to presence of major renewable energy producers like China, Japan and availability of supportive government policies.
Middle East and Africa region is expected to witness fastest growth during forecast period due to increasing investments in solar projects, growing off-grid electrification and conducive climatic conditions that support solar power generation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
