Solar Inverter Market

Global Solar Inverter Market

Solar Inverter Market- By Product Type, Connection Type, Phase, End User, and Region.

Market Synopsis:

The Global Solar Inverter Market is valued at USD 7.59 Billion in the year 2022 and is forecasted to reach a value of USD 14.46 Billion by the year 2030. The Global Market is anticipated to grow exhibiting a Compound Annual Growth Rate (CAGR) of 8.40% over the forecast period.

The Solar Inverter is a crucial component of a solar system since it transforms DC power from solar panels to AC power. Apart from conversion, Solar Inverters also track voltage, communicate with the grid, and shut down in an emergency. On-grid Solar Inverters create a more pure sine wave of AC energy than off-grid inverters, ensuring the safety and efficiency of home equipment. Moreover, solar inverters are most typically utilized in residential and utility applications, but they are gradually finding their way into commercial and industrial projects all over the world.

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The Solar Inverter Market is being driven by the rapidly expanding demand for renewable energy, continuous rural electrification, favorable government policies, and investments in renewable energy. Also, the market is developing due to the increasing number of solar power plants connected to the grid via on-grid inverters and feed-in tariff (FIT) laws. Furthermore, the demand for energy is increasing year after year, which is boosting the demand for various renewables such as solar energy and equipment. Alternative energy, particularly wind and solar, has been put on the back burner since the drop in gas prices in 2021, and the trend has rippled across several businesses.

Market Segmentation:

The Solar Inverter Market is segmented on the basis of Product Type, Connection Type, Phase and End User. On the basis of Product Type, the market is segmented into Central Inverter, String Inverter, and Micro Inverter. On the basis of Connection Type, the market is segmented into On-grid, and Off-grid. On the basis of Phase, the market is segmented into Single-phase and Three-phase. On the basis of End User, the market is segmented Residential, Commercial & Industrial and Utilities.

Based on Product Type:

In terms of revenue, the central inverter had the most share in 2021. These inverters are extremely dependable when properly maintained and are installed in a secure location. The inverters are integrated with huge arrays put on field sites, industrial facilities, and buildings, transforming DC power from all PV panels into AC power and serving as a single point of power distribution.

Besides, in 2021, the string inverter sector held the second-largest market share. String inverters are mostly employed in commercial and residential applications. The rise of the market is mostly due to lower startup costs and ease of installation. These inverters are tough, have a lot of design freedom, are efficient, have three-phase variations, are well-supported (by reputable brands), and can be monitored remotely.

Over the forecast period, the micro-PV inverters market is expected to increase at a significant rate. Micro PV inverters are electrical modules that have grown popular in the commercial and industrial sectors. High reliability, better efficiency and performance through Maximum Power Point Tracking (MPPT), ease of installation, no space limits, and cost-effectiveness are key advantages of these inverters.

Based on Connection Type:

The market is divided into two types of connections: on-grid and off-grid. The on-grid segment led the Solar Inverter Market in 2021. This is attributed to rising electricity and power generation investments. In nature, the on-grid Solar Inverter is cost effective. The majority of on-grid Solar Inverters are found in residential regions. In contrast, the off-grid segment is expected to grow at the fastest rate in the next years. Off-grid Solar Inverters are becoming more widespread, and they frequently include a backup power supply. Off-grid inverters are Solar Inverters that are not connected to the grid.

Asia Pacific Region to Stand Firm on its Leading Position in the Solar Inverter Market

Asia Pacific is projected to acquire the largest market share during the year 2021 with a share of 36.10%. China is the main contributor to the Solar Inverter Market's quick expansion in this region, as well as a major global competitor. A growing number of solar installations in developing countries has also helped to propel the market forward in the area. Increased investments in industrial automation solutions, increased emphasis on regulations that demand operational and workforce safety, expansion of power generation capacities of plants, electrification of the transportation sector, and reduction in the production and operational costs of power plants due to technological advancements in APAC's emerging economies are driving the Solar Inverter Market's growth.

Moreover, India contributes to the second largest share to the growth in the APAC region. Other major factors contributing to the growth of the Solar Inverter Market in India include rising consumer awareness, increasing participation of residential and commercial segments in solar system installations, supportive government policies and solar schemes, and increasing private sector involvement. However, due to a drop in market demand during the lockdown period across the country, the ongoing pandemic COVID-19 decreased the growth rate of market revenues in 2021. Furthermore, the market began to show indications of progress in the second part of the year, with the gradual opening of the economy and removal of lockdown measures and is expected to return to a normal development trajectory in the future years.