“Large inflow of investments in the renewable energy sector is projected to drive the growth of the inverter market.”
The global inverter market is projected to grow from USD 12.8 billion in 2020 to USD 26.5 billion by 2025; it is expected to grow at a CAGR of 15.6% from 2020 to 2025. The growth of the market is driven by a large inflow of investments in the renewable energy sector and rise in the number of residential solar rooftop installations. The power supplied by renewable energy sources such as solar and wind deals with issues related to supply and demand mismatch. Solar energy is highly dependent on external conditions; however, with the use of solar inverters, the issues of insufficient energy supply can be eliminated, thereby enabling end users to generate maximum electricity and release it to grids when required. Thus, inverters solve the issues related to energy supply and demand mismatch and intermittent problems associated with renewable energy resources. Inverters have a long life. They enable optimum power generation and ensure scalability, flexibility, and safety of power devices. Solar inverters are widely used in applications that use renewable solar PV energy. The prolonged use of inverters to power different devices and systems installed in vehicles can create a strain on the batteries of vehicles and eventually leading to their failure. This is one of the restraining factors for the growth of the inverter market.
“The solar inverters segment projected to hold a larger share of the inverter market than the non-solar inverters segment during the forecast period.”
Micro inverters are plug-and-play compact solar inverter systems, which are installed beneath every solar panel in a solar array. The main function of these inverters is to convert DC power generated by solar panels into AC at each panel level and transmit it further either for direct use or to a grid. Micro inverters have been gaining traction owing to a number of benefits offered by them. For instance, they enable monitoring, as well as optimization of each solar panel individually to generate maximum power. This facilitates panel-level Maximum power point tracking (MPPT), thereby enabling end users to enhance the performance of their solar systems. Micro inverters have a simpler design and higher reliability than other types of inverters. The increase in the adoption of micro inverters is driving the growth of the solar inverter market at a significant pace.
“The direct sales channel segment of the inverter market to grow at a higher CAGR than the indirect sales channels segment during the forecast period.”
Inverters used by automotive and residential end users are easy to use and install. The inverters procured are mostly installed by end users themselves. Moreover, factors such as the increased global electric vehicle production and rise in the adoption of micro inverters and hybrid inverters that are integrated with small- or medium-sized rooftop solar installations by the residential and commercial end users contribute to the growth of the direct sales channel segment of the inverter market during the forecast period.
“The solar inverter market in APAC projected to grow at the highest CAGR from 2020 to 2025.”
The growth of the solar inverter market in APAC can be attributed to the increased demand for inverters from major countries such as China, India, Japan, and South Korea of the region. These countries have a significant potential for the growth of the heavy-duty industries. The solar inverter market in APAC is growing owing to the increased adoption of connector solutions in the commercial and residential sectors. The rising demand for inverters from the residential, automotive, and PV plants in India, China, and Japan is fueling the growth of the solar inverter market in APAC.
To determine and verify the market size of several segments and subsegments, extensive primary interviews have been conducted with key opinion leaders in the inverter market. Following is the breakup of the primary participants:
- By Company Type: Tier 1 = 45 %, Tier 2 = 35%, and Tier 3 = 20%
- By Designation: C-level Executives = 40%, Directors = 45%, and Others = 15%
- By Region: North America = 30%, Europe = 20%, APAC = 35%, and RoW = 15%
The report profiles the key players in the inverter market and analyzes their market rankings. A few prominent players profiled in this report include Huawei Technologies (China), Sungrow Power Supply (China), SMA Solar Technology (Germany), Power Electronics (Spain), and ABB (Switzerland).
This research report categorizes the inverter market based on type, output power rating, output voltage, sales channel, end user, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to this market, as well as the value chain and market ranking analysis.
Reasons To Buy the Report:
The report is expected to help leaders/new entrants in the inverter market in the following ways:
- The report segments the market comprehensively, and provides the market size estimation for all segments and subsegments across different regions.
- The report helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
- The report is expected to help stakeholders understand their competitors and gain insights to improve their position in the inverter market. The competitive landscape section describes the competitor ecosystem.