Modular Inverter Market Expected to Reach $33.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Modular Inverter Market," The modular inverter market was valued at $16.8 billion in 2022 and is estimated to reach $33.3 billion by 2031, growing at a CAGR of 8% from 2022 to 2031.

Modular inverters are devices or equipment that produce pure sine wave output. From component to system, modularization uniqueness is one of a kind in the industry. The modular design realizes the plug-and-play function, reducing the maintenance time and even allowing implementation without professionals. In addition, it exceedingly reduces generation loss as the remaining module continues operation when a single module fails. Because their modularity makes them easy to maintain and repair, modular inverters also tend to have a longer lifespan than inverters that feature integrated parts. The inverters may be manufactured to offer the same lifespan, but the hassle-free repair of modular models makes it easy to keep them in service for extended periods of time.

The modular inverter market trends are attributed to increased demand from the solar energy sector and increased investment in product development. They help in monitoring and controlling the entire photovoltaic system. They also aid in achieving maximum performance and also can record all operating data which can later be analyzed for further use. They also offer the advantage of automatic disconnection from the grid if and when required.

It also has a facility for protecting the network against overloading. It also has the great advantage of mains-independent backup systems, switching from mains to emergency power within a few milliseconds in the event of a power failure - for an uninterrupted power supply. The above-mentioned factors act as market growth stimulators. The increased demand from the solar energy sector also fosters modular inverter market opportunities. 

The modular inverter has a high installation cost. As they are largely used in industrial and telecommunication sectors where larger output power without any delay or interruption is required. Heavy types of machinery are used in the industrial sector which requires it to be in a continuous operational state. Any non-scheduled halt or power failure can lead to heavy losses for the manufacturer. Thus, it is of utmost importance to keep the machinery up and running.

Modular inverters able manufacturers to attain that continuity and thus aids in preventing huge losses. however, high installation costs discourage and sometimes lead to manufacturers opting for alternative or cheaper products available in the market and thus overall acts as a restraining factor for the modular inverter market growth.

The modular inverter market size is segmented into type, application, and region. By type, the market is divided into the standard modular inverter and compact modular inverter. The standard modular inverter dominated the market growth in 2021. However, the compact modular inverter is expected to grow at a higher CAGR during the projection period. The compact modular inverter can be combined with a DC source which offers an excellent backup for AC solutions.  

By application, the market is segmented into industrial, telecommunications, and others. The industrial segment dominated the modular inverter market growth in 2021. It is due to its reliable and efficient output that benefits the sector. The same is expected to continue its dominance during the projection period followed by telecommunications segments.

In the industrial sector, many machinery-operated processes take place which when stopped midway or halted incur a significant loss to the manufacturer. Such operations cannot be halted due to power failure and thus, modular inverter growth is propelled. Region-wise, the modular inverter market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa). North America dominated the market share in 2021. However, Asia-Pacific is expected to grow at a higher CAGR during the forecast period. This is due to rising investment and increased research & development activities in the modular inverter market from major developing economies.

The key players operating in the modular inverter industry are Eaton Corporation, Eagle Eye Power Solutions, BENNING Elektrotechnik und Elektronik GmbH & Co. KG, AEG Power Solutions, Sungrow Power Supply Co., Ltd., Shenzhen Pulsen technology, TDK Electronics AG, PRAG, Shenzhen Bwitt Power Co., Limited, and CE+ T Power. 

As a leader of innovation in the solar industry, Sungrow possesses a dynamic technical R&D team that consists of over 1600 employees. The Company has also invested in its own in-house testing center approved by UL, CSA, TÜV Rheinland, and TÜV SÜD. In 2019, Sungrow launched the world's largest inverter factory, once fully operational, the global annual production capacity will reach 50 GW, including 3 GW of the India factory.

Offering a wide range of solutions and services, Sungrow is committed to providing clean power for all and is steadfast in its efforts to become the global leader in clean power conversion technology. Sungrow launched the "1+X" Modular Inverter, which is expected to lead the next-generation inverter designation for utility-scale solar plants, significantly streamlining O&M and guaranteeing favorable yields for applications.

Key findings of the study:

• By type, the compact modular inverter is projected to grow at the highest CAGR during the modular inverter market forecast period.
• By application, the industrial segment dominated the modular inverter market share by more than 45.0% in 2021. 
• By region, North America dominated the modular inverter market and is expected to grow at a high CAGR during the forecast period.