According to a new report published by Allied Market Research titled, “Solar (PV) Inverter Market by Product Type, Connection Type, Phase and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the solar (PV) inverter market size was valued at $7.7 billion in 2020, and is projected to reach $17.9 billion by 2030, growing at a CAGR of 8.8% from 2021 to 2030. Solar inverter is a device used to convert the energy generated from the solar panel, i.e., direct current (DC) to alternating current (AC) for residential and other AC applications. Solar inverters are connected to more than one solar panel to optimize the performance of the solar panels at equal level. Solar inverter consists of voltage regulator, step-up transformer, and other electronic components. Solar inverter has various advantages such as reducing electricity bills, minimizing environmental pollution, high efficiency than diesel generators, and others.
Significant development of the end-use industries such as oil & gas, telecom, mining, pharmaceutical, chemicals, and healthcare has fueled the demand for off–grid solar installations for their respective manufacturing and operations, which in turn drives the growth of the solar (PV) inverter market during the forecast period. In addition, increase in demand for solar inverter from developing economies such as India, China, and Japan fuel the growth of the market, globally. However, high heat generation from large size solar inverters and installation of solar panels in different directions are the key factors that are expected to hamper the growth of the global solar inverter market in the upcoming years.
Depending on product type, the central inverter segment held the highest market share of about 50.9% in 2020, and is expected to maintain its dominance during the solar (PV) inverter market forecast period. This is duet rise in demand for central inverters from large industrial and utility applications across the globe. In addition, rapid industrialization and construction of renewable power infrastructure in the developing economies such as China, India, and Japan is further expected to fuel the demand for central inverters from 2021 to 2030.
On the basis of connection type, the on-grid segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to rise in investment for direct supply of electricity rather than storing it in batteries. In addition, advantages of using on-grid solar inverters include easy feeding of energy, easy installation, cost-efficiency, and managing high electricity demand, which are anticipated to fuel the growth of the market in the upcoming years.
On the basis of phase, the three-phase segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to the gaining importance in power generation, distribution, and transmission sector. In addition, rise in trend from 1,000-volt solar arrays to 1,500-volt solar arrays has resulted in increased size of PV power plants in the large commercial & industrial and utility installations; thereby, fueling the growth of the three-phase solar (PV) inverter market during the forecast period.
On the basis of end user, the utilities segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 8.3%. This is due to increase in investment in the utility scale solar power plants, solar parks, and other solar structures. In addition, increase in construction projects such as decentralized solar power plants, rural electrification projects, solar power plants on the water body & rooftops, and commercial buildings drive the growth of the solar (PV) inverter market for the utilities segment across the globe.
On the basis of region, the market is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered the dominant share in 2020, and is anticipated to maintain this dominance in solar (PV) inverter market trend during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, rapid expansion of the renewable energy sector, rise in investment toward upgradation of aged power infrastructure, and rapid industrialization in the region are further anticipated to fuel the growth of the market in the upcoming years.
The global solar (PV) inverter market analysis covers in-depth information of the major solar (PV) inverter industry participants. The key players operating and profiled in the report include Delta Electronics, Inc., Fimer S.p.A., Fronius International GmbH, Ginlong Technologies, Huawei Technologies Co., Ltd., Shenzhen Growatt New Energy Co., Ltd., Siemens AG, SMA Solar Technology AG, SolarEdge Technologies, Inc., and Sungrow Power Supply Co., Ltd.
Other players operating in the value chain of the global solar (PV) inverter market are Goodwe, Canadian Solar, Sunpower Corporation, Sineng Electric Co., Ltd., SunPower, Omron Corporation, and others.
COVID-19 impact on the market
The global solar (PV) inverter market has witnessed steady growth in 2020, owing to outbreak of the COVID-19 pandemic. The outbreak has negatively impacted various industries and countries, thereby decreasing manpower across the globe, which, in turn, decreased consumer spending and thus, decreased the demand for electrical products, vehicles, construction equipment and others which is resulted in decreasing the need for electricity and thereby affecting the market growth. However, owing to the lockdown imposed across the globe, there is supply-demand gap, which resulted in halt in supply for equipment used in solar inverter production. In Europe, economies, such as Germany, France, Spain, and Italy, were following stringent measures, such as maintaining social distance and limiting movements, to prevent the spread of coronavirus. Moreover, such safety measures have been witnessed across the globe, which further impacted the growth of the global solar (PV) inverter market.
Key Findings Of The Study
- In 2020, the central inverter segment accounted for about 50.9% of the share in the global solar (PV) inverter market, and is expected to maintain its dominance till the end of the forecast period.
- In 2020, the on-grid segment accounted for 65.5% solar (PV) inverter market share in the year 2020, and is anticipated to grow at a rate of 8.5% in terms of revenue, increasing its share in the global solar (PV) inverter market.
- Single phase is the fastest-growing phase segment in the global solar (PV) inverter market, expected to grow at a CAGR of 9.2% during 2021–2030.
- Commercial & industrial segment is expected to grow at the fastest rate, registering a CAGR of 9.4%, throughout the forecast period.
- In 2020, Asia-Pacific region dominated the global solar (PV) inverter market with more than 61.0% of the share, in terms of revenue.