USD 17.17 billion
Inverters Market Size, Share, Growth Analysis, By Type(Vehicle, Solar, and Others), By Connection Type(On-grid, and Off-grid), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20D2127 |
Region:
Global |
Published Date: April, 2024
Pages:
202
|Tables:
62
|Figures:
75
Inverters Market Insights
Global Inverters Market size was valued at USD 17.17 billion in 2022 and is poised to grow from USD 19.92 billion in 2023 to USD 65.30 billion by 2031, at a CAGR of 16% during the forecast period (2024-2031).
The main purpose of the inverter market is to provide efficient and reliable power conversion solutions for various applications. With the increasing demand for renewable energy sources and the rising adoption of electric vehicles, the demand for inverters is expected to grow significantly over the coming years. The growing demand for renewable energy sources, such as solar and wind power, is a major driving factor for the inverter market. In addition, the increasing adoption of electric vehicles is also driving the demand for inverters. The growing need for reliable power backup solutions and the increasing demand for high-efficiency power conversion technologies are also driving the growth of the inverter market.
The major restraining factors for the inverter market are the high cost of these devices, which makes them unaffordable for many consumers. In addition, the availability of low-cost alternatives, such as generators, is also a major challenge for the inverter market. The lack of standardized regulations for the inverter market is also a significant restraining factor that hampers market growth. The significant challenges facing the inverter market is the lack of standardization in the industry. The lack of standardization makes it challenging for manufacturers to produce high-quality and reliable inverters that can meet the needs of various applications. The increasing demand for renewable energy sources, such as solar and wind power, is expected to drive the growth of the inverter market in the coming years. In addition, the rising adoption of electric vehicles and the increasing need for reliable power backup solutions are also expected to create significant growth opportunities in the market. The global inverter market is a rapidly growing industry that plays a critical role in the conversion of DC to AC power for various applications. Despite the challenges facing the market, the increasing demand for renewable energy sources and the rising adoption of electric vehicles are expected to drive significant growth in the market over the coming years.
US Inverters Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
On-grid
Fastest Growth
Off-grid
Growth Rate
16% CAGR
Global Inverters Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Inverters Market Segmental Analysis
The global inverters market is segmented on the product, application and region. By Type, the market is segmented into vehicle, solar, and others. By connection type, the market is segmented into on-grid, and off-grid. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Inverters Market Analysis by Type
Vehicle inverters are designed to convert DC power from a vehicle's battery to AC power for powering devices such as laptops, smartphones, and other electronic devices. Solar inverters are used to convert DC power generated by solar panels into AC power for use in homes and commercial buildings. There are different types of solar inverters available in the market, including string inverters, micro-inverters, and central inverters. It also modifies the signal's amplitude to change the engine's torque or output. In order to help create a society that is cleaner and more sustainable, manufacturers work to develop solutions that are more efficient and dependable. In June 2022, GKN Automotive launched a new inverter that provides OEMs 800V electric vehicle technology. It provides faster charging times, larger battery sizes, and better electric vehicle performance in the future.
Inverters Market Analysis by Connection Type
Grid-tied on-grid systems are utilized to input the converted energy into the main grid. By matching their phase and frequency, it is feasible to feed the transformed energy. Power for users, from residential to industrial uses, is provided through the main power grid. On-grid solar inverters are inexpensive and easy to install while reducing electricity costs.. On-grid inverters are designed to work with grid-connected solar power systems. They are used to convert DC power generated by solar panels into AC power, which can be used in homes and commercial buildings or fed back into the grid. Off-grid inverters are used in standalone solar power systems that are not connected to the grid. These inverters are designed to store excess energy generated by solar panels in batteries for use during periods of low solar energy generation.
Global Inverters Market By Connection Type
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Inverters Market Regional Insights
In 2022, Asia Pacific is the dominating region in the global inverter market, accounting for a major share of the market revenue. The region is home to several emerging economies such as China and India, which are witnessing significant growth in their renewable energy sectors. The increasing adoption of solar power systems and the growing demand for electric vehicles in the region are also contributing to the growth of the inverter market. In addition, favorable government policies and incentives are driving the adoption of renewable energy sources in the region, further fueling the demand for inverters.
The Middle East and Africa (MEA) region is expected to be the fastest-growing region in the global inverter market during the forecast period. The region has abundant sunlight and is witnessing a growing demand for solar power systems, especially in countries such as Saudi Arabia and the United Arab Emirates. The increasing focus on renewable energy sources in the region, combined with favorable government policies and incentives, is expected to drive the growth of the inverter market in MEA.
Global Inverters Market By Region
- Largest
- Fastest
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Inverters Market Dynamics
Inverters Market Drivers
Growing Demand for Renewable Energy Sources
- The increasing demand for clean and sustainable energy sources is driving the growth of the inverter market. Inverters play a crucial role in converting DC power generated from renewable sources such as solar panels into AC power that can be used in households or fed back into the grid. The increasing adoption of solar power systems and wind turbines is expected to fuel the demand for inverters in the coming years.
Increasing Adoption of Electric Vehicles
- The increasing adoption of electric vehicles is also driving the demand for inverters. Inverters are used in electric vehicles to convert DC power from the battery into AC power that can be used to power the vehicle's motor. The growing demand for electric vehicles due to their low carbon emissions and cost-effectiveness is expected to boost the demand for inverters in the automotive industry.
Inverters Market Restraints
High Installation and Maintenance Costs
- The high installation and maintenance costs associated with inverters are a major restraint for the market. The installation of inverters requires specialized equipment and skilled professionals, which can increase the overall cost of the system. In addition, regular maintenance is required to ensure the optimal functioning of inverters, which can add to the cost.
Limited Growth Opportunities in Some Regions
- The growth of the inverter market is limited in some regions due to factors such as low adoption of renewable energy sources, limited government policies and incentives, and high costs. For example, the market growth in North America is expected to be relatively slow compared to other regions due to factors such as high costs and limited government incentives.
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Inverters Market Competitive Landscape
The global inverters market is highly competitive, with a large number of players operating in the market. Companies are investing heavily in R&D to develop innovative products that are more efficient and cost-effective. For example, Enphase Energy has developed microinverters that are designed to optimize the output of individual solar panels, which can improve the overall efficiency of the system. Another trend in the competitive landscape is the increasing focus on partnerships and collaborations. The inverter market is expected to continue to grow in the coming years, driven by the increasing demand for renewable energy sources and the adoption of electric vehicles. The market is likely to remain highly competitive, with companies focusing on developing technologically advanced products, forming partnerships and collaborations, and engaging in mergers and acquisitions to strengthen their position in the market.
Inverters Market Top Player’s Company Profiles
- SMA Solar Technology AG (Germany)
- ABB Ltd. (Switzerland)
- Huawei Technologies Co. Ltd. (China)
- Siemens AG (Germany)
- Schneider Electric SE (France)
- Enphase Energy Inc. (US)
- TMEIC Corporation (Japan)
- Omron Corporation (Japan)
- Delta Electronics Inc. (Taiwan)
- SolarEdge Technologies Inc. (Israel)
- KACO new energy GmbH (Germany)
- Sungrow Power Supply Co. Ltd. (China)
- Fronius International GmbH (Austria)
- Mitsubishi Electric Corporation (Japan)
- Power-One Inc. (US)
- Advanced Energy Industries Inc. (US)
- Growatt New Energy Technology Co. Ltd. (China)
- Hitachi Hi-Rel Power Electronics Pvt. Ltd. (India)
- Tabuchi Electric Co. Ltd. (Japan)
- Yaskawa Electric Corporation (Japan)
Inverters Market Recent Developments
- In March 2024, GoodWe, a Chinese PV inverter maker, began operating its first overseas factory in Haiphong, Vietnam. The plant spans about 14,800 square meters and will focus on making grid-tied and hybrid inverters initially. It will serve markets in North America and key parts of Asia, offering products for homes, businesses, and utilities. The factory aims to reach an annual capacity of around 5 GW once Phase I production lines are fully operational.
- In February 2024, GoodWe achieved a milestone in India by reaching a capacity of 3GW. Additionally, they launched the UT350kW, which is a significant product for the market and provides Indian customers with a valuable option to consider.
- In January 2024, SOFAR, a global leader in PV & ESS solutions, introduced PowerMega (350KTLX0), a 350 kW product specifically designed for the Indian market at REI 2023. This new offering is customized for utility-scale projects, catering to both Indian and global markets.
Inverters Key Market Trends
- Increasing adoption of renewable energy sources: the growing awareness about the negative impact of fossil fuels on the environment, there is a rising demand for renewable energy sources such as solar and wind energy. Inverters are essential components in renewable energy systems as they convert the direct current (DC) generated by these sources into alternating current (AC) that can be used to power homes and businesses.
- Technological advancements: There is a continuous focus on improving the efficiency and reliability of inverters. Manufacturers are investing in research and development to develop technologically advanced products that are more efficient, lightweight, and compact. For instance, microinverters and power optimizers have emerged as alternatives to traditional string inverters, providing improved efficiency and flexibility.
Inverters Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global inverters market analyses, the increasing adoption of renewable energy sources, the growing demand for electric vehicles, and the continuous focus on improving the efficiency and reliability of inverters are key growth drivers. Besides this, the rising adoption of renewable energy sources such as solar and wind energy are also projected to boost growth. Governments and private organizations around the world are investing heavily in renewable energy projects to reduce their carbon footprint and meet their sustainability goals. Inverters are essential components in these systems, as they convert the DC output from the solar panels or wind turbines into usable AC power.
Inverters play a critical role in EVs, converting the DC power from the battery into AC power that can be used to drive the vehicle's motor. As the demand for EVs continues to grow, the demand for inverters is also expected to increase. The inverter market is also driven by the continuous focus on improving the efficiency and reliability of inverters. Manufacturers are investing heavily in research and development to develop advanced products that are more efficient, lightweight, and compact. Microinverters and power optimizers are emerging as popular alternatives to traditional string inverters, providing improved efficiency and flexibility. There are also some challenges and restraints in the inverter market. One of the major challenges is the high cost of inverters, which can be a significant barrier to the adoption of renewable energy sources and EVs. In addition, the availability of raw materials and components for inverters can also impact the market growth. The global inverter market is expected to continue to grow in the coming years, driven by the increasing demand for renewable energy sources and EVs, and the continuous focus on developing advanced and efficient products.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 17.17 billion |
| Market size value in 2031 | USD 65.30 billion |
| Growth Rate | 16% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Inverters Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Inverters Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Inverters Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Inverters Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Inverters Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Inverters Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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