Photovoltaic (PV) inverters play a critical role in converting direct current (DC) produced by solar panels into alternating current (AC) that can power homes and businesses. Rapid advancements in PV technology coupled with supportive government policies promoting renewable energy adoption have significantly boosted the demand for solar energy systems globally in recent years. This is anticipated to drive the PV inverter market during the forecast period.
The global PV inverter market holds promising prospects with the rising deployment of decentralized solar energy systems on residential and commercial establishments. PV inverters allow efficient conversion of solar power into usable electricity, enabling end-users to harness clean energy. Additionally, technologically advanced inverters offer improved reliability, higher yields, and lower lifetime costs compared to traditional options. The growing preference for solar-plus-storage hybrid systems integrating batteries is also fueling the sales of PV inverters.
The Global PV inverter Market is estimated to be valued at US$ 15.28 BN in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the PV Inverter Market Demand are Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, SunPower Corporation, Omron Corporation.
Key players are focusing on developing highly efficient microinverters and string inverters with integrated battery management systems and communication capabilities. Standalone storage and hybrid solar-plus-storage systems are opening new growth avenues for inverter manufacturers.
Asia Pacific currently dominates the global PV inverter market and major companies are investing heavily in the region owing to supportive government policies and high solar irradiance. China, India, Japan, and South Korea are emerging as highly lucrative markets. Meanwhile, countries in Europe and North America are also expanding their solar capacities at an impressive rate.
Market drivers and restrain
The growing application of solar energy in both on-grid and off-grid systems is a key driver favoring market growth. Rapid urbanization and electrification of remote areas have boosted the implementation of decentralized renewable energy sources. The rising need for continuous power supply and improved grid stability with high solar penetration is propelling the demand for advanced PV inverters.
Government incentives promoting renewable purchases and installation of rooftop PV systems through net metering, tax rebates, and other financial incentives are encouraging residential prosumers to adopt solar power. This has driven up sales of small commercial and residential inverters.
Segment Analysis
The PV inverter market has two major segments - string inverters and central inverters. String inverters dominate the market accounting for over 75% share as they are preferred for residential PV systems due to their flexibility and ease of installation. They consist of multiple MPPT inputs to increase the power from each string of solar panels. Central inverters cater to large-scale utility and commercial PV installations where high power output and central monitoring are crucial. However, their market share is declining with rapid growth of residential PV installations globally.
Global Analysis
The Asia Pacific region dominates the global PV inverter market with a share of over 50% and will continue to grow at the fastest pace during the forecast period. Surging investments in solar energy due to declining costs, supportive government policies, and growing awareness about renewable sources in China, India, Japan, Australia are driving huge demand for PV inverters in Asia Pacific. Europe is another major regional market led by Germany, UK, Italy while the US contributes significantly in the Americas. However, developing regions like Latin America and Africa will offer lucrative growth opportunities for PV inverters market players on account of initiatives to increase solar power generation capacity.
Get more insights on PV Inverter Market
Comments
0 comment