The market for solar inverter is expected to grow at a CAGR of around 15.6% from 2020 to 2027 and expected to reach the market value of around US$ 27.6 Bn by 2027.
Solar Inverter or photovoltaic (PV) inverter is a type of electrical inverter used to convert the variable direct current (DC) output of a photovoltaic (PV) solar panel into alternating 240V current (AC). It’s the most important element of the solar electric power system. Additionally, the lifetime of a solar inverter is about ten years and most of them are needed to be replaced after 11 years of service. The life expectancy is also depended on the environment and its usage. For instance, low-quality inverters have failed in the Australian climate. Moreover, long-lasting solar power systems require a high-quality inverter with a robust convection cooling system.
The increasing prevalence of alternative energy sources and a growing number of technological innovations in the solar power industry is supporting the growth of the solar inverters market across sectors including commercial, residential, and industrial. Favorable government support, rising concern towards environmental pollution is further bolstering the demand in the market. Increasing consumption of solar power worldwide along with the growing investments in the renewable energy sector is additionally boosting the demand and usage in the global market. Furthermore, the introductions of module-level power electronics in solar inverters, which supports reduced requirements of maintenance, lower installation costs, and high solar power production, are projected to create potential opportunities over the forecast timeframe from 2020 to 2027.
On the other side, high maintenance, installation, and operation cost associated with the solar inverters are anticipated to limit the growth to an extent over the forecast period from 2020 to 2027.
Segment Instance of Global Solar Inverter Market
Asia Pacific is estimated to experience fastest growth in near future
The major economies of the region including Japan, Australia, China, and India are exhibiting major growth in the solar system market. The increasing environmental concern is supporting the regional market value. Favorable government support and increasing investment in the solar energy market is further bolstering market growth. For instance, the National Bank for Agriculture and Rural Development (NABARD) is providing a 40% subsidy to those who are purchasing solar inverters. Furthermore, the developing infrastructure of the region is primarily supporting the fastest growth with a major CAGR (%) in the regional market. The Asia Pacific region is also projected to lead the market with maximum revenue share (%) in a possible future. The initiatives like India’s National Solar Mission are anticipated to create demand for solar inverter in near future. The expansion of Chinese manufacturers into the overseas market in recent years with cost-effective solutions is further projected to create potential growth over the forecast timeframe from 2020 to 2027.
Europe is projected to experience major demand for the replacement of existing systems as the region has the presence of solar inverters for more than 10 years. The life expectancy of the system is likely to expire and will create a positive demand owing to the need for replacement. Additionally, the region is experiencing a reduction in the price of equipment in most areas. On the basis of the mentioned information, the region is projected to experience slower growth over the forecast timeframe.
Key Market Players
The players profiled in the report include ABB Ltd., Canadian Solar Inc, Delta Energy Systems, Emerson Electric Co., Hitachi Hi-Rel Electronics Pvt. Ltd., Huawei, Sungrow Power Supply, KACO New Energy GmbH, Power-One, Inc., Schneider Electric, Sineng Electric Co., Ltd, SMA Solar Application AG, SolarEdge Technologies Inc., Solectria Renewables, LLC, SunPower Corporation, and others.
Market By Type
Central Solar Inverter
String Solar Inverter
Micro Solar Inverter
Market By System Type
Market By Application
Market By Geography
Middle East & Africa
The market for solar inverter is expected to reach a market value of around US$ 27.6 Bn by 2027.
The solar inverter market is expected to grow at a CAGR of around 15.6% from 2020 to 2027.
Central solar inverter, string solar inverter, and micro solar inverter are the segments on the basis of type in the solar inverter market
The increasing prevalence of alternative energy sources, growing number of technological innovations, favorable government support, rising concern towards the environmental pollution, Increasing consumption of solar power worldwide, growing investments in the renewable energy sector are some of the factors driving the market growth.
ABB Ltd., Canadian Solar Inc, Delta Energy Systems, Emerson Electric Co., Hitachi Hi-Rel Electronics Pvt. Ltd., KACO New Energy GmbH, Power-One, Inc., Schneider Electric, Sineng Electric Co., Ltd, SMA Solar Application AG, SolarEdge Technologies Inc., Solectria Renewables, LLC, and SunPower Corporation are some of the prominent players in the market.
Asia Pacific is expected to hold the highest market share (%) in the solar inverter market
Asia Pacific is expected to be the fastest growing market over the forecast period