Solar PV Inverter Market Size, Share, Growth by 2030

The solar photovoltaic (PV) inverter sector is projected to expand from US$ 8,673.56 million in 2022 to US$ 17,041.24 million by 2030, reflecting a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030.

Significant advancements have been noted in the global solar PV inverter sector. For example, in November 2019, SMA Solar Technology AG entered into a partnership with LG Chem, a South Korean company. This collaboration led to the creation of new home storage systems that integrate SMA's SUNNY BOY STORAGE battery inverters with LG Chem's RESU 10M batteries, resulting in the development of advanced DC/DC converters that enhance battery operating voltage. Additionally, in July 2019, ABB and FIMER S.p.A, an Italian firm, finalized an agreement for FIMER to take over ABB's solar inverter division. This acquisition bolstered the solar inverter business's potential and allowed ABB to concentrate on other growth opportunities. The market also witnessed numerous product launches; for instance, Delta introduced new solar inverter models in March 2022 designed for both residential and commercial use, achieving a European efficiency rating of 98.5%. Similarly, in September 2022, Solinteg unveiled a new series of residential solar inverters with a European efficiency of 97.0%. These product introductions by key players in the global solar PV inverter market are significantly contributing to its growth.

Solar PV inverters perform essential functions such as voltage tracking, establishing communication with the grid, and shutting down operations during emergencies, in addition to converting direct current (DC) generated by solar panels into alternating current (AC). These inverters are widely utilized in residential and utility-scale applications and are increasingly being adopted in commercial and industrial projects worldwide. Solar PV inverters play a crucial role in optimizing energy production, ensuring safe system operations, enhancing grid capabilities, and monitoring power output. When adopting solar inverters, several critical factors must be considered, including roof orientation, shading, roof slope, panel tilting, and seasonal production variations that affect the desired output.

Government incentives and initiatives, along with the rising trend of residential solar rooftop installations, are positively impacting the solar PV inverter market's growth. Furthermore, the increasing investments in renewable energy aimed at reducing fossil fuel reliance and lowering carbon emissions, combined with technological advancements in solar inverters, are key drivers of market expansion. However, safety concerns related to high DC voltages in solar inverters pose challenges to the growth of the solar PV inverter market.

Effects of the COVID-19 Pandemic on the Solar PV Inverter Market

The COVID-19 pandemic in 2020 had a detrimental impact on global economies, leading to numerous challenges. Many manufacturing sectors faced temporary closures due to lockdown measures, which resulted in a decline in global demand for solar inverters. According to the World Manufacturing Production Statistics published by the United Nations Industrial Development Organization (UNIDO), global manufacturing output fell by 11.2% in the second quarter (April-June) of 2020 compared to the same period in 2019. China experienced a more pronounced decline in its industrial economy (1.6%) compared to the industrialized nations of the US and Europe, where value-added production decreased by 15% and 14.3%, respectively. Consequently, the pandemic adversely affected the solar PV inverter market, as the production of these inverters is closely linked to overall manufacturing activity.

In 2021 and 2022, the easing of government restrictions allowed manufacturing operations to resume, leading to improved supply chains. This resurgence further stimulated the production of solar inverters. The demand for solar inverters surged in 2022, driven by their growing adoption in the construction of both residential and commercial buildings.

The overall size of the solar PV inverter market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the solar PV inverter market. This approach also aimed to provide an overview and forecast of the market size across various segments. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and obtain analytical insights. Participants in this process included vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the solar PV inverter market.