solar inverters Market

The global solar inverters market is expected to grow from US$ 9,153.73 million in 2021 to US$ 16,327.06 million by 2028. It is estimated to grow at a CAGR of 8.9% during 2022-2028.

The investment in solar energy has shown significant improvement with the growth of the economy; however, there are variations in investment levels from one country to another. According to estimates from the International Energy Agency (IEA), global energy demand had increased by 4.6% in 2021, which more than offsets the 4% contraction experienced in 2020. The anticipated increase in investments in 2021 is due to a combination of cyclical recovery in the economy and a structural shift in capital flows towards cleaner technologies. According to the IEA estimates, global power sector investment has increased by about 5% in 2021 to over US$ 820 billion after remaining unchanged in 2020. The renewable energy sector has dominated investment in new power generation and is projected to account for 70% of the total US$ 530 billion investment in all new generation capacity in 2021, according to the latest IEA estimates. Investment in the renewable energy sector has grown in markets where well-established supply chains exist, and lenders and financiers are seeking sustainable projects to support.

Further, investment in the renewable energy sector in India surged more than 125% year-on-year to touch a record US$ 14.5 billion in the financial year 2021-22 (FY22), a report released by the Institute for Energy Economics and Financial Analysis (IEEFA) in June 2022. Conglomerates such as Reliance Industries (RIL) and the Adani group have ambitious plans to ramp up their renewable energy capacity.

The growing investments in the renewable energy sector create opportunities for solar inverter market players. As the renewable energy sector develops rapidly, the solar inverter market is expected to grow in parallel.

Impact of COVID-19 Pandemic on North America Solar Inverters Market

Before the COVID-19 pandemic, the demand for solar inverters was already on the rise due to the expanding urban population and corresponding infrastructural development. The Journal of Commerce Online reported that the US Department of Transportation (DOT) allocated approximately US$ 856 million in grants to Infrastructure for Rebuilding America (INFRA) for the construction of 20 projects throughout the US. As a result, the demand for infrastructure development has contributed to the growth of the solar inverters market in North America. The North American region, including the US, Canada, and Mexico, experienced a significant surge in COVID-19 cases in 2020, leading to economic challenges caused by subsequent lockdowns. The pandemic resulted in a drastic decrease in product demand, falling prices, and storage shortages, severely impacting the manufacturing industries in 2020. Consequently, the revenue generated by the manufacturing industries declined sharply, limiting expenditure on the installation or upgrading of existing solar inverters in North America. In addition, the discontinuation of operation and periodic maintenance among existing manufacturing plants have further hampered the demand for solar inverters in the region. Therefore, the COVID-19 pandemic has had an adverse effect on the North American solar inverters market.

In 2021, the manufacturing industry started recovering from the significant labor and supply chain challenges that triggered the adoption of solar inverters. In 2022, solar inverters will have a higher demand in North America due to the continued progress in the renewable energy sector.

Based on type, the solar inverters market is segmented into central, string, and micro. The central segment led the market with the largest share in 2021. Based on system type, the market is bifurcated into on-grid and off-grid. The on-grid segment led the market with a larger share in 2021. Based on end user, the market is segmented into residential, commercial, and utility. The utility segment led the market with the largest share in 2021. By geography, the solar inverters market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). The APAC segment led the market with the largest share in 2021.

The size of the solar inverters market has been determined through a combination of primary and secondary research. The initial research involved extensive secondary research from internal and external sources to gather qualitative and quantitative information related to the market. The research also aimed to provide an overview and forecast of the solar inverters market across all segments.

This study provides an overview and forecast of the solar inverters market segmented into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. To validate the data and gain analytical insights, primary interviews were conducted with industry participants and commentators, including VPs, business development managers, market intelligence managers, national sales managers, valuation experts, research analysts, and key opinion leaders specializing in the solar inverters market. These industry experts provided valuable insights into the market trends and helped to ensure the accuracy of the data.

The key companies operating in the solar inverters market are ABB Ltd; Delta Electronics, Inc.; Enertechups; GOODWE; Power Electronics SL; Powerone Micro Systems Pvt.Ltd; Sineng Electric; SMA Solar Technology AG; Solaredge Technologies Inc.; and Hitachi Hi-Rel Power Electronics Pvt Ltd.

The solar inverters market is influenced by various factors such as the increasing number of solar installations due to government-led incentives and schemes, as well as the rise in residential solar rooftop installations. Additionally, the growth of the renewable energy sector and technological advancements in solar inverters are also contributing to the market growth. However, safety concerns related to the high DC voltages used in solar inverters are a major restraint for the market growth.