solar pv inverter Market

The solar PV inverter market is expected to grow from US$ 8,673.56 million in 2022 to US$ 17,041.24 million by 2030; it is estimated to register a CAGR of 7.8% from 2023 to 2030.

Major developments have been observed in the global solar PV inverter market. For instance, in November 2019, SMA Solar Technology AG collaborated with South Korea-based LG Chem. The SUNNY BOY STORAGE battery inverters of SMA and RESU 10M batteries of LG Chem combined to form new home storage systems, which resulted in the development of integrated DC/DC converters that can help increasing the operating voltage of batteries. Further, in July 2019, ABB and FIMER S.p.A (an Italian company) signed an agreement for FIMER to acquire ABBs solar inverter business. The transaction enhanced the prospects of the solar inverter business and enabled ABB to focus its business portfolio on other growth markets. Additionally, the market experienced several new product launches. For instance, Delta announced the launch of new solar inverter models in March 2022 for both residential and commercial applications with European efficiency rating of 98.5%. Similarly, Solinteg launched new residential solar inverter series in September 2022 for residential applications with European efficiency of 97.0%. These new product launches by the global solar PV inverter market players are further contributing to the solar PV inverter market growth.

Solar PV inverters track voltage, establish grid communication, and shut down operations during emergency conditions apart from converting direct current (DC) into alternating current (AC) via solar panels. Solar inverters are commonly used in residential and utility applications and are increasingly used in commercial and industrial projects globally. Solar photovoltaic (PV) inverters aid in maximizing energy production, ensuring safe system operations, improving grid capabilities, and tracking power output. Critical factors to be considered while adopting solar inverters are roof orientation, shading, roof inclination, tilting panels, and summer & winter production difference that result in the required output.

Solar installations attributed to government-led incentives and schemes, along with growing residential solar rooftop installations, positively influence the solar PV inverter market size. Further, the increasing investments in the renewable energy sector to reduce fossil fuel consumption to lower carbon emission, coupled with technological innovations in solar inverters, are among the factors driving the market growth. However, the safety risks associated with high DC voltages in solar inverters are restraining the solar PV inverter market growth.

Impact of COVID-19 Pandemic on Solar PV Inverter Market

In 2020, the COVID-19 pandemic adversely affected the global economies, leading to several challenges. Multiple manufacturing industries were temporarily closed due to lockdowns, thereby reducing the global demand for solar inverters. According to the World Manufacturing Production Statistics released by the United Nations Industrial Development Organization (UNIDO), the global manufacturing output decreased by 11.2% during the second quarter (April-June) of 2020 compared to the same quarter in 2019. China recorded a more significant drop in the industrial economy (1.6%) compared to industrialized economies in the US and Europe, wherein value-added in 2020 declined by 15% and 14.3%, respectively. Therefore, the pandemic hampered the solar PV inverter market as the production of solar inverters is directly proportional to manufacturing activities.

In 2021 and 2022, relaxations in government restrictions led to the resumption of manufacturing businesses, with upgraded and improved supply chains. This further propelled the manufacturing of solar inverters. In 2022, the rise in the demand for solar inverters is due to their increasing adoption in the construction of residential and commercial building projects.

The overall solar PV inverter market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the solar PV inverter market. The process also serves the purpose of obtaining an overview and forecast of the solar PV inverter market size with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. The participants of this process include VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the solar PV inverter market.