An essential part of solar panels is the solar inverter. They transform the solar panels’ D.C. energy into A.C. energy. Solar inverters are also employed for grid connection, emergency shutdown, and voltage tracking. On-grid solar inverters increase the safety and efficiency of household equipment. These solar inverters are used in various industrial and commercial projects and residential and utility applications. The need for solar inverters has recently surged as a result of this. By 2030, the market for solar inverters is expected to be worth USD 18.97 billion, growing at a CAGR of 5.78%. (2022 – 2030). In 2020, the market was worth USD 9.7 billion.
In 2021, the U.S. overtook Canada as North America’s largest market. There is a sizable market for several kinds of P.V. inverters. The scale of central inverters (1.5 MW or more) and three-phase string inverters are two current inverter developments in the United States (60 kW). Although string inverters have steadily increased in popularity in the U.S., central inverters are expected to continue to dominate the market.
Solar inverter manufacturers, component manufacturers, inverter manufacturers, distributors, sellers, and end users make up the highly complicated value chain. Since panels make up most of the solar value chain, followed by inverters and batteries, different parts generate varying amounts of money. There is minimal potential for the technological difference due to the complexity of the value chain.
An essential component of the entire solar system is solar P.V. inverters. The effectiveness of the entire solar system is thus determined by these inverters, which convert D.C. power to alternating current. Different variables impacting the output of solar systems are considered by the various types of solar P.V. inverters available. Some critical parameters that affect the needed output include shade, roof orientation, roof inclination, summer vs. winter production, tilting panels, and many others. High Operating and Upkeep, The primary obstacles to the market’s expansion in the upcoming years are the costs of solar inverters. The thorough market analysis found difficulties that may arise from high installation prices, broad installation areas, and frequent sunshine availability.
The central & string inverter is the P.V. inverter most frequently utilized in the utility industry. The utility industry is expanding for several reasons, chief among them the rising demand for renewable energy, the falling cost of solar energy and equipment, and the emergence of government subsidies. The category is growing due to significant companies providing customers with market-leading utility-scale solutions through their pre-integrated power plants to increase efficiency and lower balance-of-system costs.
The home end-use market has expanded due to customers’ rising demand for solar renewable energy for electrification needs. Through regulations and financial incentives, governments have actively promoted captive power generation from renewable sources, such as electricity in residential buildings.
Commercial structures installing solar power systems for captive consumption include shopping centers, retail establishments, offices, hospitals, and schools. There must be a constant power supply for these industries to operate without interruption.
Over the projection period, the Asia-Pacific region is anticipated to have the highest revenue share of over 43.0%. The solar market in this region is expanding quickly, and China is a critical worldwide competitor and its most excellent provider. The expansion of the industry in the area has also been greatly aided by the rising number of solar installations in emerging countries. The Asia-Pacific region is anticipated to have the largest market share for solar inverters worldwide during the projected period.
The expansion of the solar inverter market in the Asia-Pacific region will be fueled by rising demand for solar energy, rising investments in residential and commercial building projects, and investments in the solar energy industry. Many governments in the Asia-Pacific region are promoting low-emission alternative energy sources. The government’s encouraging actions will aid in fostering the expansion of the solar inverter market in this area.
In 2021, North America held a sizeable revenue share, with the U.S. being the primary driver of market expansion. A significant market for various kinds of P.V. inverters is the United States. The domination of three-phase inverters with a capacity of 60 kW or more is one of the most recent inverter developments in the nation.
Due to supportive government policies and the availability of subsidies like home feed-in tariffs (FITs), which encourage consumers to invest in renewable energy, Europe is predicted to have a substantial CAGR during the projected period. Due to the high-tech nature of the inverters, Germany is a global leader in the production of solar inverters. As a result, German solar businesses have the edge over rivals. To restore the industry’s consistent growth rate, the major players in the solar inverter market are pursuing mergers, acquisitions, business expansion, product launches, and partnership agreements. Most market participants strategically spend to support corporate expansion objectives and research and development initiatives.