The global photovoltaic (PV) inverter market is set to expand by USD 3.96 billion from 2024-2028, as per the latest report by Technavio. The market is expected to grow at a CAGR of 6.78% during this period. The rising demand for renewable energy, driven by the rapid growth of smart cities, is a significant factor contributing to this growth. However, the high initial investment and maintenance costs of solar PV systems present challenges.
Key market players include ABB Ltd., Canadian Solar, Danfoss, DARFON ELECTRONICS CORP., Delta Electronics Inc., Eaton Corp, Enphase Energy Inc., Fronius International GmbH, General Electric Co., Huawei Technologies Co. Ltd., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Siemens AG, Sineng Electric Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies, Sungrow Power Supply Co. Ltd., SunPower Corp., and Yaskawa Solectria Solar.
Market Overview
The PV inverter market is fragmented and is expected to grow significantly due to the increasing demand for smart cities, which prioritize sustainability and energy efficiency. Photovoltaic inverters play a crucial role in converting DC power from solar panels into AC power, which is essential for powering buildings and infrastructure in smart cities. The integration of advanced energy management systems that optimize energy use and reduce costs further drives the market. These inverters are known for their high efficiency and reliability, making them a preferred choice in smart cities.
Market Drivers
- Renewable Energy Demand: The shift towards renewable energy sources, especially solar power, is a major driver of market growth.
- Smart Cities: The development of smart cities, which require dependable and efficient power supplies, boosts the demand for PV inverters.
- Technological Advancements: Innovations in PV inverter technology enhance efficiency and reduce costs, promoting wider adoption.
Market Challenges
- High Costs: The initial investment and maintenance costs of solar PV systems are high, which can hinder market growth.
- Intermittency Issues: The need for a large area for solar panels and the intermittency of solar power require more panels, increasing costs.
Market Segmentation
The PV inverter market is segmented by product type, application, and geography:
- Product Type: String, Central, and Micro inverters.
- Application: On-grid and Off-grid systems.
- Geography: APAC (47% market share), Europe, North America, Middle East and Africa, and South America.
Key Insights
- APAC Region: Leading market contribution with significant growth in countries like China, India, Japan, and Vietnam.
- Technological Integration: Advanced energy management systems and smart home integration are becoming increasingly common.
- Regulatory Support: Government incentives and favorable policies are driving market growth, particularly in developed regions.
