The PV inverter market product description and advantages associated with use of PV inverters include their ability to convert direct current electricity generated by solar panels into alternating current electricity that can power home appliances or feed into the electric grid. Growing demand for clean and renewable sources of energy along with declining costs of solar panels has boosted adoption of solar energy globally. The global PV inverter market is estimated to be valued at US$ 15.28 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the PV Inverter Market Growth are Eaton, Emerson Electric Co., Power Electronics S.L., Hitachi Hi-Rel Power Electronics Private Limited, Siemens Energy, Fimer Group, SMA Solar Technology AG, Delta Electronics, Inc, SunPower Corporation, Omron Corporation. Key players are focusing on developing advanced and efficient inverters to capitalize on the growing demand for solar energy. Growing concerns over global warming and government incentives and initiatives to promote use of renewable energy sources have propelled adoption of solar panels globally thereby boosting demand for PV inverters. Technological advancements including introduction of micro inverters, string inverters and central inverters have allowed for flexible deployment of solar systems across residential, commercial and utility scale projects.
Market Trends
Growing deployment of solar PV systems - Rapid adoption of solar energy around the world attributed to various government policies and initiatives promoting use of renewable energy along with declining costs of PV modules has been a key driver for the PV inverter market. Widespread application across residential, commercial and utility level projects points towards continued growth.
Advancements in inverter technology - Continuous R&D in the area of power electronics has enabled development of efficient and affordable inverter solutions. Key innovations include introduction of micro inverters, advanced MPPT algorithms and efficient battery storage integration. This has expanded application scope of solar inverters across off-grid and weak-grid areas.
Market Opportunities
Rising focus on battery storage - Growing demand for reliable and continuous solar power along with the need to optimize self-consumption has spurred growth of solar plus storage systems. This presents significant opportunities for inverter manufacturers to leverage their capabilities.
Adoption in the electric vehicle sector - Use of solar energy for EV charging as well as development of EV solar car port systems points to new growth prospects. Capable inverters with V2G functionality can play a key role in supporting cleaner mobility.
Impact of COVID-19 on PV Inverter Market Growth
The COVID-19 pandemic has significantly impacted the growth of the PV inverter market across the globe. During the initial lockdown phases imposed by various governments, manufacturing and installation activities related to photovoltaic systems came to a halt for several months. This significantly disrupted the supply chain networks and lowered the demand for PV inverters in 2020. However, with the resumption of economic activities and lifting of lockdowns in 2021, the market rebounded partially. Still, constraints related to the non-availability of labor and raw materials pushed shipment schedules. Post pandemic recovery, policy support for renewable energy adoption, declining costs of solar power systems and global sustainability goals are expected to help the market regain growth momentum. Original forecasts estimated higher CAGR for the forecast period prior to the pandemic. While short term disruption was witnessed, long term outlook and demand potential remains robust given global clean energy transition needs.
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