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The inverter market size is forecast to increase by USD 32.38 billion at a CAGR of 6.78% between 2023 and 2028.
The inverter industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The solar pv segment is estimated to witness significant growth during the forecast period.
The market is experiencing significant growth, particularly in the grid-tied inverter segment, driven by the increasing adoption of renewable energy sources, such as solar and wind power, for residential and commercial applications. Grid-tied inverters enable the conversion of direct current (DC) electricity from photovoltaic (PV) panels into alternating current (AC) for grid integration. This market trend aligns with the global push towards reducing carbon emissions and increasing energy efficiency. In the residential sector, energy management and data analytics are crucial for optimizing energy consumption and costs. Smart grid technology and predictive maintenance enable real-time monitoring and control of energy usage, ensuring power quality and stability.
Central inverters are increasingly being used in utility-scale applications for grid integration, while battery backup systems provide energy storage solutions for renewable energy. Power factor correction and voltage regulation are essential for optimizing grid performance and ensuring power system stability. Harmonic distortion and frequency regulation are critical considerations for grid integration, with inverters playing a vital role in mitigating these issues. Demand response and demand side management are also becoming increasingly important for grid management and cost reduction. The integration of artificial intelligence (AI) and data analytics in inverters enables advanced monitoring and control, including fault detection, predictive maintenance, and demand response.
Safety standards and monitoring and control systems are essential for ensuring grid safety and preventing islanding. Off-grid inverters are used in remote locations where grid connection is not available, providing a sustainable energy solution for powering homes and businesses. Hybrid inverters, which combine solar and battery storage systems, offer increased energy independence and cost savings. The market for inverters is expected to continue growing, driven by the increasing adoption of renewable energy sources, the need for energy efficiency and cost savings, and the integration of advanced technologies such as AI and data analytics. The future of the market lies in the development of more efficient, intelligent, and cost-effective solutions for grid integration and energy management.
The Solar PV segment was valued at USD 27.94 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In the Asia-Pacific region, the market is experiencing significant growth due to the increasing adoption of inverters in various sectors, including electric vehicles and railways, wind and solar energy, and manufacturing and industrial applications. Countries such as Japan, China, Australia, India, South Korea, Taiwan, and Singapore are driving this growth. The rising population and improving standards of living in APAC have led to a surging demand for energy, which in turn is fueling the focus on renewable energy sources. China and India are expected to account for a large portion of the installations in the region, given their substantial wind energy potential and robust government support.
Efficiency optimization is a key trend in the market, with photovoltaic (PV) systems increasingly being integrated with energy management systems and data analytics for better power usage. Grid-tied inverters are being used to improve power quality and reduce carbon emissions. Power factor correction and voltage regulation are essential features for grid integration. Smart grids and predictive maintenance are also gaining traction, with cloud computing enabling remote monitoring and fault detection. Central inverters and string inverters are being used for utility-scale applications, while hybrid inverters are being adopted for renewable energy systems that combine solar and wind power. Safety standards and monitoring and control systems are crucial for ensuring power system stability and preventing islanding.
Battery backup and dc-to-ac conversion are essential for ensuring energy storage and reducing costs. Artificial intelligence (AI) is being used to optimize energy efficiency and improve power system performance. Harmonic distortion is a concern for power quality, and inverters are being designed to minimize it. In conclusion, the market in APAC is witnessing robust growth due to the increasing demand for energy and the focus on renewable energy sources. The market is being driven by trends such as efficiency optimization, smart grids, predictive maintenance, and energy storage. Inverters are being used in various sectors, including EV and railways, wind and solar energy, and manufacturing and industrial applications. The market is expected to continue growing as countries in the region invest in sustainable energy and improve their power infrastructure.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Global Inverter Market advances with inverters for solar energy and string inverters for residential use. Inverter market trends 2024 emphasize smart inverters for grids and hybrid inverters for energy storage. Inverters for industrial applications and microinverters for rooftop solar fuel demand, per inverter market forecast. High-efficiency inverters leverage inverters with IoT connectivity, while inverters for commercial buildings ensure reliability. Inverters for renewable energy and inverters for automotive EVs drive scalability. Inverters for sustainable energy, advanced inverter technologies, and inverter supply chain optimize performance. Inverters for regulatory compliance, inverters for global markets, inverters for energy efficiency, inverters for grid stability, and inverters for B2B sectors propel growth through 2028.
The inverter market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the inverter market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, inverter market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
SMA Solar Technology AG - The company specializes in providing advanced inverter solutions, including the HES880 model. Our offerings prioritize efficiency and reliability, enhancing the performance of renewable energy systems. By utilizing cutting-edge technology, we ensure optimal energy conversion and maximize system output. Our commitment to innovation and sustainability sets US apart in the industry.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth and innovation, driven by the increasing adoption of distributed generation, green energy, and energy efficiency standards. Battery management systems and MPPT algorithms are key components of this shift, optimizing energy storage technologies like flow batteries and hydrogen energy. Distributed generation, including solar and wind, is transforming energy markets through net metering and feed-in tariffs. Smart metering and demand side management are enhancing grid stability and energy resilience, while carbon pricing and energy subsidies influence market dynamics. Power surge protection and voltage sag mitigation are crucial for grid synchronization and power conditioning. Multilevel inverters and modular inverters are advancing energy transition, enabling energy independence and energy trading.
Climate change mitigation and grid stability enhancement are primary objectives, with electric vehicles (EVs) and fuel cells contributing to the energy infrastructure evolution. Energy optimization and energy trading are becoming essential strategies for businesses in the face of energy markets' volatility.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Inverter Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 32.38 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Key countries |
US, China, Germany, Canada, India, South Korea, France, Japan, Italy, Brazil, UAE, UK, Spain, and Mexico |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Market Segmentation by Technology
9 Market Segmentation by Product
10 Market Segmentation by Application
11 Customer Landscape
12 Geographic Landscape
13 Drivers, Challenges, and Opportunity/Restraints
14 Competitive Landscape
15 Competitive Analysis
16 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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