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The inverter market size is forecast to increase by USD 3.01 billion at a CAGR of 6.7% between 2022 and 2027. The market's expansion hinges on various factors, notably the escalating adoption of wind energy, the surge in solar energy installations, and the expanding governmental backing for solar energy initiatives. These elements collectively fuel a robust trajectory for renewable energy sectors, encouraging further investment and technological advancements. The rising consumption of wind energy indicates a shift towards sustainable power sources, while the increasing installations of solar energy systems underscore the growing awareness and adoption of clean energy solutions. Government support, in terms of policies, incentives, and funding, plays a pivotal role in driving the growth of renewable energy markets, contributing significantly to their sustainability and long-term viability.
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This report extensively covers market segmentation by application (motor drive, renewable energy, and UPS), type (on-grid and off-grid), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Maintenance services are vital in driving the inverter market, which is witnessing robust growth due to the global shift towards renewable energy sources and the rapid adoption of electric vehicles (EVs). Government bodies worldwide are spearheading initiatives to promote clean energy and reduce reliance on fossil fuels, fueling demand for advanced solar inverters and innovative solutions from industry leaders like Continental, Delphi Technologies, Toyota Industries, Sensata Technologies, and Samlex Europe. Challenges include navigating complex emission rules, ensuring seamless charging station infrastructure, and securing reliable component suppliers amid escalating demand for rural electrification and sustainable energy solutions in building & construction and the oil & gas industry. Our researchers analyzed the data with 2022 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 rise in wind energy consumption is notably driving market growth. Countries across the world are focusing on renewable sources to produce power due to depleting conventional sources of energy and growing concerns about GHG emissions. Wind power is the most efficient source of power generation. The growing awareness about the benefits of wind energy is increasing the demand for wind turbine inverters, as they can increase the rotational speed and energy output while ensuring a high rate of return for investors from wind projects. Thus, the demand for wind turbine inverters is increasing.
Countries such as Denmark, Spain, Germany, and the UK produce over 10% of their power from wind energy. Moreover, the rising cost of fossil fuels is making wind power an economical source of renewable energy. During the forecast period, growth in wind energy consumption is expected to propel the demand for wind turbine inverters. This, in turn, will fuel the market growth.
The increase in demand for clean power is a key trend influencing market growth. The demand for power is increasing across the world. This demand is expected to increase in the future due to an increase in population and economic growth. Sustaining economic growth will require a substantial amount of power. Many countries have implemented renewable energy targets and policies, which have increased renewable power production. Countries are becoming aware of the depletion of fossil fuel resources. Therefore, they are gradually moving toward renewable energy, such as wind and solar.
Furthermore, governments are setting up favorable policies that will help establish and sustain wind power against cheaper alternatives. FiTs are being provided in almost all countries that have wind power installations. Auctions are being held for upcoming wind power installations to increase healthy competition. Countries are also investing in infrastructure to connect wind power to the grid. All such developments are expected to propel the growth of the market during the forecast period.
The intermittent nature of renewable energy may impede the inverter market growth. The energy produced from solar panels is not steady throughout the process. The power generated from PV differs based on factors such as the efficiency of the panel, the degree of the shade, and solar irradiation. Solar PV converts about 12%-16% of the sunlight that falls on the panel to electric energy. Its efficiency cannot be compared with the conversion rate of power generated by burning fossil fuels.
Though a highly advanced PV reduces the intermittency problem up to a certain extent, the high cost of these products reduces the use of these panels. Hence, the intermittency issues of solar PVs hinder their demand, which, in turn, will impede the growth of the market during the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, 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.
Maintenance services are crucial in the inverter market, particularly as industries and households shift towards renewable energy sources like solar power and electric vehicles (EVs). Government bodies worldwide are increasingly promoting clean energy initiatives, driving the growth of the global renewable energy sector and reducing reliance on fossil fuels. In this transition, solar inverters play a key role, converting Solar PV systems and solar modules into usable energy for both the solar inverter segment and the automotive segment, where inverters power electric motors in hybrid vehicles. Automakers are also investing heavily in emission rules compliance, necessitating advanced inverter technology for efficient charging station infrastructure and securing reliable component suppliers for inverters. Furthermore, inverters are pivotal in rural electrification efforts, extending renewable power to remote areas and supporting building & construction projects with sustainable energy solutions.
The market share growth by the motor drive segment will be significant during the forecast period. The growth of this segment can be attributed to factors such as the need to optimize manufacturing processes and reduce operational costs by monitoring energy consumption using a variable frequency drive system. The segment is characterized by the growing demand for and use of electric motors in household appliances, motor vehicles, aerospace, industrial, and other transportation equipment in lieu of mechanical and hydraulic motors.
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The motor drive segment showed a gradual increase in the market share of USD 26.57 billion in 2017 and continued to grow by 2021. Electric motors account for 44% of electricity consumption worldwide. The demand for electricity is rising globally due to factors such as high urbanization rate and rising population. Such factors are expected to increase the demand for electric motor driver inverters during the forecast period. In addition, the need to comply with the higher energy standards set by various regulatory bodies across the world is driving the demand for electric motors. These factors will drive the growth of the segment during the forecast period.
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APAC is estimated to account for 41% of 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.
The growing use of inverters in EV and railroad, wind, solar, manufacturing, and industrial sectors has impacted the inverter market in APAC. Countries such as Japan, China, Australia, India, South Korea, Taiwan, and Singapore are the key contributors to the growth of the market. The growth in population and improvements in the standards of living are increasing the demand for energy in APAC. This has improved the focus on renewable energy, including wind power. These factors will drive the growth of the market in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is deeply intertwined with the rapid expansion of renewable energy sources and the burgeoning electric vehicles sector. Government bodies and organizations like the International Energy Agency are pivotal in shaping policies and regulations that influence the global renewable energy sector and the adoption of technologies like solar inverters. Key players in the inverter market include Continental, Delphi Technologies, Toyota Industries, Sensata Technologies, Samlex Europe, and BESTEK. These companies cater to various sectors such as solar PV systems, automotive, building & construction, and the oil & gas industry. With the increasing focus on sustainability, automakers are emphasizing hybrid vehicles and adhering to stricter emission rules, necessitating advancements in charging station infrastructure and component suppliers.
Moreover, the inverter market encompasses micro and string inverters for renewable power infrastructure and rural electrification efforts. In the vehicle segment, battery electric vehicles are driving demand for efficient single-phase and three-phase inverters. Both residential and commercial segments are adopting inverters for rooftop solar installations, contributing to environmental objectives by reducing CO2 emissions and reliance on gasoline. These technological developments are vital for ensuring uninterruptible power supplies and providing environment-friendly backup solutions during outages, particularly in regions facing partial or full lockdowns that affect manufacturing facilities and supply chains.
The market is experiencing dynamic growth, driven by the escalating demand for solar modules in the solar industry and the rapid expansion of the renewable energy projects sector. This surge is further amplified by the solar inverter segment, which plays a pivotal role in converting Direct Current (DC) generated by solar panels into Alternating Current (AC) for use in homes, businesses, and industries. In the automotive segment, inverters are crucial components, especially in electric vehicles, where they manage power flow to the car's battery and various household electronics within the vehicle. As consumers increasingly opt for renewable energy solutions, the residential, commercial, and industrial segments are adopting inverters for rooftop solar installations to reduce environmental impact and reliance on conventional power sources.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.7% |
Market growth 2023-2027 |
USD 3.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
5.96 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Altenergy Power System Inc., Danfoss AS, DARFON ELECTRONICS CORP., Delta Electronics Inc., Eaton Corp. Plc, Enphase Energy Inc., Fronius International GmbH, General Electric Co., Huawei Technologies Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Shenzen Growatt New Energy Technology Co. Ltd., Siemens AG, SMA Solar Technology AG, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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