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The inverter market is estimated to grow at a CAGR of 6.7% between 2022 and 2027. The size of the market is forecasted to increase by USD 3,0136.2 million. The growth of the market depends on several factors, including the rise in wind energy consumption, increasing solar energy installation, and growing support from governments for solar energy projects.
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.
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The reports categorize the global inverter market as a part of the global electrical components and equipment market, which covers companies engaged in the manufacturing of electric cables and wires, electrical components, and electrical equipment. Technavio calculates the global electrical components and equipment market size based on the combined revenue generated by the manufacturers of water heaters and accessories, motors, motor control, encoder and amplifier, automation solutions, electrical distribution and protection equipment, small generators, wire and cable accessories, power supplies and conditioners, sensors, meters and indicators, recorders and loggers, process safety systems, instrumentation, test, and measurement equipment, switches, transmitters and receivers, HVAC, and safety components. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in wind energy consumption is notably driving the market growth, although factors such as the intermittent nature of renewable energy may impede the market growth. 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.
Key Inverter Market Driver
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.
Significant Inverter Market Trend
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.
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.
Major Inverter Market Challenge
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.
Key Inverter Market Customer Landscape
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.
Global Inverter Market Customer Landscape
Vendors 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 vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 26,574.30 million 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.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 across the region in 2020 slowed down the growth of various manufacturing industries, including power utilities, which negatively impacted the regional inverter market. However, with mass vaccination drives and the lifting of travel restrictions, several businesses resumed their operations in the region. These factors are thus anticipated to propel the growth of the market in the region during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented 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).
Inverter 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 3,0136.2 million |
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 Vendors, Market Positioning of Vendors, 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 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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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