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The photovoltaic (PV) inverter market size is forecast to increase by USD 3.97 billion, at a CAGR of 6.78% between 2023 and 2028. Market growth in the solar energy sector is influenced by several factors, including the increasing demand for renewable energy sources as a sustainable alternative to traditional fossil fuels. Additionally, the declining levelized cost of energy (LOCE) associated with solar energy generation, coupled with decreasing costs of photovoltaic inverters, enhances the economic viability of solar power systems. Moreover, government regulations and policies aimed at promoting and supporting solar power generation further bolster market expansion. These regulations often include incentives such as tax credits, feed-in tariffs, and renewable energy targets, which encourage investment in solar energy infrastructure. With a growing emphasis on environmental sustainability and the need to reduce carbon emissions, the market is poised for significant growth, driven by ongoing technological advancements and supportive regulatory frameworks. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is pivotal in the solar energy system, converting DC (direct current) power generated by solar photovoltaic (PV) panels into alternate current (AC) power for utility use. Leading players like First Solar and Silicon Ranch drive innovation, offering solar PV inverters that optimize performance and reliability. With initiatives like the Inflation Reduction Act and support from organizations like the International Renewable Energy Agency (IRENA), there's a push for clean and sustainable energy solutions. As the levelized cost of electricity decreases, demand for advanced central and string inverters rises, shaping the landscape of the solar inverter market. Our researchers analyzed the market research and growth 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 decline in LOCE of solar power generation and cost of solar inverters is a major factor driving the global photovoltaic inverter market share growth. The cost of solar power generation has been reducing over the last five years. The cost of the PV systems reduced drastically due to improvements in technology and project management. rating more electricity at cost-competitive rates when compared with other renewable energy sources. Also, the use of sunlight tracking technologies and placing panels at the right angles can reduce the cost of solar power generation further. The declining cost of solar energy production will attract the attention of various vendors in the commercial, residential, and utility sectors. This will significantly increase solar power generation globally, which results in a rise in demand for PV inverters.
Further, the reduction in the cost of solar inverters, along with government subsidies, will increase the popularity of PV inverters in commercial, utilities, and residential sectors. Therefore, with the decrease in the cost of PV power generation and reducing LOCE of solar power generation, there will be a high demand for solar energy during the forecast period, which, in turn, increases the demand for PV inverters, as they are an integral part of the solar energy plants.
The growing demand for polycrystalline solar panels is another factor supporting the global photovoltaic inverters market share growth. Different types of films, such as monocrystalline, polycrystalline, and amorphous films, are used in solar panels, among which monocrystalline films are the most popular films. However, with the introduction of polycrystalline films, the prominence of monocrystalline films reduced, mainly in the residential sector. Polycrystalline solar panels are simple, efficient, and low-cost than the other two types of films. Comparison of different technologies used in solar panels. Hence, due to more advantages and fewer disadvantages of polycrystalline films, the efficiency of solar panels is expected to increase. This new trend will be the market driver for the global solar PV market in the future, which, in turn, will drive the global photovoltaic inverter market.
The intermittent nature of solar energy will be a major challenge for the market share growth during the forecast period. The energy produced from solar panels is not steady throughout the process. It may vary from time to time. The power generated from the PV will differ based on the efficiency of the panel, degree of the shade and solar irradiation. Hence, the solar energy produced in a day will vary, and this affects the consistency of the energy production. The intermittency feature will affect solar energy production according to the time scale of intermittency.
However, companies such as SunPower are focusing on manufacturing highly advanced panels, which offer a conversion rate up to 20%. Even though the highly advanced PV reduces the intermittency problem up to a limit, the high cost of these products reduces the usage of these panels. Essentially, the intermittency issues of solar PV hinder their growth, which, in turn, act as a challenge for the global photovoltaic inverter market.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting 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.
ABB Ltd: The company offers solar power solutions that optimize the performance, reliability, and return on investment of any solar installation, from rooftop, commercial, and industrial applications to utility-grade power plants.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 market 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 share growth by the string segment will be significant during the forecast period. A string inverter is connected to a series of solar panels called a solar array. In recent years, the demand for solar string inverters has increased with the growing interest in renewable power sources. A solar string inverter is an important part of a photovoltaic system as it converts the direct current (DC) produced by solar panels into alternating current (AC) that can be used to power your home or business. Decreasing the cost of solar panels, making solar power affordable for homeowners and businesses, has increased the demand for the market.
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The string segment was valued at USD 4.05 billion in 2018. Governments around the world are offering incentives to install solar power systems, increasing the demand for string inverters. Another factor driving the demand for solar string inverters is their reliability and efficiency. String inverters are designed to handle large amounts of power, making them suitable for use in commercial and industrial environments. It is also highly efficient and can convert the direct current produced by solar panels into alternating current that can be used to power buildings. Furthermore, the growing awareness of the importance of reducing carbon emissions and protecting the environment has led many people to seek renewable power sources such as solar power. Solar string inverters are expected to play a key role in enabling the harnessing of solar power and become an integral part of the transition to a more sustainable future, spurring the growth of the market during the forecast period.
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APAC is estimated to contribute 47% 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. The market in the APAC region is driven by the increasing adoption of renewable power and favorable government policies and incentives to support the development of the solar power industry. China is the largest market in the Asia-Pacific region and accounts for a large share of the world's production.
Moreover, the Chinese government has set ambitious targets for renewable power development, including increasing the share of non-fossil fuels in primary power consumption from 16% in 2020 to 20% by 2025. For both residential and utility applications. Other countries in the Asia-Pacific region, such as Japan, South Korea, and Australia, are also experiencing significant growth in the photovoltaic industry, increasing the demand for photovoltaic inverters. APAC is, therefore, a significant market, and growth in renewable energy development in the region is expected to further drive the demand for the market 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 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing robust growth, driven by factors such as the rising demand for clean energy and the adoption of renewable energy solutions to combat harmful GHG emissions. Organizations like the Energy Information Administration (EIA) and the Solar Energy Industries Association play pivotal roles in promoting solar energy adoption. These inverters facilitate the conversion of captured sunlight into usable electricity for both large scale solar power plants and rooftop installations, ensuring enhanced efficiency and overall system performance. With advanced monitoring and control systems, including Enphase IQ Microinverters and Flex, the market offers user-friendly solutions for residential PV inverter applications, integrating smart home technology and mobile apps for enhanced monitoring. Additionally, advancements in microinverter technology, such as PVS-100 Inverters, are driving cost-efficient and decentralized solar systems for rural electrification projects and off-grid applications, contributing to the clean energy transition worldwide.
Additionally, the market is experiencing significant growth due to factors such as the increasing adoption of solar energy and the development of solar PV projects supported by government programs and Feed-in Tariffs (FiTs). This growth is particularly notable in emerging countries where there is a rising demand for reliable and clean energy solutions. The market offers various types of inverters, including String PV inverters and three-phase PV inverters, known for their flexibility, shading tolerance, and cost-effectiveness. Additionally, advancements in off-grid technology and improved energy storage solutions, such as batteries, contribute to the market's operational flexibility and grid compatibility. With favorable incentive programs and supportive governmental initiatives, the market is poised for continued expansion and technological advancement.
Further, the market is witnessing a surge in demand with the rise of microgrids and the growing adoption of AC (alternating current) power. As solar PV deployments increase, there's a noticeable trend in product adoption driven by favorable customer preferences and government incentives like Feed-in Tariffs (FiTs). With cost-effective solutions available in the String PV inverter market, industry participants are experiencing healthy growth and swift industrial development through commercialization and collaborations. Additionally, the market sees utilization in off-grid applications such as water pumping and telecommunications, further fueling its momentum. Enhanced grid compatibility and smart home integration highlight the market's advanced technology and user-friendly solutions, making it a key player in the transition towards decentralized PV systems for both large scale deployment and small-scale solar installations.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 3.97 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
China, US, India, Japan, and Vietnam |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Canadian Solar 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., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Siemens AG, Sineng Electric Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., SunPower Corp., and Yaskawa Solectria Solar |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market 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 Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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