Global PV Inverter Market By Product (String PV inverter, Central PV inverter, Micro PV inverter, Others), By Phase (Single Phase, Three Phase), By Power Output (Upto 100 kW, 100 kW to 200 kW, Above 200 kW), By Deployment (On-Grid, Off-Grid, Hybrid), By End-use (Utilities, Commercial, Industrial, Residential) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global PV Inverter Market size is expected to be worth around USD 50.6 Bn by 2034, from USD 15.3 Bn in 2024, growing at a CAGR of 12.7% during the forecast period from 2025 to 2034.

​Photovoltaic (PV) inverters are essential components in solar energy systems, converting the direct current (DC) generated by solar panels into alternating current (AC) suitable for use in electrical grids and appliances. They play a pivotal role in ensuring the efficiency, reliability, and safety of solar power installations.​

Government initiatives have played a pivotal role in fostering the growth of the PV inverter industry. For instance, the U.S. Department of Energy’s SunShot Initiative, launched in 2011, aimed to make solar energy cost-competitive with traditional energy sources by reducing the cost of solar electricity. By 2017, the initiative had achieved 90% of its 2020 goals, prompting a refocus on grid reliability issues. Similarly, the Indian Renewable Energy Development Agency (IREDA), established in 1987, has been instrumental in financing renewable energy projects, thereby boosting the adoption of solar technologies in India. ​

Several factors are propelling the growth of the PV inverter market. First and foremost, global environmental policies, such as the Paris Agreement, are accelerating the shift towards cleaner energy sources, with solar power being a cornerstone of this transition. Governments across the globe are also introducing favorable policies and financial incentives. For example, the U.S. government offers the Investment Tax Credit (ITC), which provides a 26% tax credit for residential and commercial solar installations, a measure that has significantly bolstered solar energy adoption.

Additionally, the cost of solar panels and inverters has dropped considerably over the past decade. According to the International Renewable Energy Agency (IRENA), the cost of solar PV modules decreased by over 80% between 2010 and 2020, making solar installations more affordable and attractive. This decline in costs has further contributed to the growth of the PV inverter market, as consumers and businesses are more inclined to adopt solar energy solutions.

Key Takeaways

• PV Inverter Market size is expected to be worth around USD 50.6 Bn by 2034, from USD 15.3 Bn in 2024, growing at a CAGR of 12.7%.
• String PV inverters maintained a strong foothold in the market, securing a substantial 48.10% share.
• Three-phase PV inverters held a commanding position in the market, capturing an impressive 67.10% share.
• 100 kW to 200 kW established a dominant market position, securing a 45.20% share.
• On-grid PV inverters dominated the market, capturing an impressive 72.30% share.
• Utilities held a dominant position in the PV inverter market, capturing more than a 49.20% share.
• Asia-Pacific (APAC) region emerged as a dominant force in the PV inverter market, capturing an impressive 48.10% market share, which translates to approximately USD 7.3 billion.

By Product

String PV Inverters Lead the Market with Over 48.1% Share

In 2024, String PV inverters maintained a strong foothold in the market, securing a substantial 48.10% share. This significant market presence can be attributed to their cost-effectiveness and versatility in both residential and small-scale commercial solar projects. String inverters have become a preferred choice due to their ease of installation and maintenance, coupled with advancements in technology that enhance their efficiency and reliability. The adaptability of string PV inverters to various solar setups without the need for complex configurations further solidifies their dominant position in the market, making them a go-to option for many solar energy systems.

By Phase

Three-Phase PV Inverters Dominate with a 67.1% Market Share

In 2024, three-phase PV inverters held a commanding position in the market, capturing an impressive 67.10% share. This dominance is primarily due to their widespread application in commercial and industrial solar installations, where their ability to handle higher voltages and larger scale operations is essential. The preference for three-phase inverters in these settings stems from their enhanced efficiency and stability compared to single-phase options, making them ideal for supporting large-scale solar operations that demand robust energy solutions. Their continued popularity underscores their critical role in the broader adoption of solar energy systems across various sectors.

By Power Output

100 kW to 200 kW PV Inverters Claim 45.2% of the Market

In 2024, PV inverters with a power output ranging from 100 kW to 200 kW established a dominant market position, securing a 45.20% share. This segment’s strong performance is largely due to its popularity in medium to large-scale solar projects, where it perfectly balances capacity and flexibility. These inverters are particularly valued for their ability to efficiently manage solar energy production in commercial settings, ensuring optimal performance and reliability. The robustness and adaptability of 100 kW to 200 kW inverters make them a preferred choice for developers looking to maximize the effectiveness of their solar installations.

By Deployment

On-Grid PV Inverters Lead with 72.3% Market Share

In 2024, on-grid PV inverters dominated the market, capturing an impressive 72.30% share. Their widespread adoption is attributed to the growing demand for reliable and efficient energy connectivity with utility grids. On-grid systems are preferred in both residential and commercial sectors for their ability to reduce electricity costs and enhance energy security by feeding excess power back to the grid. The high percentage of market share held by on-grid inverters reflects their integral role in the expansion of grid-connected solar installations, which continue to be a major driver in the global shift towards renewable energy.

By End-use

Utilities Lead PV Inverter Market with 49.2% Share

In 2024, utilities held a dominant position in the PV inverter market, capturing more than a 49.20% share. This segment’s leadership is primarily driven by the large-scale integration of solar energy into utility grids, catering to the growing need for sustainable and reliable power sources. Utilities are increasingly investing in PV inverters to manage the influx of solar power, optimizing grid performance and enhancing the stability of energy supply. The prominence of utilities in the PV inverter market highlights their critical role in the renewable energy sector, facilitating the transition towards more environmentally friendly power solutions.

Key Market Segments

By Product

• String PV inverter
• Central PV inverter
• Micro PV inverter
• Others

By Phase

• Single Phase
• Three Phase

By Power Output

• Upto 100 kW
• 100 kW to 200 kW
• Above 200 kW

By Deployment

• On-Grid
• Off-Grid
• Hybrid

By End-use

• Utilities
• Commercial
• Industrial
• Residential

Drivers

Government Subsidies Boost PV Inverter Adoption

One of the primary driving factors for the growth of the PV inverter market is the significant support from government subsidies. These financial incentives are designed to lower the initial cost of installing solar power systems, making renewable energy more accessible and appealing to a broader range of consumers and businesses. For instance, the U.S. Department of Energy has been actively promoting solar technologies through various funding opportunities, recognizing the role of advanced inverters in enhancing grid stability and integration of renewable resources.

In Europe, countries like Germany have implemented policies that subsidize solar energy, which has led to a noticeable increase in the adoption of PV systems. These subsidies often cover a portion of the purchase and installation costs of solar panels and inverters, directly influencing the market’s growth dynamics. According to the International Energy Agency (IEA), such policy-driven incentives have propelled Europe to install over 22 gigawatts (GW) of solar PV systems in recent years.

Similarly, in Asia, countries like China and India have ambitious government targets for renewable energy installations, backed by favorable policies and subsidies. These initiatives not only support the domestic manufacturing of solar components, including inverters but also aim to reduce carbon footprints and energy imports. For example, the Indian government’s National Solar Mission aims to achieve 100 GW of solar energy by 2022, with significant funding allocated to solar projects.

These government initiatives underscore the strategic importance of renewable energy on a global scale. By reducing financial barriers and providing economic incentives, governments are not only fostering a favorable market environment for PV inverters but are also contributing to the long-term sustainability goals of reducing greenhouse gas emissions and promoting clean energy transitions.

Restraints

High Initial Costs Hinder PV Inverter Market Growth

A significant restraining factor for the expansion of the PV inverter market is the high initial investment required for solar installations. Despite the long-term savings and environmental benefits of solar energy, the upfront costs associated with purchasing and installing PV inverters and related solar components can be prohibitive for many potential users, particularly in less economically developed regions.

The cost of setting up a complete solar power system, which includes PV panels, inverters, mounting structures, and installation, can run into thousands of dollars. For example, the average cost of a residential solar installation in the United States can be around $15,000 to $25,000, according to data from the U.S. Energy Information Administration. While subsidies and tax incentives can alleviate some of this financial burden, they may not always cover a sufficient portion of the total cost to make the investment appealing to all homeowners and businesses.

In developing countries, the challenge is even more pronounced. These regions often lack the necessary financial support mechanisms that can reduce the impact of high initial costs. For instance, many African countries, despite having abundant solar potential, struggle with the adoption of solar technology due to limited access to affordable financing and economic incentives.

Additionally, the economic instability caused by global events such as the COVID-19 pandemic has led to budget cuts and reduced governmental support for renewable energy projects in some regions, further complicating the financial viability of new solar installations. These economic barriers not only slow down the adoption rate of solar technology but also impact the growth of the PV inverter market.

Addressing these cost issues is crucial for the future growth of the solar industry. Governments and international organizations are working to develop more robust financing solutions and economic incentives to make solar technology more accessible and affordable to a broader audience.

Opportunity

Technological Advancements Propel PV Inverter Market

Technological advancements in photovoltaic (PV) technology present major growth opportunities for the PV inverter market. Innovations aimed at increasing the efficiency and capabilities of PV inverters are making solar energy systems more attractive and viable for a wide range of applications, from residential to large-scale industrial uses.

One of the key developments in this sector is the improvement of smart and connected inverters. These advanced systems not only convert DC to AC more efficiently but also provide enhanced grid support services such as voltage regulation, frequency control, and real-time energy monitoring. For instance, the integration of Internet of Things (IoT) technology enables these inverters to perform predictive maintenance, thereby reducing downtime and operational costs.

In addition, the push towards hybrid systems that integrate solar with other forms of renewable energy, like wind or storage solutions, is expanding the market for versatile inverters capable of managing multiple input sources. This not only maximizes energy output but also stabilizes energy supply, making renewable installations more reliable.

Governments worldwide are supporting these innovations through grants and funding for research and development. For example, the European Union’s Horizon 2020 program has invested millions into solar energy projects that include the development of next-generation PV inverter technologies. These investments help drive down costs and improve the efficiency of solar systems, further spurring market growth.

As global energy policies continue to favor sustainable solutions, the demand for innovative and efficient PV inverters is expected to rise, providing significant opportunities for industry players. These technological advancements not only enhance the performance of solar systems but also contribute to global renewable energy targets, marking a positive step forward for environmental sustainability.

Trends

Shift Towards Decentralized Energy Generation Fuels PV Inverter Innovations

A major trend in the PV inverter market is the shift towards decentralized energy generation, where energy is produced closer to where it is used rather than at large, central power plants. This trend is driven by the growing popularity of residential and commercial solar installations, which are becoming more feasible and cost-effective due to technological advances and regulatory support.

Decentralized systems often require advanced inverter technology to manage variable power outputs and integrate seamlessly with the local grid infrastructure. In response, manufacturers are developing inverters with enhanced capabilities such as energy management, battery storage integration, and improved grid support functionalities. These inverters are not just crucial for converting DC electricity produced by solar panels into AC electricity usable in homes and businesses; they also play a pivotal role in maintaining grid stability and optimizing energy usage.

Governments around the world are supporting this trend through various initiatives. For example, the European Commission has introduced policies to promote smart grids, which rely on such advanced inverters for efficient operation. These policies are part of a broader strategy to achieve carbon neutrality by 2050, underlining the role of renewable energy technologies in future energy systems.

The transition to decentralized energy is not only about adopting new technologies but also about transforming how communities perceive and use energy. With increasing consumer awareness and governmental push towards renewables, the demand for sophisticated PV inverters is expected to grow, reflecting a broader move towards sustainability and energy independence. This shift represents a significant opportunity for PV inverter manufacturers to innovate and expand their offerings in a market that is increasingly favoring flexible, reliable, and efficient energy solutions.

Regional Analysis

In 2024, the Asia-Pacific (APAC) region emerged as a dominant force in the PV inverter market, capturing an impressive 48.10% market share, which translates to approximately USD 7.3 billion in revenue. This substantial market presence can be attributed to several key factors driving the adoption of solar energy across the region. Nations like China, India, and Japan are leading the way, with government initiatives aimed at boosting renewable energy capacity to meet escalating energy demands and reduce carbon footprints.

China continues to be the powerhouse of the region, not only as the largest market for PV inverters but also as a major manufacturing hub. The Chinese government’s aggressive policies towards solar energy, including subsidies and favorable tariffs, have played a crucial role in this expansion. Similarly, India’s National Solar Mission, which aims to achieve 100 GW of solar energy by 2022, has significantly spurred the demand for PV inverters.

Japan also contributes notably, with its focus on clean energy following the Fukushima nuclear disaster. The country’s commitment to renewable energy and its stringent energy security policies have fostered a conducive environment for PV inverter growth.

These regional efforts are supported by technological advancements and decreasing costs of solar installations, making solar energy more accessible and appealing. The high adoption rates in APAC are reflective of the broader global trends towards sustainable development and energy resilience, positioning the region as a crucial player in the global PV inverter market landscape.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Canadian Solar stands out in the global PV inverter market, renowned for its robust product portfolio that includes highly efficient solar inverters. The company is actively involved in numerous solar projects worldwide, enhancing its market presence through strategic alliances and technological advancements. Their commitment to sustainability and renewable energy solutions continues to drive their growth and appeal in the competitive PV inverter market.

Delta Electronics is recognized for its innovative and reliable energy solutions in the PV inverter sector. Their inverters are crucial in optimizing the efficiency of solar energy systems, catering to a wide range of applications from residential to large-scale industrial. Delta’s commitment to research and development has positioned them as a leader in energy-efficient technologies, further strengthening their market position.

Eaton is a key player in the PV inverter market, offering a diverse range of solar solutions that emphasize energy efficiency and safety. Their inverters are designed to support both residential and commercial energy systems, making solar power more accessible and reliable. Eaton’s global reach and strong focus on sustainable practices have solidified their status as a trusted name in power management solutions.

Enphase Energy is renowned for its microinverter technology, which revolutionizes the way solar energy is harvested and managed. Their PV inverters help maximize energy production while reducing costs, offering a significant advantage in residential and commercial solar projects. Enphase’s continuous technological advancements and strong market presence underscore their role as a frontrunner in the solar technology industry.

Top Key Players in the Market

• Canadian Solar
• Delta Electronics, Inc.
• Eaton
• Ingeteam Power Technology S.A.
• Enphase Energy
• Fimer Group
• Fronius International GmbH
• General Electric
• Hitachi Hi-Rel Power Electronics Private Limited
• Huawei Technologies
• KACO new energy
• Omron Corporation
• Power Electronics S.L.
• Schneider Electric
• SMA Solar Technology AG
• SolarEdge Technologies
• SolaX Power
• SunPower Corporation

Recent Developments

Delta Electronics, Inc. has been making significant strides in the PV inverter market, particularly noted for its robust performance and strategic market positioning.

Canadian Solar has solidified its position as a leader in the PV inverter market, particularly in the Asia-Pacific region, where it contributes significantly to the market’s growth.

Report Scope