Inverter Global Market Report 2024

The inverter market size is expected to see rapid growth in the next few years. It will grow to $38.12 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to increasing deployment of smart grid systems, 5g technology deployment, increasing emphasis on resilient power solutions, climate change mitigation, expanding electrification initiatives. Major trends in the forecast period include hybrid inverter systems, digitalization and iot integration, energy management platforms, advanced cooling technologies, customized solutions for industries .

The inverter market size has grown rapidly in recent years. It will grow from $17.32 billion in 2023 to $20.43 billion in 2024 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to several factors, including the increasing adoption of renewable energy sources, government incentives promoting renewable energy, rising energy consumption, the boom in consumer electronics, and the electrification of the automotive industry. These factors have contributed to the expansion and development of renewable energy sources and related technologies.

The inverter market size is expected to see rapid growth in the next few years. It will grow to $38.12 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. The anticipated growth in the forecast period can be attributed to the increasing deployment of smart grid systems, the rollout of 5G technology, a growing emphasis on resilient power solutions, efforts to mitigate climate change, and expanding electrification initiatives. Major trends expected in this period include the adoption of hybrid inverter systems, the integration of digitalization and IoT (Internet of Things) technologies, the development of energy management platforms, advancements in cooling technologies, and the provision of customized solutions for various industries.

The increasing demand for electric vehicles (EVs) is expected to propel the growth of the inverter market. Inverters are crucial components in EVs, as they control the motor's speed by adjusting the frequency of the alternating current. With the global sales of electric cars surpassing 10 million units in 2022, representing a 14% share of all new car purchases, there is a significant market for inverters to support the growing EV industry.

The escalating emphasis on renewable energy is anticipated to drive the growth of the inverter market in the foreseeable future. Renewable energy sources are those derived from naturally replenished resources over a human-relevant timeframe. Inverters play a vital role in integrating these renewable energy sources, such as solar and wind power, into existing electrical systems. They facilitate the efficient utilization and distribution of clean energy. For instance, as reported by gov.uk in December 2023, renewable energy production in the UK has been steadily increasing, contributing to 44.5% of electricity generation in the third quarter of 2023. This reflects an 8.2% rise compared to the same period in the previous year. Consequently, the mounting focus on harnessing renewable energy stands as a significant driver propelling the inverter market, given their pivotal role in enabling the utilization of clean energy sources.

Technological advancements are a prominent trend reshaping the inverter market landscape. Notably, in May 2021, Infineon Technologies AG, a semiconductor manufacturer based in Germany, introduced a groundbreaking automotive power module featuring CoolSiC MOSFET technology. This innovation, a full-bridge module designed with a 1200 Volts blocking voltage, specifically targets traction inverters in electric vehicles (EVs). Leveraging automotive CoolSiC trench MOSFET technology, this power module caters to high-performance applications and boasts high power density. Its capabilities translate to enhanced efficiency in inverters, extending the range of electric vehicles while contributing to reduced battery costs, particularly beneficial for vehicles equipped with larger battery capacities and 800 V battery systems.

Major companies in the inverter market are introducing new products such as micro inverters to enhance their market position and profitability. As such its traditional string inverters that are connected to multiple solar PV modules in series, micro inverters are installed at or near individual modules, operating independently for each panel. For example, in October 2023, Havells, an India-based electrical equipment manufacturer, launched the Dual Mode Micro Inverter (DMMI), which incorporates an innovative MPPT-based solar charge controller for efficient DC to AC conversion. The product is available in two models: DMMI-800 and DMMI-1600. One of its key features is the seamless transition between ON-Grid and Off-Grid modes, making it adaptable to diverse grid scenarios. Additionally, the integration of the DMMI beneath solar modules eliminates the need for extensive DC wiring, representing a significant breakthrough in solar energy solutions. By serving as both an ON-Grid and Off-Grid inverter, the DMMI overcomes the limitations of traditional counterparts. Furthermore, Havells India has obtained four US patents for this product, demonstrating the company's commitment to eco-friendly energy solutions.

In July 2021, Generac Holdings Inc., a US-based energy technology provider, acquired Chilicon Power LLC for an undisclosed amount. This strategic acquisition is part of Generac's efforts to enter the microinverter market and strengthen its position in residential clean energy. The acquisition aims to expand Generac's product portfolio by integrating Chilicon's innovative microinverter solutions with Generac's existing PWRcell solar and storage products. Chilicon Power LLC, based in the US, is known for its expertise in manufacturing microinverter technology. The acquisition is expected to enhance Generac's ability to offer comprehensive and advanced solutions for residential clean energy systems.

Major companies operating in the inverter market report are Mitsubishi Electric Corporation, Huawei Technologies Co. Ltd., General Electric Company, Schneider Electric SE, Eaton Corporation, Delta Electronics Inc., OMRON Corporation, Chint Group Co. Ltd., Sungrow Power Supply Co. Ltd., Yaskawa Electric Corporation, KOSTAL Solar Electric GmbH, SolarEdge Technologies Inc., Enphase Energy Inc., Advanced Energy Industries Inc., TMEIC Corporation, Fronius International GmbH, Ingeteam India Pvt. Ltd., Ginlong Technologies Co. Ltd., KSTAR New Energy Co. Ltd., Satcon Technology Corporation, Sineng Electric Co. Ltd., Growatt New Energy Technology Co. Ltd., Hitachi Hi-Rel Power Electronics Pvt. Ltd., Tabuchi Electric Co. Ltd., GoodWe Power Supply Technology Co. Ltd., KACO new energy GmbH, Xantrex Technology Inc., FIMER S.p.A, SMA Solar Technology AG, Power Electronics S.L. Asia-Pacific was the largest region in the inverter market in 2023. The regions covered in the inverter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary types of inverters include solar inverters, vehicle inverters, and others, such as UPS. Solar inverters are devices that convert the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity. They can be connected to the grid or operate off-grid, and they come in single-phase and three-phase configurations. These inverters are used directly and indirectly by various end-users, including residential, industrial, and commercial sectors.

The inverter market size has grown rapidly in recent years. It will grow from $17.32 billion in 2023 to $20.43 billion in 2024 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to increasing adoption of renewable energy sources, government incentives, rising energy consumption, consumer electronics boom, automotive electrification.

The countries covered in the inverter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The inverter market consists of sales of voltage source inverters, current source inverters, microcontrollers, transistors, filters, H-bridges, central inverters, string inverters, micro-inverters, on-grid inverters, off-grid inverters, single-phase and three-phase inverters, and other types. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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