Solar PV Inverter Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The solar PV inverter market size has grown strongly in recent years. It will grow from $10.11 billion in 2024 to $10.88 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to rapid development in the renewable energy sector, easy installation of solar inverters, emerging government subsidies, the global push towards cleaner and more sustainable energy sources, declining costs of solar PV inverters.

The solar PV inverter market size is expected to see strong growth in the next few years. It will grow to $13.78 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to increasing investments and ambitious solar energy targets, increasingly usage in the commercial & industrial projects, increasing energy demand across the globe, the growing demand for solar power, increase in demand for reliable and continuous power supply. Major trends in the forecast period include increased adoption of microinverters and string inverters, growing demand for high-power inverters, development of smart inverters, development of new inverter technologies, product innovation and adaptation of the latest technologies in solar PV inverters.

The rapid development in the renewable energy sector is expected to drive the growth of the solar PV inverter market in the coming years. Renewable energy is derived from natural sources, such as sunlight, wind, rain, tides, and geothermal heat, which replenish themselves over short periods. These sources are increasingly in demand due to their sustainable and environmentally friendly nature, offering an alternative to fossil fuels while reducing greenhouse gas emissions and reliance on finite resources. Solar PV inverters are essential for harnessing renewable energy, as they convert the direct current (DC) electricity produced by photovoltaic panels into alternating current (AC) electricity, making it compatible with grid or home electrical systems. For instance, in September 2024, the Department for Energy Security and Net Zero, a UK-based government agency, reported that in Q2 2024, renewable energy accounted for 51.6% of total energy generation in the UK, showing a 9.9% increase compared to the same period in 2023. Thus, the continued growth of renewable energy is fueling the expansion of the solar PV inverter market.

Major companies operating in the solar PV inverter market are developing new products, such as Solsmart, to boost their profitability in the market. This on-grid PV inverter boasts an impressive 98.4% efficiency, and advanced safety features like an integrated DC switch, and is designed for both rooftop and traditional solar panels. For instance, in June 2022, V-Guard Industries Ltd., an India-based consumer electronics company, launched Solsmart. It offers a comprehensive 10-year warranty, with innovative features such as real-time solar analytics, maintenance reminders, and a battery gravity builder, all controllable via an app. Designed for durability, it includes protection against short circuits, overloading, and surges and is available in both single- and three-phase models.

In October 2023, Hitachi Ltd., a Japan-based manufacturer of construction, telecom, and power system products, acquired EKS Energy for an undisclosed amount. Through this acquisition, Hitachi Energy aims to enhance its renewables and battery energy storage offerings by integrating EKS's expertise in power electronics and energy management with its own capabilities in system integration, automation, and software. EKS Energy is a UK-based manufacturer of power electronic devices.

Major companies operating in the solar PV inverter market are Huawei Technologies Co. Ltd., Hitachi Limited, Siemens AG, General Electric Company, Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd., Toshiba Corporation, Eaton Corporation, TBEA Sunoasis Co. Ltd., Emerson Electric Co., Omron Corporation, Sungrow Power Supply Co. Ltd., SolarEdge Technologies Inc., Enphase Energy Inc., SunPower Corporation, SMA Solar Technology AG, Fronius International GmbH, Kstar New Energy Co. Ltd., AEG Power Solutions B.V., KACO new energy GmbH, Fimer SpA, Sineng Electric Co. Ltd., Altenergy Power System Inc., Delta Energy Systems Inc.

Asia-Pacific was the largest region in the solar PV inverter market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the solar pv inverter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar PV inverter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar PV inverter market consists of sales of solar panels, solar batteries, monitoring systems, hybrid inverters, and battery-based inverters. 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).

A solar PV (photovoltaic) inverter converts the fluctuating DC output from solar panels into a stable AC form, enabling its use in both commercial grid setups and independent, off-grid applications. It is a critical component in a solar energy system, allowing the electricity generated by solar panels to be used to power electrical devices and systems in homes and businesses. The inverter also optimizes the energy harvest from solar panels by matching the electrical characteristics of the grid or load.

The main types of solar PV inverters are central inverters, string inverters, and micro inverters. Central inverters are large-scale inverters that aggregate electricity from multiple solar panels for conversion from DC to AC, typically used in utility-scale solar installations. They are available in connection types such as on-grid and off-grid. They are used for several applications, such as residential, commercial, industrial, and utility-scale.

The main types of solar PV inverters are central inverters, string inverters, and micro inverters. Central inverters are large-scale inverters that aggregate electricity from multiple solar panels for conversion from DC to AC, typically used in utility-scale solar installations. They are available in connection types such as on-grid and off-grid. They are used for several applications, such as residential, commercial, industrial, and utility-scale.

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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