Market Overview

The global Renewable Energy Inverter market was valued at USD 13.45 billion in 2022 and expected to grow at a CAGR of 8.6% during the forecast period. Renewable energy inverters are electronic devices that are used to convert the direct current (DC) generated by renewable energy sources such as solar panels, wind turbines, and batteries into alternating current (AC) that can be used to power homes, businesses, and other electrical devices. Renewable energy inverters are an essential component of any renewable energy system, as they allow for the integration of renewable energy into the existing electrical grid.

Renewable energy inverters come in various types, including grid-tied inverters, off-grid inverters, and hybrid inverters. Grid-tied inverters are designed to work with the electrical grid and allow for the excess energy generated by renewable energy sources to be fed back into the grid. Off-grid inverters, on the other hand, are designed to be used in remote areas where there is no access to the electrical grid, and they are used to store energy in batteries for later use. Hybrid inverters can operate in both grid-tied and off-grid modes, and they are designed to provide maximum flexibility for renewable energy systems.

Renewable energy inverters have become increasingly important in recent years as the demand for renewable energy sources has grown. In addition to providing reliable and efficient energy conversion, renewable energy inverters also play a critical role in ensuring the stability and reliability of the electrical grid. As the adoption of renewable energy sources continues to grow, the demand for renewable energy inverters is also expected to increase, driving innovation and improving the efficiency of these devices.

The renewable energy inverter market is experiencing significant growth as the demand for renewable energy sources increases around the world. Renewable energy inverters play a critical role in the integration of renewable energy into the existing electrical grid, and as the adoption of renewable energy sources continues to grow, the demand for renewable energy inverters is expected to increase.

The growth is driven by factors such as increasing investments in renewable energy projects, government initiatives and policies supporting renewable energy, and the declining cost of renewable energy technologies. However, the high initial cost of renewable energy systems and the lack of proper infrastructure in some regions could hinder the growth of the market.

The market is segmented by type into grid-tied, off-grid, and hybrid inverters. The grid-tied segment is expected to hold the largest market share due to the increasing demand for grid-tied solar systems. The market is also segmented by application into residential, commercial, and utility-scale. The commercial segment is expected to grow at the highest CAGR due to the increasing adoption of renewable energy systems in commercial buildings.

Geographically, the Asia-Pacific region is expected to dominate the market due to the increasing adoption of renewable energy sources in countries such as China and India. North America and Europe are also expected to hold significant market shares due to government initiatives and policies supporting renewable energy.

Key players in the renewable energy inverter market include ABB, SMA Solar Technology AG, Fronius International GmbH, Huawei Technologies Co. Ltd., and Schneider Electric SE. These players are focusing on innovation and product development to improve the efficiency and performance of renewable energy inverters.

Report Scope

Impact of COVID

The COVID-19 pandemic had a mixed impact on the renewable energy inverter market. On one hand, the pandemic led to supply chain disruptions and reduced manufacturing activities, leading to a slowdown in the market. On the other hand, the pandemic also led to increased demand for renewable energy sources as countries looked for ways to reduce their dependence on fossil fuels and achieve their climate goals.

During the early stages of the pandemic, several countries announced economic stimulus packages to support their renewable energy industries. For instance, the European Union announced a €750 billion recovery plan that includes investments in renewable energy projects. Similarly, China announced a $500 billion stimulus package that includes investments in renewable energy infrastructure. These initiatives are expected to support the growth of the renewable energy inverter market.

However, the pandemic also led to disruptions in supply chains, which affected the manufacturing and delivery of renewable energy inverters. The closure of factories and transportation restrictions led to delays in the delivery of inverters, which affected the installation of renewable energy systems. The pandemic also led to a decline in investments in renewable energy projects, as companies and governments focused on addressing the immediate impacts of the pandemic.

Overall, the impact of COVID-19 on the renewable energy inverter market has been mixed. While the pandemic has led to short-term disruptions, the long-term outlook for the market remains positive, as countries continue to adopt renewable energy sources to achieve their climate goals.

Product Type Insights

The string inverter is expected to hold the largest market share of the renewable energy inverter market. This type of inverter is commonly used in residential and small commercial solar systems, as it is less expensive than central inverters and allows for easy expansion of the system.

The central inverter is commonly used in utility-scale solar systems and is more expensive than string inverters. However, it is more efficient and requires fewer components, resulting in lower installation costs.

The micro inverter is a relatively new type of inverter that is gaining popularity in residential and small commercial solar systems. Micro inverters are installed on each solar panel and convert the DC electricity produced by the panel into AC electricity, allowing for more precise monitoring and control of the system.

Connection Type Insights

The on-grid inverter is expected to hold the largest market share of the renewable energy inverter market. This type of inverter is designed to work with grid-connected solar systems and converts the DC electricity produced by solar panels into AC electricity that can be used by homes and businesses or fed back into the grid.

The off-grid inverter is designed for use with standalone solar systems that are not connected to the grid. This type of inverter converts the DC electricity produced by solar panels into AC electricity that can be used by homes and businesses or stored in batteries for later use.

Phase Insights

Three-Phase Inverter: The three-phase inverter is expected to hold the largest market share of the renewable energy inverter market. This type of inverter is designed for larger commercial and industrial applications that require a higher power output.

Single-Phase Inverter: The single-phase inverter is designed for residential and smaller commercial applications that require a lower power output.

Regional Insights

Asia Pacific: With countries such as China and India investing heavily in renewable energy, the Asia Pacific region is expected to dominate the renewable energy inverter market. According to the reports, the Asia Pacific region is expected to hold the largest market share of the renewable energy inverter market by 2032.

Europe: The European Union has set ambitious renewable energy targets for 2030 and is expected to increase its investments in the renewable energy sector. As a result, Europe is expected to hold a significant market share of the renewable energy inverter market.

North America: The United States is one of the largest markets for renewable energy and is expected to continue to increase its investments in this sector. The North American region is expected to hold a significant market share of the renewable energy inverter market.

Latin America: With countries such as Brazil investing in renewable energy, the Latin America region is expected to experience significant growth in the renewable energy inverter market.

Middle East and Africa: The Middle East and Africa region is expected to experience significant growth in the renewable energy inverter market, with countries such as Saudi Arabia and South Africa investing in renewable energy.

Overall, the Asia Pacific region is expected to dominate the renewable energy inverter market, followed by Europe and North America.

Competitive Analysis

Some of the major companies operating within the market are Delta Electronics, Inc., Fimer S.p.A., Fronius International GmbH, Ginlong Technologies, Huawei Technologies Co., Ltd., Shenzhen Growatt New Energy Co., Ltd., Siemens AG, SMA Solar Technology AG, SolarEdge Technologies, Inc., and Sungrow Power Supply Co., Ltd. These players are focusing on product innovation, expansion, and partnerships to strengthen their market position and meet the growing demand for Renewable Energy Inverter globally.

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

§  Company Share Analysis by Application/End Use

§  Company Share Analysis by Product/Specification

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