Solar PV Inverter Industry Report 2024-2035: Inverters Emerge as Critical Enablers in Solar PV Expansion and Grid Stability, Powering Growth - ResearchAndMarkets.com

The "Solar PV Inverter Industry, Global, 2024-2035" report has been added to ResearchAndMarkets.com's offering.

The base year revenue estimate is approximately $30 billion, with a CAGR of around 10% for the study period from 2023 to 2035

This study assesses the global market potential and growth opportunities for solar PV inverters. It includes three broad categories of inverters - central inverters, used mostly in large-scale installations and large commercial buildings; string inverters, used in medium-sized installations, such as commercial and residential establishments; and micro inverters that are mostly used in residential setups with some installations in the commercial sector.

Solar PV accounted for 45% of all power generation investment in 2024, and it is forecast to maintain this throughout the next decade. Inverters are one of the key components within a PV system, accounting for anywhere from 5% to 15% of the total system value, depending on the end customer segment.

Scope of Analysis

• Solar PV accounted for 45% of all power generation investment in 2024, and it is forecast to maintain this throughout the next decade. Inverters are one of the key components within a PV system, accounting for anywhere from 5% to 15% of the total system value, depending on the end customer segment.
• The revenue forecast for inverters is aligned to the solar PV industry. The publisher accounts for revenues in the year the system comes online and the same applies for PV inverters.
• Short, medium, and long terms refer to 1 to 2 years (2025-2026), 3 to 4 years (2027-2028), and 5 to 11 years (2029-2035), respectively.

Scope

• Why: The level of competition in the solar PV inverter industry is high. Chinese inverter producers have invested significant sums in new production facilities, and the result has been that average costs have declined in recent years.
• The Publisher's Perspective: For project developers, the declining PV inverter costs, coupled with far more significant cost reductions for modules is enabling them to bring down project costs, thus making solar PV more competitive. For inverter manufacturers to stand out, they need to try and differentiate their products by offering advanced features.

Geopolitical Chaos

• Why: Major conflicts have made energy security a major concern. Increasing economic competition is resulting in a higher use of tariffs, principally by the United States. Tariffs act to distort industries by making imported goods more expensive and domestically produced goods more competitive.
• The Publisher's Perspective: Tariffs (and incentives) are increasing investment in markets outside of China, particularly in the United States as components need to be locally produced. Major inverter manufacturers are seeking to diversify where they produce, which can be challenging as they are also under pressure to be cost competitive.

Innovative Business Models

• Why: As the intelligence of the grid increases, those assets on the grid gain more importance. There has been strong growth in residential solar PV in the past two years, and more commercial & industrial businesses will install PV as the costs continue to decline.
• The Publisher's Perspective: The electricity produced from Solar PV projects is an asset. When combined with other DERs such as BESS and EV Chargers it can generate additional revenues for the asset owners - or it can mitigate potential demand charges or high electricity bills. Inverters are a key component in enabling this greater intelligence.

Growth Restraints

• Solar PV Inverter Industry, Global, 2024-2035
• Whilst there are significant incentives and support mechanisms for solar PV in many geographies, as substantial number still lack effective policy support to ensure that market can reach its full potential.
• While there are several programs offering rebates on solar panels, there aren't many incentives for inverters, increasing the upfront costs for non-bankable/small-scale and residential projects.
• Delays in planning permission and grid connections can delay the progression of solar PV projects, resulting in lower inverter sales.

Growth Drivers

• The increasing cost competitiveness of solar PV based generation is driving a huge pipeline of projects.
• National renewable targets drive demand for solar PV and inverters.
• While there are unique applications for DC power, the reliability, efficiency in power transmission, flexibility, and cost advantages have made AC power the most widely used, thereby making inverters a critical component of the solar PV system.
• Renewables are characterized by variability in generation. Inverters improve power quality of grid connected PV systems.
• Hybrid inverters act as reliable power back up during grid failure/blackouts, ensuring smooth business operations.

Key Topics Covered:

Research Scope

• Scope of Analysis
• Regional Segmentation
• End User Segmentation
• Product Segmentation

Strategic Imperatives

• Why is it Increasingly Difficult to Grow?
• The Strategic Imperative
• The Impact of the Top 3 Strategic Imperatives on the Solar PV Inverter Industry
• Growth Opportunities Fuel the Growth Pipeline Engine

Growth Opportunity Analysis

• Key Findings
• PV Inverters Comparative Analysis
• PV Inverter Purchase Parameters
• What Impacts Inverter Reliability?
• Types of IGBT Failure
• Types of Capacitor Failure
• Key Strategy Trends
• Growth of Galium Nitride Semiconductors for PV Inverters
• Greater Use of Digital Solutions to Increase the Intelligence of Inverters
• Digital O&M to Minimize Arc Faults and Ensure Continuity
• Hybrid Inverter Solutions Gaining Prominence as BESS Grows
• Growth Drivers
• Growth Restraints
• Forecast Assumptions
• Pricing Trends
• Revenue Forecast by Region
• Revenue Forecast by Segment
• Revenue Forecast by Product Type
• Revenue Forecast by Region - String Inverters
• Revenue Forecast by Region - Central Inverters
• Revenue Forecast by Region - Micro Inverters

Market Share, Solar PV Inverters, 2024

Regional Analysis

• North America Revenue Forecast by Product
• China Revenue Forecast by Product
• Western Europe Revenue Forecast by Product
• Central and Eastern Europe Revenue Forecast by Product
• East Asia Revenue Forecast by Product
• India & South Asia Revenue Forecast by Product
• ASEAN Revenue Forecast by Product
• ANZ & Pacific Revenue Forecast by Product
• Latin America Revenue Forecast by Product
• Middle East and North Africa Revenue Forecast by Product
• Sub-Saharan Africa Revenue Forecast by Product
• Russia & CIS Revenue Forecast by Product

Growth Opportunity Universe

• Growth Opportunity 1: Silicon Carbide/Gallium Nitride Converters
• Growth Opportunity 2: Inverter with PID Control
• Growth Opportunity 3: Grid Forming Inverters

Appendix & Next Steps

• Benefits and Impacts of Growth Opportunities
• Next Steps

For more information about this report visit https://www.researchandmarkets.com/r/xqfwnq

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