The global inverter market is poised for substantial growth, with projections indicating a USD 32.38 billion expansion from 2024 to 2028. This growth trajectory is anticipated to be driven by a compound annual growth rate (CAGR) of 6.78% during the forecast period. The increasing demand for clean power, fueled by the rising popularity of wind energy, is a key driver of this market expansion.
However, the intermittent nature of renewable energy sources presents a challenge. While clean energy sources like solar and wind power are becoming more cost-effective, their fluctuating output requires efficient energy conversion and storage solutions, making inverters crucial components in the transition towards a sustainable energy future.
The report identifies several key market drivers, including:
*
Growing Global Power Demand:
The world’s energy demand is projected to increase significantly due to population growth and economic expansion, reaching 34,454 TWh by 2035 according to The World Bank. This escalating demand makes renewable energy sources, like solar, wind, and hydropower, increasingly attractive due to their environmental benefits and technological advancements.*
Government Incentives for Wind Energy:
Governments worldwide are actively encouraging the adoption of wind energy through favorable policies such as Feed-in Tariffs (FiTs) and auctions. These incentives aim to stimulate competition and encourage investment in grid connection infrastructure.*
Shift Towards Electric Vehicles:
The rise of electric vehicles (EVs) is driving demand for inverters, which are essential for converting the direct current (DC) power from EV batteries to alternating current (AC) power for use in homes and charging stations.*
Technological Advancements in Solar Inverters:
Technological advancements in solar inverters, particularly in solar PV systems and solar modules, are significantly contributing to market growth. These advancements are resulting in more efficient and reliable energy conversion, boosting demand for these essential components.The report also highlights key challenges faced by the inverter market:
*
Intermittency of Solar Energy:
While the solar PV market is experiencing significant growth due to decreasing installation costs and favorable government regulations, the intermittent nature of solar energy poses a challenge. Solar energy production varies throughout the day, impacting energy consistency.*
Supply Bottlenecks and Raw Material Costs:
Supply bottlenecks and rising procurement costs for raw materials can impact order completion times and overall project costs, presenting a challenge for market players.The report provides a detailed overview of the inverter market, segmenting it by application (motor drive, renewable energy, UPS), type (on-grid, off-grid), and geography (APAC, Europe, North America, Middle East and Africa, South America). Key players in the market include ABB Ltd., Altenergy Power System Inc., Danfoss AS, DARFON ELECTRONICS CORP., Delta Electronics Inc., Eaton Corp. Plc, Enphase Energy Inc., Fronius International GmbH, General Electric Co., Huawei Technologies Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Powerone Micro Systems Pvt. Ltd., Schneider Electric SE, Shenzen Growatt New Energy Technology Co. Ltd., Siemens AG, SMA Solar Technology AG, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., and Vertiv Holdings Co.
The report concludes that the inverter market is poised for significant growth, driven by the increasing adoption of renewable energy sources and electric vehicles, along with government policies promoting clean energy solutions. Technological advancements in solar inverters are further fueling growth, and the demand for efficient and reliable energy conversion solutions is expected to continue driving market expansion in the coming years.
