The global solar central inverters market is estimated to grow significantly from 2024 to 2028, with a projected compound annual growth rate (CAGR) of 14.99%. This growth is fueled by the increasing investment in renewable energy sources and the growing demand for clean energy technologies. However, challenges related to alternative energy sources persist. Key players in the market include ABB Ltd., Delta Electronics Inc., Eaton Corp. Plc, Fimer SpA, Hitachi Ltd., Huawei Technologies Co. Ltd., Infineon Technologies AG, Ingeteam Corp. S.A., OCI Co. Ltd., Shenzhen Growatt New Energy Technology Co. Ltd., Siemens AG, and others, as reported by Technavio.
The global electricity demand has witnessed substantial growth, increasing by 8% in 2021 to over 8300 TWh compared to 2020. Emerging economies, particularly in Asia, are driving this demand due to their rapid economic growth and increasing populations. Traditional energy sources, such as coal, natural gas, and oil, have dominated electricity generation, accounting for 61% of the total mix in 2018. However, reliance on these sources has led to a rise in carbon emissions, with coal contributing the largest share at 38%. Furthermore, a significant population in Asian and African countries relies on fuels like kerosene and coal for cooking, resulting in environmental pollution and health issues. The International Energy Agency (IEA) reports that 8.70 million people in Sub-Saharan Africa and 703.20 million people in India lack access to clean cooking facilities.
The high cost of conventional sources of electricity and lighting, such as diesel and kerosene, has increased the demand for off-grid solar appliances. Solar power, a clean energy technology, is gaining popularity due to its zero carbon emissions and potential to provide an alternative to high-cost conventional sources. The rising price of oil and gas is also driving up the cost of derived products like kerosene, leading to increased government spending and household expenses. As a result, the demand for solar PV systems is expected to grow, creating opportunities for the solar central inverter market during the forecast period.
The Solar Central Inverters market is experiencing significant growth, particularly in commercial buildings and renewable energy plants. Solar power transmission for reliable and continuous power supply is a top trend. String Inverters and Micro Inverters are popular choices for Solar Photovoltaic Systems. Utility-scale projects require Grid Connection, Maximum Power Point Tracking, and Low-Frequency Transformers. Input Voltage levels and BOS Components are key considerations. Monolithic and Modular Inverters offer flexibility. Multi-MPPT Trackers and Master-Slave Control Approach ensure optimal performance. Electric Grid Standards, Energy Storage Systems, and Government Efforts are driving decarbonization and electricity demand. Solar Energy is a clean alternative to polluting fossil fuels in the face of industrialization and increasing renewable energy capacity. Solar Potential, Grid Parity, Solar Irradiance, and Grid Frequency are crucial factors. Direct Current and Alternating Current systems operate at Utility Frequency. Photovoltaic Solar Panels convert sunlight into electricity, while Microgrids ensure local power supply. Discover 360° analysis of this market.
The utility segment dominated the global solar central inverters market in 2023, accounting for the largest share due to the increasing number of utility-scale solar projects. Utility-scale solar plants generate solar power and feed it into the main grid, making central inverters essential components. These projects, with a capacity of 1 MW or higher, are driven by government policies and corporate targets to expand power generation capacity, meet rising energy demand, and reduce grid dependence. According to the US Energy Information Administration (EIA), as of 2023, there are pending licenses for over 48 GW of new pumped storage hydroelectric (PSH) capacity in the US, which could take years to materialize. Central inverters offer lower operations and maintenance (O&M) costs and capital expenditure compared to other inverters, making them the preferred choice for utility-scale projects.
The utility segment’s growth is fueled by the shift towards renewable energy sources, declining solar component costs, and favorable solar policies and incentives. Solar PV technology’s affordability and investor and public utility interest further boost the market’s growth during the forecast period.
Solar inverters are essential components of Solar Photovoltaic Systems that convert DC power generated by solar panels into AC power for use in industrial, commercial, and residential applications. Central inverters, also known as utility-scale inverters or string inverters, are used in large-scale solar power plants, converting DC power from multiple solar panels into AC power for grid connection.
On-grid solar inverters, such as central inverters, work in synchronization with the utility grid and are available as string inverters or micro inverters. Off-grid solar inverters, on the other hand, convert DC power into AC power for use in standalone systems, powering home appliances and utilities applications without grid connection. Central inverters have maximum power point tracking capabilities, ensuring optimal energy conversion and minimizing heat loss. They come in various input voltage ranges and can be monolithic or use low-frequency transformers. BOS components, including central inverters, are crucial for the successful implementation of solar power projects.
PV inverters, including central inverters, are an integral part of the solar value chain, converting DC power from solar panels into usable AC power for various applications. The Solar Inverter market is a significant segment of the renewable energy sector, focusing on converting the DC electricity generated by solar panels into AC electricity for industrial, commercial, and residential use. Central inverters, including string inverters and micro inverters, are crucial components of this market. Central inverters process electricity from multiple solar panels, making them suitable for large buildings and solar power plants. On-grid and off-grid solar inverters cater to various applications. On-grid inverters connect solar systems to the utility grid, while off-grid inverters provide power backup and are essential for rural electrification and infrastructural development projects.
The PV inverter market is expanding due to growing environmental concerns, tax benefits, home loans, and home renovation projects. Solar inverters are essential for power generation in hot prone regions, where electricity demand is high, and power supply is unreliable. They are also crucial for powering home appliances and utilities applications in residential areas. Large-sized solar inverters offer panel level monitoring, reducing heat loss and ensuring reliable power supply. The market is witnessing expansion activities, new product innovations, and government support. Utility-scale solar parks and power plants, solar structures, and construction projects are significant consumers of solar inverters.
The market is expected to grow further due to the increasing demand for economic-friendly and continuous power supply, especially in the utilities segment. Single-phase and three-phase central inverters cater to residential and commercial users, respectively. String Inverters and Micro Inverters are popular choices for utility-scale solar photovoltaic systems. The market is also witnessing the emergence of monolithic and modular inverters, multi-MPPT trackers, and master-slave control approaches to improve efficiency and reduce failure rates. Low-frequency transformers and BOS components are integral to the solar inverter market. The market is subject to electric grid standards and energy storage systems, ensuring maximum power point tracking and grid connection. The market’s growth is driven by the need for reliable power supply, continuous power supply, and the transition towards renewable energy sources to reduce carbon emissions and greenhouse gas emissions.
