Photovoltaic (PV) Inverter Market Size, Share, Opportunities, And Trends By Connectivity (Standalone, On-Grid), By Type (Micro, String, Central), By Application (Residential, Commercial, Industrial), And By Geography - Forecasts From 2025 To 2030

Description

Photovoltaic (PV) Inverter Market Size:

The Photovoltaic (PV) Inverter Market is expected to grow from US$7.950 billion in 2025 to US$13.920 billion in 2030, at a CAGR of 11.85%.

The photovoltaic (PV) inverter market is anticipated to grow steadily throughout the forecast period. The photovoltaic inverter, a crucial part of the solar energy system, converts the DC electricity generated by the photovoltaic cells into AC power. Photovoltaic inverters convert power and track voltage, allow communication with the grid, and shut down in an emergency. The rising popularity of on-grid solar inverters safeguards the safety and efficiency of home appliances. On-grid solar inverters create a pure sine wave of AC electricity instead of off-grid inverters.

The worldwide development of the Photovoltaic (PV) Inverter Market is fundamentally increasing due to the rapid acceptance of renewable energy, especially solar energy, from governments, businesses, and households that are seeking to develop sustainable energy and clean energy in efforts to decrease carbon footprint and reliance on fossil fuels. The government continues to help substantiate projects (i.e., solar) through tax credits, feed-in tariffs, subsidies, and renewable energies that will promote and greatly improve the demand for PV inverters as a major component in solar energy systems.

Key players working in the market include SMA Solar Technology AG, SUNGROW, Delta Electronics Inc., Omron Corporation, TMEIC, and Sineng Electric.

Photovoltaic (PV) Inverter Market Trends

1. Features of Photovoltaic Inverter Systems
   Photovoltaic inverter systems are also more accessible and appealing to customers due to government subsidies, environmental advantages, lower solar panel prices, and improved photovoltaic inverter performance. The need for photovoltaic inverters is consequently increasing quickly. As more individuals and companies adopt photovoltaic systems to satisfy their energy needs, the market is expanding overall due to the rising demand for renewable energy. The government has also increased the expenditure on renewable energy globally, which has augmented the adoption of photovoltaic inverters.

Photovoltaic (PV) Inverter Market Dynamics

Market Drivers

• Use Cases and Technological Advancements to Boost the Market Potential
  PV inverters are also frequently used in residential and utility applications. Product innovation and the application of modern technologies in PV inverters are expected to generate attractive growth prospects for the PV inverters market throughout the forecast period. For instance, a pioneer in producing solar inverters, SolaX Power, recently unveiled its newest advancement, the X1-Hybrid LV. The X1-Hybrid LV is a useful addition to SolaX's solar product line and has numerous amazing characteristics that impress clients. It is designed to provide great efficiency for low-voltage PV systems.

Increasing Demand for Renewable Energy

• Increasing Demand for Renewable Energy
  Photovoltaic systems have gained popularity as a suitable option for power generation, as individuals and companies are becoming more aware of renewable energy usage. PV inverters transform the DC electricity produced by solar panels into AC power that can be used to power homes and businesses, owing to which such inverters are crucial parts of these systems. Governments worldwide acknowledge the value of renewable energy and encourage its usage through regulations and rewards. For instance, some governments offer tax deductions and subsidies for installing solar power installations. As more people invest in solar energy systems, this will provide a favorable market situation for photovoltaic inverter producers. For instance, as per the report, "Mapping India's Energy Policy 2022: Tracking Government Assistance for Energy," financing for electric cars rose by 160%, from Rs 906 crore to Rs 2,358 crore, while subsidies for renewable energy grew from Rs 5,774 crore in 2021 to Rs 11,529 crore in 2022.

Market Restraints

• Technical Difficulties and Grid Compatibility
  Grid codes require PV inverters to meet several conditions, predominantly in the manner they operate, including voltage regulation, reactive power issues, anti-islanding protection, organization of fault ride-through, etc. As further amounts of renewable generation come onto the system, it becomes considerably more complex to ensure frequencies and voltages remain stable. Furthermore, it has become increasingly difficult to connect PV inverters in regions of the grid that are weak/aging, due to additional costs surrounding the reinforcements to the grid, as it also considers the voltage fluctuations and performance. All these factors are constraints on the pace at which the inverter technology can be rolled out and the costs to manufacturers to achieve compliance with grid codes.

Market Opportunities

• The Need for Alternative Energy Sources
  Increasing electricity costs motivate businesses to explore alternative energy sources, with PV inverters providing a dependable and cost-efficient solution. Companies place importance on eco-friendly practices, including the adoption of solar energy systems, to align with sustainability objectives and bolster their brand image. This strategic emphasis on renewable energy solutions not only helps mitigate environmental impact but also enhances the reputation of businesses, demonstrating their commitment to responsible and sustainable operations. There has also been a consistent increase in solar electricity from March 2022 to March 2023, which 2023 indicates a positive trend in solar power generation within the OECD region. This upward trajectory suggests a growing adoption of solar energy systems, which can directly impact the commercial segment of the PV inverter market.
• Integrating Solar Power Systems
  Businesses are becoming more aware of the financial and environmental advantages of integrating solar power systems into their operations. The cost savings derived from solar power utilization and the positive environmental impact drive businesses to adopt solar power systems. By embracing this sustainable energy solution, companies can reduce their reliance on traditional energy sources, decrease operational costs, and contribute to environmental conservation.

Moreover, supportive policies such as tax credits and feed-in tariffs incentivize commercial entities to invest in PV inverters for solar power generation. Financial products, such as renewable energy certificates (RECs), facilitate the purchase, sale, or trade of renewable energy without direct involvement in its production or procurement. These RECs, also known as green tags or tradable renewable certificates, enable electric utilities to meet state renewable energy portfolio standards. At the same time, companies utilize them to fulfill voluntary emission reduction goals in their operations.

Photovoltaic (PV) Inverter Market Segmentation Analysis

By Application

• Based on application, the market is classified into residential, commercial, and industrial.

The photovoltaic (PV) inverter market is divided into residential, commercial, and industrial segments, with separate drivers and adoption characteristics for each. The residential segment is projected to be the fastest-growing during the forecast period. This trend is driven by an increase in the use of rooftop solar systems by urban and semi-urban households. Strong government policy support in the form of tax credits, subsidies, and net metering programs has made solar energy more accessible. The rise in the importance of energy independence and reduced costs has led homeowners to adopt solar-plus-storage solutions. As a result, the market for hybrid PV inverters that can be combined with batteries is growing.

Technological advancements in micro-inverters and smart inverters have become particularly appropriate for residential applications as these technologies offer greater efficiency, easier installation, and improved performance in shaded or constrained rooftop areas. Although the commercial and industrial segments continue to lead the market for total installed capacity, given their focus on corporate sustainability goals and utility-scale projects, the residential segment is forecast to be the segment with the highest CAGR due to the continued decline of solar system pricing, increased consumer awareness and interest in green energy, and the changing role of households as decentralized energy producers.

Photovoltaic (PV) Inverter Market Regional Analysis

• North America
  North America is considered one of the most attractive destinations globally due to the region’s access to advanced technology and the presence of major companies. The growing investments in solar plants and off-grid systems are driving market growth in the region. The electricity demand has surged due to population growth, making it more vulnerable to failures and outages. The International Energy Agency (IEA) has reported power outages in many countries, including the United States. In these countries, residential energy storage systems can provide a reliable source of electricity for households during outages. The growing installations of residential energy storage systems have propelled the market demand for PV inverters as they are widely employed in residential applications to convert solar energy into usable electricity for homes.
• PV inverters play a crucial role in energy storage applications as they ensure efficient charging and discharging of the batteries and facilitate grid services like peak shaving and load shifting. The growing demand for a stable and affordable power supply is anticipated to drive the energy storage market in the country, which in turn is expected to drive the PV inverter market. According to SEIA, in 2021, the United States built 5.4 gigawatts of solar PV capacity, bringing the total installed capacity to 113.5 gigawatts, enough to power 21.8 million American households.
• Europe
  Europe is another important market, with European countries like Germany, Spain, Italy, and the Netherlands embracing rooftop solar. This is largely due to legally binding renewable energy targets and carbon-neutrality goals. With the region's focus on smart grids and decentralized power generation, there will be a robust demand for sophisticated hybrid and micro-inverters.
• Asia-Pacific
  The Asia-Pacific region will continue to dominate the global market with more significant installations of solar power in China, India, Japan, South Korea, and Australia. China is ahead in installed solar farms, produced solar panels, and has solar farms. As a result of supporting government policies, export-driven manufacturing, and vision, China has benefited from developing solar farms. The immense installed rooftop and utility solar in India requires them to deploy string inverters and central inverters. India has many well-known schemes and tools to promote growth, like the National Solar Mission, which creates demand for solar inverters.
• South America
  Driven by Brazil and Chile, the adoption of solar is also increasing in South America as governments recognize the need to broaden energy sources to move away from hydropower. Collectively, Asia-Pacific continues to lead in installed capacity, while North America and Europe show strong adoption in the residential and commercial segments, and the MEA and South America represent emerging frontier growth markets.
• The Middle East and Africa
  The Middle East and Africa (MEA) region is developing as a strong market, chiefly behind ambitious renewable energy plans, mainly from Saudi Arabia's Vision 2030 and utility-scale solar plans in the UAE, South Africa, and Egypt. Regional infrastructure and affordability are challenges that remain.

Photovoltaic (PV) Inverter Market Competitive Landscape

Key Industry Players

The photovoltaic (PV) inverter market contains several big and small companies that focus on innovation, efficiency, and smart energy solutions. Some of the major players are SMA Solar Technology AG, Sungrow, Delta Electronics Inc., Omron Corporation, TMEIC, Sineng Electric, CHINT Group, Solax Power, SolarEdge, and Huawei, all of which are actively engaged in product development, strategic partnerships, and large-scale solar project integrations. These players are adopting innovative technologies such as hybrid inverters, digital monitoring, and energy storage integration to provide a better service to different customers and solidify their market position.

List of Key Company Profiled

• SMA Solar Technology AG
• SUNGROW
• Delta Electronics Inc.
• Omron Corporation
• TMEIC
• Sineng Electric
• CHINT Group
• Solax Power
• SolarEdge
• Huawei

Photovoltaic (PV) Inverter Market Key Developments

• Collaboration: In July 2025, DIDWW, a top telecom provider that specializes in two-way SIP trunking services and virtual phone numbers for businesses worldwide, announced a partnership with Solis (Ginlong Technologies), the third-largest PV inverter manufacturer in the world.
• Collaboration: In June 2025, it was announced that Delta and KP Group would be working together. The primary objective of this partnership will be to supply energy storage projects across India and investigate international markets. According to the first Memorandum of Understanding, scalable battery energy storage systems (BESS) projects will be developed.
• Acquisition: In January 2025, amid industry challenges, the Italian solar inverter manufacturer FIMER was acquired by MA Solar Italy, a subsidiary of McLaren Applied Group. The purchase, which was made for an undisclosed sum, secures FIMER's assets and solar PV inverter business while assisting it in finishing its restructuring process following Extraordinary Administration.

Market Segmentation:

• By Connectivity
  • Standalone
  • On-Grid
• By Type
  • Micro
  • String
  • Central
• By Application
  • Residential
  • Commercial
  • Industrial
• By Geography
  
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

Table Of Contents

Companies Profiled

SMA Solar Technology AG

SUNGROW

Delta Electronics Inc.

Omron Corporation

TMEIC

Sineng Electric

CHINT Group

Solax Power

SolarEdge

Huawei

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