Utility Scale PV Inverter Market Size & Share, by Product (String, Central); Voltage (< 1500V, ≥ 1500 V); Application (Commercial & Industrial, Residential, Utility Scale) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5619
  • Published Date: Feb 07, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Utility Scale PV Inverter Market size is expected to reach USD 23 Billion by the end of 2036, growing at a CAGR of 5% during the forecast period, i.e.2024- 2036. In the year 2023, the industry size of utility scale PV inverter was over USD 13 Billion. The market is anticipated to benefit from the growing amount of public and private financing allocated to electrification projects in emerging nations' off-grid or grid-island locations. The absence of efficient grid infrastructure causes power lags and blackouts in many rural parts of developing economies. The market for utility scale PV inverters is expanding due to favorable legislative actions and an increase in industry players. The Asia Development Bank (ADB) and Avaada Energy Private Limited announced in 2020 that they would be working together to invest more than USD 15 million in increasing the capacity of photovoltaic solar energy generation in the Indian subcontinent. The need for PV inverters is increased as a result of these financial initiatives, which also help to create a favorable economic climate for the global deployment of sustainable electricity systems.

Further, supportive government policies, incentives, and subsidies can significantly impact the utility scale PV inverter market. Many governments worldwide offer financial incentives, tax credits, and favorable regulatory frameworks to promote the adoption of solar energy.  These Policies create a positive environment for utility scale solar projects. A observed by Research Nester analysts, the global investment in Solar energy is expected to reach USD 380 billion by 2023. This represents 14% of the total investments in energy around the world.


Utility Scale PV Inverter Market
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Utility Scale PV Inverter Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 5%

Base Year Market Size (2023)

~ USD 13 Billion

Forecast Year Market Size (2036)

~ USD 23 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Utility Scale PV Inverter Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Increasing Solar Power Installations- The continuous increase in solar power generation technologies worldwide. Governments, businesses, and utilities are investing heavily in solar energy projects to meet renewable energy targets and reduce carbon footprints. Additionally, the cost of solar photovoltaic systems, including PV inverters, has been decreasing over the years. This cost reduction is mainly due to advancements in technology, economies of scale, and increased competition in the solar industry. Lower costs make solar energy more economically viable, driving the demand for utility scale PV inverters.
  • Environmental Concerns and Sustainability Goals- growing awareness of environmental issues and the need for sustainable energy sources have prompted businesses and governments to prioritize renewable energy projects. Utility-scale PV inverters play a crucial role in achieving sustainability goals by facilities the integration of large scale solar power into the energy mix.  Also, the global shift towards a more sustainable and low carbon energy future is a significant driver for the Utility scale PV inverter market. As countries strive to reduce dependence on fossil fuels, solar energy, supported by efficient PV inverters, becomes a key component of the energy transition.
  • Energy Storage Integration- The integration of energy storage systems with utility scale PV projects is becoming more common. Utility scale PV inverters that can seamlessly integrate with energy storage solutions contribute to grid stability and enable the storage of excess energy for use during periods of low solar generation. As analyzed by Research Nester Analysts, global PV power generation capacity increased by 239 GW in 2022, reaching nearly 1,200 GW, or 1.2 Terawatt TWh.

Challenges

  • High Initial Costs -The initial capital costs of utility scale solar projects, including PV inverters, can be high. Financing these projects and obtaining favorable terms can be challenging, especially for developing countries or regions without established financial mechanisms for renewable energy projects.
  • Disruptions in the supply chain, whether due to geopolitical factors, trade tensions, or unexpected events (such as pandemic), can impact the availability and cost of key components.
  • Limited advancements in energy storage technology and the associated costs can hinder the widespread integration of storage solutions with utility scale PV projects.


Utility Scale PV Inverter Segmentation

Product (String, Central)

The central segment is expected to hold 54% share of the global utility scale PV inverter market by 2036. The increasing emphasis on distributed generating technologies in conjunction with the development of sustainable energy systems is credited with the segment's significant rise. Product acceptance will soar because to low operating and maintenance costs, simple installation, and upgraded manufacturing facilities. These systems include centralized power control, which makes it simple to manage products and optimize costs, both of which will spur market expansion. Globally, utility-scale solar projects are becoming more and more popular. To handle the larger capacity, these large-scale installations need central inverters with high power ratings. Manufacturers of central inverters thus concentrated on creating and refining their goods for utility-scale uses. Manufacturers of central inverters constantly spend money on R&D to improve the effectiveness, dependability, and performance of their machines. Power density, thermal control, and grid integration capabilities were among the technological advances. Furthermore, several manufacturers began adding sophisticated capabilities to their central inverters, such as data analytics, remote monitoring, and grid support functions, which accelerated the expansion of the market.

Voltage (< 1500V, ≥ 1500 V)

The < 1500 V segment in the utility scale PV inverter market is anticipated to hold the largest revenue share. Growing consumer knowledge of the benefits of using low-CO2 products to reduce greenhouse gas emissions is credited with the segment's expansion. <1500V string inverters have a number of benefits, such as module-level MPPT, easier installation, and enhanced system monitoring. When tiny to medium-sized PV arrays are used in residential and commercial settings, these inverters are especially well-liked. Due to their minimal management and maintenance requirements, these systems are expected to fuel the market's growth. In particular, 1500V systems are capable of providing 50% longer strings and larger inverters with an output up to 40% more. The power density and performance of this system are the highest in terms of PV systems.

Our in-depth analysis of the global market includes the following segments:

     Product

  • String
  • Central

     Voltage

  • < 1500V
  • ≥ 1500 V
     

     Application

  • Commercial & Industrial
  • Residential
  •  Utility Scale

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Utility Scale PV Inverter Industry - Regional Synopsis

North American Market Forecast

North America’s utility scale PV inverter market is estimated to hold the largest revenue share, accounting for 40% of the global market. The region has experienced robust growth, fuelled by the region’s increasing emphasis on renewable energy and sustainability. In 2022, solar technology accounted for 3.4% of the United States' electricity. The United States, in particular, has witnessed a surge in large-scale solar projects, driven by supportive policies, tax incentives, and the declining costs of solar technology. The market is characterized by a competitive landscape with both domestic and international players contributing to technological advancements. Stringent environmental regulations and the commitment to reduce carbon emissions further propel the demand for utility-scale PV inverters. The integration of energy storage solutions, grid modernization efforts, and the expansion of utility-scale solar installations across Canada and Mexico also contribute to the market’s expansion. As North America continues its transition towards cleaner energy sources, the market remains a critical component of the region’s sustainable energy future.

APAC Market Statistics

Asia Pacific’s utility scale PV inverter market is also slated to garner a significant revenue share over the forecast period. The region emerged as a key player in the global solar energy landscape, driven by the region’s growing demand for clean and sustainable power. Rapid industrialization, population growth, and government initiatives to address environmental concerns have fuelled the adoption of utility scale solar projects. Countries like China, India, and Japan are at the forefront of this expansion, implementing ambitious renewable energy targets and favorable policies. The market is characterized by intense competition among domestic and international inverter manufacturers, leading to technological innovations and cost reductions. Challenges such as land constraints and intermittency issues are being addressed through advancements in energy storage integration. With a focus on energy transition and reducing reliance on traditional sources, the Asia Pacific market plays a crucial role in shaping the region’s energy landscape toward a more sustainable and resilient future.

Research Nester
Utility Scale PV Inverter Market Size
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Companies Dominating the Utility Scale PV Inverter Landscape

top-features-companies
    • Sungrow Power Supply Co., Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • SMA Solar Technology AG
    • Siemens
    • Growatt New Energy 
    • Darfon Innovation Corporation
    • Eaton
    • SolarEdge Technologies Inc.
    • Fimer Group
    • Canadian Solar Inc
    • Jinlang Technology Co., Ltd.

In-the-news

In The News

  • Sungrow unveiled the SG200HX-US, of  their newest string inverter during 2023’s RE+ in Las Vegas, NV held from September 11-14.  . The product works with bigger format PV modules and has a maximum current of 20A per string. The product ensures proven safety by removing the potential of a string reverse connection with its one MPPT for two strings design.
  • Siemens announced that, in Kenosha, Wisconsin, where the company will manufacture utility scale solar components specifically designed to serve the US market, it will begin production of PV string inverters.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5619
  • Published Date: Feb 07, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising electrification projects, both in the rural and urban areas, Supportive governmental policies, environmental sustainability, Integration of energy storage systems are some of the major growth drivers for utility scale PV inverter market.

The market size of utility scale PV inverter is anticipated to attain a CAGR of 5% over the forecast period, i.e., 2024-2036.

The major players in the market are SMA Solar Technology AG, Siemens, Growatt New Energy, Darfon Innovation Corporation, Eaton, SolarEdge Technologies Inc., Fimer Group, Canadian Solar Inc, Jinlang Technology Co., Ltd., Fujitsu General Limited, and others.

The Central segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Utility Scale PV Inverter Market Report Scope
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