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.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 5% |
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Base Year Market Size (2023) |
~ USD 13 Billion |
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Forecast Year Market Size (2036) |
~ USD 23 Billion |
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Regional Scope |
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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:
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Product |
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Voltage |
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Application |
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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.
Author Credits: Payel Roy, Dhruv Bhatia
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