Report Description

India Inverter market is anticipated to grow at a robust pace during the forecast period, 2024-2028. Inverters are used in a variety of applications, including solar power systems and industrial processes, and are required for backup power during power outages. Because of supportive policy interventions and sector reforms, India, the world's fourth largest producer of electricity, has seen a transformational change in the energy sector. Despite recent phenomenal growth in generation capacity, India is experiencing a power deficit. Over 15.5 million BPL households and 9,500 villages continue to be without electricity. The eastern Indian states of Odisha, Jharkhand, and West Bengal have abundant coal reserves but face a power crisis. An uninterrupted supply of power is one of the prerequisites for any developing economy like India. As a result, many positive steps are being taken to address the issue of power shortages, such as the implementation of various government initiatives and policies, such as the National Solar Mission, which has increased demand for inverters in India. Furthermore, the Inverter Market in India has been steadily growing in recent years, owing to factors such as insufficient power supply in many areas, rising power consumption, and an increase in the number of electronic devices and appliances. Furthermore, the government's initiatives to promote renewable energy, such as solar power, have increased demand for inverters.

In India, the residential sector accounts for a sizable portion of the inverter market. During power outages, homeowners rely on inverters to provide backup power, ensuring the continued operation of essential appliances such as lights, fans, refrigerators, and home entertainment systems. Inverter market growth is also supported by the commercial and industrial sectors. Businesses need dependable backup power solutions to protect their operations, avoid data loss, and avoid financial losses during power outages. Inverters are heavily used in industries such as manufacturing, information technology, healthcare, and telecommunications to ensure continuous power supply. Solar power system adoption has increased in India, owing to government incentives, and growing environmental awareness. Solar inverters, which convert the DC power generated by solar panels into usable AC power, are critical components of these systems. Because of the country's ambitious renewable energy targets, demand for solar inverters has increased significantly. Standalone inverters, hybrid inverters (combining solar and battery storage), and grid-tied inverters for solar installations are all available in India. The type of inverter selected is determined by the specific power backup requirements and usage scenario. The Indian government has put in place several policies and initiatives to promote renewable energy and improve power infrastructure. Programs such as the Smart Cities Mission, make in India, and the National Solar Mission have had a positive impact on the inverter market by creating an environment conducive to growth and innovation.

Overall, the inverter market in India is expanding rapidly because of rising demand for dependable power backup solutions, the adoption of solar power systems, and the expansion of the residential, commercial, and industrial sectors. The market is expected to continue its upward trajectory in the coming years, thanks to ongoing technological advancements and government support.

Increasing demand for reliable power backup solutions

Increased demand for dependable power backup solutions would help the inverter market in India grow. India, like many other countries, suffers from frequent power outages or unreliable power supply in certain areas. These issues have the potential to have a significant impact on a variety of industries, including residential, commercial, and industrial.

In such cases, inverters are critical in providing backup power. Inverters convert direct current (DC) power from batteries or solar panels into alternating current (AC) power that can be used to power a variety of electrical appliances and devices. During power outages, they are commonly used as a backup power source.

Several factors contribute to India's growing demand for dependable power backup solutions. For starters, rising population and urbanization have increased electricity consumption. This, combined with insufficient power infrastructure and distribution networks, leads to frequent power outages and unreliable power supply.

Furthermore, the expansion of industries and the commercial sector in India has led to a greater reliance on continuous power supply. Businesses, especially those operating in sectors such as information technology, manufacturing, healthcare, and telecommunications, require uninterrupted power to ensure smooth operations and prevent financial losses.

As a result of these factors, the demand for inverter-based power backup solutions has been on the rise in India. Inverters are available in various capacities and types, including standalone inverters, solar inverters, and hybrid inverters that combine solar and battery storage. Additionally, advancements in technology have led to the development of more efficient and cost-effective inverters, further driving their adoption.

To cater to the increasing demand, several companies in India are manufacturing and supplying inverters and related products. These companies are investing in research and development to improve the performance and reliability of their products and are also offering after-sales services to ensure customer satisfaction.

Overall, the growing need for reliable power backup solutions, driven by factors such as inadequate power infrastructure and increasing electricity consumption, is expected to boost the growth of the inverter market in India.

Increasing adoption of electric vehicles

The increasing adoption of electric vehicles is driving the demand for inverters, which are essential of EV charging infrastructure.

Inverters are used to convert the DC power stored in an EV battery to AC power that can be used to charge the vehicle or power other electrical devices. As more people switch to EVs, there is a growing need for more charging stations, both at homes and in public places, which requires the installation of more inverters. In addition to charging infrastructure, inverters are also used in other parts of the EV ecosystem, such as solar-powered charging stations, battery storage systems, and electric grid management systems. As the demand for these technologies grows, so does the demand for inverters.

The increasing adoption of EVs is also driving innovation in inverter technology, with manufacturers developing new and more efficient inverters to meet the demands of the EV market. For example, some companies are working on bidirectional inverters, which can not only convert DC power to AC power for charging an EV but also convert AC power back to DC power to store excess energy in the vehicle's battery or feed it back to the grid.

Overall, the increasing adoption of electric vehicles is creating new opportunities for the inverter industry, both in terms of increased demand for traditional inverters and the development of new and innovative inverter technologies.

Regulations of inverters

The regulations for inverters in India vary depending on their type and usage. Here are some of the common regulations for inverters across India:

Bureau of Indian Standards (BIS) certification: All inverters manufactured, imported, or sold in India must be BIS certified. The BIS certification ensures that the product meets the required safety, performance, and quality standards.

Power rating limits: The Central Electricity Authority (CEA) has set limits on the power ratings of inverters that can be installed in homes and offices. As of 2021, the maximum power rating allowed for a single-phase inverter is 10 kW, and for a three-phase inverter, it is 100 kW.

Grid-tie inverter regulations: Grid-tie inverters, which are used to connect solar panels to the grid, must comply with the Central Electricity Regulatory Commission (CERC) regulations. These regulations require the inverters to have features such as anti-islanding protection, DC injection suppression, and voltage and frequency regulation.

India Inverter Market Recent Developments

In January 2023, Technology startup Matter Energy and Luminous Power Technologies formed  a strategic partnership. This strategic collaboration helps in the diversified variety of innovative solutions in the power backup for residential markets.

Overall, there is a lot of activity in the Indian Inverter market, with several companies investing in R&D and forming partnerships to develop new technologies and products. The Indian government's push toward electric mobility and renewable energy is also driving demand for these batteries, which is likely to spur further innovation and development in the sector.