Power Inverter Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 80.08 Billion
CAGR (2026-2031)	5.91%
Fastest Growing Segment	Solar PV
Largest Market	Asia Pacific
Market Size (2031)	USD 113.02 Billion

Market Overview

The Global Power Inverter Market will grow from USD 80.08 Billion in 2025 to USD 113.02 Billion by 2031 at a 5.91% CAGR. The Global Power Inverter Market comprises the manufacturing and supply of power electronic devices essential for converting direct current (DC) into alternating current (AC), thereby enabling the utilization of energy from storage systems and renewable sources. The market is fundamentally driven by the structural global shift toward decarbonization, which mandates the integration of solar photovoltaic systems, and the rapid electrification of the automotive industry requiring onboard and station-based inversion technology. These core drivers provide sustained momentum for market expansion, distinguishing themselves from transient industry cycles by addressing permanent infrastructure requirements.

However, the market confronts a significant challenge in the form of grid saturation and interconnection delays, as existing electrical networks struggle to manage the variable loads introduced by high-volume renewable deployments. According to the International Energy Agency Photovoltaic Power Systems Programme, in 2024, global new photovoltaic system installations exceeded 600 GW. This substantial influx of capacity highlights the critical pressure on grid infrastructure, which could bottleneck future inverter demand if modernization efforts do not keep pace with installation rates.

Key Market Drivers

The rapid expansion of renewable energy, particularly solar PV, acts as the primary catalyst for the power inverter market. As solar panels generate direct current, inverters are indispensable for converting this output into grid-compatible alternating current for utility-scale and residential applications. According to the International Energy Agency, January 2024, in the 'Renewables 2023' report, global renewable capacity additions increased by 50% to almost 510 GW in 2023. This surge in capacity directly correlates with increased procurement of central and string inverters needed to manage the higher energy volumes entering distribution networks and meet the technical requirements of modern electrical grids.

Simultaneously, the accelerated adoption of electric vehicles is reshaping the demand landscape for traction inverters, which manage the flow of electrical energy from the battery to the electric motor. This automotive shift requires high-efficiency power electronics to optimize vehicle range and performance. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', electric car sales reached nearly 14 million in 2023. This automotive electrification necessitates robust supply chains for onboard power conversion components. Furthermore, the broader ecosystem supporting these technologies continues to attract capital. According to the International Energy Agency, in 2024, global investment in clean energy technologies is set to reach USD 2 trillion, ensuring sustained funding for the manufacturing and deployment of critical power electronic infrastructure.

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Key Market Challenges

Grid saturation and interconnection delays represent a critical structural impediment hampering the Global Power Inverter Market. While the demand for renewable energy generation is robust, the inability of legacy electrical networks to physically accommodate or administratively process these new power sources creates a bottleneck that halts project commissioning. Power inverters function as the essential bridge between generation systems and the grid; consequently, when projects are stalled in regulatory queues or denied connection due to capacity constraints, the immediate demand for inverter hardware evaporates. This disconnect forces manufacturers to delay shipments and manage inventory gluts, effectively decoupling sales growth from the underlying global appetite for decarbonization.

The magnitude of this infrastructure lag effectively caps the market's realized potential. According to the Solar Energy Industries Association, in 2024, the interconnection backlog for clean electricity generation and storage projects in the United States alone swelled to more than 1,000 gigawatts. This substantial volume of stalled capacity indicates that the primary constraint on the inverter market is no longer manufacturing capability or cost, but the finite carrying capacity of the grid. As long as these interconnection queues persist, a significant portion of the theoretical market demand remains inaccessible to inverter suppliers, directly throttling revenue expansion.

Key Market Trends

The accelerated adoption of Silicon Carbide (SiC) and Gallium Nitride (GaN) components is fundamentally reshaping inverter architecture by replacing traditional silicon switches to enhance power density. Manufacturers are integrating wide-bandgap semiconductors to minimize switching losses and enable operation at higher frequencies, reducing the hardware's physical size and cooling requirements. This transition is validated by major industry players scaling production to meet high-performance demands. According to Infineon Technologies AG, November 2024, in the 'Fourth Quarter and Full Fiscal Year 2024' press release, its Silicon Carbide revenue reached €650 million for the fiscal year, an increase of more than 30% compared to the previous period.

Simultaneously, the market is witnessing a proliferation of hybrid inverters that pair solar generation directly with battery storage to mitigate grid instability. Unlike standard string inverters, these integrated systems allow for DC-coupled energy storage, enabling owners to store excess renewable generation for time-shifted use rather than exporting it to saturated networks. This structural evolution is driven by the urgent need for dispatchable renewable energy assets across all segments. According to SolarPower Europe, June 2024, in the 'European Market Outlook for Battery Storage 2024-2028', the European market installed 17.2 gigawatt-hours of new battery storage capacity in 2023, a 94% year-on-year surge fueling deployment of storage-ready technologies.

Segmental Insights

The Solar PV segment is recognized as the fastest-growing category within the Global Power Inverter Market, primarily due to the worldwide acceleration of renewable energy adoption. This trend is reinforced by strategic guidelines from the International Energy Agency, which advocate for substantial increases in solar capacity to achieve global decarbonization objectives. As nations align with these frameworks through supportive subsidies and infrastructure projects, the demand for inverters essential to photovoltaic systems continues to rise. This regulatory and environmental momentum ensures that Solar PV remains the primary driver of market expansion.

Regional Insights

Asia Pacific commands a dominant position in the Global Power Inverter Market, driven by rapid industrialization and the extensive expansion of the renewable energy sector. Developing economies such as China and India generate substantial demand for efficient power conversion systems to support grid stability and rural electrification. Furthermore, the market is bolstered by strategic government mandates, including clean energy initiatives supported by institutions like India's Ministry of New and Renewable Energy. The region's growing electric vehicle manufacturing base also accelerates the requirement for automotive inverters, solidifying Asia Pacific’s status as the central hub for global market activity.

Recent Developments

In October 2025, Valeo secured serial production contracts with two prominent Chinese automobile manufacturers to supply its new generation dual inverter solution. This advanced power electronic system was designed to manage both the traction motor and the generator motor within a single compact unit, specifically for plug-in hybrid electric vehicles. By integrating two inverters into one component with a shared control board, the technology reduced energy losses and manufacturing costs while improving vehicle efficiency. The company confirmed that mass production for these orders would commence in 2026, validating its platform strategy to support high-voltage electric powertrain architectures.
In September 2025, SMA Solar Technology AG signed a memorandum of understanding with Create Energy to restart the manufacturing of its inverter solutions in the United States. The agreement outlined plans to produce the Sunny Highpower PEAK3 string inverters and fully integrated PowerSkid solutions at a facility in Portland, Tennessee. This strategic move marked the company's return to U.S.-based production after a decade, aiming to meet the rising demand for utility-scale photovoltaic systems in North America. The collaboration was designed to localize supply chains, reduce lead times for American projects, and comply with domestic content requirements for renewable energy infrastructure.
In June 2024, Sungrow unveiled its inaugural series of microinverters tailored for residential energy applications during the Intersolar Europe exhibition in Munich. The new product lineup included models with power ratings ranging from 450W to 1600W, specifically engineered to operate efficiently in low-light and high-temperature conditions. These microinverters featured a plug-and-play design that reportedly increased installation efficiency significantly. Concurrently, the company introduced an artificial intelligence-based smart home energy management solution designed to optimize household power consumption strategies. This launch expanded the company's portfolio beyond its traditional string and central inverter offerings into the residential microinverter segment.
In June 2024, NXP Semiconductors entered into a strategic collaboration with ZF Friedrichshafen AG to develop advanced silicon carbide traction inverters for electric vehicle powertrains. This partnership focused on integrating high-voltage isolated gate drivers into inverter designs to support 800-volt electrical systems. The initiative aimed to enhance the efficiency and range of electric vehicles by leveraging the thermal and electrical benefits of silicon carbide technology. By combining their respective expertise in semiconductor manufacturing and automotive systems, the companies sought to create compact, high-performance power electronics solutions that addressed the growing demand for faster charging and extended driving distances.

Key Market Players

Huawei Technologies Co., Ltd.
Sungrow Power Supply Co., Ltd.
SMA Solar Technology AG
Power Electronics S.L.
FIMER S.p.A.
Toshiba Mitsubishi-Electric Industrial Systems Corporation
Ginlong Technologies Inc.
Growatt New Energy Co., Ltd.
SolarEdge Technologies, Inc.
Sineng Electric Co., Ltd.

By Type	By Application	By End Use	By Region
Less than 5 KW 5 KW to 100 KW 100 KW to 500 KW More than 500 KW	Motor Drives Wind Turbines Rail Traction Electric Vehicle UPS Solar PV Others	Residential Commercial Industrial Utility	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power Inverter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Power Inverter Market, By Type:

Less than 5 KW
5 KW to 100 KW
100 KW to 500 KW
More than 500 KW

Power Inverter Market, By Application:

Motor Drives
Wind Turbines
Rail Traction
Electric Vehicle
UPS
Solar PV
Others

Power Inverter Market, By End Use:

Residential
Commercial
Industrial
Utility

Power Inverter Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Power Inverter Market.

Available Customizations:

Global Power Inverter Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Power Inverter Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Power Inverter Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Less than 5 KW, 5 KW to 100 KW, 100 KW to 500 KW, More than 500 KW)

5.2.2. By Application (Motor Drives, Wind Turbines, Rail Traction, Electric Vehicle, UPS, Solar PV, Others)

5.2.3. By End Use (Residential, Commercial, Industrial, Utility)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Power Inverter Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By End Use

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Power Inverter Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Application

6.3.1.2.3. By End Use

6.3.2. Canada Power Inverter Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Application

6.3.2.2.3. By End Use

6.3.3. Mexico Power Inverter Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Application

6.3.3.2.3. By End Use

7. Europe Power Inverter Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By End Use

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Power Inverter Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Application

7.3.1.2.3. By End Use

7.3.2. France Power Inverter Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Application

7.3.2.2.3. By End Use

7.3.3. United Kingdom Power Inverter Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Application

7.3.3.2.3. By End Use

7.3.4. Italy Power Inverter Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Application

7.3.4.2.3. By End Use

7.3.5. Spain Power Inverter Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Application

7.3.5.2.3. By End Use

8. Asia Pacific Power Inverter Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By End Use

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Power Inverter Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Application

8.3.1.2.3. By End Use

8.3.2. India Power Inverter Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Application

8.3.2.2.3. By End Use

8.3.3. Japan Power Inverter Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Application

8.3.3.2.3. By End Use

8.3.4. South Korea Power Inverter Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Application

8.3.4.2.3. By End Use

8.3.5. Australia Power Inverter Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Application

8.3.5.2.3. By End Use

9. Middle East & Africa Power Inverter Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Application

9.2.3. By End Use

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Power Inverter Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Application

9.3.1.2.3. By End Use

9.3.2. UAE Power Inverter Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Application

9.3.2.2.3. By End Use

9.3.3. South Africa Power Inverter Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Application

9.3.3.2.3. By End Use

10. South America Power Inverter Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Application

10.2.3. By End Use

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Power Inverter Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Application

10.3.1.2.3. By End Use

10.3.2. Colombia Power Inverter Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Application

10.3.2.2.3. By End Use

10.3.3. Argentina Power Inverter Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Application

10.3.3.2.3. By End Use

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Power Inverter Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Huawei Technologies Co., Ltd.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Sungrow Power Supply Co., Ltd.

15.3. SMA Solar Technology AG

15.4. Power Electronics S.L.

15.5. FIMER S.p.A.

15.6. Toshiba Mitsubishi-Electric Industrial Systems Corporation

15.7. Ginlong Technologies Inc.

15.8. Growatt New Energy Co., Ltd.

15.9. SolarEdge Technologies, Inc.

15.10. Sineng Electric Co., Ltd.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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