PV Invertor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Type of Inverter (Central Inverters, String Inverters, Microinverters, Hybrid Inverters, Battery Inverters), By Technology (Grid-Tied Inverters, Off-Grid Inverters, Hybrid (Grid-Tied with Battery Backup) Inverters) By Application (Residential, Commercial, Industrial, Utility-Scale), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.15 Billion
CAGR (2026-2031)	8.89%
Fastest Growing Segment	Microinverters
Largest Market	Asia Pacific
Market Size (2031)	USD 20.25 Billion

Market Overview

The Global PV Invertor Market will grow from USD 12.15 Billion in 2025 to USD 20.25 Billion by 2031 at a 8.89% CAGR. A Solar Photovoltaic inverter is a critical electrical component that converts the variable direct current output generated by solar panels into a utility frequency alternating current that can be fed into a commercial electrical grid or employed by a local off-grid network. The primary drivers propelling this market include the global enforcement of stringent government mandates for carbon reduction and the superior economic competitiveness of solar energy compared to fossil fuel generation. These fundamental forces ensure sustained demand for inverter technologies across both utility and distributed generation sectors. According to SolarPower Europe, in 2024, the global solar sector installed a record 597 GW of new capacity. This substantial volume of installation directly correlates to the demand for inverter units and underpins the robust expansion of the industry.

One significant challenge currently impeding the market's seamless expansion is the technical limitation of aging power grid infrastructure. As the penetration of renewable energy accelerates, many regional networks face congestion and stability issues that force grid operators to curtail power output or impose lengthy delays on the interconnection of new projects. This infrastructural bottleneck effectively restricts the pace at which new PV inverter capacity can be deployed and operationalized in mature markets.

Key Market Drivers

The accelerated expansion of utility-scale solar farms and infrastructure serves as the foremost catalyst for the industry, as nations prioritize large-scale "energy megabases" to meet aggressive capacity targets. These centralized power plants require high-capacity central and string inverters capable of handling massive voltage loads and ensuring grid stability. This trend is most visible in major economies where land availability allows for gigawatt-scale projects, which directly dictates the production volume for high-power electronic components. For instance, according to the National Energy Administration, in September 2024, China installed approximately 140 GW of new solar capacity in the first eight months of the year, a surge largely attributed to the development of massive renewable energy bases in desert regions.

Supportive government renewable energy mandates and financial incentives act as the second critical driver, effectively de-risking capital allocation and lowering the levelized cost of energy for solar projects. Policies such as tax credits, feed-in tariffs, and carbon reduction mandates encourage both private and public sector spending on photovoltaic systems and their associated power electronics. According to the International Energy Agency, in June 2024, in the 'World Energy Investment 2024' report, global investment in solar PV is projected to exceed $500 billion in 2024, surpassing all other generation technologies combined. This financial influx is further bolstered in mature markets by specific legislative support; according to the Solar Energy Industries Association, in December 2024, the United States added 8.6 GW of new operating solar capacity in the third quarter, with the utility-scale segment accounting for the vast majority of these installations driven by federal policy stability.

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Key Market Challenges

The technical limitation of aging power grid infrastructure constitutes a primary impediment to the Global PV Inverter Market. As the capacity of renewable energy installations surges, legacy electrical networks in many regions struggle to accommodate the variable influx of solar power, leading to severe congestion and stability issues. Grid operators are consequently forced to curtail generation or impose moratoriums on new connections, which creates a significant bottleneck in the project development lifecycle. Since photovoltaic inverters are deployed only when projects reach the construction or interconnection phase, these delays directly retard the conversion of project pipeline interest into actual equipment sales.

This infrastructural constraint is creating a substantial disparity between planned solar capacity and actual deployment. According to the International Energy Agency (IEA), in 2024, the global capacity of renewable energy projects in advanced development stages waiting for grid connection increased to approximately 1,650 GW. This massive volume of stalled capacity indicates that a significant portion of potential inverter demand is currently deferred, effectively dampening the market's immediate growth trajectory despite strong underlying economic drivers.

Key Market Trends

The proliferation of hybrid inverters represents a fundamental structural shift in the market, driven by the increasing necessity to couple photovoltaic generation with electrochemical storage for grid stabilization and self-consumption. Unlike traditional grid-tied systems, these advanced units integrate bidirectional power conversion hardware to manage battery charging and discharging directly, eliminating the need for separate AC-coupled retrofits. This consolidation significantly reduces balance-of-system costs and simplifies installation for residential and commercial adopters seeking energy independence. The scale of this transition is evident in the sales volumes of major manufacturers; according to Sungrow Power Supply Co., Ltd., April 2024, in the '2023 Annual Report', the company reported that its global shipments of energy storage systems surged to 10.5 GWh during the 2023 fiscal year, underscoring the massive demand for integrated solar-plus-storage technologies.

Simultaneously, the utility-scale sector is witnessing the displacement of central inverters by high-capacity string inverters, a trend predicated on superior maximum power point tracking (MPPT) granularity and reduced maintenance complexities. Developers are increasingly favoring decentralized architectures where multiple smaller units replace a single massive station, thereby minimizing system-wide yield losses during equipment failures and negating the need for heavy machinery during replacements. This topological evolution is reshaping project design preferences across major markets. According to RatedPower, December 2024, in the 'Renewable Energy and Solar Research: 2024 Trends Report', simulation data revealed that the utilization of string inverters in utility-scale plant designs had surged to nearly 60% of all modeled projects by late 2023, marking a decisive departure from legacy central inverter dominance.

Segmental Insights

The Microinverter segment is currently the fastest-growing category within the Global PV Inverter Market, propelled by the rising demand for Module-Level Power Electronics. This growth is significantly accelerated by stringent safety regulations, most notably the rapid shutdown requirements outlined in the National Electrical Code (NEC). Unlike traditional string inverters, microinverters intrinsically meet these safety standards by converting power at the individual panel level, reducing high-voltage risks for emergency responders. Additionally, their ability to maximize energy yield in partially shaded or complex rooftop environments drives their robust expansion, particularly in the residential sector.

Regional Insights

Asia Pacific holds the leading position in the Global PV Inverter Market, driven by escalating electricity consumption and robust renewable energy targets. This dominance is anchored by favorable regulatory frameworks that accelerate solar infrastructure development. For instance, China’s National Energy Administration enforces policies promoting distributed photovoltaics and grid stability, while India’s Ministry of New and Renewable Energy propels adoption through initiatives like the National Solar Mission. Furthermore, the region possesses a dense manufacturing ecosystem, offering cost-competitive production that supports widespread utility-scale and residential installations, thereby securing its status as the central hub for market activity.

Recent Developments

• In November 2024, Fronius officially launched its latest hybrid inverter, the GEN24 Plus, for the United States market. This new product was engineered to facilitate greater energy independence by enabling seamless connection with battery storage systems, addressing a key trend in the global PV inverter market. The inverter featured integrated backup power options, including a basic power supply for essential loads and a full backup capability for the entire household. The company stated that the device utilized active cooling technology to ensure durability and high performance in various climates. Additionally, the launch included software updates that allowed existing models to be retrofitted with hybrid capabilities, enhancing flexibility for solar installers.
• In September 2024, SolarEdge Technologies introduced its next-generation residential solar and storage solution at the RE+ trade show in California. The new offering integrated a high-efficiency solar inverter with a scalable battery system, designed to provide flexible whole-home backup power. The solution featured a modular architecture that allowed homeowners to adjust battery capacity according to their specific energy needs and budget. The Interim Chief Executive Officer of SolarEdge noted that the system was developed to reduce installation times significantly and optimize energy usage through advanced management software, catering to the evolving demands of the U.S. residential sector in the global PV inverter market.
• In June 2024, Sungrow announced the release of its inaugural series of microinverters during the Intersolar Europe exhibition in Munich. The company introduced a new product lineup specifically engineered for residential applications such as balconies and rooftops, marking a significant expansion in the distributed PV inverter market. These microinverters featured a plug-and-play design that improved installation efficiency and offered a yield increase compared to similar products. The manufacturer highlighted the devices' ability to operate effectively in low-light and high-temperature conditions, ensuring optimal performance for users. This development underscored the company's strategy to diversify its portfolio and address the growing demand for flexible, module-level power electronics.
• In June 2024, Enphase Energy unveiled a suite of new power management solutions tailored for the European market at the Intersolar Europe conference. The showcase included the IQ8 Microinverters and the IQ Battery 5P, which were designed to support high-powered solar modules and provide reliable energy storage. The new battery system featured a modular architecture allowing for flexible capacity configurations, while the microinverters supported a wider range of DC input voltages. The Vice President of Sales at Enphase Energy emphasized that these innovations were aimed at accelerating the region's transition to clean energy by offering scalable and resilient home energy systems within the competitive global PV inverter market.

Key Market Players

• Huawei Technologies Co., Ltd
• Sungrow Power Supply Co., Ltd
• Delta Electronics, Inc
• Sineng Electric Co., Ltd
• KACO new energy GmbH
• Power Electronics
• FIMER SpA
• Zhejiang Jinzhou Energy Technology Co., Ltd.
• Chint Power Systems Co., Ltd.
• SolarEdge Technologies

By Technology	By Application	By Region
Grid-Tied Inverters Off-Grid Inverters Hybrid (Grid-Tied with Battery Backup) Inverters	Residential Commercial Industrial Utility-Scale	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• PV Invertor Market, By Technology:

• Grid-Tied Inverters
• Off-Grid Inverters
• Hybrid (Grid-Tied with Battery Backup) Inverters

• PV Invertor Market, By Application:

• Residential
• Commercial
• Industrial
• Utility-Scale

• PV Invertor 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