String Inverter Market By Phase (Single and Three) By System Type (On-Grid and Off-Grid), By Power Rating (Up to 10kW, 11kW–40kW, 41kW–80kW, and Above 80kW), By End-User (Residential, Commercial & Industrial, and Utilities), By Company, By Region, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.66 Billion
CAGR (2026-2031)	8.92%
Fastest Growing Segment	11kW–40kW
Largest Market	North America
Market Size (2031)	USD 9.45 Billion

Market Overview

The Global String Inverter Market will grow from USD 5.66 Billion in 2025 to USD 9.45 Billion by 2031 at a 8.92% CAGR. The Global String Inverter Market comprises decentralized power conversion units that transform direct current from photovoltaic strings into grid-compliant alternating current. The sector’s growth is fundamentally driven by the inherent scalability of string architecture, which offers superior maximum power point tracking and reduced operations and maintenance costs compared to centralized alternatives. This trajectory is underpinned by the massive acceleration in renewable energy infrastructure deployment globally. According to SolarPower Europe, in 2023, the world commissioned 447 GW of new solar power capacity, creating a substantial demand baseline for these essential conversion components across utility and commercial sectors.

However, market expansion confronts a significant impediment regarding grid congestion and interconnection delays. As high volumes of distributed energy resources come online, aging electrical infrastructure in mature markets struggles to manage the variable load, resulting in extensive regulatory backlogs and curtailment risks. This infrastructural saturation forces network operators to enforce stringent grid-code compliance, creating administrative and technical barriers that stall project commissioning and limit immediate market reach.

Key Market Drivers

The surge in residential and commercial rooftop solar installations acts as a foundational driver for the Global String Inverter Market. As decentralized energy generation accelerates, string inverters are increasingly favored for their compact form factor, scalability, and ability to handle complex roof shading through multiple Maximum Power Point Trackers (MPPTs). This trajectory is supported by robust deployment in distributed segments, where granular system monitoring and rapid shutdown compliance are critical. According to the International Energy Agency (IEA), January 2024, in the 'Renewables 2023' report, commercial, industrial, and residential segments collectively accounted for approximately 42% of global solar PV capacity additions in 2023, creating a substantial baseline demand for three-phase and single-phase string architectures.

Simultaneously, the market is witnessing a growing preference for string inverters in utility-scale projects, a domain previously dominated by central inverters. Project developers are pivoting toward high-power string configurations to maximize energy harvest in uneven terrain and to minimize downtime through simplified replacement protocols rather than complex field repairs. This structural shift is occurring against a backdrop of massive infrastructure expansion in key markets. According to the National Energy Administration (NEA) of China, January 2024, the country installed roughly 120 GW of utility-scale solar capacity in 2023, a volume that significantly boosts the addressable market for high-capacity string solutions. Reflecting this intense momentum, according to Sungrow Power Supply Co., Ltd., in April 2024, the company achieved global photovoltaic inverter shipments of 130 GW in 2023, underscoring the industrial scale of component demand.

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Key Market Challenges

Grid congestion and interconnection delays constitute a formidable barrier to the growth of the global string inverter market. As the volume of decentralized solar projects expands, existing electrical transmission and distribution networks are increasingly unable to accommodate the variable power flows, compelling grid operators to enforce strict limitations or moratoriums on new connections. This infrastructural bottleneck directly impedes market momentum because string inverters, which serve as the critical interface between photovoltaic generation and the grid, cannot be commissioned or actively utilized until interconnection approval is granted. Consequently, even when hardware is procured, project timelines are extended indefinitely, delaying revenue recognition for manufacturers and stalling the turnover of inventory.

The scale of this impediment creates a massive disparity between potential demand and actual equipment deployment. According to the International Energy Agency, in 2024, approximately 3,000 gigawatts of renewable energy capacity were stalled in grid connection queues globally. This substantial backlog indicates that a vast segment of the addressable market for string inverters is effectively frozen in the pre-construction or permitting phases. Until these administrative and physical constraints are alleviated, the market cannot fully capitalize on the underlying demand for renewable energy infrastructure, forcing suppliers to navigate a landscape defined by regulatory uncertainty rather than organic growth.

Key Market Trends

The widespread adoption of hybrid inverters is reshaping the Global String Inverter Market, driven by the critical need to integrate battery energy storage systems (BESS) for enhanced grid resilience and energy autonomy. Unlike traditional grid-tied units, hybrid architectures facilitate bidirectional power flow, allowing residential and commercial operators to store excess photovoltaic generation for peak shaving or emergency backup, thereby mitigating the impacts of grid congestion and interconnection delays. This structural convergence of solar and storage technologies is creating a distinct high-growth segment that operates independently of standard solar installation cycles. According to SolarPower Europe, June 2024, in the 'European Market Outlook for Battery Storage 2024-2028', the European region installed 17.2 GWh of new battery energy storage capacity in 2023, representing a 94% year-on-year increase that directly amplifies the demand for these integrated power conversion solutions.

Simultaneously, the utility-scale sector is migrating towards 2000V high-voltage system architectures to achieve deeper reductions in the Levelized Cost of Electricity (LCOE). By elevating the operating voltage beyond the conventional 1500V standard, developers can significantly extend string lengths and reduce the quantity of required cabling and combiner boxes, effectively optimizing the balance of system costs for massive infrastructure projects. This technological evolution is rapidly transitioning from theoretical design to commercial deployment as manufacturers release next-generation hardware capable of handling these ultra-high voltages. According to Sungrow Power Supply Co., Ltd., May 2024, in the '2023 Sustainability Report', the company successfully delivered the world's first 2000V inverter for grid-connected power generation, establishing a new industrial benchmark for efficiency and power density in large-scale solar assets.

Segmental Insights

Based on recent market intelligence, the 11kW–40kW power rating constitutes the fastest-growing segment within the Global String Inverter Market. This rapid acceleration is primarily driven by the expanding Commercial and Industrial (C&I) sector, where small-to-medium enterprises are aggressively adopting solar solutions to mitigate rising operational costs. Inverters in this range provide an optimal balance of efficiency and modularity, making them uniquely detailed for decentralized commercial rooftop installations compared to cumbersome central alternatives. Furthermore, global renewable energy mandates favoring distributed generation continue to incentivize the deployment of these versatile three-phase systems across commercial infrastructure.

Regional Insights

North America holds a leading position in the global string inverter market, characterizing the region as a powerhouse for revenue generation and technological advancement. This dominance is anchored by favorable government initiatives, particularly the Investment Tax Credit, which significantly lowers the economic barrier for solar adoption across residential and commercial sectors. Furthermore, the market benefits from a strategic pivot in the utility sector, where operators increasingly favor string inverters over central counterparts to minimize downtime and operational costs. Continuous grid modernization efforts, guided by entities like the U.S. Department of Energy, sustain this robust market environment and foster long-term industry growth.

Recent Developments

• In September 2025, SMA Solar Technology AG announced a strategic manufacturing partnership with a US-based renewable energy company to resume local production of its string inverters. Under this collaboration, the German manufacturer planned to produce its Sunny Highpower PEAK3 string inverters at a facility in Tennessee, with operations targeted to begin in the first half of 2026. This move was aimed at strengthening the company's position in the North American market by localizing the supply chain and meeting domestic content requirements. The initiative represented a significant step in expanding the availability of its utility-scale string inverter solutions for large-scale photovoltaic projects.
• In December 2024, GoodWe Technologies Co., Ltd. launched a new series of string inverters targeting the commercial and industrial (C&I) sector. The GT Series included models with power ratings of 100 kW, 110 kW, and 125 kW, featuring up to ten maximum power point trackers to maximize energy capture from complex roof layouts. These inverters were engineered with high current input capabilities to accommodate high-power solar modules and included advanced protection ratings for harsh environmental conditions. The company stated that the series offered features such as potential-induced degradation recovery to enhance long-term system efficiency, supporting the growing demand for versatile string inverter solutions.
• In September 2024, Sungrow Power Supply Co., Ltd. unveiled its latest string inverter solutions tailored for the North American sector during a major industry event in Anaheim. The company showcased the SG350HX-US, a 1,500 V string inverter designed to support utility-scale photovoltaic projects with high efficiency and operational reliability. This product featured a robust design capable of operating at full power in elevated temperatures, ensuring stability across various climatic conditions. The launch emphasized the manufacturer's commitment to expanding its footprint by providing advanced technologies that comply with strict local grid codes, reinforcing its position in the competitive string inverter market.
• In August 2024, Ginlong (Solis) Technologies introduced a new range of high-voltage string inverters specifically designed for the North American utility-scale market. The newly launched S6 250-350K series featured models with power outputs ranging from 250 kW to 350 kW and supported a maximum voltage of 1,500 V to accommodate large-scale solar modules. The company highlighted that this product line incorporated advanced tracking algorithms to achieve peak efficiencies exceeding 99%, aiming to optimize energy yields for solar power station owners. Additionally, the inverters offered flexible installation options and a fuse-free design, addressing key maintenance challenges for developers in the global string inverter market.

Key Market Players

• KACO New Energy GmbH
• Delta Energy Systems GmbH
• ABB Limited
• Fronius International GmbH
• SMA Solar Technology AG
• Huawei Technologies Co. Ltd.
• SolarEdge Technologies Inc.
• Growatt New Energy Technology Co. Ltd.
• Ginlong Technologies
• SolarMax Group

By Phase	By System Type	By Power Rating	By End-User	By Region
Single and Three	On-Grid and Off-Grid	Up to 10kW 11kW-40kW 41kW-80kW and Above 80kW	Residential Commercial & Industrial and Utilities	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• String Inverter Market, By Phase:

• Single and Three

• String Inverter Market, By System Type:

• On-Grid and Off-Grid

• String Inverter Market, By Power Rating:

• Up to 10kW
• 11kW-40kW
• 41kW-80kW
• and Above 80kW

• String Inverter Market, By End-User:

• Residential
• Commercial & Industrial
• and Utilities

• String 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