Solar inverter or photovoltaic inverter is a type of an electrical inverter that is used to convert the direct current (DC) output into a utility frequency alternation current (AC). The converted current is then transferred into the commercial electrical grid, which is used for residential and industrial purposes in case of a power cut off. There are various types of solar inverters available in the market, includes central-inverters, micro-inverters, string inverters, and power optimizers.
The factors responsible for driving the growth of the global solar inverter market include the continuous infrastructural development and the rising demand for 24*7 electricity supply. Governments across the globe are focusing on infrastructural development in their countries to improve their citizen’s quality of life. For instance, the UAE government is mainly focusing on Smart Dubai project, aiming to transform the city into a leading global smart city. This expansion in the construction activities will drastically boost the demand of the market. In addition to this, the increasing greenhouse gas effect and rising environmental issues are further encouraging the usage of solar inverters. The solar inverter eliminates the high cost of electricity bills and provides higher efficiency in the long run. Various stakeholders in the energy generation industry are looking for opportunities to reduce carbon footprints by emphasizing on using renewable energy sources for power generation. For instance, in 2019, the Italian government aimed to reach 50 GW of solar power generation by the end of 2030 to increase the share of renewable energy sources in the total power generation of the country. The growing focus on renewable energy sources will have a positive impact on the growing demand of the market. However, factors such as high initial installation cost, the regular need of sunlight, and the requirement of a large area for installation are the major factors which will have a negative impact on the strong demand of the market in the coming years.
Based on Technology, the market is segmented into central inverters, micro-inverters, string inverters, and power optimizers. Among these, the central inverters segment is projected to grow at a higher CAGR during the forecast period due to the increasing demand for energy driven by the rapid urbanization and the growing usage of electricity at the global level. The central inverters are mainly used in buildings, industries, and in various field installations. These inverters offer a lower capital price per watt, provides higher efficiency, and are easy to install as compared to other types of solar inverters. All these remarkable advantages will accelerate the demand for central inverters.
Based on the End Use, the market is segmented into industrial, commercial, and utility inverters. The industrial segment is anticipated to lead the market over the forecast period owing to the rising number of government initiatives to promote the usage of renewable energy sources for power generation. Moreover, the rapid increase in the investments in the renewable energy sector across numerous industries will further pay the way for the growth of the market.
On the basis of region, the Asia-pacific region is anticipated to lead the market over the forecast period owing to the rising incidences of power outages, especially in the developing economies such as India and China. Moreover, several initiatives such as India’s National Solar Mission will further push the demand of the solar inverter market in this region. For instance, NABARD is providing 40% subsidy for those who are purchasing solar inverters. All these factors are strengthening the demand of the market across the Asian countries.
Various notable players operating in the global solar inverter market include Emerson Electric Co., Schneider Electric, Power-One, Inc., SMA Solar Technology AG, KACO New Energy Inc., SunPower Corporation, Canadian Solar, SolarEdge Technologies Inc., Solectria Solar, Hitachi Hi-Rel Electronics Private Limited, among others.
- In 2019, Schneider Electric launched the new Conext XW Pro Inverter/Charger. This inverter is dedicated to the residential, commercial & industrial solar and storage applications.
- In 2019, KACO New Energy Inc., launched five new string inverters to expand its product offering. These string inverter are highly suitable for PV systems in commercial, industrial roofs, and for ground-mounted solar parks.
The global Solar Inverter market has been segmented on the basis of technology, end use and region. Based on the technology, the market is segmented into central inverters, micro-inverters, string inverters and power optimizers. Based on end use, the market is segmented into industrial, commercial, residential and utility inverters.
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