PV Inverter Market Worth USD 50.6 Bn by 2034 at 12.7% CAGR

Overview

New York, NY – April 08, 2025 – The global PV Inverter Market is set for strong growth, driven by rising demand for solar energy and supportive government policies. In 2024, the market was valued at USD 15.3 billion and is projected to reach USD 50.6 billion by 2034, expanding at a 12.7% CAGR.

This growth is fueled by increasing solar installations as countries shift to renewable energy to meet climate goals. The demand for PV inverters is rising due to their role in converting solar power into usable electricity, making them essential for residential, commercial, and utility-scale projects. Falling solar panel costs and improved inverter efficiency are also boosting market popularity.

Key opportunities lie in emerging markets, where solar adoption is accelerating, and in hybrid inverters that support battery storage systems. Market expansion is further supported by technological advancements like smart inverters, which enhance grid stability. With solar energy becoming more affordable and governments offering incentives, the PV inverter market is poised for significant growth, presenting lucrative opportunities for manufacturers and investors worldwide.

Key Takeaways

• PV Inverter Market size is expected to be worth around USD 50.6 Bn by 2034, from USD 15.3 Bn in 2024, growing at a CAGR of 12.7%.
• String PV inverters maintained a strong foothold in the market, securing a substantial 48.10% share.
• Three-phase PV inverters held a commanding position in the market, capturing an impressive 67.10% share.
• 100 kW to 200 kW established a dominant market position, securing a 45.20% share.
• On-grid PV inverters dominated the market, capturing an impressive 72.30% share.
• Utilities held a dominant position in the PV inverter market, capturing more than a 49.20% share.
• Asia-Pacific (APAC) region emerged as a dominant force in the PV inverter market, capturing an impressive 48.10% market share, which translates to approximately USD 7.3 billion.

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Key Market Segments

By Product

• In 2024, string PV inverters solidified their lead in the market, holding a robust 48.10% share. Their prominence is driven by their affordability and flexibility, making them a top choice for residential and small-scale commercial solar projects. Advances in technology have boosted their efficiency and reliability, while their straightforward installation and maintenance requirements further enhance their appeal. The ability of string inverters to adapt to diverse solar configurations without complex setups cements their status as a favored solution in the solar energy landscape.

By Phase

• In 2024, three-phase PV inverters dominated the market with a substantial 67.10% share. Their leadership is fueled by their extensive use in commercial and industrial solar installations, where managing higher voltages and large-scale operations is crucial. Compared to single-phase alternatives, three-phase inverters offer superior efficiency and stability, making them indispensable for powering expansive solar systems. Their strong market presence reflects their vital contribution to the growing adoption of solar energy across multiple industries.

By Power Output

• In 2024, PV inverters with power outputs between 100 kW and 200 kW captured a leading 45.20% share of the market. This segment excels in medium to large-scale solar projects, striking an ideal balance between capacity and versatility. These inverters are prized for their efficiency and dependability in commercial applications, ensuring consistent solar energy production. Their durability and adaptability make them a go-to option for developers aiming to optimize performance in sizable solar installations.

By Deployment

• In 2024, on-grid PV inverters led the market with a commanding 72.30% share. Their dominance is driven by the rising demand for seamless and efficient integration with utility grids. Widely adopted in residential and commercial settings, on-grid systems help lower electricity costs and bolster energy reliability by channeling surplus power back to the grid. This significant market share underscores their essential role in the proliferation of grid-tied solar installations, a key factor in the global push toward renewable energy.

By End-Use

• In 2024, utilities emerged as the leading segment in the PV inverter market, accounting for over 49.20% of the share. This dominance is propelled by the large-scale incorporation of solar energy into utility grids to meet the demand for sustainable and dependable power. Utilities are increasingly relying on PV inverters to handle solar energy inflows, improving grid efficiency and ensuring a stable energy supply. Their leading position highlights their pivotal role in advancing the renewable energy sector and supporting the shift to greener power solutions.

Regional Analysis

• The Asia-Pacific (APAC) region has solidified its position as a leader in the PV inverter market, commanding a 48.10% share, equivalent to roughly USD 7.3 billion in revenue. This dominance stems from several factors fueling solar energy adoption across the region. Countries like China, India, and Japan are at the forefront, driven by government policies aimed at expanding renewable energy to meet rising energy needs and reduce carbon emissions.
• China remains the region’s powerhouse, serving as both the largest market for PV inverters and a key manufacturing center. Supportive government measures, such as subsidies and favorable tariffs, have significantly boosted solar energy growth. In India, the National Solar Mission’s ambitious target of 100 GW of solar capacity by 2022 has greatly increased the demand for PV inverters.
• Japan also plays a significant role, with its shift toward clean energy intensified after the Fukushima nuclear disaster. The country’s commitment to renewables and strict energy security policies have created a favorable environment for PV inverter market expansion.
• These efforts are bolstered by technological advancements and falling costs of solar installations, making solar energy more affordable and attractive. APAC’s high adoption rates mirror global trends toward sustainability and energy resilience, cementing the region’s critical role in shaping the global PV inverter market.

Top Use Cases

• Residential Solar Systems: PV inverters convert solar energy into usable electricity for homes, reducing reliance on the grid and cutting electricity bills. With rising energy costs, homeowners are adopting solar power, driving demand for efficient inverters. Micro inverters and string inverters are popular choices, offering reliability and easy maintenance. Government incentives further boost residential solar adoption.
• Commercial & Industrial Solar Installations: Businesses use PV inverters to lower operational costs and meet sustainability goals. Large-scale string and central inverters are common in commercial solar farms and rooftop installations. Companies benefit from tax credits and reduced energy expenses, making solar power a smart investment. The growing corporate shift toward renewables supports market growth.
• Utility-Scale Solar Power Plants: Utility projects rely on high-capacity central inverters to feed solar energy into the grid. These inverters handle massive power outputs efficiently, supporting clean energy generation. Governments worldwide are investing in solar farms to meet renewable targets, increasing demand for durable, high-performance inverters.
• Off-Grid & Hybrid Solar Systems: PV inverters enable off-grid solar setups in remote areas with no grid access. Hybrid inverters combine solar with battery storage, ensuring uninterrupted power. This is crucial for rural electrification and backup power solutions, driving growth in emerging markets.
• Solar-Powered EV Charging Stations: EV charging stations integrated with solar panels use PV inverters to convert solar energy for electric vehicles. This reduces grid dependency and promotes green mobility. As EV adoption rises, solar-powered charging infrastructure will expand, creating new opportunities for inverter manufacturers.

Recent Developments

• Canadian Solar launched its new EP CubeTM residential energy storage system, integrating a hybrid inverter with battery storage for high efficiency. The company also expanded its utility-scale CSI Solar inverters, enhancing grid stability and smart energy management. These innovations support global solar adoption, particularly in North America and Europe.
• Delta introduced the M70A Flexx three-phase string inverter, optimized for commercial and industrial solar projects. It features 99% efficiency and advanced monitoring via Delta’s Solar River platform. The company is also focusing on AI-driven predictive maintenance to improve inverter lifespan and performance.
• Eaton unveiled its xStorage Home inverter, designed for residential solar + storage systems. It supports bidirectional charging for EVs and integrates with smart home systems. Additionally, Eaton is working on grid-forming inverters to enhance renewable energy integration in microgrids.
• Ingeteam launched its new 1.5MW utility-scale inverter, boosting power density and reducing installation costs. The company also introduced solar + storage solutions for the Latin American market, supporting hybrid renewable projects. Their inverters now feature advanced cybersecurity for grid protection.
• Enphase released its IQ8 micro inverters, enabling sunlight-only backup power without batteries. The company also expanded its IQ Battery 5P for higher energy storage capacity. Enphase’s new cloud-based monitoring improves system diagnostics and energy optimization.

Conclusion

The PV Inverter Market is on a strong growth path, driven by rising solar energy adoption, technological advancements, and supportive government policies. With increasing demand for residential, commercial, and utility-scale solar systems, inverters are becoming smarter, more efficient, and better integrated with energy storage. Innovations like hybrid inverters, AI-driven monitoring, and grid-forming capabilities are shaping the future of renewable energy.

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