Power Inverter Market Size, Share, Forecast, & Trends Analysis by Product Type (Pure Sine Wave, Modified Sine Wave), Grid Type (Grid Tie Inverters, Hybrid Inverters), Source, Phase, Portability, End User (Residential, Commercial, Industrial), and Geography - Global Forecast to 2031

Power Inverter Market Size & Forecast

The Power Inverter Market is expected to reach $109.7 billion by 2031, at a CAGR of 5.3% from 2024 to 2031. The growth of this market is attributed to the increasing investment in renewable energy, growing demand for uninterrupted power supply across various industries, and increasing government initiatives to promote the use of renewable energy. Moreover, the adoption of smart grid technologies and the integration of solar inverters with energy storage systems are expected to offer growth opportunities for the players operating in this market.

Power Inverter Market Growth Drivers

Growing Demand for Uninterrupted Power Supply Across Various Industries Supports the Growth of Power Inverter Market

Commercial buildings are increasingly installing power inverters for daily operations. The growing power outage disrupts the operations leading to lost productivity and revenue. Thus, power inverters are used to provide critical backup power, ensuring a smooth workflow during outages and minimizing downtime. Many commercial spaces, such as retail stores, offices, and hospitals, are increasingly implementing automation technologies. These systems rely on electricity to function effectively. Power inverters ensure these technologies continue to operate during outages.

Some of the industries that are seeing a significant rise in power inverter demand:

• Manufacturing: Production lines rely on uninterrupted power to avoid delays and maintain quality control.
• Healthcare: Hospitals and medical facilities require constant power for critical equipment such as life support systems.
• Telecommunication: To maintain uninterrupted communication networks during power outages.
• Restaurants & Hotels: Provide backup power to ensure a positive customer experience even during outages.

Such factors are supporting the growth of the power inverter market across various industries during the forecast period.

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Increasing Government Initiatives to Promote the Use of Renewable Energy Drives the Growth of Power Inverter Market

Government bodies around the globe are increasingly investing in smart grids to utilize intelligent technology to manage power flow and improve grid stability. Inverters play a crucial role in smart grids to facilitate grid synchronization and optimize power delivery from renewable sources.

Some of the government initiatives to promote renewable energy are as follows:

• In March 2024, the Bureau of Energy Efficiency (India) launched the Grid-Connected Solar Inverter with Standards and Labeling Program to provide better quality inverters for consumers to use as part of the solar rooftop system.
• In March 2023, the U.S. government invested USD 124 million in renewable energy and fertilizer production projects in 44 states to lower energy costs, generate new income, and create jobs for U.S. farmers, ranchers, agricultural producers, and rural small businesses.

By incentivizing solar and wind power adoption, supporting distributed generation, and enhancing grid integration, these policies create a significant demand for inverters, making them a critical component of the clean energy transition. Such government initiatives promoting renewable energy further drive the growth of the power inverter market.

Power Inverter Market Opportunity

Adoption of Smart Grid Technologies Offering Growth Opportunities for Power Inverter Market

Smart grids are electricity networks that leverage digital technologies, sensors, and software to optimize the matching of electricity supply and demand in real time. They thereby minimize costs and uphold grid stability and reliability. They contribute to enhancing power quality, transmission reliability, distribution efficiency, and conservation while reducing electric utility costs.

Renewable energy sources such as solar and wind power generate electricity in DC format. The smart grid relies heavily on inverters to convert the DC power into AC for seamless integration into the existing AC grid infrastructure. The increasing integration of smart grid technologies encourages the adoption of distributed generation, where power is produced closer to consumption points. Power inverters play a vital role in these distributed systems, enabling the efficient conversion of DC power from rooftop solar panels or small wind turbines into usable AC power for local use. The adoption of smart grid technologies creates a more dynamic and complex power grid that relies heavily on efficient power conversion. Thus, fuels the growth of the power inverter market, particularly for advanced inverters capable of communication, grid synchronization, and bi-directional power flow.

Integration of Solar Inverters with Energy Storage Systems Offering Growth Opportunities for Power Inverter Market

The integration of solar inverters with energy storage systems (ESS) is a major factor supporting the adoption of power inverters across various sectors. Integrating an ESS with a solar inverter allows for storing excess solar energy during the day and using it later when needed, maximizing self-consumption and reducing reliance on the grid. ESS systems combined with inverters help to mitigate the impact of fluctuating solar power generation on the grid.

An ESS paired with a solar inverter provides backup power during grid outages, keeping essential appliances and lights functioning. Inverters integrated with ESS offer greater functionality and value for homeowners and businesses, making them a more attractive solution compared to traditional grid-tied solar inverters. The growing adoption of solar inverters with storage systems creates a significant demand for power inverters to handle bi-directional power flow and communicate with ESS for intelligent system management. Such factors offer growth opportunities for the power inverter market during the forecast period.

Power Inverter Market Analysis: Key Findings

By Product Type: In 2024, the Pure Sine Wave Inverter Segment to Dominate the Power Inverter Market

Based on product type, the power inverter market is segmented into pure sine wave inverter, modified sine wave inverter, and square wave inverter. In 2024, the pure sine wave inverter segment is expected to account for the largest share of the power inverter market. The large market share of this segment is attributed to the increasing sales of electronics products, growth of renewable energy systems, rising consumer awareness about the advantages of pure sine wave inverters, and increasing government incentives to promote renewable energy usage. Increasing sales of electronics products such as laptops, TVs, medical equipment, and power tools equipped with sophisticated power supplies that require AC sine waves for optimal performance further support the segment's growth.

However, the modified sine wave inverter segment is projected to register the highest CAGR during the period. The segment's growth is attributed to the increasing use of modified sine wave inverters for light bulbs and fans, simple power tools, and modified sine wave inverters being cheaper than other power inverters.

By Grid Type: In 2024, the Grid Tie Inverters Segment to Dominate the Power Inverter Market

Based on grid type, the power inverter market is segmented into off grid inverters, grid tie inverters, and hybrid inverters. In 2024, the grid tie inverters segment is expected to account for the largest share of above 47% of the power inverter market. The large market share of this segment is attributed to the increasing government initiatives to promote renewable energy adoption, increasing demand for cost-effective solar panels, the increasing cost of traditional electricity, and rising concerns about climate change and fossil fuel dependence.

However, the hybrid inverters segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the growing trend of renewable energy, advancements in battery technology, and increasing demand for smart homes and energy management solutions. In May 2023, Solis Technologies (India) launched the S6 Advanced Power Hybrid Inverter to offer automatic UPS switching and up to 10 seconds of 200% surge power backup overload capability.

By Source: In 2024, the Voltage Source Inverter Segment to Dominate the Power Inverter Market

Based on source, the power inverter market is segmented into current source inverter and voltage source inverter. In 2024, the voltage source inverter segment is expected to account for the larger share of the power inverter market. The large market share of this segment is attributed to the rising demand for voltage source inverters (VSIs) across various sectors, driving electrification, increasing renewable energy adoption, advancements in semiconductor technology, and adoption of smart grid technology. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

By Phase: In 2024, the Three Phase Inverter Segment to Dominate the Power Inverter Market

Based on phase, the power inverter market is segmented into single phase inverter and three phase inverter. In 2024, the three phase inverter segment is expected to account for the larger share of above 76% of the power inverter market. The large market share of this segment is attributed to the increasing demand for three phase inverters for powering machinery in factories, water treatment plants, and various heavy-duty applications, the increasing adoption of industrial automation systems, and the increasing need to improve energy efficiency in industrial applications. In January 2021, FIMER S.p.a. (Italy) launched the PVS-10/33-TL three-phase string inverter solution for commercial and industrial applications. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

By Portability: In 2024, the Portable Segment to Dominate the Power Inverter Market

Based on portability, the power inverter market is segmented into portable and non-portable. In 2024, the portable segment is expected to account for the larger share of above 64% of the power inverter market. The large market share of this segment is attributed to the increasing use of power essential appliances and electronic devices such as laptops, phones, and cameras, growing concern about power outages, and increasing affordability of portable inverters.

However, the non-portable segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the increasing use of non-portable inverters in industrial applications, increasing focus on critical infrastructure backup power, and the development of smart grid technologies.

By End User: In 2024, the Commercial Segment to Dominate the Power Inverter Market

Based on end user, the power inverter market is segmented into residential, commercial, and industrial. In 2024, the commercial segment is expected to account for the largest share of above 46% of the power inverter market. The large market share of this segment is attributed to the increasing demand for uninterrupted power supply for commercial spaces such as data centers, retail stores, and hospitals, increasing integration of energy management systems in commercial buildings, government regulations for promoting energy efficiency and increasing applications of power inverters in the commercial sector such as powering LED lighting systems and operating HVAC equipment. In May 2024, Sungrow Power Supply Co., Ltd. (China) launched hybrid inverters and battery solutions for the residential and commercial sectors in Australia to enhance the experience and safeguard the reliability of power plants. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, the Asia-Pacific Region to Dominate the Power Inverter Market

In 2024, Asia-Pacific is expected to account for the largest share of above 43% of the power inverter market. The market growth in Asia-Pacific is driven by the rising demand for reliable power supplies for factories, warehouses, and construction sites in the region, increasing government initiatives to promote renewable energy adoption, increasing demand for consumer electronics and appliances, and increasing investment to upgrade grid infrastructure. Developed economies such as China, Japan, and South Korea are focusing on grid-tie inverters for renewable energy integration while developing countries are experiencing higher demand for portable inverters for backup power and off-grid applications. Moreover, this region is also projected to record the highest CAGR of above 6.5% during the forecast period.

Power Inverter Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the power inverter market are SMA Solar Technology AG (Germany), SolarEdge Technologies Inc. (Israel), Enphase Energy, Inc. (U.S.), Mitsubishi Electric Corporation (Japan), Huawei Technologies Co., Ltd. (China), General Electric Company (U.S.), Sungrow Power Supply Co., Ltd. (China), Eaton Corporation plc (Ireland), Delta Electronics, Inc. (Taiwan), ABB Ltd (Switzerland), Schneider Electric SE (France), Siemens AG (Germany), Omron Corporation (Japan), Growatt New Energy (China), and Tabuchi Electric Co., Ltd. (Japan).

Power Inverter Industry Overview: Latest Developments from Key Industry Players

• In October 2023, GoodWe (China) launched the three-phase 1,500V utility string inverter to meet the demand of large-scale power plants. It offers high power efficiency, streamlined operation and maintenance (O&M), and reliable system stability.

• In May 2023, SolaX Power (China) launched the X1-Hybrid LV, a hybrid inverter designed to provide high efficiency for low-voltage solar PV systems in residential applications.

• In January 2021, Tesla, Inc. (U.S.) launched a solar power inverter for home applications to convert DC power from solar to AC power for home consumption.

Power Inverter Market Research Summary

Key questions answered in the power inverter market report: