Power Inverter Market Size, Share, Trends, Growth 2032

Power Inverter Industry Prospective:

The global power inverter market size was evaluated at $78 billion in 2023 and is slated to hit $137 billion by the end of 2032 with a CAGR of nearly 6% between 2024 and 2032.   

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Power Inverter Market: Overview

Power inverters are key equipment converting direct current into alternating current, thereby enabling the usage of DC power sources, including batteries that help operate AC equipment.

Reportedly, functions of power inverters include input voltage, output voltage, and output frequency. There are various kinds of power inverters, including grid-tie inverters, modified sine wave inverters, off-grid inverters, and pure sine wave inverters. It is used in a slew of settings, including renewable energy tools, home appliances, outdoor settings, and automotive.

Key Insights

• As per the analysis shared by our research analyst, the global power inverter market is projected to expand annually at the annual growth rate of around 6% over the forecast timespan (2024-2032)
• In terms of revenue, the global power inverter market size was evaluated at nearly $78 billion in 2023 and is expected to reach $137 billion by 2032.
• The global power inverter market is anticipated to grow rapidly over the forecast timeline owing to surging renewable energy trends along with need of incessant supply of power.
• In terms of type, the modified sine wave inverters segment is slated to register the highest CAGR over the forecast period.
• Based on application, the solar power systems segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on end-user, the residential segment is set to dominate the segmental growth in the ensuing years.
• Region-wise, the North American power inverter industry is projected to register the fastest CAGR during the projected timespan.

Power Inverter Market: Growth Factors

Growing demand for green energy will drive the global market trends over forecast period

Surging renewable energy trends, along with the need for an incessant supply of power, are likely to spur the global power inverter market expansion.

Apart from this, an increase in the penetration of power inverters in the residential sector will steer the market expansion globally.

Furthermore, rapidly expanding electric vehicle infrastructure facilities will contribute enormously to the market size across the globe in the coming years. Swift industrialization and technological innovations will prompt global market trends.

A rise in investments in green technologies will boost the market space in the upcoming years. Escalating popularity of using power backup services will spearhead the global market trends.

Power Inverter Market: Restraints

High preliminary prices and technological restrictions can impede the global industry surge by 2032

Huge initial costs and technical complications along with reduced battery lifespan can obstruct the expansion of the global power inverter industry.

In addition, less customer awareness about the benefits of using power inverters and the need for improving grid power supply can restrict the growth of the global industry.

Power Inverter Market: Opportunities

Growing development of strong EV facilities will drive the global market expansion by 2032

An increase in solar panel deployments in the residences and the use of smart grid systems for improving energy management activities are likely to open new growth opportunities for the global power inverter market.

Additionally, swift expansion of the electric vehicle infrastructure and rural electrification initiatives are anticipated to propel the global market expansion.

Power Inverter Market: Challenges

Battery defects and supply chain fluctuations can obstruct the expansion of the global industry by 2032

Surging price pressures and strict legislation can result in a decline in the growth graph of the global power inverter industry. Limitations of battery performance and supply chain oscillations can severely impact the growth of the global industry.

Power Inverter Market: Segmentation

The global power inverter market is divided into type, application, end-user, and region.                                             

In terms of type, the power inverter market across the globe is segmented into modified sine wave inverters and pure sine wave inverters segments.

Apparently, the modified sine wave inverters segment, which amassed nearly 62% of the global market revenue in 2023, is anticipated to record the fastest CAGR in the next few years owing to excellent power quality and increased efficiency.

Humungous demand for sources of renewable energy, such as wind power and solar power, along with the necessity of high-quality power inverters, will drive the segmental surge.

Based on the application, the global power inverter industry is segmented into uninterrupted power supply, solar power systems, electric vehicles, off-grid power systems, wind turbines, rail traction, and motor drives segments.

Apparently, the solar power systems segment, which dominated the global industry size in 2023, is expected to account majorly towards the segmental elevation in the ensuing years. This can be due to the escalating acceptance of solar energy globally.

Moreover, supportive government incentives, along with growing environmental concerns and reducing prices, can hamper the global industry surge.  

On the basis of end-user, the global power inverter market is sectored into residential, utility, industrial, and commercial segments.

Moreover, the utility segment, which led the end-user segment in 2023, is likely to lead the segmental space in the forecast timeline.

In addition, the segmental expansion can be subject to a rise in the use of distribution systems and power generation in solar & wind farms. Growing use of the product in improving grid infrastructure will further drive the segmental surge.    

Power Inverter Market: Report Scope

Power Inverter Market: Regional Insights

Asia-Pacific is likely to maintain leading status in the global market over the analysis timeline

Asia-Pacific, which accounted for about 55% of the global power inverter market size in 2023, is predicted to establish a leading position in the global market in the ensuing years.

In addition to this, the regional market expansion in the next decade can be attributed to industrialization at rapid pace in countries such as India and China.

Moreover, the escalating use of electric vehicles in Japan, South Korea, Taiwan, and China, along with government subsidies on their usage, will steer the expansion of the market in APAC.

The North American power inverter industry is likely to record the fastest compounded growth annually in the upcoming years. The elevation of the industry in North America can be a result of favorable government policies and growing green energy trends in various end-use sectors such as construction and utilities.

Moreover, the presence of key players in countries such as the U.S. will drive the industry expansion in North America.

Power Inverter Market: Competitive Space

The global power inverter market profiles key players such as:

• SolarEdge Technologies Inc.
• Huawei Technologies Company Limited
• Enphase Energy Inc.
• Tabuchi Electric Co. Ltd.
• Sungrow Power Supply Company Limited
• SMA Solar Technology AG
• Mitsubishi Electric Corporation
• General Electric Company
• Eaton Corporation plc
• ABB Limited
• Delta Electronics Inc.
• Victor Energy
• Siemens AG
• Schneider Electric SE
• Omron Corporation
• Kohler
• Growatt New Energy Technology Co. Ltd.

The global power inverter market is segmented as follows:

By Type

• Modified Sine Wave Inverters
• Pure Sine Wave Inverters

By Application

• Uninterrupted Power Supply
• Solar Power Systems
• Electric Vehicles
• Off-Grid Power Systems
• Wind Turbines
• Rail Traction
• Motor Drives

By End-User

• Residential
• Utility
• Industrial
• Commercial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa