Greater demand for power inverters from the residential sector is driving the market, thanks to their growing rates of electrification, simplicity of installation, increased expenditures in power outage preparedness, and better living standards.
The value of the Power Inverter market is projected to grow to US$ 115.8 billion with an estimated CAGR of 5.5 % by 2030
Covid-19 Impact & Market Status
Due to recent events surrounding the COVID-19 epidemic, some governments and private sector firms are functioning at reduced capacity or have totally suspended operations. Manufacturing activity throughout the world came to a standstill owing to a lack of raw materials and a manpower shortage caused by the epidemic. COVID-19 has three primary effects on the global economy: decreased output and demand, supply chain and market disruption, and negative financial impact on enterprises and financial markets.
Stainless Steel Segment Is Expanding to Drive Power Inverter Market Growth
A variety of favorable factors are now driving the power inverter sector. Portable inverters that may be used to charge tablets and mobile phones while commuting have emerged as a result of technological improvements, accelerating the industry's growth. The market for power inverters in the range of 100KW to 495KW accounts for the greatest proportion of the worldwide market.
The Most Common Application of Power Inverters is the Motor Driver.
In 2021, the motor driver category led the worldwide power inverter market by application. This is due to the increasing popularity and acceptability of motor drives around the world. The motor drives account for about 45 percent of all electric energy consumed by all appliances. The improved efficiency of motor drives has assisted this category's expansion in the worldwide power inverters market.
The EVs/HEVs segment is expected to grow at the fastest pace over the projection period. This might easily be ascribed to the growing popularity of electric automobiles throughout the world. The government has been obliged to implement rules that encourage the adoption of EVs and HEVs due to mounting worries about car pollution. The growing number of government measures to reduce carbon emissions from automobiles is driving this segment's growth. Furthermore, the growing popularity of autonomous vehicles among customers is likely to propel this segment's growth in the future years.
Power Inverter Market Is Driven By The Residential Sector.
In 2021, the residential sector led the worldwide power inverter market in terms of end use. Increased government expenditure on infrastructure and energy has fueled the adoption of power inverters among household customers. The rising number of residential buildings and urbanisation are pushing the deployment of power inverters in residential units across the world. Furthermore, as consumer demand for various consumer electronics develops, so will the demand for power inverters in the residential sector.
Commercial, on the other hand, is expected to be the most profitable category throughout the projection period. This is due to the rising demand for stable power supply in commercial buildings such as malls, gyms, and other commercial venues. Regular power supply is necessary for the smooth running of commercial operations, and any disruption in power supply can result in significant financial losses for commercial units. As a result, power inverter utilisation in commercial units is predicted to increase substantially throughout the projection period.
Power Inverter Market Is Driven By The APAC region.
Asia Pacific dominated the power inverter market in 2021, and it is predicted to be the most lucrative market during the forecast period. Some of the major drivers propelling the Asia Pacific power inverter market forward include increasing industrialization, expanding disposable income, fast urbanization, improved lifestyles, and improving living standards. Increased government expenditures and efforts in the development of rural regions and power are boosting the market. The expanding number of real estate developments is projected to raise demand for power inverters due to the unpredictable power supply in rural areas.
Furthermore, increased awareness of power inverters, as well as the widespread availability of power inverters in Asia Pacific's sub-urban and rural regions, is predicted to contribute considerably to market growth. As a result, the Asia Pacific power inverter market is likely to rise at a significant rate throughout the forecast period.
Inverters have a low running cost, need little maintenance, and are environmentally benign, all of which are expected to be market stimulants.
In 2022, the global power inverter market is USD 71.17 billion, the market is predicted to grow at a CAGR of around 13.0 percent, reaching a value of around USD 153.12 billion in 2029.
A power inverter is a piece of equipment that converts direct current electricity into alternating current energy, which may then be used to power various electricity-driven devices. The architecture or circuitry of a power inverter has an impact on the output voltage and frequency, input voltage, and overall power management. Power inverters are available in a variety of capacities, including 1000 watts, 3000 watts, and 5000 watts, with the 3000 watt inverter being the most popular. USB ports, digital displays, and mobile phone chargers are all standard features on modern power inverters. Inverters are utilized in a wide range of applications, including residential, industrial, and commercial. Furthermore, this product's primary advantages are the lack of a need for gasoline, lubrication, or moving components.
Increasing household adoption of high-end electrical equipment and appliances would boost demand for the product throughout the predicted period. Meanwhile, increased commercial and industrial use of solar power systems is likely to fuel demand for power inverters in the coming years. Asia Pacific accounts for a significant percentage of the market because to the rapid construction of solar plants, power plants, and battery storage facilities in rising economies. Sungrow, for example, signed a contract in December 2021 with Rays Power Infra to build a solar project in Bangladesh. Rapid residential, urbanisation, and commercial expansion are likely to benefit India and China.
The cheap cost of operation and removal of the difficulties associated with change-over switches, unlike power generators, are two main factors driving the use of power inverters throughout the residential and commercial sectors. Various household gadgets and electrical items are powered by power inverters. Power inverters come in a variety of sizes and power levels, allowing them to meet the demands of both households and businesses all over the world. Strong economic expansion, along with increased consumer disposable income, is propelling the worldwide power inverter market forward.
Furthermore, as the demand for uninterrupted power supply and protection of electric equipment from harm caused by power fluctuations grows, so does the demand for power inverters. The usage of power inverters is being aided by growing urbanisation and rising electrification in emerging and underdeveloped countries. Due to expanding technical breakthroughs in the consumer electronics sector and rising consumer affordability throughout the world, consumers' reliance on electronic equipment has expanded dramatically. Due to the necessity for continuous power supply, demand for power inverters has increased dramatically.
During the forecast period, the increased popularity of solar inverters among commercial and residential customers is likely to considerably boost the worldwide power inverters market. Furthermore, the increasing demand for electric vehicles among worldwide customers is likely to propel the EVs/HEVs power inverters market forward. People are becoming increasingly aware of the deteriorating environmental conditions caused by automotive emissions, which is driving up demand for electric vehicles. Increased use of EVs (electric vehicles) would result in a significant increase in demand for power inverters all around the world. Furthermore, increased government initiatives to promote environmentally friendly power sources are having a significant impact on the adoption of EV/HEV and solar PVs power inverters throughout the world, contributing significantly to the growth of the global power inverter market.
Key players such as ABB Ltd., SMA Solar Technology AG, Huawei Technologies Co., Ltd., Omron Corporation, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Advanced Energy Industries, Inc., Schneider Electric SE Enphase Energy, Inc., SolarEdge Technologies Inc., Tabuchi Electric Co., Ltd., and others. To increase their market position, these businesses have implemented a variety of growth tactics. These companies' main growth strategies include expansion, new product development, and cooperation in order to improve their product range and geographical presence to address the rising demand for Power Inverters from emerging nations.
Latest Innovation in the Global Power Inverter Market: A snapshot
- This year, Huawei released a new Commercial & Industrial solution that can be used in a variety of circumstances, including solar only, storage only, solar + storage + charging, and off-grid. The technology can boost the energy output by 30% and the energy storage power by up to 15% by combining optimizers with the smart string energy storage system. Huawei inverters feature intelligent AFCI arc protection and shut down in less than 0.5 seconds, assuring system active safety.
- SolarEdge is a global leader in sustainable energy technologies, including solar photovoltaics, critical power solutions, backup batteries, and electric vehicle powertrains. Its Critical Power Division has developed very unique backup solutions thanks to its experience in disruptive technologies.
Power Inverter Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 153.12 billion|
|Growth Rate||CAGR of 13.0 % during 2021-2028|
|Segment Covered||Rating, Application, End Use, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||ABB Ltd., SMA Solar Technology AG, Huawei Technologies Co., Ltd., Omron Corporation, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Advanced Energy Industries, Inc., Schneider Electric SE Enphase Energy, Inc., SolarEdge Technologies Inc., Tabuchi Electric Co., Ltd., and others|
Key Segments of the Global Power Inverter Market
Rating Overview, 2022 - 2029 (USD Billion)
- < 5KW
- 5KW to 95KW
- 100KW to 495KW
- Above 500KW
Application Overview, 2022 - 2029 (USD Billion)
- Rail Traction
- Wind Turbines
- Motor Drives
- Solar PVs
End Use Overview, 2022 - 2029 (USD Billion)
- Automotive and Transportation
- Commercial and Industrial
Regional Overview, 2022-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa