MARKET OVERVIEW Solar inverter market in 2023 - a closer look
The solar inverter market is growing rapidly as a result of the green energy boom, and it’s expected to reach a whopping US$17.9 billion in total value by 2030. Read more about the current developments in this article.
Solar inverters are the driving force behind solar energy systems. This is because every photovoltaic (PV) solar cell found in a solar panel requires a way to transform the direct current (DC) energy that it creates into useful alternating current (AC) power. That’s the job of the solar inverter.
In addition to converting DC to AC, solar inverters are used to track voltage, enable communication with the grid, and can shut off in an emergency. Unlike off-grid inverters, grid-connected solar inverters make pure sine wave AC power. Using more grid-connected solar inverters will help to ensure that home appliances are safe and work efficiently, as well as to improve commercial and industrial projects.
Solar inverter market growth
As the demand for green energy increases and solutions like solar power is adopted on a wider scale, more and more solar inverters are being deployed in solar installations across the world.
This has led to rapid growth within the global solar PV inverter market, which was valued at US$7.7 billion in 2020 and is expected to reach US$17.9 billion by 2030. This is according to recent research by Contrive Datum Insights, which claims that the market will grow at a compound annual growth rate (CAGR) of 8.8 % in this time.
Recent developments in the solar inverter market
There are many firms leading the charge in the growth of the solar inverter market. One such firm is Fronius, which last year invested EUR 187 million in the expansion and conversion of its production site in Sattledt, Austria.
“We have expanded the floor space from 41,000 m² to 69,000 m². Our production is constantly running at full speed in order to cover the enormously increased demand in the best possible way," says Martin Hackl, Global Director of Marketing and Sales, following the announcement of the investment, adding that Fronius’ output is “higher than ever before.” In total, the company produced almost 32,000 inverters per month last year, and this is expected to rise to more than 52,000 by the end of 2023 — an increase of more than 65 %. The reason for this lies in the PV boom. “Photovoltaics is in greater demand than ever before, and the demand is exploding as a result,” explains Hackl.
Rapid development in the renewable energy sector and the growing ease of installation of solar inverters are the main factors that are driving growth in the market. On the other hand, high heat loss in large-sized solar inverters, high cost, and absence of panel-level monitoring are the main factors currently restraining further growth.
It’s expected that increases in government initiatives and investments in the electrification of rural and remote areas are anticipated to create opportunities for key players in the solar inverter like Fronius to overcome these challenges through R&D initiatives.
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