Inverter Market by Power Source (Battery-Powered, hardwired with battery backup, Hardwired without battery backup), Type (Photoelectric Smoke Detectors, Ionization Smoke Detectors), Service, Distribution Channel, and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Inverter Market size is projected to reach a CAGR of 15.7% from 2023-2030.
Power inverters are electric devices that transform direct current (DC) into alternating current (AC). Unlike generators, power inverters offer low operating costs and eliminate the inconvenience of using change-over switches. Owing to these characteristics, they are used to operate several tools, household appliances, and other electrical products. Power inverters are available in a variety of sizes, types, and power ranges as per the varied consumer needs and preferences. Some of these variants include modified sine wave power inverters, plug-in grid tie power inverters, and solar power inverters.
The rapid economic growth and rising disposable incomes of individuals across the globe have enabled them to spend more on products like power inverters, which enhance their lifestyles and provide comfort. Along with this, with rapid urbanization and growing electrification rates, most people nowadays rely on electronic appliances and gadgets. This has resulted in a significant need for an uninterrupted power supply, in turn increasing the sales of power inverters as an alternate backup solution in case of outages. Besides this, they are noise-free and environment-friendly in nature as they do not emit carbon emissions and eliminate the need for gasoline, which is required for running generators. Moreover, manufacturers are investing in research and development (R&D) activities to introduce new technologies and enhance their operational characteristics. These factors will help to boost the market.
On the other hand, in traditional PV systems, PV panels, wires, and other equipment are energized with high DC voltages. These high DC voltages pose risks to installers, maintenance personnel, and firefighters. Solar inverters with PV arrays involve high DC voltages, making it difficult to isolate DC electric devices from PV arrays using DC isolation switches. When PV modules are connected in series, they create a high voltage, which can be dangerous for installers during the system installation, thus there is a high safety risk with high DC voltages and this is the major factor hindering the growth of the market.
The COVID-19 pandemic has adversely affected the growth of the inverter market globally as the demand for inverters was reduced significantly. Governments worldwide have restricted many business activities to minimize the spread of the coronavirus. The wide expansions in the renewable energy sector which were planned by the government have also got shut-down due to the pandemic, this delayed the path that was targeted for the clean energy transition. Additionally, companies across different geographies had to shut down their manufacturing facilities and services as partial or full lockdowns were imposed to contain the pandemic. This resulted in increased procurement costs of raw materials due to the shortage of supplies, which ultimately led to delays in order closures. Thus, the pandemic has negatively impacted the demand for inverters in the short term.
The inverter market has witnessed significant growth in recent years, driven by increasing demand for clean and reliable power sources, rising adoption of renewable energy systems, and growing awareness about energy efficiency. The market has seen technological advancements, such as the development of smart inverters with advanced features like grid connectivity and energy storage integration. Additionally, the expansion of industries such as solar power generation, electric vehicles, and home appliances has also boosted the demand for inverters. Moreover, favorable government policies and incentives to promote renewable energy sources and energy-efficient solutions have further stimulated the inverter market's growth. The increasing focus on reducing greenhouse gas emissions and mitigating the impact of climate change has led to the adoption of renewable energy systems, which in turn has driven the demand for inverters.
Asia Pacific to Dominate the Market