The global inverter market revenue was valued at USD 19.56 billion in 2023 and is poised to grow from USD 22.58 billion in 2024 to USD 73.27 billion by 2032, at a CAGR of 15.80% during the forecast period 2023 - 2032. The increasing demand for electricity from oil and gas, automotive, building, and construction is anticipated to drive the growth of the inverter market.
The inverter market deals with necessary devices to convert direct current into alternating current and allows the use of AC-generated devices in several applications. The increasing disposable incomes and increasing rapid economic development of people worldwide are expected to enhance market growth.
The increasing adoption of sustainable energy sources such as wind power and solar power, rising advancements in inverter technology, increasing adoption of electric vehicles, and increasing emphasis on energy efficiency attributed to the increasing demand for inverters in several applications across industrial, commercial, and residential sectors are expected to accelerate the market growth. In addition, the increasing demand for high-efficiency power conversion technologies and the increasing demand for reliable power backup solutions are further expected to accelerate the growth and demand for the inverter market during the forecast period.
Growing demand for renewable energy sources and increasing adoption of electric vehicles fuel the market growth
The rising demand for sustainable and clean energy sources is enhancing the growth of the market. Inverters play an important role in converting DC power integrated from renewable sources, including solar panels, into AC power that can be fed back into the grid and can be used in households. The rising adoption of wind turbines and solar power systems is estimated to drive the demand for inverters.
In addition, the increasing adoption of electric vehicles (EVs) is also accelerating the growth of the market. Inverters are utilized in electric vehicles to transform DC power from the electric vehicle’s battery into AC power, which is used to power the electric vehicle’s motor. Due to the cost-effectiveness and low carbon emissions of electric vehicles, the demand for electric vehicles is growing in the automotive industry. These are the major driving factors expected to drive the growth and demand for the inverter market.
However, the high cost and installation cost of inverter devices may restrain the growth of the market and sometimes make them costly and unaffordable for many customers. Moreover, the availability of lower-cost alternatives, including generators, is also a major hindering factor for the market. The insufficient standardized solution for the market is also a significant challenging factor that restrains the market growth.
The lack of standardization makes it difficult for manufacturers to produce reliable and high-quality inverters that can address the demands of various applications. The installation of inverters needs skilled professionals and specialized equipment, which may maximize the overall cost of the system. Furthermore, regular maintenance is needed to ensure the optimal operation of inverters, which can cause a high cost. These are the major restraining factors that may hinder the growth of the inverter market.
| Report Attribute | Key Statistics |
| Market Revenue in 2024 | USD 22.58 Billion |
| Market Revenue by 2032 | USD 73.27 Billion |
| Market CAGR | 15.80% from 2023 to 2032 |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Recent Innovation in the Inverter Market by ABB Ltd.
Recent Innovation in the Inverter Market by Daewoo
Asia Pacific is expected to grow fastest during the forecast period. The rising demand for electricity in developing countries and the increasing adoption of energy systems from sustainable or renewable sources are anticipated to drive market growth in Asia Pacific. China, India, Japan, and South Korea are the major countries in the Asia Pacific region. China has the largest market share and is a major contributor to the market growth. The increasing number of solar installations in the region is expected to accelerate the market growth.
The Chinese government has been continuously investing in power generation via sustainable sources. For foreign investment, they have also opened channels in China. In China, there are various experienced solar inverter suppliers. WHC Solar Hybrid Inverter is a wholesale supplier and produces advanced hybrid inverters for commercial and residential use with a 110-380V power supply. Their power frequency inverters are significantly suitable for powering with very affordable equipment, and to produce voltage and stable frequency, they used pure sin wave technology. These are the major factors expected to drive the growth of the inverter market in Asia Pacific.
North America dominated the inverter market in 2023. The rising presence of regulations and favorable policies and increasing government initiatives to accelerate the use of clean energy technologies is anticipated to enhance the growth of the market in North America. The U.S. and Canada are the major countries in North America. The U.S. also acquired the largest share in the global market. The U.S. is the leading country in the inverter industry in terms of both research and revenue funding. It is significant owing to supportive government financial grants, investment, and policies for the development of inverter facilities in the country that are driving the market size. These are the major factors anticipated to accelerate the growth of the inverter market in North America.
Digitalization and smart features and increasing emerging countries
Inverters will incorporate advanced communication, control, and monitoring capabilities and enable consumers to manage their systems remotely, track performance, and optimize energy usage. In addition, the demand for efficient and reliable inverters is increasing due to the growing adoption of renewable energy in developing markets. Furthermore, increasing emerging countries offer opportunities for market expansion. These are the major opportunities expected to accelerate the growth of the inverter market in the coming future.
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