Power Inverter Market Size, Share & Analysis Report, 2024-2033
The global power inverter market size was exhibited at USD 73.0 billion in 2023 and is projected to hit around USD 120.28 billion by 2033, growing at a CAGR of 5.12% during the forecast period of 2024 to 2033.
The Power Inverter Market plays a crucial role in today's electrified world, enabling the conversion of direct current (DC) into alternating current (AC) to power household, commercial, industrial, and utility-scale applications. As reliance on renewable energy systems, electric vehicles (EVs), and off-grid solutions grows, the demand for efficient and reliable power inverters continues to rise. Inverters are integral in managing energy flow between generation sources, storage systems, and end-users.
The shift towards sustainable energy, expansion of smart grids, and rising investments in energy storage projects are significantly driving market expansion. Technological innovations such as silicon carbide (SiC) inverters, AI-integrated systems, and modular inverter solutions are further enhancing system efficiency and reducing energy losses. Despite facing challenges such as high maintenance costs and grid compatibility issues, the market outlook remains robust, fueled by global trends favoring clean energy adoption.
The major factors that boosts the adoption of the power inverters across the residential and the commercial sectors is the low cost of operation and the elimination of the inconveniences associated with the change-over switches unlike the power generators. Power inverters are utilized for operating various household appliances and electrical products. The availability of power inverters in various sizes and power ranges helps to cater to the different needs of the household and the commercial units across the globe. The strong economic growth coupled with the rising disposable income of the consumers is boosting the growth of the global power inverter market. Moreover, the rising demand for the uninterrupted power supply and protect the electric appliances from the damages caused by the power fluctuations, the demand for the power inverters is surging across the globe. The rapid urbanization along with the rising electrification in the developing and the underdeveloped regions is fostering the adoption of the power inverters. The reliance on the electronic appliances has significantly increased due to the rising technological advancements in the consumer electronics industry and the rising affordability of the consumers across the globe. This has significantly boosted the demand for the power inverters owing to the need for uninterrupted power supply.
The rising awareness regarding the availability of various types of power inverters at various power ranges has fueled the sales of the power inverters. Moreover, the power inverters are eco-friendly and free from noise and carbon emissions and also eliminates the usage of gasoline. Furthermore, the rising investments by the market players on the research & development activities to enhance the operational efficiency of the power inverters and introduce latest technologies is expected to drive the growth of the global power inverter market. Moreover, the increased penetration of the indirect sale channels has fostered the revenue generation in the past years. The indirect sales channels in the power inverters market play a crucial role in the distribution. The rising popularity of the solar inverters among the commercial and the residential users is significantly expected to drive the growth of the global power inverters market during the forecast period. Moreover, the rising demand for the electric vehicles among the global consumers is expected to drive the growth of the EVs/HEVs power inverters market. The rising awareness among the consumers regarding the deteriorating environmental conditions owing to the vehicle emissions is surging the demand for the electric vehicles. The rise in the adoption of the EVs will significantly drive the demand for the power inverters across the globe. Furthermore, the growing government initiatives to promote eco-friendly power sources is significantly impacting the adoption of the solar PVs and the EVs/HEVs power inverters across the globe, thereby contributing significantly towards the growth of the global power inverter market.
| Report Coverage | Details |
| Market Size in 2024 | USD 73.0 Billion |
| Market Size by 2033 | USD 120.28 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 5.12% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | Type, Application, End User |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
| Key Companies Profiled | SMA Solar Technology AG, ABB Ltd., Huawei Technologies Co., Ltd., Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), Omron Corporation, Advanced Energy Industries, Inc., SolarEdge Technologies Inc., Enphase Energy, Inc., Tabuchi Electric Co., Ltd., Schneider Electric SE. |
The Less than 5KW segment dominated the Power Inverter Market, particularly driven by the residential and small commercial sectors. These inverters are extensively used in home solar installations, backup power solutions, and small office setups. With declining prices of solar panels and the rising popularity of rooftop PV systems, low-capacity inverters have found widespread acceptance globally, especially in urban households seeking energy independence.
The More than 500 KW segment is growing at the fastest rate, mainly due to utility-scale renewable energy projects and large industrial applications. Massive solar farms and wind power plants require high-capacity inverters to handle multi-megawatt outputs. Companies are developing central inverters capable of managing power flows in the hundreds of kilowatts to megawatt ranges, optimizing grid integration and project economics.
The Utility sector dominated the end-use segment, leveraging power inverters for grid-connected renewable energy installations and distributed generation networks. Large-scale solar farms, wind farms, and energy storage systems use utility-grade inverters to ensure seamless integration into national grids. Governments’ renewable targets, such as achieving 100% clean electricity by 2035 in the U.S., bolster demand in this segment.
The Residential sector is witnessing the fastest growth, fueled by increasing solar rooftop deployments and home energy storage systems. Consumers are becoming more conscious of energy autonomy and carbon footprint reduction, prompting investment in inverter-backed residential solar setups. Advancements in hybrid and smart inverters tailored for home applications further stimulate segment growth.
Solar PV applications dominated the application segment, underpinned by the rapid expansion of solar energy globally. Inverters are vital in converting DC electricity from solar panels into AC usable by homes, businesses, and the grid. Growth in solar markets like China, the U.S., India, and Europe ensures steady demand for solar-compatible inverter systems.
EVs/HEVs applications are growing at the fastest pace, thanks to the accelerating adoption of electric and hybrid vehicles worldwide. Power inverters serve a critical function in EVs, converting battery-stored DC into AC for the motor. The global push towards e-mobility, supported by government incentives and expanding charging infrastructure, propels this segment’s rapid advancement.
Asia-Pacific dominated the Power Inverter Market, driven by aggressive renewable energy deployments, rapid urbanization, and industrial growth. China, India, Japan, and Australia are key contributors, investing heavily in solar and wind infrastructure. China's "14th Five-Year Plan" alone targets a sharp increase in renewable capacity, and India’s "Solar Rooftop Program Phase II" is catalyzing residential solar adoption. Manufacturing hubs across the region further boost demand for industrial power inverters.
North America is the fastest-growing regional market, buoyed by strong policy support for clean energy, extensive EV infrastructure developments, and rising adoption of residential energy systems. Initiatives like the U.S. "Inflation Reduction Act of 2022" are injecting billions into renewable energy projects and storage systems, driving demand for advanced inverter technologies. Furthermore, tech giants and corporate sustainability commitments to 100% renewables reinforce the region’s growth momentum.
April 2025: Huawei Digital Power launched its latest Smart String Inverter for large-scale PV applications, enhancing efficiency and reducing operational costs.
March 2025: Sungrow Power Supply Co. introduced its 1+X Modular Inverter for utility-scale solar installations, enabling flexible scalability for diverse project requirements.
February 2025: Enphase Energy expanded its IQ8 series of microinverters, designed for compatibility with newer high-output solar panels, providing greater flexibility for residential installations.
January 2025: ABB Ltd. announced a strategic partnership with Northvolt to supply power electronics and inverters for next-gen energy storage systems.
December 2024: Schneider Electric launched its EcoStruxure™ Hybrid Inverter, focusing on smart residential and small commercial applications, emphasizing real-time monitoring and cloud connectivity.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global power inverter market.
By Type
By End Use
By Application
By Region
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
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Additional Countries (Apart
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Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers