Global Solar Inverter and Battery Market is Segmented By Connection (On-Grid, Off-Grid, Hybrid-Grid), By Inverter (Central Inverter, String Inverter, Micro Inverter), By Battery (Lead-Acid, Lithium-Ion, Others), By End-User (Residential, Commercial, Industrial), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Solar Inverter and Battery Market Size
Global Solar Inverter And Battery Market reached US$ 10.1 billion in 2022 and is expected to reach US$ 22.9 billion by 2030, growing with a CAGR of 10.8% during the forecast period 2024-2031.
The solar inverter and battery market has witnessed substantial growth due to increasing adoption of solar energy systems and the growing demand for energy storage solutions. The market size is expected to continue expanding, driven by factors such as supportive government policies, declining costs of solar technologies and rising environmental concerns.
On April 25, 2023, Enphase (ENPH), the top supplier of microinverter-based solar and battery solutions worldwide, is paving the road for a sustainable future. Enphase will start producing in the US due to the rising demand for solar energy and new challenges brought on by the Inflation Reduction Act (IRA).
U.S. has been a key contributor to the growth of the global solar inverter and battery market. The country has witnessed significant developments and initiatives that have driven market growth. Enphase Energy, a U.S.-based manufacturer, has been a leader in micro inverter technology.
The company has introduced advanced microinverters that provide enhanced performance, reliability and monitoring capabilities. Enphase has made significant strides in optimizing the integration of solar inverters and battery storage systems, enabling efficient energy management. Therefore, U.S. accounted for nearby 3/4th of the regional shares and is expected to grow at a highest CAGR during the forecasted period.
Market Summary
| Metrics | Details |
| CAGR | 10.8% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Connection, Inverter, Battery, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Growing Installation of Solar PV
The growing installation of solar photovoltaic (PV) systems plays a pivotal role in driving the growth of the global solar inverter and battery market. Solar PV systems generate electricity directly from sunlight, converting it into usable electricity for homes, businesses and the grid. As the installation of solar PV systems continues to grow globally, there is an increased need for solar inverters. Solar inverters are essential components that convert the direct current (DC) produced by solar panels into alternating current (AC) suitable for use in electrical grids or for on-site consumption.
Solar inverters optimize the energy harvesting potential of solar PV systems. They ensure that solar panels operate at their peak efficiency, extracting the maximum power from the sunlight. By effectively converting and managing the solar energy, solar inverters help to maximize the electricity output of solar PV installations.
Rise in Battery Storage Systems
Battery storage systems enable solar PV system owners to store excess electricity generated during periods of high solar production. Instead of exporting the surplus energy back to the grid, it can be stored in batteries for later use. This enhances energy self-consumption, as stored energy can be utilized during times when solar generation is low or when electricity prices are high. The ability to maximize self-consumption reduces reliance on the grid and improves the financial viability of solar PV systems, driving their adoption and stimulating the demand for solar inverters and battery storage systems.
Battery storage systems provide grid flexibility and support demand response capabilities. By discharging stored energy to the grid during periods of high electricity demand, battery systems can help alleviate strain on the electrical infrastructure. This demand response functionality allows for a more efficient utilization of the grid and helps balance supply and demand. Solar inverters play a critical role in managing the charging and discharging of batteries, optimizing the interaction between the solar PV system, the battery storage and the grid. The integration of solar inverters and battery storage systems enhances grid stability and enables more efficient grid operation, driving the growth of the market.
Higher Installation Costs
Higher installation costs can make solar PV systems with battery storage less affordable for residential, commercial and industrial customers. The upfront investment required for purchasing and installing solar inverters and battery storage systems can deter potential buyers, particularly in markets where the cost of electricity from traditional sources is relatively low. The perceived longer payback period and ROI may discourage some customers from adopting solar PV systems with battery storage, hindering market growth.
Solar inverters and battery storage systems face competition from other energy storage technologies and backup power solutions, such as diesel generators or grid connection upgrades. If the installation costs of solar inverters and batteries are significantly higher compared to alternative options, customers may choose those alternatives instead. The cost competitiveness of solar PV systems with battery storage is crucial for wider adoption and market growth.
Market Segment Analysis
The global solar inverter and battery market is segmented based on connection, inverter, battery, end-user and region.
Grid Connectivity and Reliability Drives the On-Grid Segmental Growth
On-grid solar PV systems are connected to the electrical grid, allowing them to draw power from the grid when solar generation is insufficient and export excess electricity back to the grid when production exceeds demand. This grid connectivity ensures a reliable and continuous power supply, as any shortfall in electricity production can be supplemented by drawing power from the grid. On-grid systems provide a seamless integration with the existing electrical infrastructure, making them a practical choice for a wide range of installations. Hence, the on-grid segment holds for majority of the global segmental share.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Rising Renewable Energy Investments Drives the Growth of the Asia-Pacific Market
The Asia-Pacific has been experiencing significant investments in renewable energy, including solar power. Governments in countries like China, India, Japan and Australia have implemented favorable policies, incentives and targets to encourage renewable energy adoption. These initiatives have led to a rapid increase in solar PV installations, driving the demand for solar inverters and batteries. Therefore, the Asia-Pacific dominates the global solar inverter and battery with majority of the global market share.
Source: DataM Intelligence Analysis (2023)
Solar Inverter and Battery Market Companies
The major global players include Huawei Technologies Co., Ltd., SMA Solar Technology AG, Sungrow Power Supply Co., Ltd., ABB Ltd, Schneider Electric SE, Enphase Energy, Inc., Fronius International GmbH, LG Electronics Inc., Tesla, Inc. and SolarEdge Technologies Inc.
COVID Impact
The pandemic disrupted global supply chains, causing delays in the production, manufacturing and delivery of solar inverters and batteries. Restrictions on international trade, factory closures and logistical challenges created bottlenecks in the supply chain, leading to shortages and increased lead times. This resulted in project delays and affected the installation of solar PV systems with battery storage.
Project Delays and Cancellations: Many solar PV projects and energy storage installations experienced delays or cancellations due to the pandemic. Lockdown measures, travel restrictions and social distancing guidelines limited on-site construction activities, inspections and permitting processes. Financing challenges and uncertainties surrounding the economic impact of the pandemic also contributed to project delays and cancellations. The slowdown in project development had a negative impact on the demand for solar inverters and batteries.
Russia-Ukraine War Impact
The solar inverter and battery market relies on a global supply chain and any geopolitical tensions that disrupt trade routes or impact manufacturing hubs can lead to supply chain disruptions. If the conflict escalates or results in trade restrictions, it could affect the availability and cost of key components and materials used in solar inverters and batteries. This, in turn, may impact the production and delivery timelines of solar inverter and battery systems.
Geopolitical conflicts can prompt countries and regions to reassess their energy policies and priorities. Governments may focus more on energy security and diversification of energy sources, which could impact the emphasis placed on renewable energy, including solar inverters and batteries. Changes in energy policies and market dynamics can create both challenges and opportunities for the solar inverter and battery market.
Key Developments
- On February 21, 2023, At the 2023 InterSolar and Energy Storage North America Show, held February 14–16 at the Long Beach Convention Centre in Southern California, Paladin Power, Inc. announced the next advancement in household energy storage systems. More than 8,000 solar and energy storage industry professionals, along with more than 400 exhibitors, attended InterSolar this year.
- On January 7, 2023, The new dual-purpose batteries for e2Ws from Matter Energy can also function as dock inverters for smart homes. The energy section of the manufacturer of electric motorcycles has formed a strategic alliance with Luminous, which is sponsored by Schneider Electric, to work together to produce such batteries.
- On September 23, 2022, Energy solutions provider Luminous Power Technologies signed a Memorandum of Understanding (MoU) with GP Energy Tech International Pte Ltd in an effort to capitalize on the expanding energy storage market in India. The collaboration is India's first initiative aimed towards Nickel Metal Hydride (NiMH) battery adoption for solar and home inverter applications.
Why Purchase the Report?
- To visualize the global solar inverter and battery market segmentation based on connection, inverter, battery, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of solar inverter and battery market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global solar inverter and battery market report would provide approximately 69 tables, 66 figures and 208 Pages.
Application 2024
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