On-Grid PV Inverter Market By Inverter Type (String Inverter, Central Inverter, Micro Inverter), By End-Use Application (Residential, Commercial, Industrial), By Technology (Smart Inverters, Hybrid Inverters, Integrated Systems), By Phase Type (Single-Phase, Three-Phase), By Sales Channel (Direct Sales, Retail & Distributors, Online Sales); Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the On-Grid PV Inverter Market was valued at USD 9.3 Billion in 2024-e and will surpass USD 24.2 Billion by 2030; growing at a CAGR of 17.2% during 2025 - 2030.

The on-grid photovoltaic (PV) inverter market has witnessed significant growth driven by the increasing adoption of solar power systems worldwide. These inverters are essential for converting the direct current (DC) electricity generated by solar panels into alternating current (AC), which can be used to power homes, businesses, and industries. With the rising global focus on renewable energy sources and sustainable solutions, the on-grid PV inverter market is set to grow further. These inverters are particularly popular in grid-tied solar installations, where the excess energy generated can be fed back into the power grid. As solar power continues to become more cost-competitive, the demand for efficient and reliable on-grid PV inverters is expected to surge, particularly in regions with strong solar energy adoption incentives.

As the solar power industry evolves, various types of inverters are catering to different market needs. The on-grid PV inverter market is largely influenced by technological innovations and the continuous development of inverters that offer higher efficiency, better integration with energy management systems, and advanced monitoring capabilities. String inverters, central inverters, and micro inverters all have distinct advantages, and their growth will depend on their suitability for different applications and regions. The market is also being shaped by developments in smart inverters, hybrid systems, and integrated systems that provide better control over energy generation, storage, and consumption, boosting the overall efficiency of solar energy systems.

String Inverters Lead as the Largest Segment Owing to Scalability and Cost-Effectiveness

String inverters are the largest segment in the on-grid PV inverter market, dominating due to their scalability, cost-effectiveness, and widespread use in residential and commercial solar installations. String inverters are typically used in systems where multiple solar panels are connected in series (strings). These inverters offer a simple and efficient solution for converting DC to AC and are particularly well-suited for small to medium-sized solar power installations. Their relatively low cost compared to central inverters makes them an attractive option for residential and commercial customers seeking affordable and efficient solar energy systems.

Moreover, string inverters are easier to install and maintain, which contributes to their popularity. With the growing adoption of solar energy in residential and commercial sectors, particularly in countries with strong incentives for renewable energy, string inverters are expected to maintain their dominant position in the market. Their ability to be installed in a wide range of applications, combined with increasing demand for residential and commercial solar installations, makes string inverters the go-to choice for most solar system owners.

Residential Application is Largest End-Use Segment Due to Increasing Solar Adoption

The residential application segment is the largest in the on-grid PV inverter market, driven by the increasing adoption of solar energy systems in homes around the world. As electricity prices rise and concerns about climate change intensify, homeowners are turning to solar power as a more sustainable and cost-effective energy source. On-grid PV inverters are critical in residential installations as they ensure efficient conversion of solar power into usable AC electricity, with excess energy being fed into the grid.

With advancements in technology, residential customers are now opting for more advanced and reliable PV inverter systems, including hybrid and smart inverters that offer enhanced functionality such as remote monitoring, energy storage integration, and grid management capabilities. The growing trend of energy independence, coupled with government incentives and declining installation costs, is further fueling the demand for solar power systems in residential buildings. The residential segment will continue to be a key driver for the on-grid PV inverter market, with increasing installations across developed and emerging markets.

Smart Inverters Drive Technological Innovation in the Market

Smart inverters are the fastest-growing technological segment in the on-grid PV inverter market, leading the way in terms of innovation and efficiency. These inverters offer advanced features such as remote monitoring, real-time performance data, grid communication, and energy optimization. Smart inverters are equipped with technology that allows them to automatically adjust the voltage and frequency of electricity to ensure seamless integration with the grid. This makes them highly beneficial for both residential and commercial solar installations, where consistent and efficient power generation is crucial.

As the global demand for energy-efficient solutions grows, smart inverters are becoming an essential component of modern solar power systems. They not only provide higher efficiency and performance but also support energy storage systems, enabling better load management and energy independence. The increasing demand for smart grid integration and real-time performance monitoring is expected to drive the growth of smart inverters in the on-grid PV inverter market. Additionally, the ability of smart inverters to provide users with insights into energy usage patterns makes them an attractive option for both commercial and residential customers looking to optimize their energy consumption.

Single-Phase Inverters Remain Dominant in Residential Market Due to Simplicity and Cost-Effectiveness

Single-phase inverters are the most widely used in the residential segment, primarily due to their simplicity and cost-effectiveness. Most residential solar power installations require only single-phase power, which makes single-phase inverters the ideal solution for homeowners. These inverters are smaller, more affordable, and easier to install compared to three-phase inverters, making them highly suitable for small-scale solar systems.

With the rise in residential solar installations, particularly in countries with incentives for renewable energy, single-phase inverters are expected to remain the dominant choice in the residential segment. Their ability to convert energy effectively for smaller residential systems, coupled with their affordability, will continue to drive their popularity in the coming years. Additionally, as residential customers seek more energy-efficient and affordable solar solutions, single-phase inverters will remain the preferred option for a majority of installations.

Direct Sales Channel Dominates as Leading Sales Method for On-Grid PV Inverters

Direct sales are the leading sales method in the on-grid PV inverter market, as it allows manufacturers to directly engage with customers and offer tailored solutions that meet their specific needs. Through direct sales, manufacturers can maintain greater control over the pricing, distribution, and customer relationships, ensuring that the products meet the quality and performance standards expected by consumers. Furthermore, direct sales offer manufacturers an opportunity to provide after-sales support, technical assistance, and guidance on system installations, which is critical in ensuring the optimal performance of PV inverters.

With the increasing number of solar installations globally, manufacturers are focusing on strengthening their direct sales channels, especially in regions with high demand for residential and commercial solar systems. By engaging directly with customers, manufacturers can also improve customer satisfaction, receive valuable feedback, and enhance the overall user experience. The direct sales model will continue to dominate the on-grid PV inverter market, particularly in regions with high solar adoption rates and government incentives.

Asia Pacific is the Fastest-Growing Region Driven by Solar Expansion

The Asia Pacific region is the fastest-growing market for on-grid PV inverters, driven by the rapid expansion of solar power installations in countries like China, India, and Japan. The region has seen significant investments in solar energy infrastructure, and the growing demand for renewable energy is contributing to the growth of the on-grid PV inverter market. Government policies and incentives aimed at boosting solar energy adoption, along with the declining cost of solar technology, are fueling the demand for on-grid PV inverters in Asia Pacific.

China, the largest solar market globally, is leading the way with massive solar installations and a growing need for efficient inverters. India is also emerging as a key player, with a rapidly expanding solar sector, which is driving the demand for high-performance PV inverters. As the Asia Pacific region continues to embrace renewable energy, on-grid PV inverters will remain in high demand, making it the fastest-growing region in the market.

Competitive Landscape and Leading Companies

The on-grid PV inverter market is competitive, with key players constantly innovating to meet the growing demand for solar energy solutions. Leading companies in the market include Enphase Energy, SMA Solar Technology, SolarEdge Technologies, ABB, and Schneider Electric, among others. These companies are focused on developing inverters that offer higher efficiency, better integration with smart grids, and advanced features such as remote monitoring and energy storage.

To remain competitive, companies are investing heavily in research and development, enhancing their product offerings to cater to different market segments. Strategic partnerships, acquisitions, and collaborations are also common strategies in this competitive landscape, as companies seek to expand their market reach and product portfolios. As the on-grid PV inverter market continues to grow, competition will intensify, leading to continued technological advancements and the development of more efficient and reliable solar energy solutions.

Recent Developments:

• SMA Solar Technology launched a new line of high-efficiency string inverters in January 2025, designed for residential and commercial solar installations.
• ABB Ltd. expanded its product portfolio with an advanced hybrid inverter in December 2024, enabling energy storage capabilities for solar systems.
• Fronius International introduced a new energy management platform in November 2024, designed to optimize the performance of on-grid solar inverters.
• Huawei Technologies unveiled a cutting-edge smart inverter series in October 2024, featuring enhanced performance and advanced grid support functionalities.
• Enphase Energy launched a new range of integrated inverters in September 2024, offering improved efficiency and enhanced monitoring features.

List of Leading Companies:

• SMA Solar Technology
• ABB Ltd.
• Fronius International
• Huawei Technologies Co., Ltd.
• Schneider Electric
• SolarEdge Technologies
• Enphase Energy
• Tigo Energy
• KACO New Energy
• GoodWe Power Supply Technology
• Sungrow Power Supply Co., Ltd.
• Ginlong Technologies
• Delta Electronics
• Victron Energy
• Ingeteam

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