Utility Scale PV Inverter Market

Utility Scale PV Inverter Market Size

The global utility scale PV inverter market was valued at USD 13.3 billion in 2024 and is estimated to grow at a CAGR of 6.6% from 2025 to 2034. Rising introduction of innovative designs incorporating gallium nitride and silicon carbide switching components offering improved thermal efficiency that reduces the need for extensive cooling mechanisms will propel the product adoption. Growing allocation of both public and private funding for electrification efforts in off-grid or grid-isolated regions of developing economies will propel product penetration.

Innovations in inverter technologies will serve as the key growth driver for the market. Power electronics technologies, increased levels of efficiency, and improved grid integration functions will enhance energy production and lower operation costs in utility projects. Solplanet launched the ASW350K-HT, a 350-kW three-phase solar inverter with a maximum efficiency of 99.01% maximum in October 2024. The innovation improves the efficiency of energy conversion and simplifies the integration of larger PV modules in utility scale projects.

The growing global shift toward renewable energy, augmented by the need to reduce greenhouse gas emissions and combat climate change, creates sustainable opportunities for product adoption. These inverters play a crucial role in converting solar energy into grid-compatible power, making them essential for large solar farm installations that drive business growth. Additionally, advancements in inverter technology are enhancing energy efficiency and grid stability, further propelling market expansion.

Increased adoption of solar power globally will drive the adoption of PV inverters for utility scale solar power plants. India installed 9.8 GW of utility scale solar in 2022-23, taking its total capacity to about 56 GW as of March 2023. This increase in solar installations has been accompanied by a rise in inverter shipments, with central inverter shipments reaching 6,407 MW AC during the same period. These figures emphasize the crucial role of inverter technology in supporting large solar installations and enhancing grid connectivity.

Utility Scale PV Inverter Market Trends

• Ongoing innovation and investments in inverter technology will play a significant role in the utility scale PV inverter market. In September 2024, GE Vernova introduced the FLEXINVERTER 2000 Vdc, a 6 MVA utility scale inverter designed to reduce the cost of solar energy and accelerate the shift to renewable energy. The inverter can increase power output by 30% in the same footprint, improving efficiency and allowing large-scale solar installations.
  
• Rising cost of electricity from traditional sources, in line with the growing focus on energy security, will push consumers and businesses to seek alternative energy solutions, fostering the industry scenario. Additionally, the growing advancement of smart grid infrastructure and the integration of Internet of Things (IoT) technologies designed to enhance the efficiency and reliability of solar energy systems will complement the product adoption in large-scale projects.
  
• The transition from central to string inverters will boost market dynamics owing to their decentralized architecture, which ensures fault tolerance and reduces downtime. Growing adoption of string inverters by utility scale developers will propel market growth. In November 2023, Clenera's 105 MW Apex Solar project in Montana used 275 kW string inverters, offering reduced downtime and improved reliability over central inverters. This shift highlights the industry's focus on optimizing system performance and minimizing operational risks.
  
• The growing adoption of high-voltage inverters will improve efficiency and reduce power losses in utility scale solar systems. With the use of 1,500V and 2,000V inverters, greater power transmission is possible while also reducing balance-of-system costs. Additionally, these inverters facilitate the integration of larger solar modules, boosting energy yield and overall system efficiency, thus driving commercial expansion of the product in the solar energy sector.
  

Utility Scale PV Inverter Market Analysis

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• The utility scale PV Inverter industry was valued at USD 10.4 billion, USD 11.9 billion, and USD 13.3 billion in 2022, 2023, and 2024, respectively. The industry is segmented into string and central, based on product.
• The central inverter segment is expected to dominate the market, holding a substantial market share of 78.2% in 2024, driven by its ability to efficiently manage high power capacities and optimize energy conversion in large-scale utility projects. In November 2023, Longroad Energy announced financial close and started the construction of the Sun Streams 4 project, a 377 MWdc solar and 300 MWac / 1200 MWh storage project in Maricopa County, Arizona. This project utilizes central inverters to manage its substantial energy generation.
  
• The string inverter segment in the utility scale PV inverter market is expected to grow at a CAGR of over 9.7% from 2025 to 2034 owing to its cost-effectiveness, scalability, and easy maintenance. The decentralized nature of string inverters improves system reliability by reducing downtime, making them highly efficient and well-suited for utility scale solar projects. Furthermore, growing demand for inverters with installation flexibility and replacement convenience will also lead to product adoption in utility scale solar installations.
  

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• Based on voltage, the market is segmented into < 1500 V and ≥ 1500 V. The ≥ 1500 V segment holds a market share of 56.5% in 2024 fueled by its ability to reduce system costs and improve efficiency in large-scale solar farms. High-voltage inverters enable longer strings of solar modules, reducing cables and balance-of-system costs while enhancing energy yield, leading to enhance the segment’s growth.
  
• The < 1500 V utility scale PV inverter market will be worth over USD 11.6 billion by 2034, due to its cost-effectiveness in moderately developed solar markets and seamless compatibility with existing infrastructure. Firms are developing advanced features and new models to accelerate product adoption. In January 202, Hitachi Hi-REL designed a next-generation 2.5 MW outdoor-type solar central inverter that is suitable for 1500 V DC solar PV systems. The inverter is designed with high power output and a small footprint, saving costs on CAPEX and OPEX.
  

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• As of 2024, North America holds a market share of 19.1% which is expected to improve further by 2034. The U.S. utility scale PV inverter market was valued at USD 2 billion, USD 2.2 billion, and USD 2.5 billion in 2022, 2023, and 2024, respectively.
  
• The U.S. utility scale PV inverter market will experience strong growth due to favorable government policies such as the Inflation Reduction Act (IRA) of 2022. The IRA introduced extensive tax credits and incentives for solar installations and manufacturing, augmenting solar growth. This led to a record 26.3 GWac of new PV capacity in 2023, with utility scale projects accounting for 18.4 GWac. As solar installations continue to expand, the demand for high-performance inverters will increase, further boosting market growth.
  
• The Asia Pacific industry held about 44.4% revenue share in 2024 due to urbanization and industrialization in regions such as China, India, and Southeast Asia. Rising demand for clean and safe sources of energy will propel product growth. Moreover, rising demand for grid stability and flexibility in countries such as Japan and South Korea will create demand for new inverter technologies, which will fuel industry growth.
  
• The European utility scale solar PV inverter market is expected to surpass USD 4.2 billion by 2034, fueled by the increasing demand for solar energy solutions, ambitious renewable energy targets and companies' investments in new product launches. SolarEdge launched a 100-kW inverter solution for small and medium utility scale applications in Germany during June 2024, enhancing efficiency and increasing the EU target of installing 500 GW solar capacity by 2030.
  

Utility Scale PV Inverter Market Share

• The top 5 players, Canadian Solar, Delta Electronics, GoodWe, Huawei Technologies, and Sungrow Power Supply, account for nearly 41.2% market share in the utility scale PV inverter market. Companies are expanding into emerging markets with customized solutions for utility scale solar projects. They are also automating production to increase efficiency and streamline manufacturing. Most of the players are also positioning themselves with sustainability goals to support market positioning.
  
• Key players are actively forming strategic partnerships to improve their technological expertise and expand their market presence. By collaborating with project developers and renewable energy firms, they are enhancing the scalability of solar systems and optimizing the integration of renewable energy solutions. These partnerships are helping to accelerate the installation of next-generation inverter technology in utility scale solar deployments.
  
• Companies are investing heavily in R&D to improve the reliability and performance of their utility scale PV inverters. They are concentrating on breakthroughs such as AI-powered grid management, integration of energy storage, and predictive analytics to raise the efficiency of energy conversion as well as the overall system dependability. Such developments are going to fuel the future growth and expansion of the utility scale solar market.
  

Utility Scale PV Inverter Market Companies

• Canadian Solar generated revenue of about USD 1.7 billion in the 3^rd quarter of 2024, supported by high demand for its solar products. The company is growing its footprint in the utility scale PV inverter market by developing its technology and concentrating on renewable energy solutions. Canadian Solar also won contracts for large-scale solar projects in Europe and North America, further establishing its position in the global transition to renewable energy.
  
• Huawei posted revenue of USD 118.2 billion and spent USD 25 billion on research and development in 2024, Huawei is concentrating on developing its utility scale PV inverter technology to consolidate its leadership position in the renewable energy sector. The company's new inverter solutions were installed in more than 4.5 GW of solar projects, making the company a growing supplier of large-scale renewable energy solutions.
  

Eminent players operating in the utility scale PV inverter industry are:

• Canadian Solar
• Delta Electronics
• Eaton
• Fimer Group
• GoodWe
• GE Vernova
• Huawei Technologies
• Sungrow Power Supply
• Sofar Solar
• Solis Inverters
• Solplanet
• Sineng Electric
• SolarEdge Technologies
  

Utility Scale PV Inverter Industry News:

• In September 2024, Hopewind introduced a 385-kW string inverter during Renewable Energy India event 2024 for solar at the utility level. The inverter has a high-end cooling system, allowing for full power operation at ambient temperatures of up to 40°C without derating. It also has PLC communication, PID recovery, and an SPD module built-in, which makes it more efficient and reliable for utility-level solar applications.
  
• In August 2023, Siemens established a new factory in the U.S. to manufacture 800 MW of utility scale string inverters annually, starting in 2024. Operated in partnership with Sanmina, the facility is producing Blueplanet string inverters, enhancing Siemens' capacity to meet the growing demand for utility scale solar solutions in the U.S.
  

This utility scale PV inverter market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MW)” from 2021 to 2034, for the following segments:

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Market, By Product

• String
• Central

Market, By Voltage

• < 1500 V
• ≥ 1500 V

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Italy
  • Poland
  • Netherlands
  • UK
  • France
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Israel
  • Saudi Arabia
  • UAE
• Latin America
  • Brazil
  • Mexico