String Inverter Market

Market Definition

The market refers to the commercial sector that involves the production of string inverters, which are key components in solar photovoltaic (PV) systems. A string inverter is a type of solar inverter that converts the direct current (DC) generated by multiple solar panels (connected in a series, or a "string") into alternating current (AC), which can be used by homes and businesses or fed into the electric grid.

String Inverter Market Overview

The global string inverter market size was valued at USD 4.08 billion in 2024, which is estimated to be USD 4.31 billion in 2025 and reach USD 6.58 billion by 2032, growing at a CAGR of 6.23% from 2025 to 2032. Technological advancements, such as automatic input mode identification, are driving the market. These innovations improve system efficiency, reduce hardware dependency, and enable better adaptability across diverse PV configurations and environmental conditions.

Major companies operating in the string inverter industry are KACO new energy GmbH, Delta Electronics, Inc., ABB, SUNGROW, Huawei Technologies Co., Ltd., Sineng Electric Co., Ltd., GoodWe Technologies Co., Ltd, SolaX Power, Ningbo Deye Inverter Technology Co, Ltd., Rishabh Instruments Pvt. Ltd., SMA Solar Technology AG, Ginlong Technologies Co.,Ltd., Afore New energy, Fronius International GmbH, and Hitachi, Ltd.

The market is registering significant growth, driven by the global shift toward clean energy and increased solar PV installations. Advancements in inverter technology, improved grid integration capabilities, and declining costs are enhancing their adoption across residential, commercial, and utility-scale sectors. Government incentives, supportive policies, and the push for energy security are further accelerating the market expansion. 

Additionally, the rising demand for efficient and scalable solar solutions continues to position string inverters as a preferred choice, especially in emerging economies aiming for rapid renewable energy deployment.

• In February 2025, the Ministry of New and Renewable Energy announced that India surpassed 100 GW of installed solar capacity, a 3450% rise since 2014, underscoring its leadership in renewables and progress toward the 2030 target of 500 GW.

Key Highlights:

1. The string inverter industry size was valued at USD 4.08 billion in 2024.
2. The market is projected to grow at a CAGR of 6.23% from 2025 to 2032.
3. Asia Pacific held a market share of 39.12% in 2024, with a valuation of USD 1.60 billion.
4. The on-grid segment garnered USD 3.66 billion in revenue in 2024.
5. The single phase segment is expected to reach USD 4.39 billion by 2032.
6. The below 10 kW segment held a market of 40.00% in 2024.
7. The utility segment is anticipated to register a CAGR of 7.11% during the forecast period.
8. The market in Europe is anticipated to grow at a CAGR of 6.23% during the forecast period.

Market Driver

Technological Advancements in Inverter Control

One of the key growth drivers in the string inverter market is advancement in inverter control technologies, particularly automatic input mode identification. This innovation allows inverters to intelligently recognize whether PV strings are connected in parallel or independently, optimizing power conversion without manual intervention or costly hardware modifications. 

This feature addresses critical challenges in real-world applications by enhancing operational efficiency and adaptability, especially in distributed solar installations with complex string configurations. It ensures stable performance even under variable conditions like shading or low light, making string inverters more viable and efficient across diverse project scales.

Researchers from Suzhou Vocational University, Jiangsu Engineering Research Center for PV Generation, 3CQC Intime Testing Technology, Shanghai University, Jiangsu Renac Power Technology, and Wuxi Solartale PV Technology developed an advanced identification control method for string inverters. 

This approach enables the accurate detection of parallel and independent PV string input modes, enhancing inverter adaptability, reducing hardware costs, and improving system efficiency under diverse operating conditions.

Market Challenge

Lack of Module-level Monitoring

A significant challenge in the string inverter market is the lack of module-level monitoring, which limits the ability to diagnose performance issues at individual solar panels, unlike micro inverters. This can lead to undetected faults and reduced system efficiency. 

Integrating advanced power optimizers or smart sensors with string inverters enables detailed monitoring of each panel’s output. This hybrid approach enhances fault detection, improves maintenance efficiency, and boosts overall system performance without compromising the cost benefits of string inverters.

Market Trend

Shift Toward Medium-voltage Inverters

The string inverter market is increasingly embracing medium-voltage inverters to meet the rising demands of large-scale solar power plants. Traditional low-voltage inverters face challenges in efficiency and scalability as solar installations expand in size and capacity. 

Medium-voltage string inverters offer a solution by enabling direct grid connection at higher voltages, which reduces cable sizes and material costs. This shift not only enhances system performance but also supports cost savings and resource efficiency, aligning with the industry’s focus on optimizing large-scale photovoltaic projects and accelerating renewable energy adoption globally.

• In October 2023, Fraunhofer ISE developed the world’s first medium-voltage string inverter, enabling PV systems to feed power directly into medium-voltage grids. This innovation reduces cable sizes and copper use, cutting costs and conserving resources. The project paves the way for more efficient large-scale PV plants and applications in wind energy, electric vehicles, and industries.

String Inverter Market Report Snapshot

Segmentation	Details
By Product Type	On-grid, Off-grid
By Phase Type	Single-phase, Three-phase
By Power Rating	Below 10 kW, 10 kW – 100 kW, Above 100 kW
By End User	Residential, Commercial, Utility
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Product Type (On-Grid, and Off-Grid): The on-grid segment earned USD 3.66 billion in 2024, driven by rising solar installations and increasing demand for efficient grid-connected inverter solutions worldwide.
• By Phase Type (Single Phase, and Three Phase): The single phase segment held 69.80% share of the market in 2024, due to its widespread use in residential and small commercial solar systems.
• By Power Rating (Below 10 kW, 10 kW – 100 kW, and Above 100 kW): The below 10 kW segment is projected to reach USD 2.53 billion by 2032, owing to its growing adoption in residential rooftop and small-scale solar projects.
• By End-User (Residential, Commercial, and Utility): The utility segment is anticipated to register a CAGR of 7.11% during the forecast period, fueled by large-scale solar farm developments and grid modernization efforts.

String Inverter Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific string inverter market share stood at around 39.12% in 2024, with a valuation of USD 1.60 billion. The region continues to dominate the market, due to rapid solar adoption driven by favorable government policies, increasing investments in renewable energy infrastructure, and growing industrial & commercial solar installations. 

The region’s expanding urbanization and focus on sustainable energy solutions further boost the demand for efficient and reliable string inverters. Additionally, technological advancements and strong local manufacturing capabilities contribute to cost competitiveness. These factors collectively position Asia Pacific as the leading market for string inverters, with continued robust growth expected over the coming years.

• In May 2025, GoodWe shipped 100,000 units of its low-noise 50/60kW string inverter in China. Designed for noise-sensitive commercial and industrial sites, this high-efficiency inverter features flexible design, smart cooling, and advanced safety, rapidly gaining trust across education, healthcare, and public infrastructure sectors.

The string inverter industry in Europe is poised for significant growth at a robust CAGR of 6.23% over the forecast period. Europe is emerging as one of the fast growing regions in the market, propelled by aggressive renewable energy targets and strong government incentives aimed at reducing carbon emissions. 

The increasing adoption of solar power across residential, commercial, and utility-scale projects is driving the demand for advanced string inverter technologies. Innovations focusing on grid stability, energy efficiency, and smart grid integration are also fueling the market. 

Additionally, Europe’s commitment to sustainability and investments in green infrastructure contribute to rapid market expansion, making it a key region for the development and deployment of string inverters in the future.

Regulatory Frameworks

• In the U.S., solar manufacturers can benefit from two federal tax credits: the 45X MPTC, for domestic clean energy component production, and the 48C ITC, for investing in clean energy manufacturing facilities.
• In the European Union (EU), the Renewable Energy Directive establishes renewable energy targets, promoting cooperation among member states and emphasizing energy storage systems, including solar, wind, and battery storage, to aid energy transitions.
• In India, the Ministry of New and Renewable Energy (MNRE) is the primary regulatory body for solar energy development. It is responsible for promoting and regulating the development of renewable energy sources.

Competitive Landscape

Companies in the string inverter industry are increasingly focusing on innovation to improve efficiency, reliability, and user experience. They are investing heavily in research and development to integrate advanced features like enhanced cooling systems, intelligent monitoring, and grid compatibility. Emphasis is also placed on developing compact, lightweight designs and improving noise reduction for wider application in residential & commercial sectors. 

Furthermore, firms are strengthening partnerships and expanding regional footprints to capitalize on growing solar adoption globally. These efforts collectively drive market competitiveness and support sustainable energy transition goals.

• In December 2023, INVTSolar launched the XG1-5KTL-S, a single-phase on-grid inverter for residential solar systems (1-5 kW). It features a wide MPPT voltage range (50V-550V), 150% DC input oversizing, max input current per string of 20A for high-power modules, intelligent protections like IP66 and surge protection, and supports remote monitoring via WiFi and 4G. This award-winning model boosts INVTSolar’s presence and promotes solar growth in India.

List of Key Companies in String Inverter Market:

• KACO new energy GmbH
• Delta Electronics, Inc.
• ABB
• SUNGROW
• Huawei Technologies Co., Ltd.
• Sineng Electric Co., Ltd.
• GoodWe Technologies Co., Ltd
• SolaX Power
• Ningbo Deye Inverter Technology Co, Ltd.
• Rishabh Instruments Pvt. Ltd.
• SMA Solar Technology AG
• Ginlong Technologies Co., Ltd.
• Afore New energy
• Fronius International GmbH
• Hitachi, Ltd.

Recent Developments (Partnerships/Product Launches)

• In May 2025, GoodWe showcased new residential and commercial string inverter solutions at Intersolar Europe, featuring advanced safety, AI-driven energy management, and modular storage systems. Its expanded portfolio emphasizes smart, quiet, and efficient operation, reinforcing its leadership in electrification and sustainability across global markets, particularly in the growing renewable sector in Europe.
• In April 2024, Menlo Electric and Deye formed a strategic partnership to expand Deye’s residential and C&I energy storage solutions across the Middle East & Africa. Leveraging Menlo Electric’s extensive distribution network, the collaboration aims to address energy shortages and boost renewable adoption. Their joint efforts focus on delivering advanced, efficient solar inverters, string inverters and hybrid systems, strengthening Deye’s market presence while accelerating clean energy growth in the region.