Hybrid Inverter Market is Growing Faster due to Increased Adoption of Rooftop Solar Systems

The hybrid inverter market comprises inverters that can handle both solar PV and battery power for off-grid and backup power applications. Hybrid inverters enable the integration of solar and battery solutions to provide uninterrupted power as they allow bidirectional power flow to and from the batteries. These inverters help store excess solar energy from PV panels into batteries during the day for use when solar power is unavailable.

The hybrid inverter market is estimated to be valued at USD 3.21 Bn in 2024 and is expected to reach USD 6.82 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 11.37% from 2024 to 2031.

Key Takeaways

Key players operating in the hybrid inverter market are SMA Solar Technology AG and SolarEdge. SMA Solar is one of the largest inverter manufacturers globally, while SolarEdge offers optimizers and inverters for solar-plus-storage applications.

Growing awareness about the benefits of solar and energy storage systems has led to increased Hybrid Inverter Market demand for hybrid inverters in recent years. Their ability to provide uninterrupted power from solar and batteries has made them popular for residential and commercial rooftop installations.

Leading inverter brands are expanding their hybrid product portfolio and global presence to tap new markets. SMA and SolarEdge have enhanced their hybrid inverter series and established footholds across Asia Pacific, Europe, and North America through partnerships with EPCs and channel partners.

Market Key Trends

One of the key trends in the hybrid inverter market is the addition of smart functionality and monitoring features. Major players are coming up with inverters that have advanced computer processors, communication capabilities, and power electronics to offer monitoring and control from smart devices. This is helping customers better manage self-consumption and battery charging/discharging. Remote monitoring of system performance through apps and dashboards is driving new installations.

Porter’s Analysis

Threat of new entrants: High initial investments required for manufacturing and R&D act as entry barriers.

Bargaining power of buyers: Large number of established players provides varied options to buyers thus decreasing their bargaining power.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitutable components from different suppliers and industries not being dependent on few suppliers.

Threat of new substitutes: Threat is moderate as new energy sources can disrupt the market but are not a direct substitute to hybrid inverters.

Competitive rivalry: Intense competition exists among key players to gain higher market share and large customer base through product innovations and expansion.

Geographical Regions

Asia Pacific region accounts for the largest share of the global hybrid inverter market in terms of value. Rapid infrastructure development and increasing focus on renewable sources of energy are major factors for its large market share.

Europe region is expected to witness the fastest growth during the forecast period. This can be attributed to supportive government policies and regulations regarding use of cleaner energy in the region. Countries like Germany, UK, France are projected to significantly contribute to the Europe hybrid inverter market.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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