Decentralized inverter market expected to triple in growth over next decade
The decentralized inverter market is expected to more than triple in growth over the next decade to more than $80 billion.
Decentralized inverter insights
- Decentralized inverters meet rising energy demands, driven by urbanization and renewable energy needs, despite challenges like high costs and market competition.
- Technological advancements like hybrid-inverters and digital integration drive efficiency, offering growth opportunities within a competitive landscape through strategic alliances and expansions.
The decentralized inverter market is anticipated to reach a valuation of $25.2 billion by 2023 and the market is anticipated to grow at a 12.5% CAGR and reach $82.3 billion by 2033. The decentralized inverter market is driven by a number of factors, such as the rapid expansion of developing countries and the growing demand for air renewable energy management.
Urbanization and the rising demand for electricity are forcing the need for decentralized inverters. Decentralized inverters are becoming more and more necessary as businesses, wind farms, and power plants grow. Growing awareness of the environment and natural resources is also driving up demand for these inverters.
The sector for decentralized inverters confronts a number of challenges, including as high upfront prices, high maintenance costs, and a dearth of viable substitutes. The high initial cost of decentralized inverters is a significant barrier for new businesses entering the market. End customers find it troubling because these inverters might also have significant maintenance and operation expenses.
There are several options available on the market that offer similar benefits at a lower cost, which poses a severe challenge to the decentralized inverter industry. The industry for decentralized inverters may increase because of the need to secure fossil fuels in developing nations and the growing demand for sustainable energy.
Since renewable energy sources like solar and wind power are increasingly being blended with fossil fuels to reduce greenhouse gas emissions, the decentralized inverter industry stands to earn greatly from their expansion. Furthermore, the growing demand for renewable energy sources has led to strict regulations on air pollution, which offers significant opportunities for those involved in the sector.
The development of cutting-edge technologies like hybrid-decentralized inverters and the growing usage of digital technology are the most current developments in the decentralized inverter market.
Decentralized inverters with many technology integration are more effective and efficient. Decentralized inverters are being operated and maintained as effectively as possible with the use of digital technologies such as artificial intelligence (AI) and the Internet of Things (IoT). Reduced downtime, higher gadget efficiency, and cheap maintenance expenses are all facilitated by these technologies.
Industry sector takeaways:
The decentralized inverter industry in the United States is predicted to reach $18 billion by 2033, increasing at an 8.0% CAGR.
The decentralized inverter industry in the United Kingdom is estimated to reach a market share of $16 billion, expanding at a CAGR of 7.2% by 2033.
During the forecast period, the decentralized inverter industry in China is expected to reach a market share of $24.5 billion, securing a 10.3% CAGR.
The decentralized inverter industry in Japan is predicted to reach $2.7 billion by 2033, increasing at a 9.8% CAGR.
South Korea’s decentralized inverter industry is predicted to achieve a market share of $22.9 billion, rising at a 9.8% CAGR during the forecast period.
With a CAGR of 11.1% from 2022 to 2033, the micro type segment is expected to dominate the decentralized inverter industry.
With a CAGR of 7.8% from 2022 to 2033, the power generation industry is expected to dominate the decentralized inverter industry.
The major businesses make significant investments in R&D projects to provide innovative and creative products that increase efficiency, reliability, and affordability. In order to satisfy the evolving needs of customers, they are also focusing on expanding the range of items they offer and strengthening their distribution networks.
Strategic partnerships and affiliations with other companies are becoming more and more common in the industry, allowing players to use each other’s strengths and increase their market share.
Prominent businesses use mergers and consolidations to expand into new areas and fortify their market positions. The sector is increasing noticeably in emerging nations, especially in China and India.
Major corporations are expanding their presence in these locations by constructing local manufacturing facilities and strengthening their distribution networks. They are also focusing on offering clients in these industries reasonably priced solutions in an effort to get a competitive edge.