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Oct 14, 2024

Power Converter and Inverter Market Size, Share | 2024 To 2031

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The global power converter and inverter market size was USD 233.6 million in 2022 and is expected to reach USD 391.21 million by 2031, exhibiting a CAGR of 5.9% during the forecast period.

A power converter is a machine that changes the form of electrical energy. Usually, it refers to machinery that changes alternating current (AC) into direct current (DC) or the other way around. Two popular varieties of power converters are: Converter from AC to DC: These devices, also referred to as rectifiers, change alternating current (AC) into direct current (DC). To transform the AC power from the electrical grid into the DC power needed by the electronic circuits, they are frequently utilized in electronic devices and power supplies. Direct current (DC) is transformed into alternating current (AC) by these gadgets, also referred to as inverters. When DC electricity needs to be converted into another form, inverters are utilized in a variety of applications including solar power systems, uninterruptible power supplies (UPS), and electric vehicle inverters.

A special kind of power converter known as an inverter transforms DC electricity into AC power. It transforms direct current—from a DC power source like a battery or solar panel—into alternating current, which can be used to power AC-compatible devices or be fed back into the power grid. As they transform the DC electricity produced by solar panels into AC power for use in homes or the grid, inverters are crucial parts of renewable energy systems, particularly solar power systems. In backup power systems, where batteries store DC power that is later transformed into AC power during power outages, they also play a critical role.

The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Due to supply chain interruptions brought on by lockdown procedures, travel restrictions, and industrial closures, the worldwide power converter and inverter industry encountered difficulties. Affected manufacturing facilities and component suppliers caused production delays and reduced product supply. A decrease in overall economic activity brought on by the pandemic had an impact on a number of industries and initiatives. The market for power converters and inverters was also impacted by this fall in demand. The demand for inverters was impacted by the postponement or cancellation of renewable energy projects, including solar and wind power installations. A mixed effect was felt by the renewable energy industry, a significant consumer of power converters and inverters. Some renewable energy projects experienced delays or cancellations as a result of financing issues or supply chain disruptions. On the other hand, the pandemic highlighted the importance of clean energy and sustainability, leading to increased focus on renewable energy projects in certain regions.

"Increasing Demand for Renewable Energy to Enhance Market Growth"

The demand for power converters and inverters is being driven by the global transition towards renewable energy sources like solar and wind energy. A burgeoning market for inverters that can effectively transform DC power from solar panels or wind turbines into usable AC power is being created as governments and organisations around the world engage in renewable energy projects. Batteries and other energy storage devices are essential for balancing out the erratic nature of renewable energy sources. Energy storage systems are integrating power converters and inverters to provide efficient battery charging and discharging, allowing for a more stable and dependable power supply.

The residential and commercial sectors, where energy self-consumption and backup power solutions are rising in popularity, are particularly notable for this tendency. The demand for high-power inverters is being driven by the increasing uptake of electric vehicles. Inverters are necessary for electric vehicles in order to transform the DC power from the battery into the AC power needed to drive the electric motor. The demand for effective, small inverters that can manage high power levels and facilitate fast charging is increasing as a result of the expanding EV market.

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Based on type market is classified as 12V Power Converter, 24V Power Converter, 48V and above.

Based on application market is classified as car appliances, outdoor application and others.

"Growing Renewable Energy Sector to Augment Market Growth"

The market for power converters and inverters is being significantly stimulated by the growing attention being paid on a global scale to decreasing greenhouse gas emissions and switching to renewable energy sources. Power converters and inverters transform DC power from renewable sources into AC power for usage in residences, commercial buildings, and the grid, making them crucial parts of solar, wind, and other renewable energy systems.

The market for power converters and inverters is significantly influenced by favourable government legislation, subsidies, and policies that encourage the use of renewable energy sources. Power converter and inverter demand is increasing as governments all over the world implement policies like feed-in tariffs, tax credits, and renewable portfolio requirements to promote the deployment of renewable energy systems.

"Increasing Energy Efficiency Measures to Propel Market Growth"

Power converter and inverter demand is being driven by energy saving measures in a variety of applications. These tools are essential for increasing the effectiveness of power transmission and distribution systems as well as for enhancing the functionality of energy-consuming machinery. The necessity to reduce energy losses and rising awareness of energy conservation are driving the market's expansion. The demand for power converters and inverters is being driven by the increasing use of electric vehicles (EVs). For the purpose of powering the electric motor, EVs need inverters to transform the DC electricity from the battery into AC power. The market for power converters and inverters will develop to satisfy the demand for EVs and to promote the electrification of transportation by providing the necessary charging infrastructure.

"High Initial Costs to Impede Market Expansion"

Power converters and inverters can be expensive up front, particularly for sophisticated and powerful units. The initial cost of installing power conversion systems, especially in large-scale applications like industrial installations or utility-scale renewable energy projects, may dissuade certain customers and restrain market growth. The power converter and inverter market are quite competitive, and there are many suppliers and manufacturers doing business worldwide. Multiple competitors selling comparable goods results in market fragmentation and pricing competition. Some market participants may find it difficult to continue expansion as a result of decreasing profit margins for businesses and greater competition.

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"North America to Dominate the Market Due to Use of Renewable Energy"

Power converters and inverters market share have a sizable market in North America, which is fuelled by things like the use of renewable energy, government incentives, and technology improvements. Solar and wind power installations have increased significantly in the US and Canada, which has increased the demand for inverters. Additionally, there are many electric vehicle producers in the area, which increases the need for power converters for EV charging infrastructure. The need for power converters and inverters has increased significantly in North America as a result of the expansion of solar and wind power installations.

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.

Market Size Value In

US$ 233.6 Million in 2022

Market Size Value By

US$ 391.21 Million by 2031

Growth Rate

CAGR of 5.9% from 2022 to 2031

Forecast Period

2024-2031

Base Year

2023

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

Type and Application

The global power converter and inverter market size is expected to reach USD 391.21 million by 2031.

The power converter and inverter market are expected to exhibit a CAGR of 5.9% by 2031.

Growing renewable energy sector and increasing energy efficiency measures are the driving factors of the power converter and inverter market growth.