India High-Capacity Inverter Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India High-Capacity Inverter Market Analysis

The Indian non-solar high-capacity inverter market generated revenue of USD 452.3 million in 2023, which is expected to witness a CAGR of 8.0% during 2024–2030, to reach USD 769.2 million by 2030. This is attributed to the increasing demand for power backup solutions across industrial, commercial, and residential areas, along with the surging need for inverters in tier II and tier III cities of the nation.

Moreover, the Indian solar high-capacity inverter market size is projected to reach USD 1,124.4 million by 2030 from USD 501.2 million in 2023, surging at a growth rate of 12.4% during the forecast period. This is due to the rise in the usage of solar power for several applications, along with various government initiatives for promoting renewable power sources, especially solar energy. The country has a vast source of solar energy due to its geographical location in the tropics.

India High-Capacity Inverter Market Trends & Drivers

Increasing Penetration of Hybrid Inverters in SMEs

• The need for high-end hybrid inverters is increasing as many users are looking for UPS systems for commercial activities, which save a lot of money when compared to generators. Due to the erratic power conditions, several companies and small offices/home offices (SOHO) are switching from generators to hybrid inverters. This is because these inverters have lower operating costs and are more convenient.
• Furthermore, the growing popularity of solar technologies in both rural and urban India is fueling the demand for solar hybrid inverters, which combine solar panels in combination with the main power to charge batteries, thus saving on the electricity cost. These inverters can easily integrate conventional energy sources with regular sources and are programmed to use conventional sources more efficiently. As per a source, in recent years, the sales of hybrid solar inverters in India have grown much faster than the sales of conventional inverters.
• In addition, companies are starting to switch from to power inverters due to the rising diesel costs and storage issues.
• Moreover, the demand for hybrid inverters is increasing due to their flexibility solutions and able to work completely off the grid, with or without batteries, and even with or without solar panels.
• Also, hybrid products can be connected to a utility grid, with possible grid injection. Further, the hybrid inverter helps the construction industry in short-term projects because the inverter brings many parameters that can be modified according to the needs of the projects. When compared to discrete solar charge controllers and inverters, hybrid inverters prevent component duplication, lowering their cost significantly.

Rising Renewable Power Generation Drives Market

• The rapid advancements in the solar energy sector in terms of power generation and utilization are contributing to an increase in the number of solar PV installations for a variety of applications in India. The rising adoption of renewable energy in the country enhances the Indian renewable power inverter market growth potential.
• For instance, in November 2021, India had a renewable energy capacity of 150 GW consisting of solar (48.55 GW), wind (40.03 GW), small hydropower (4.83 GW), bio-mass (10.62 GW), large hydro (46.51 GW), and nuclear (6.78 GW). India has committed to a goal of 450 GW of renewable energy capacity by 2030.
• Moreover, with the growing environmental crisis, which is constantly calling for a higher usage of eco-friendly and sustainable means of producing electricity, the installation of solar panels and inverters for power generation is one of the best ways to contribute toward the betterment of the environment.
• Furthermore, the solar energy sector is flourishing in India, and it is expected to create growth opportunities for players offering solar inverters. Additionally, an increase in the global installation of PV power plants is creating potential growth opportunities for this sector.
• The Government of India has implemented various schemes and initiatives to encourage the use of inverters in industrial applications. For instance, the government sought to have 227 GW of renewable energy capacity, including 67 GW of wind power and 114 GW of solar power, by 2022 end. The government also proposed a 'Rent a Roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by the end of 2022. The increase in the installation of renewable energy will drive the need for power backup products, such as inverters.

Import of Solar Grid Inverters and High-Frequency Inverters Hampers Market Growth

• Advanced solar grid inverters are not easily available in India, especially for the MSME sector, as companies are currently not producing this type of inverters. So, these inverters are imported from outside the country. This constraint has stifled the growth of inverter manufacturing.
• Technology development, product standardization, scale of production, decrease in foreign exchange outgo, increase in foreign investment, talent creation, skilled employment generation, and energy security and access all contribute to the need for a strong domestic manufacturing base. Many overseas companies have manufacturing facilities in India, including FIMER S.p.A., Toshiba Mitsubishi-Electric Industrial Systems Corporation, Delta Electronics Inc., and Schneider Electric SE. However, they are mostly dependent on imports as India lacks a component manufacturing supply chain. The extent of local manufacturing varies with the company.
• Moreover, the Indian industry generally faces cost disadvantages, such as high capital expenditure, technology costs, power supply quality issues, and high logistics costs. All manufacturers face these "disabilities," which are directly related to value addition in the manufacturing process. The greater the value addition, the greater the manufacturers’ disability cost. The technological development and growth in the electronic component sector have been anemic, leading to several challenges for the electronic system design and manufacturing sector in India. These factors lead to the high import of solar grid inverters and high-frequency inverters in the country, which may hamper the growth of the Indian high-kVA inverter market.
• However, the industry is looking forward to small, medium, and large investments in the manufacturing of raw materials, components, parts, and PCB assemblies. The idea is to strengthen the ESDM value chain and enable the development of technology and R&D, as well as IP creation, which, in turn, will drive the market.

In-Depth Segmentation Analysis

• The non-solar single-phase category holds a share of around 75% in 2023, advancing at the higher rate, of 8.2%, during the forecast period. Single-phase non-solar inverters are preferred over three-phase inverters due to their low price and easier installation compared to three-phase inverters.
• Moreover, single-phase non-solar inverters with a capacity of 2 kVA−4.9 kVA are largely used by consumers due to their wide range of residential applications.
• The demand for single-phase non-solar inverters with a capacity of 5 kVA−10 kVA is expected to depict a substantial growth rate, of around 8.3%, during the forecast period owing to their increasing applicability in commercial and industrial setups.
• Solar high-capacity inverters are largely used in the utility & power sector, which contributed around 70% of the market revenue in 2023, and the category is projected to depict significant growth during the forecast period, at a CAGR of 12.6%, as these inverters are largely used in solar power plants.
• Moreover, the Government of India targets to increase its solar power capacity to 288 GW by 2030 from around 50 GW cumulative installed solar capacity as of February 28, 2022, which will result in an increase in the demand for solar high-capacity inverters.

During the study, we have analyzed the following phases in the report:

• Single-Phase (Larger and Faster-Growing Category)
• Three-Phase

Wave Type Analysis

• The sine wave category held the largest market share, of around 50%, in 2023 and the category is also expected to showcase the fastest growth, at a CAGR of 11.0%, during the forecast period. This is because sine-wave non-solar inverters provide a better power supply, along with better handling power fluctuations to protect appliances, especially electronics, from damage.
• Moreover, they are typically used to operate sensitive electric equipment, such as TVs, CFL light bulbs, and other appliances with AC motors, as they are capable of producing cleaner, smoother, quieter, and more-reliable electricity to operate electronic products without interference.

Below are the wave types covered in the report:

• Sine Wave (Largest and Fastest-Growing Category)
• Modified Sine Wave
• Square Wave

State-Wise Analysis

• Karnataka accounted for the largest solar high-capacity inverter market share, of around 30% in 2023. In 2011, the Indian government introduced new policies for solar energy. Karnataka has supported the policies by initiating the Arunodaya Programme, wherein a 14-MW solar PV plant has been set up. As a result, in 2021, 20% of Karnataka’s daily power requirements were fulfilled by solar energy.
• Moreover, the state has the largest installed capacity of solar power in the country—7,346 MW—and the biggest solar plant is located in Pavagada, Tumakuru.
• Further, Karnataka has a suitable geographical location for solar energy, and a large number of key players investing in this state. Additionally, the suitable earth and sun movements, the appropriate tilt of the earth’s rotational axis, and the favorable atmospheric attenuation help it in getting a high intensity of solar energy.
• Tamil Nadu dominates the non-solar high-capacity inverter market in India, accounting for a 35% revenue share in 2023. This is due to the presence of the largest wind farm situated in Kanyakumari, which delivers 1,500 MW of power; the state has around 3,000 wind turbines.
• Additionally, Tamil Nadu has a high potential for small windmills as its location is geographically favorable for wind energy, and the state government has formulated favorable policies for small windmills. These factors attract players to invest in the state, which, in turn, drives the market growth.

The states analyzed for this report include:

• Andhra Pradesh
• Madhya Pradesh
• Tamil Nadu (Largest Non-Solar High-Capacity Inverter Market)
• Karnataka (Largest and Fastest-Growing Solar High-Capacity Inverter Market)
• Gujarat
• Maharashtra
• Uttar Pradesh (Fastest-Growing Non-Solar High-Capacity Inverter Market)
• West Bengal
• Delhi
• Rajasthan
• Bihar
• Haryana
• Chhattisgarh
• Uttarakhand
• Punjab
• Jharkhand
• Assam
• Tripura
• Rest of India

Competition Analysis

The market has a high degree of fragmentation, owing to many players in the country. The continual appearance of new entrants is impacting the established and new product manufacturers. Major players operating in the market have been involved in several strategic developments, such as product launches and acquisitions, to remain competitive.

India High-Capacity Inverter Industry News

• In July 2022, Sungrow Power Supply Co. Ltd., a solar inverter supplier, launched the “1+X” modular inverter for utility-scale PV installations. This system offers favorable yields for applications and streamlines O&M operations.
• Sungrow Power Supply Co. Ltd. established a distribution agreement with Krannich Solar during the 2022 World Smart Energy Week. Through this agreement, both companies are catering to renewable projects and exploring more cooperative opportunities in a vast range of fields.
• In April 2022, Delta Electronics Inc. launched an optical storage and charging bi-directional inverter (BDI), which integrates the alteration and control of DC and AC power for rooftop solar power, household electricity infrastructure, EV charging, and energy storage batteries.
• FIMER is collaborating with ENIE to produce photovoltaic inverters locally, to support the free market and government tenders, with the aim of achieving a local installed base of 13 GW by 2030.