Compact Inverter Technology Market

Compact Inverter Technology Market Outlook (2024 to 2034)

The global compact inverter technology market is estimated at US$ 1.69 billion in 2024. Revenue from the market is projected to increase at a CAGR of 8% to reach US$ 3.64 billion by the end of 2034.

Compact inverter technology is an electrical device that converts direct current (DC) power into alternating current (AC) power. These technologies are designed to be compact and portable, making them suitable for use in various applications, including powering appliances and vehicle devices. These devices generally include a built-in battery, charger, and control electronics, and are used as backup power sources or off-grid power systems.

Three-phase inverters are estimated to occupy a 63.5% market share in 2024. A three-phase inverter is a power electronic device that produces DC and AC from the same output terminals. They can therefore be described as a combination of AC to DC converter and a rectifier. These inverters convert fluctuating electric energy into stable DC energy. This is done by utilizing their diode bridge circuit that contains six diodes connected in series to produce one volt.

• The United States market is analyzed to increase at a CAGR of 7.8% from 2024 to 2034.
• In East Asia, China and Japan are expected to emerge as the leading markets for compact inverter technology in 2024 with a value share of 53.2% and 27.4%, respectively.
• Compact inverter technology is segmented into fixed and portable types. Out of these two, the portable segment is expected to lead with a market share of 64.6% in 2024.

Report Attributes	Details
Compact Inverter Technology Market Size (2024E)	US$ 1.69 Billion
Forecasted Market Value (2034F)	US$ 3.64 Billion
Global Market Growth Rate (2024 to 2034)	8% CAGR
United States Market Growth Rate (2024 to 2034)	7.8% CAGR
China Market Growth Rate (2024 to 2034)	8.6% CAGR
North America Market Share (2024E)	25.8%
East Asia Market Growth Rate (2024 to 2034)	9% CAGR
Key Companies Profiled	Cobra Electronics; Nissan; Toshiba; Fuju Electrical; Panasonic; Ring Automobile; Movel Group; Omron; Tripp Lite

Why is Adoption of Compact Inverter Technology Rising Worldwide?

“Market Benefiting from Rising EV Vehicle Sales”

Growing awareness regarding climate change coupled with the stringent emission control regulations implemented by governments and authorities worldwide has resulted in the rising adoption of electric vehicles. This elevated demand for electric vehicles across the globe has resulted in an increased requirement for compact and efficient power inverters, thereby driving compact inverter technology market growth.

These inverters play a crucial role in improving the overall performance of an EV. They can enhance the efficiency of an EV powertrain by lessening energy losses during the conversion from DC to AC power. This provides consumers with a longer driving range and reduced charging time.

Enhanced performance enable faster and more accurate torque control, resulting in better acceleration and higher top speed. These inverters can assist in reducing the noise generated by the EV’s powertrain by controlling the motor’s speed and torque effectively.

• Equipmake, an electrification specialist, in March 2022, launched an all-new, next-generation inverter, Equimake’s HPI-800, which claims to deliver a step-change in the performance of all-electric vehicles.
• Solinteg introduced a brand new product in their product line which is a residential hybrid inverter series in seven versions with power ratings ranging from three kilowatts to nine kilowatts, in September 2022.
• Luminous had launched a Li-ion series integrated inverter. The series developed on Li-ion battery systems, regarded as the future of the energy storage business, coincides with the idea of an 'integrated approach to technology & science innovation, for a sustainable society', in February 2022

“Rise in Natural Disasters and Power Outages Worldwide”

Rising frequency of natural disasters and power outages worldwide has resulted in an increasing demand for backup power systems. The development of critical infrastructure due to urbanization in developing countries and the renovation of old structures in developed nations pose a high demand for reliable backup power systems. Growing cities are susceptible to power grid vulnerabilities, thereby making backup power solutions essential for maintaining communication and emergency response mechanisms.

The inverter is a central component of the power backup systems. It converts the DC electricity generated by batteries or solar panels to AC electricity that can be used to power office and household appliances. These backup power systems usually rely on rechargeable batteries to store energy. At the time of a power outage, the inverter draws electricity directly from these batteries to provide a continuous power supply.

A few power backup systems are equipped with an automatic transfer switch (ATS), which seamlessly switches between the main power grid and the backup power sources, the batteries, or solar panels during power outages or voltage fluctuations.

Which Factors are Becoming Potential Threats in the Way of Growth for Manufacturers?

“Limited Power Outputs and Lack of Awareness of Benefits of Compact Inverter Technology”

Even though suppliers and manufacturers can benefit from the increased sales of EVs, compact inverter technology has certain limitations, such as lower power output compared to traditional inverters. This makes it less suitable for larger applications, like public transport and long-duration travel. Additionally, some people are still unaware of the benefits and roles these inverters play in renewable energy systems. These factors are impeding the expansion of the compact inverter technology market size.

Country-wise Analysis

The market is strengthening as the global energy crisis intensifies. Developed and developing countries are beginning to contribute their share, with major players including the United States, China, Canada, Japan, and South Korea. Among these, China in East Asia is expected to hold a significant compact inverter technology market share.

What is Driving Demand for Compact Inverters in the United States?

“Increasing Prices and Inflation Forcing End Users to Switch to Other Alternatives”

Attribute	United States
Market Value (2024E)	US$ 340.9 Million
Growth Rate (2024 to 2034)	7.8% CAGR
Projected Value (2034F)	US$ 723.5 Million

The United States is experiencing significant inflation, with prices rising continuously for all goods. Consequently, coal and gas prices are substantially high, making it difficult for consumers to continue using petrol and diesel cars. As a result, more people are seeking alternatives such as electric vehicles, increasing the demand for compact inverter technology. Many are purchasing solar rooftops to benefit from power subsidies and save money, providing manufacturers with a valuable opportunity to capitalize on this trend.

What Makes Japan a Lucrative Market for Inverter Technology Providers?

“Favorable Government Incentives and Policies for Renewable Energy”

Attribute	Japan
Market Value (2024E)	US$ 154.6 Million
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 369.2 Million

Japan's government understands the future scarcity of fuels and is doing a proper job of shifting the country to renewable sources such as solar energy. These solar energy rooftops and electrical vehicles often use compact inverter technologies to increase their efficiency and effectiveness, and the demand for such inverters is increasing as the government introduces new policies and subsidies for the common people. This single reason is estimated to increase the share from 29.8% in 2024 to 30.1% by the end of 2034.

Category-wise Evaluation

The compact inverter technology market research is categorized by type (fixed and portable), phase (single-phase and three-phase), and output voltage (up to 240 volts and above 240 volts). The applications are divided into residential, commercial, and industrial sectors.

Why are Portable Inverters Highly Sought After for Outdoor Activities and Emergencies?

“Flexibility of Portable Inverters to Meet Mobile Power Requirements”

Attribute	Portable Inverters
Segment Value (2024E)	US$ 1.09 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 2.38 Billion

Preference for portable inverters can be attributed to their ergonomic designs and versatile applications. Portable inverters are in high demand for powering various devices and appliances in different settings, including outdoor activities, emergencies, and on-the-go power needs. Their compact size and portability make them a popular choice among consumers who value convenience and flexibility in power solutions.

Why are Three-Phase Inverters Key for Industrial Operations?

“Three-Phase Inverters Facilitate Efficient Conversion of Electric Energy”

Attribute	Three Phase Inverters
Segment Value (2024E)	US$ 1.07 Billion
Growth Rate (2024 to 2034)	7% CAGR
Projected Value (2034F)	US$ 2.29 Billion

Sales of three-phase inverters are experiencing a significant surge in the market. This increase can be attributed to the growing demand for three-phase inverters, which are ideal for industrial and commercial applications. These inverters offer efficient energy conversion and can meet the power demands of diverse machinery and equipment, making them essential for industrial operations and large-scale electrical systems. The rising sales of three-phase inverters indicate their growing indispensability in meeting the power requirements of various industries and businesses, becoming a major compact inverter technology market trend.

Competitive Landscape

Key players in the compact inverter technology industry are introducing new product launches to increase their customer base. A few of the major innovations include hybrid inverters and traction inverters.

• Hoymiles had launched a new next-gen line of hybrid inverters. This launch aims to meet the increasing international requirement for solar energy, which is being influenced by increasing worldwide energy costs and concentrating on lowering carbon emissions, in September 2022.
• Deye inverter launched the SUN-50K-SG01 three-phase hybrid inverter series. The inverter has smart load & AC Couple features, and it utilizes the diesel engine port as the smart load output port as well as the AC couple connection port which improves the machine's implementation scenarios, in September 2022.

Fact.MR provides detailed information about the price points of key providers of compact inverter technology positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Compact Inverter Technology Market Research

• By Type:

  • Fixed
  • Portable

• By Phase:

  • Single-Phase
  • Three-Phase

• By Output Voltage:

  • Up to 240 Volts
  • Above 240 Volts

• By Application:

  • Residential
  • Commercial
  • Industrial

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa