North America Power Inverter Market Size, Share, Trends and Forecast by Type, Application, End-Use Sector, and Country, 2025-2033

The North America power inverter market size was valued at USD 14.63 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 23.37 Billion by 2033, exhibiting a CAGR of 5.08% from 2025-2033. The North American power inverter market share is expanding due to rising demand for renewable energy systems, energy storage solutions, and electric vehicle (EV) infrastructure, rapid technological advancements, imposition of government incentives, and heightened focus on energy efficiency, with innovations like microinverters, hybrid systems, and smart technology.

As more people and industries shift toward renewable energy like solar and wind, the North America power inverter market demand is increasing. In 2023, the U.S. set a record by installing 31 gigawatts (GW) of solar energy capacity, a 55% increase from 2022, surpassing the 2021 record. By then, the country had 161 GW of installed solar capacity, meeting roughly 5% of its electricity demand. Inverters are essential in these systems, transforming the direct current (DC) produced by solar panels or wind turbines into alternating current (AC) for residential and commercial use. The rise in government incentives, subsidies, and tax benefits to promote renewable energy in North America is making it easier and more affordable for consumers to adopt solar energy. Plus, as the cost of solar panels and wind turbines decreases, more residential and commercial users are making the switch.

Energy storage systems are gaining popularity as they enable users to store electricity generated by solar panels or wind turbines for later use. This is particularly valuable in regions with inconsistent sunlight or wind. The combination of renewable energy systems and energy storage requires reliable inverters to manage the energy flow. Power inverters are critical for the efficiency and functionality of energy storage systems, as they regulate how energy is stored and discharged. Also, as per the International Energy Agency (IEA), achieving net-zero emissions requires energy storage capacity to grow six times by the year 2030. This means reaching 1,500 GW by that period, thus boosting the adoption of power inverters in the near future.

North America Power Inverter Market Trends:

Increase in Electric Vehicle (EV) Adoption

With the growing popularity of electric vehicles, there is a greater need for EV charging infrastructure. New electric car registrations in the United States totaled 1.4 million in the year 2023, marking an increase by more than 40% in comparison to is 2022 levels. This has created the need for power inverters to convert the electricity used by EV chargers into the right form for efficient charging. As more electric vehicle charging stations pop up across the region, there is a direct impact on the North America power inverter market growth. EV manufacturers and charging station providers rely on high-quality inverters to ensure fast and efficient charging, which is important for user satisfaction and the growth of the electric vehicle market.

Imposition of Government Initiatives and Policies

North American governments have introduced several initiatives aimed at encouraging energy efficiency and clean energy adoption. Policies such as tax credits, rebates, and incentives for energy-efficient home upgrades have contributed significantly to the growth of the power inverter market. For instance, Mexico's administration has committed to supporting private investment in the energy sector, provided it aligns with the country's energy sovereignty. The plan allocates 54% of the electricity market to the state-owned CFE and 46% to private companies, aiming to create a regulated yet flexible market environment. The U.S. government's renewable energy goals and the push for reducing carbon footprints have made it easier for consumers and businesses to invest in renewable energy systems, increasing the North America power inverter market share.

Rapid Technological Advancements in Power Inverters

Power inverter technology is constantly evolving. Inverters are becoming more efficient, compact, and capable of handling higher capacities. With advancements like grid-tied inverters, hybrid inverters, and microinverters, the functionality of these devices has expanded, making them more appealing for both residential and commercial applications. Microinverters are small devices attached to each solar panel, enhancing efficiency by allowing independent operation of each panel. This improves the overall performance of solar power systems, driving higher demand for power inverters. Additionally, as per the North America power inverter market outlook, the integration of smart technology in power inverters, such as remote monitoring and real-time diagnostics, is improving their usability and performance. These innovations not only optimize energy management but also provide users with better control and maintenance capabilities, further driving the market.

North America Power Inverter Industry Segmentation:

Analysis by Type:

• <5KW
• 5KW to 95KW
• 100KW to 495KW
• Above 500KW

The 100KW to 495KW power inverter range leads the market share in North America mainly because of its multiple applications in commercial and industrial fields. This capacity range is perfect for medium to large solar installation usage because it makes optimal provision of power output at businesses, factories, and agricultural levels. These inverters are increasingly attractive for companies looking for a means of reducing energy costs and enhancing sustainability, due to their balance of efficiency, cost-effectiveness, and scalability. The demand for inverters in this power range is likely to continue to see strength in industrious adoption of renewable energy solutions.

Analysis by Application:

• Motor Drives
• UPS
• Rail Traction
• Wind Turbines
• EVs/HEVs
• Solar PVs
• Others

Motor drives are dominant in the North American power inverter market due to the growing demand for energy-efficient motor control systems in a variety of industries. Motor drives offer protection and control of the speed, torque, and direction of the motors used in applications such as HVAC systems, pumps, conveyor belts, and industrial machinery. The inverters allow for increased efficiency in operations, saving energy and decreasing the cost of maintenance by controlling the performance of motors exactly. As the industries keep improving in the use of energy by cutting down on the operation cost and developing more automation and electrification in industrial processes, it shows there will be a steady upsurge in demand for power inverters for motor drive applications.

Analysis by End-Use Sector:

• Utility
• Residential
• Commercial and Industrial

Based on the North America power inverter market forecast, the utility sector is the largest end-use segment in the market, driven by the growing incorporation of renewable energy sources like solar and wind into the power grid. Power inverters are crucial for converting the DC power generated by renewable sources into AC power, enabling it to be fed into the electricity grid for distribution. As utilities aim to diversify energy portfolios and meet renewable energy targets, the demand for large-scale inverters to manage power generation, grid stability, and energy storage systems is rising. Additionally, advancements in inverter technology, such as grid-tied and hybrid inverters, are enhancing the ability of utilities to optimize energy flow and increase the efficiency of renewable energy integration, making this industry an important driver of market growth.

Country Analysis:

• United States
• Canada
• Mexico

The United States is the biggest country in the North American power inverter market, mainly because of its large investments in renewable energy infrastructure and technological advancements. As the U.S. continues to lead in solar energy systems, energy storage solutions, and electric vehicle (EV) infrastructure, the demand for power inverters has surged, particularly in residential, commercial, and utility-scale applications. Government incentives, including tax credits and renewable energy mandates, have further amplified the adoption of energy-efficient systems, making the U.S. the giant in this game. Also, with increased emphasis on carbon emissions reduction and grid resilience, utilities and businesses are investing in advanced technologies for power inverters, which makes the USA a large market in this region.

Competitive Landscape:

As per the North America power inverter market trends, key players are investing and expanding their products with new technology innovations to gain a competitive edge. Major players are concentrating on the development of more advanced inverters that would come with features such as remote monitoring, real-time diagnostics, and advanced energy management. This will enhance efficiency, reduce the maintenance cost, and provide better control to users. Moreover, these players are making higher efforts in the renewable energy segment by providing dedicated inverters for solar and wind solutions, which are needed for high power applications in energy systems. Strategic partnerships and collaborations are being formed by companies with utility providers, automotive manufactures, and companies dealing with solar installation firms to boost the market position. Further, there is a growing emphasis on sustainability and reducing carbon footprints, with key players introducing energy-efficient solutions that meet global environmental standards. As the market grows, these players are also working on expanding their presence in emerging markets and strengthening their R&D capabilities to cater to diverse industry needs.

The report provides a comprehensive analysis of the competitive landscape in the North America power inverter market with detailed profiles of all major companies.

Key Questions Answered in This Report

• 1.How big is the power inverter market in North America?
• 2.What factors are driving the growth of the North America power inverter market?
• 3.What is the forecast for the power inverter market in North America?
• 4.Which segment accounted for the largest North America power inverter application market share?