Power Electronics for Renewables Market Forecasts to 2032 - Global Analysis By Component (Inverters, Converters, Rectifiers, Power Modules, Control Units and Switching Devices), Renewable Source, Material Type, End User, and By Geography

According to Stratistics MRC, the Global Power Electronics for Renewables Market is accounted for $15.2 billion in 2025 and is expected to reach $21.7 billion by 2032 growing at a CAGR of 5.2% during the forecast period. Power Electronics for Renewables refers to advanced electronic systems that convert, control, and optimize electrical power generated from renewable energy sources such as solar, wind, and energy storage systems. These solutions include inverters, converters, and controllers that manage voltage, current, and frequency to ensure grid compatibility and efficient energy transfer. Widely deployed across utility-scale, commercial, and residential installations, power electronics enable grid stability, maximize energy yield, support smart grids, and facilitate reliable integration of intermittent renewable resources.

Market Dynamics:

Driver:

Accelerating global renewable energy deployment

Accelerating global renewable energy deployment is a key driver for the power electronics for renewables market. Governments worldwide are promoting solar, wind, and hybrid energy projects to reduce carbon emissions and achieve energy transition targets. Fueled by favorable policies, declining renewable installation costs, and rising electricity demand, the need for efficient inverters, converters, and power management systems is increasing. These components ensure grid compatibility, energy optimization, and stable power flow, directly supporting large-scale renewable capacity expansion.

Restraint:

High component and system costs

High component and system costs act as a significant restraint for the power electronics for renewables market. Advanced power semiconductors, wide band gap materials, and sophisticated control systems increase upfront investment requirements. Spurred by cost sensitivity in emerging economies, project developers often face budget constraints that delay adoption of advanced power electronics. Additionally, installation complexity and maintenance expenses further elevate total ownership costs, limiting penetration among small-scale renewable projects and distributed energy systems despite long-term efficiency benefits.

Opportunity:

Grid-scale energy storage integration

Grid-scale energy storage integration presents a major growth opportunity for the power electronics for renewables market. As renewable energy generation is inherently intermittent, efficient power electronics are essential for managing bidirectional energy flow between storage systems and the grid. Motivated by the need for grid stability and peak load management, utilities are investing in battery energy storage systems supported by advanced converters and inverters. This trend significantly expands demand for high-performance power electronics solutions across utility-scale renewable installations.

Threat:

Supply chain and raw material volatility

Supply chain disruptions and raw material price volatility pose a notable threat to the power electronics for renewables market. Key materials such as silicon carbide, gallium nitride, copper, and rare earth elements are subject to fluctuating prices and geopolitical risks. These uncertainties increase manufacturing costs and impact production timelines. Additionally, dependence on limited suppliers for critical components can constrain scalability. Such volatility pressures profit margins and creates uncertainty for renewable project developers, potentially slowing market growth.

Covid-19 Impact:

The COVID-19 pandemic had a short-term disruptive impact on the power electronics for renewables market. Manufacturing shutdowns, logistics delays, and labor shortages temporarily slowed renewable project deployment. However, post-pandemic recovery accelerated investments in clean energy as governments introduced green stimulus packages. The renewed focus on energy security and sustainability boosted demand for renewable installations and supporting power electronics. As a result, the market rebounded strongly, supported by long-term decarbonization commitments and infrastructure investments.

The power modules segment is expected to be the largest during the forecast period

The power modules segment is expected to account for the largest market share during the forecast period, resulting from its critical role in efficient power conversion and thermal management. Power modules integrate multiple power semiconductor devices into compact units, enhancing performance and reliability. Widely used in inverters and converters for solar and wind applications, these modules support high voltage and current requirements. Their scalability, efficiency, and reduced system complexity make power modules the preferred choice across renewable energy installations.

The solar power segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the solar power segment is predicted to witness the highest growth rate, propelled by rapid expansion of utility-scale and rooftop solar installations. Declining photovoltaic costs, supportive government incentives, and corporate renewable procurement are accelerating solar adoption globally. Power electronics play a crucial role in maximizing energy yield, ensuring grid compliance, and managing power variability in solar systems. Rising investments in solar farms and distributed generation strongly drive demand for advanced power electronic solutions.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, attributed to massive renewable energy capacity additions in China, India, Japan, and Southeast Asia. Strong government policies, expanding manufacturing bases, and increasing electricity demand support widespread deployment of solar and wind projects. The region's cost-competitive manufacturing ecosystem and growing focus on energy transition further stimulate adoption of power electronics for renewables across large-scale and distributed energy systems.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, associated with aggressive renewable energy targets and grid modernization initiatives. Increasing investments in solar, wind, and energy storage projects drive demand for advanced power electronics. Supportive regulatory frameworks, tax incentives, and technological innovation in power semiconductors further accelerate market growth. The rising need for grid flexibility, resilience, and decarbonization positions North America as a high-growth region for power electronics in renewables.

Key players in the market

Some of the key players in Power Electronics for Renewables Market include Infineon Technologies, ABB Ltd., Siemens AG, Schneider Electric, Mitsubishi Electric, Delta Electronics, Fuji Electric, Toshiba Corporation, Hitachi Energy, ON Semiconductor, STMicroelectronics, Texas Instruments, Semikron Danfoss, Power Integrations and Vishay Intertechnology.

Key Developments:

In Sep 2025, Infineon Technologies introduced an enhanced silicon carbide (SiC) power module portfolio tailored for solar inverters and wind converters, enabling higher switching efficiency, reduced thermal losses, and improved power density for utility-scale renewable installations.

In Aug 2025, ABB Ltd. launched a next-generation grid-forming inverter platform designed to support renewable-heavy power systems, providing advanced voltage and frequency control to stabilize grids with high solar and wind penetration.

In Jul 2025, Siemens AG unveiled an upgraded SINAMICS power electronics solution for renewables, integrating digital monitoring and predictive maintenance capabilities to optimize performance across large solar parks and wind farms.

Components Covered:

• Inverters
• Converters
• Rectifiers
• Power Modules
• Control Units
• Switching Devices

Renewable Sources Covered:

• Solar Power
• Wind Power
• Hydropower
• Energy Storage Systems
• Hybrid Renewable Systems
• Marine Energy

Material Types Covered:

• Silicon-Based Devices
• Silicon Carbide (SiC) Devices
• Gallium Nitride (GaN) Devices
• Hybrid Semiconductor Modules
• Wide Bandgap Power Devices

End Users Covered:

• Utilities
• Renewable Energy Developers
• Commercial Users
• Industrial Users
• Residential Consumers
• Government & Public Sector

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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