The global solar industry continues to expand, driving growing demand for inverters. As a critical component of a solar power system, an inverter converts the direct current (DC) generated by solar modules into alternating current (AC) that can be used by electrical grids, businesses and households. It also plays an important role in energy management and grid integration.
European Inverter Market Outlook
According to PV Tech Research, European inverter manufacturers are expected to ship nearly 90 GW globally in 2026, approximately 12 GW more than in 2025 and more than twice the shipment volume recorded in 2021.
Europe remains the largest regional market for European-headquartered inverter manufacturers, accounting for around one-third of their global shipments in 2026. North America and Latin America are also expected to remain important destinations, supported by continued solar and energy storage deployment.
European Inverter Manufacturing Capacity
Europe has also strengthened its domestic inverter manufacturing capabilities. European inverter manufacturing capacity has exceeded 100 GWac, making the region the largest inverter manufacturing base outside China.
European manufacturers have maintained a relatively strong position in the inverter segment compared with other parts of the solar supply chain. According to PV Tech Research, European-headquartered companies account for approximately 90% of inverter manufacturing capacity in Europe.
Germany’s SMA Solar and Spain’s Power Electronics are among the major European players, with significant manufacturing capacity and global market presence.
Implications for the Solar Supply Chain
The expansion of European inverter manufacturing reflects a broader effort to strengthen regional renewable-energy supply chains. As solar and energy storage markets develop, project developers and EPC companies are increasingly considering not only equipment performance and cost, but also supply reliability, regional manufacturing capacity, and regulatory requirements.
These changes may also influence the wider balance-of-system (BOS) market, including solar mounting systems, electrical equipment, energy storage systems, and other supporting components.
Conclusion
For the broader photovoltaic industry, the trend points toward a more diversified and regionalized supply chain. Monitoring these developments can help solar manufacturers, EPCs, developers and component suppliers better understand changing market opportunities and supply-chain requirements.
