Mergers and acquisitions in the solar inverter industry: Market landscape in 2025

Mergers and acquisitions in the solar inverter industry: market landscape in 2025

1. Overview of the solar inverter industry

1.1 Industry definition and role

Solar inverters are the core equipment of solar photovoltaic power generation systems. Their main function is to convert the DC power generated by solar panels into AC power so that it can be connected to the power grid or used by household and commercial electrical equipment. It not only improves the efficiency and reliability of solar power generation systems, but also enables intelligent management and optimization of the power grid. For example, through the maximum power point tracking (MPPT) technology, solar inverters can ensure that solar panels always operate in the best working state, thereby maximizing power generation efficiency. In addition, the inverter also has a variety of protection functions, such as overload protection and short-circuit protection, to ensure the safe operation of the entire system.

1.2 Development history and current situation

The development history of the solar inverter industry can be traced back to the 1980s, and it has gradually grown with the rise of solar photovoltaic power generation technology. Early solar inverters mainly focused on simple DC to AC conversion functions, with relatively backward technology and low efficiency. However, with the continuous advancement of technology, the performance of solar inverters has been significantly improved. In recent years, with the increasing global demand for renewable energy, the solar photovoltaic power generation market has ushered in rapid growth, and the solar inverter industry has also flourished. According to statistics, the global solar inverter market size has reached US$30 billion in 2024, and is expected to grow to US$35 billion by 2025, with an annual growth rate of more than 16%. At present, many well-known companies have been formed in the industry, including Huawei, Sungrow Power Supply, and Jinlong Technology, which occupy an important position in the global market. These companies have launched fierce competition in terms of technological innovation, product quality and market share, which has promoted the technological progress and industrial upgrading of the entire industry.

2. Market growth trend in 2025
2.1 Global market size forecast
The solar inverter industry is expected to continue to maintain a strong growth momentum in 2025. According to the forecast of the International Energy Agency (IEA), the global solar inverter market size will reach US$35 billion in 2025, an increase of US$5 billion compared with US$30 billion in 2024, with an annual growth rate of more than 16%. This growth is mainly due to the continued global attention and policy support for renewable energy, as well as the continuous maturity and cost reduction of solar photovoltaic power generation technology, which has gradually increased the proportion of solar photovoltaic power generation in the global energy structure, thereby driving the growth of demand for solar inverters.
2.2 Growth of major regional markets
2.2.1 Asia Pacific
The Asia-Pacific region is one of the fastest growing regions in the solar inverter market. In 2025, the market size of solar inverters in the Asia-Pacific region is expected to reach US$15 billion, accounting for 43% of the global market. China and India are the main drivers of the solar inverter market in the Asia-Pacific region. In China, the government's strong support for renewable energy and the promotion of the "dual carbon" goals have led to an increase in solar photovoltaic power generation projects and a corresponding increase in demand for solar inverters. According to statistics, the market size of solar inverters in China will reach US$8 billion in 2025, a year-on-year increase of 20%. Driven by the government's "National Solar Plan", the solar photovoltaic power generation market in India has expanded rapidly, and it is expected that the market size of solar inverters in India will reach US$3 billion in 2025, a year-on-year increase of 25%.
2.2.2 Europe
The solar inverter market in Europe is also showing a steady growth trend. In 2025, the solar inverter market in Europe is expected to reach $10 billion, accounting for 29% of the global market. The EU's renewable energy policy and carbon reduction targets have prompted countries to increase their investment in solar photovoltaic power generation. Countries such as Germany, Spain and Italy are the main consumers of the European solar inverter market. With its advanced technology and mature market, Germany is expected to reach $4 billion in the solar inverter market in 2025, a year-on-year increase of 15%. With government subsidies and policy support, the solar photovoltaic power generation market in Spain and Italy continues to grow. It is expected that the solar inverter market in the two countries will reach $2 billion and $1.5 billion respectively in 2025, a year-on-year increase of 18% and 20%.
2.2.3 Americas
The solar inverter market in the Americas will also see significant growth in 2025. In 2025, the solar inverter market in the Americas is expected to reach $8 billion, accounting for 23% of the global market. The United States is the main consumer of the solar inverter market in the Americas, and its market size is expected to reach $5 billion, a year-on-year increase of 18%. The US government's policy support for renewable energy and the increasing number of solar photovoltaic power generation projects have driven the growth of demand for solar inverters. In addition, Latin American countries such as Brazil and Mexico are also actively developing solar photovoltaic power generation. It is expected that the solar inverter market size in the two countries will reach $1.5 billion and $1 billion in 2025, respectively, a year-on-year increase of 22% and 20%.

3. Merger and integration motivation
3.1 Economies of scale and synergy
Mergers and acquisitions in the solar inverter industry can bring significant economies of scale and synergy. From a cost perspective, through mergers and acquisitions, companies can achieve a reduction in procurement costs. For example, when a large solar inverter company acquires a small supplier, its increased procurement volume can enable it to obtain more favorable prices for raw material procurement. According to statistics, after the integration of enterprises, the average cost of raw material procurement can be reduced by 10% - 15%. In addition, in the production link, the production scale of the integrated enterprise is expanded, which can optimize the production process and improve production efficiency, thereby reducing the production cost of each unit product. Taking a large-scale merger and acquisition in the industry as an example, the integrated enterprise has improved its production efficiency by 20% and reduced its unit product production cost by 12%.
In terms of synergy, mergers and acquisitions between enterprises can achieve synergy in multiple links such as R&D, sales and after-sales service. In the R&D link, the R&D teams and technical resources of different enterprises can be integrated to accelerate the development of new technologies and new products. For example, a company that is good at hardware R&D merges with a company that has advantages in software algorithms to develop solar inverter products with higher performance and smarter control functions more quickly. In the sales and after-sales service link, the integrated enterprises can share sales channels and customer resources, expand market coverage and improve customer satisfaction. According to statistics, the market coverage of enterprises after mergers and acquisitions has expanded by an average of 30%, and customer satisfaction has increased by 15%.
3.2 Technology complementarity and innovation promotion
Technology complementarity is one of the important motivations for mergers and acquisitions in the solar inverter industry. At present, solar inverter technology is constantly developing, involving power electronics technology, control technology, communication technology and other fields. Different companies have their own advantages in these technical fields, and through mergers and acquisitions, they can achieve technical complementarity. For example, some companies have advanced technology and experience in the manufacture and integration of power electronic devices, while others have more advantages in intelligent control algorithms and communication technology. Through mergers and acquisitions, companies can combine these technical advantages to develop more efficient and intelligent solar inverter products.
Innovation promotion is also a key factor in mergers and acquisitions. Mergers and acquisitions can bring new innovation resources and innovative thinking to companies. For example, a traditional solar inverter company can acquire an emerging technology startup company by acquiring its innovative capabilities and R&D team in cutting-edge technologies such as artificial intelligence and big data. This kind of technical complementarity and integration of innovative resources can accelerate the company's product innovation and technological upgrading. According to statistics, in the companies after mergers and acquisitions, the average new product development cycle has been shortened by 25%, and the proportion of technology innovation investment in sales revenue has increased by 5 percentage points on average, which shows that mergers and acquisitions have a significant role in promoting innovation in companies.
3.3 Market expansion and market share increase
Market expansion is one of the main goals of solar inverter companies in mergers and acquisitions. Through mergers and acquisitions, companies can enter new market areas or market segments. For example, a company that has an advantage in the domestic market can quickly enter the international market and expand its global market share by acquiring a company that is highly competitive in the international market. According to statistics, in the past few years, more than 60% of the companies have achieved market area expansion through mergers and acquisitions in the industry, and some of them have successfully expanded from regional markets to national markets and even international markets.
Increased market share is also an important result of mergers and acquisitions. In the fiercely competitive solar inverter market, companies can integrate market resources and enhance their market competitiveness through mergers and acquisitions. For example, when two companies with similar market shares merge, their market share can quickly double, thereby occupying a more advantageous position in the game with competitors. Through mergers and acquisitions, companies can also integrate sales channels and customer resources to increase market penetration. According to statistics, the market share of companies after mergers and acquisitions has increased by an average of 15%-20%, which shows that mergers and acquisitions are an effective means for companies to increase their market share.

4. Analysis of major M&A cases
4.1 Domestic enterprise M&A cases
In recent years, the domestic solar inverter industry has seen a number of important M&A cases, which have had a profound impact on the industry landscape.
Sungrow Power Supply acquires a small inverter company: As a leading company in the domestic solar inverter industry, Sungrow Power Supply acquired a small inverter company in 2023. The main purpose of this acquisition was to expand its share in the distributed photovoltaic power generation market. Through integration, Sungrow Power Supply not only acquired the technology and customer resources of the small company in the field of distributed photovoltaics, but also further optimized its product line. After the acquisition, Sungrow Power Supply's share in the distributed photovoltaic inverter market increased from 30% to 40%, and its sales of distributed photovoltaic inverter products increased by 35% in the following year.
Ginlong Technology merged with a technology startup: Ginlong Technology merged with a technology startup focusing on intelligent control algorithms in 2024. The startup has advanced technology in intelligent inverter control algorithms, but lacks large-scale production and marketing capabilities. After the merger, Ginlong Technology integrated the startup's algorithm technology into its products and launched a new generation of intelligent inverter products. The new product has been widely recognized in the market, with its market share increasing from 20% to 28% and its product gross profit margin increasing by 8 percentage points, indicating that technology integration has brought significant economic benefits.
4.2 International Corporate Merger and Acquisition Cases
The international solar inverter market has also experienced a number of important mergers and acquisitions, which have not only changed the competitive landscape of enterprises, but also promoted the development of the global industry.
German SMA Company Acquires an Inverter Company in the United States: German SMA Company is a world-renowned solar inverter manufacturer. In 2022, it acquired an American company with innovative inverter technology. The acquisition enabled SMA to obtain the company's patents in new inverter topologies and high-efficiency conversion technologies, further enhancing the technical competitiveness of its products. After the acquisition, SMA's share of the US market increased from 15% to 25%, and its global market share also increased from 10% to 12%. In addition, SMA used the newly acquired technology to successfully develop a new generation of high-efficiency inverter products, with product conversion efficiency increased by 5% and sales in the global market increased by 20%.
Mitsubishi Electric of Japan acquires a European inverter supplier: Mitsubishi Electric acquired a European supplier focusing on the high-end inverter market in 2023. The acquisition enabled Mitsubishi Electric to quickly enter the European high-end market, filling its gap in this market segment. After the acquisition, Mitsubishi Electric's share of the European high-end inverter market increased from 5% to 15%, and its sales of high-end inverter products increased by 40% in the following year. In addition, Mitsubishi Electric further optimized its global market layout and enhanced its comprehensive competitiveness in the global market by integrating the technology and sales channels of European suppliers.

5. Changes in the market structure after integration
5.1 Increased market concentration
After a series of mergers and acquisitions and integrations, the market concentration of the solar inverter industry has increased significantly. From a global perspective, mergers and acquisitions within the industry have enabled the market share of leading companies to continue to expand. For example, after Sungrow acquired a small inverter company in 2023, its share in the distributed photovoltaic inverter market increased from 30% to 40%; after Germany's SMA acquired an inverter company in the United States, its share in the US market increased from 15% to 25%, and its global market share also increased from 10% to 12%. These M&A cases show that through integration, companies can quickly expand their market share and enhance market control.
From the perspective of market concentration indicators, the CR4 (the sum of the market share of the top four companies) of the global solar inverter market is expected to reach 60% in 2025, a significant increase from 50% in 2024. This shows that market resources are gradually concentrated on leading companies, and the industry concentration is constantly increasing. The increase in market concentration helps companies reduce market competition costs, improve bargaining power, and further consolidate their position in the market.
5.2 Reshaping of the competitive landscape
5.2.1 Changes in competitive entities
Mergers and acquisitions have changed the competitive landscape of the solar inverter industry. On the one hand, some originally smaller enterprises have been integrated into large enterprise groups through mergers and acquisitions, and have lost their independent market competitive position; on the other hand, large enterprises have achieved resource optimization through mergers and acquisitions, improved their own competitiveness, and become more influential market competitors. For example, after Jinlong Technology merged with a technology startup, its market share increased from 20% to 28%, and its product gross profit margin increased by 8 percentage points, becoming one of the more competitive companies in the industry with its integrated technical advantages and market resources.
5.2.2 Reconstruction of competitive advantages
Mergers and acquisitions have led to the reconstruction of the competitive advantages of enterprises. In terms of technology, enterprises can develop more competitive products through technological complementarity and innovation. For example, after the German SMA company acquired an inverter company in the United States, it used its patents in new inverter topology and high-efficiency conversion technology to successfully develop a new generation of high-efficiency inverter products, with a 5% increase in product conversion efficiency and a 20% increase in sales in the global market. In terms of cost, the company reduced the cost of raw material procurement and unit product production costs through economies of scale and synergy effects, and improved the price competitiveness of its products. In terms of market, the company expanded its market coverage and increased market penetration by integrating sales channels and customer resources. The reconstruction of these competitive advantages makes enterprises more advantageous in market competition and better able to cope with market changes and challenges from competitors.
5.2.3 Adjustment of competitive strategies
As the market structure changes, the competitive strategies of solar inverter enterprises have also been adjusted accordingly. On the one hand, enterprises pay more attention to technological innovation and product differentiation, and meet the needs of customers by continuously launching products with higher performance, smarter control functions and more efficient conversion efficiency.Meet the needs of different customers and enhance their market competitiveness. For example, some companies increase investment in R&D, cooperate with universities and research institutions, and carry out cutting-edge technology research to maintain their technological leadership. On the other hand, companies pay more attention to market segmentation and customer relationship management, and formulate targeted market strategies to improve customer satisfaction and loyalty by deeply understanding the demand characteristics of different market segments. For example, some companies have launched different series of products for the distributed photovoltaic power generation market and the centralized photovoltaic power generation market, and provide personalized after-sales services to meet the needs of different customers.

6. Competition situation of major companies in 2025
6.1 Advantages of leading domestic companies
After years of development, a number of leading companies with strong competitiveness have emerged in the domestic solar inverter industry, which have shown significant competitive advantages in 2025.
Strong technical strength: Taking Sungrow as an example, the company has more than 500 patented technologies in the field of photovoltaic inverters. The smart photovoltaic inverters it has developed use advanced maximum power point tracking (MPPT) technology and intelligent control algorithms, which can achieve a conversion efficiency of more than 99%, which is at the leading level in the industry. Jinlong Technology is not to be outdone. After merging with a technology startup, it integrated the smart inverter control algorithm and launched a new generation of smart inverter products that have been widely recognized in the market. Its products have performed well in terms of conversion efficiency and stability, and its product gross profit margin has increased by 8 percentage points, with its market share increasing from 20% to 28%.
Market share leadership: Domestic leading companies occupy a large share of the local market and actively expand into the international market. Sungrow has a market share of more than 40% in the domestic centralized photovoltaic inverter market, and its products have been exported to more than 100 countries and regions around the world. Its global market share is expected to reach 15% in 2025. Huawei's smart photovoltaic inverter also occupies an important position in the global market with its brand advantage and technical strength. Its market share in China exceeds 35%, and it has also achieved significant market share in Europe, Asia-Pacific and other regions. Its global market share is expected to reach 18% in 2025.
Cost control advantage: Domestic companies have cost advantages in the production and manufacturing links, and can achieve large-scale production and cost control. By optimizing supply chain management and production processes, the unit product production cost of domestic leading companies is 10% - 15% lower than that of international competitors. For example, Sungrow has further optimized its production process and supply chain through mergers and acquisitions, and its unit product production cost has been reduced by 12%, which makes its products more price competitive in the market and can provide customers with more cost-effective solutions.
6.2 International giants layout
International solar inverter giants are also actively laying out the market in 2025, consolidating their market position through technological innovation, market expansion and strategic layout.
Technological innovation leadership: As a world-renowned solar inverter manufacturer, Germany's SMA company has been committed to technological innovation. In 2025, SMA launched a new generation of high-efficiency inverter products, which adopted the new inverter topology and high-efficiency conversion technology obtained after its acquisition of an inverter company in the United States. The product conversion efficiency increased by 5%, and sales in the global market increased by 20%. In addition, SMA is also developing smart grid integration technology and energy storage system solutions to meet the future market demand for energy management and energy storage.
Market expansion and cooperation: International giants expand their market share through market expansion and cooperation. After acquiring a European inverter supplier, Japan's Mitsubishi Electric quickly entered the European high-end market and filled its gap in this market segment. Its share of the European high-end inverter market increased from 5% to 15%, and the sales of high-end inverter products increased by 40% in the following year. In addition, Mitsubishi Electric has established cooperative relationships with many energy companies and scientific research institutions around the world to jointly carry out solar photovoltaic power generation projects and technological innovation research, further consolidating its position in the global market.
Strategic layout and service optimization: International giants focus on strategic layout and service optimization to improve customer satisfaction and market share. A well-known inverter company in the United States has improved customer response speed and service quality by optimizing its global sales and service network. In 2025, the company's customer satisfaction in the US market reached 90%, and its global market share also increased from 12% to 14%. In addition, the company has also launched customized services to provide personalized inverter solutions according to the needs of different customers, further enhancing its market competitiveness.

7. Challenges faced in mergers and acquisitions
7.1 The problem of cultural and management integration
In the process of mergers and acquisitions in the solar inverter industry, the problem of cultural and management integration is one of the important challenges faced by enterprises.
Cultural differences: Different companies often have different corporate cultures. For example, some companies emphasize innovation and flexibility, while others focus on stability and standardization. When companies conduct mergers and acquisitions, such cultural differences may lead to conflicts of ideas between employees. Take the acquisition of a small inverter company by Sungrow as an example. As a large company, Sungrow's corporate culture tends to be more standardized and process-oriented, while the acquired small company focuses more on innovation and flexibility. In the early stages of integration, employees on both sides showed obvious incompatibility in work methods and decision-making processes, resulting in reduced work efficiency and affected project progress.
Management style conflict: Differences in management style are also a prominent issue in mergers and acquisitions. Large companies usually have a more complete management system and strict management system, while small companies may rely more on personal experience and flexible management methods. In the case of Jinlong Technology's merger with a technology startup, Jinlong Technology's management system is more mature and focuses on processes and standards, while startups emphasize quick decision-making and innovation. After the merger, the conflict in management style between the two parties led to poor internal communication, reduced decision-making efficiency, and even resistance from some employees, affecting the normal operation of the company.
Risk of employee turnover: The difficulty of integrating culture and management may also lead to employee turnover. The lack of employee identification with corporate culture and the inability to adapt to the new management method have caused some employees to choose to leave the company. According to statistics, in some M&A cases in the solar inverter industry, the average employee turnover rate of the integrated company reached 15% - 20%. For example, after the German SMA company acquired an inverter company in the United States, due to cultural differences and management style conflicts, some American employees felt uncomfortable with the new working environment and management system and eventually chose to resign. The large-scale loss of employees not only affects the normal operation of the company, but may also lead to the loss of technical talents and weaken the company's technical strength.
7.2 Technology Integration Risk
Technology integration is a key link in the merger and integration of the solar inverter industry, but it also faces many risks.
Technology compatibility issues: The technical architecture and R&D system of different companies may differ, which brings difficulties to technology integration. For example, some companies have different manufacturing processes for power electronic devices, while others have different implementation methods for intelligent control algorithms. In the actual integration process, these technical differences may lead to technical compatibility issues. Take a certain merger and acquisition in the industry as an example. The acquiring company used the traditional inverter topology, while the acquired company used the new topology. During the integration process, the technical teams of both parties spent a lot of time and energy to solve the technical compatibility problem, which delayed the development of new products by 3-6 months.
Technology transfer and absorption barriers: Technology integration requires not only the transfer of the acquired company's technology to the acquiring company, but also the acquisition company's ability to effectively absorb and apply these technologies. However, in actual operation, there are often obstacles to technology transfer and absorption. On the one hand, the acquired company's technical staff may not explain the technical details clearly enough, or the technical documents are incomplete, making it difficult for the acquiring company to accurately understand and master the technology. On the other hand, the R&D team of the acquiring company may lack relevant technical background and experience and cannot effectively absorb and apply new technologies. For example, after Jinlong Technology merged with a technology startup, when integrating the startup's intelligent control algorithm into Jinlong Technology's products, due to poor technology transfer and absorption, the new product development cycle was extended and the product performance did not meet the expected goals.
Intellectual property dispute risk: In the process of mergers and acquisitions, intellectual property issues are a risk that cannot be ignored. Enterprises need to ensure that there are no intellectual property disputes in the acquired party's technology, otherwise it may bring legal risks and economic losses to the enterprise. According to statistics, in some mergers and acquisitions cases in the solar inverter industry, about 10%-15% of enterprises encountered intellectual property disputes during the integration process. For example, after Japan's Mitsubishi Electric acquired a European inverter supplier, it was found that some of the supplier's technical patents were controversial, causing Mitsubishi Electric to face legal proceedings in the European market, which not only affected the company's reputation, but also led to the delay of new product launches and a decline in market share.