麦肯锡 -功率转换市场：脱碳进程与增长机遇 The power conversion market Decarbonization and growth opportunities

Mcsey

&company

IndustrialsPractice

Thepower

conversionmarket:

Decarbonizationandgrowthopportunities

Efficient,reliablepowerconversiontechnologiesarecriticalforglobalelectrification.Withanexpectedvaluepool

ofabout$95billionin2030,opportunitiesinthepowerconversionmarketabound.

ThisarticleisacollaborativeeffortbyChristianJansenandHaraldBauer,with

DominikaDytko,FriederikeFietz,KarolisGesevicius,andSolPuente,representingviewsfromMcKinsey’sIndustrialsPractice.

September2026

Thepowerconversionmarket:Decarbonizationandgrowthopportunities2

Asglobalmobility,industry,andbuildingsystemselectrify,demandforefficient,reliablepowerconversiontechnologiesisrapidly

increasing—anditwon’tbepossibletomeetthisdemandwithout

inverters,rectifiers,andotherpowerconversiontechnologies.Thesecomponentsconvertdirectcurrent(DC)toalternatingcurrent(AC)andviceversaandareessentialforintegratingrenewable-energysourcesintothegrid,ensuringefficientenergystorageandmotorusage,andmaintaininguninterruptedpowersupply.

Today,electrificationhascreatedagrowingneedforconvertingDC

powerintoACpower(DC–ACconversion).Renewablestypically

produceDCpower,whichneedstobeconvertedintoACforgriduse.Inaddition,powercompaniesareincreasinglyinvestinginDC–DC

architecture,suchasHVDCtransmissionlinesthatcarryenergyfromremoterenewablesourcestoloadcenters;theselinesloselesspoweroverlongdistancesthanhigh-voltagealternatecurrentlinesandarethereforemoreefficient.

Theglobalmarketforpowerconversiontechnologiesisprojectedto

reachabout$95billionin2030withaCAGRof7percentfrom2024

to2030.Keyapplicationsincludespaceandwaterheatpumps,utility-scalesolarphotovoltaic(PV)technology,datacenters,high-voltage

DC(HVDC)equipment,andmore.

Thisarticlemapsthepowerconversionlandscape,providingaprimeronthesetechnologies,keyapplications,andstrategiesformarket

entry.Withgreaterinsightintopowerconversiontechnologies,

managementexecutives,privateequityfirms,existingOEMs,anddisruptorscanmoveforwardwithaninformedperspective.

Severalpowerconversiontechnologiesconvertelectricalcurrentfromoneformtoanother(Exhibit1):

—DC–ACinverters.Thesecomponentsarecommonlyusedto

convertDCfromsourcessuchassolarPVcellsandbatteriesintoACforgriduseorbysomeelectricdevices.

—AC–ACvariablefrequencydrives(VFDs).VFDscontrolthevoltagelevelandthefrequencyofACmotorsbyrectifyingincomingACtoDCandinvertingitbacktocontrolledACoutput.Theyarewidely

usedtocontrolthespeedandtorqueofindustrialACmotors.

Powerconversiontechnologies:Aprimer

Aselectricityflowsaroundtheworld,itoftenneedstobeconverted

betweenACandDC.ElectricgridstypicallyrunonACpower,and

mostlarge-scalepowergenerators(forexample,coal-poweredor

gas-poweredplants)produceACcurrent.Ontheotherhand,many

categoriesofelectricdevices—suchascomputers,LEDs,andelectricvehicles(EVs)—relyonDCpower.Thesedevicesthereforerequire

AC–DCconversionofgridpower,eitherfordirectuseortochargebatteriesthatstoreandprovideDCpower.

—AC–DCrectifiers.Rectifiersareessentialforarangeofconsumer

electronicdevices,includingsmartphones,computers,andEVchargers.

—DC–DCconverters.DC–DCconvertersregulateoutputvoltage,allowingasingleinputsourcetofeedcircuitswithvarying

voltagerequirements.

Thepowerconversionmarket:Decarbonizationandgrowthopportunities3

Inaddition,electroniccomponentsfromthesepowerconversion

technologiesvarysignificantlyintermsofhowmuchelectricitythey

arebuilttohandle—fromkilowattsuptogigawatts(GW),depending

ontheapplication.ThehighestcapacitiesareappliedinHVDC

technology,suchasgridsandpowerlines.Electroniccomponentsalsovaryintheirstructureandrequirecompletelydifferentmaterialsfor

differentapplications.Forlow-powerandconsumer-gradeinverters,conventionalsilicon-basedsemiconductordevicesaretypicallyused.Forhigher-powerorhigh-efficiencyapplications,siliconcarbide(SiC)orgalliumnitride(GaN)devicesenablefasterswitchingspeedsand

betterefficiency.

Exhibit1

Afewtypesofpowerconversiontechnologiesarecriticalforelectricaldevices.

Typesofpowerconversiontechnologies

DC–ACinverterAC–ACVFDs1AC–DCrectifierDC–DCconverter

Function

ConvertaDC-

generatingsourcetoAC

Controlthespeed

andtorqueofACmotors

Forceunidirectional

currentfiowtoturnsinusoidalACintolinearDC

ConvertDCto

di仟erentvoltagelevels

Main

•IGBT2or

•IGBTor

•IGBTor

•IGBTor

components

MOSFET3

•Transformer4

•Microcontroller

MOSFET

•Transformer

•Microcontroller

•DCcapacitor

MOSFET

•Transformer

•Microcontroller

•DCcapacitor

MOSFET

•Transformer

•Microcontroller

Commonusecases

Renewableenergysystems

•Solarphotovoltaiccells,windfarms,

andbatteries

supplyingpowertothegrid

Mobilepowersystems

•Generatorsand

batterybackups

usedtopower

appliancesusedinhomes,recreationalvehicles,boats,etc

Industrialand

commercialmotorcontrols

•FansandpumpsforHVAC5

•Conveyorandliftingsystems

•Pumpsforwastewatertreatment

•Electricmotorcontrolin

manufacturing

Electronicsand

electricaldevices

•Powersuppliesin

consumer

electronics,

telecommunications,andindustrial

machinery

•Batterychargingsystems

•LEDlightingsystems

•Electric-vehiclechargers

AnywhereDCvoltagelevelissteppedupordown

•Batterytointernal

circuitryforportableelectronics

•Batterytointernalsystemsfor

automobiles

•Renewableenergysourcestoenergystorageorvoltageconversionforthegrid

1Variablefrequencydrives.ModernVFDsincorporateaninverterstagetogeneratevariable-frequencyACoutput.Inindustrialapplications,theterm“inverter”isoftenusedinformallytorefertoaVFDordrive.2Insulatedgatebipolartransistor.3Metal-oxide-semiconductorfield-e仟ecttransistor.4Onlypowerelectronic

microtransformersconsidered.5Heating,ventilation,andairconditioning.

Source:McKinseyPlatformforIndustrialElectrification;McKinseyanalysis

McKinsey&Company

Thepowerconversionmarket:Decarbonizationandgrowthopportunities4

Keyapplicationsforpowerconversiontechnologies

Withmoreelectricdevicesandtechnologiesbeingcreatedevery

year,powerconversiontechnologiesoffermanufacturersamultitudeofopportunities.GlobalgrowthisprimarilydrivenbyChina,Europe,andNorthAmerica,whichareleadingtheadoptionofclean-energytechnologiesandinfrastructureupgrades(Exhibit2).1

Exhibit2

Weexpectaglobalpowerconversionequipmentmarketsizeof$94billionin2030,splitacrossninekeyapplications.

Powerconversiontechnologymarketsizebyregion,continuedmomentumscenario,$billion

+7%perannum

82

18

31

19

13

2027

CAGR,

2024–30,%

7

1

17

7

Restofworld

GreaterChina

NorthAmerica

EU-27+UK

94

20

30

29

16

2030

91

19

32

24

16

2029

86

20

33

18

16

2028

78

17

31

18

12

2026

71

16

30

14

11

2025

63

13

28

11

10

2024

Note:Figuresmaynotsum,becauseofrounding.

Source:GlobalEnergyPerspective2025,McKinsey,Oct13,2025;IEA;WoodMackenzie;McKinseyPlatformforIndustrialElectrification

McKinsey&Company

1“Growthinglobalelectricitydemandissettoaccelerateinthecomingyearsaspower-hungrysectorsexpand,”IEA,February14,2025.

Thepowerconversionmarket:Decarbonizationandgrowthopportunities5

Toidentifythemostpromisingapplications,wefocusedouranalysisontechnologiesexpectedtobecriticalfortheenergytransition

until2030,followingemergingtrendsrelatedtodecarbonization,

electrification,andgeneraldemandgrowth(Exhibit3).Thesecan

beclusteredintodemand-sideapplications(electricity-consuming),supply-sideapplications(electricity-producing),andtransmission

systemoperator(TSO)gridapplications.

Overall,growthinsupply-sideapplications(suchasrenewable-energysources)isslowingdown—forexample,CAGRforsolarPVisexpectedtodeclineby2percentfrom2024to2030—whiledemand-side

applications(suchasdatacentersandEVs)areconsistentlygrowingatabout10percentormore.Thisisbecausethesupply-sidemarkethasmaturedoverthepastfewdecades,whilemorerecenttrendsingenAIandelectrificationhavespikeddemandforpowerconversiontechnologies.Wefoundthatthelargestmarketsarefordatacenters($29billion)andspaceandwaterheatpumps($23billion),witha

rangeofopportunitiesacrossotherapplications.Weexploretheseapplicationsbelow.

Exhibit3

Eachkeyapplicationofpowerconversiontechnologyhasitsowndynamics.

Marketsizeoftechnologyapplicationsbysegment

ProductcomplexityHigh

Low

Applicablepowerconversiontechnologies(nonexhaustive)

Segments

Application

Marketsize,

CAGR,

Product

DC–AC

AC–AC

AC–DC

DC–DC

2030,$billion

2024–30,%

complexity

inverter

VFDs1

rectifier

converter

Demandside

Datacenters

29

23

b

□

S&W2heatpumps

23

2

□

EVCI3

4

18

b

□

Industrialheatpumps

1

18

b

□

Electrolyzer

1

26

b

□

□

TSO4grid

HVDC5applications

4

6

□

□

□

Supplyside

Residentialandcommercialsolar

photovoltaic(PV)

13

–4

□

□

□

BESS6

12

18

□

□

□

□

Utility-scalesolarPV

8

–2

b

□

□

□

□

Total~947

1Variablefrequencydrives.2Spaceandwater(S&W)heatpumpsforresidentialandcommercialapplications.3Electric-vehiclecharginginfrastructure.4Transmissionsystemoperator.5High-voltageDC.6Batteryenergystoragesystems.

Source:GlobalEnergyPerspective2025,McKinsey,Oct13,2025;IEA;WoodMackenzie;McKinseyPlatformforIndustrialElectrification

McKinsey&Company

Datacenters

Powerconversiontechnologiesarecriticalfordatacenters,particularlythosewithuninterruptiblepowersupply(UPS)

systems.Datacentersusepowerconversiontechnologies

inthreeways:toconvertACtoDCpowertochargebatteriesandmaintainpowerduringgriddisruptions;toconvert

DCpowerbackintostableACforUPSsystemsorinto

differentDCvoltagelevelsforservercomponents;andto

regulatethespeedofcoolingfansandpumpsbyadjusting

motorfrequencyandvoltage.Therisingdemandforcloud

computing,AIuse,edgecomputing,anddigitalservicesis

fuelingdatacentergrowth.From2025to2030,globaldatacentercapacitydemandisexpectedtoincreaseby2.7times(from82GWtoabout220GW),2andpowerconsumptionisexpectedtogrowataCAGRofapproximately40percent

from2024to2028,orfourtimes.

Asdatacenterinfrastructureisbuiltout,itisexpectedtobeoneofthefastest-growingmarketsforpowerconversion

technology.Theglobalmarketfordatacenterpower

conversiontechnologiesisestimatedtorisefrom$8billionin2024to$29billionby2030,aCAGRof23percent.

Thisisdrivenbyincreasingpowerdensities;growthin

high-efficiency,modularUPSsystems;andrisinginverter

adoptionacrosscoolinginfrastructureanddatacenter

powersupplysystemunits.Marketsareexpectedtoexpandintonewgeographiesfordatacenters—remoteareaswith

readilyavailableenergy,suchastherural

UnitedStates

3and

areasinEurope

withabundantlow-carbonenergyandlowertemperaturesthatreducecoolingdemands.4

2“

FiveFifty:Moredata,moredemand

,”McKinsey,June23,2025.

3“

AIpower:Expandingdatacentercapacitytomeetgrowingdemand

,”McKinsey,October29,2024.

4“

TheroleofpowerinunlockingtheEuropeanAIrevolution

,”McKinsey,October24,2024.

Thevaluepoolfordatacenterpowerconversionequipmentisexpectedtoreachabout$29billionin2030.

Datacenterpowerconversionequipmentmarketsizebyregion,basecasescenario,$billion

CAGR,

2024–30,%

Restofworld34

GreaterChina22

NorthAmerica19

EU-27+UK25

+23%perannum

21

2

6

9

3

2027

4

8

8

7

17

2

5

8

2

2026

13

1

4

5

2

2025

11

5

2030

27

25

4

10

4

2029

8

1

2

4

1

2024

10

4

2028

29

6

Note:Figuresmaynotsum,becauseofrounding.

Source:McKinseyPlatformforIndustrialElectrification2025;McKinseyanalysis

Thepowerconversionmarket:Decarbonizationandgrowthopportunities6

McKinsey&Company

S

2

2

Spaceandwaterheatpumps(residentialandcommercial)

Residentialandcommercialheatpumpsrelyprimarilyon

inverter-drivencompressorsystems(VFDs)toenable

precisecontrolofcompressorspeedandimprovesystemefficiencyundervariableloads.Asheatingelectrification

acceleratesandefficiencystandardstighten,these

technologieswillbeincreasinglycriticalfordeliveringgrid-interactive,low-carbonsolutionsatscale.

Themarketforpowerconversiontechnologiesinresidentialandcommercialheatpumpsisexpectedtogrowatabout

2percentannually,reachingapproximately$23billionby2030,accountingfor10to15percentofthetotalspace

andwaterheatpumpmarket.Demandisdominatedbytheresidentialsegment(about80percent),withgrowthledbyEurope(EU-27plustheUnitedKingdom)atroughly4to

6percentannually,whileotherregionsremainclosertoflattolow-single-digitgrowth.Competitionfocusesoncost-

efficient,reliableinverter-drivencompressorsystemsandscalingsupplychainstomeetresidentialdemand.

Thespaceandwaterheatpumpmarketwillbemostlydrivenbytheresidentialsegment,reachingabout$23billionin2030.

Spaceandwaterheatpumpspowerconversionequipmentmarketsizebyregion,continuedmomentumscenario,$billion

CAGR,

2024–30,%

Restofworld2

GreaterChina0

NorthAmerica4

EU-27+UK6

18

20

perannum

23

6

10

3

4

2027

82

80

23

6

10

3

5

2030

Commercial

+2%

23

5

10

3

4

2026

hareofapplicationtype,%024

030

23

6

10

3

5

2029

23

6

10

3

4

2028

22

5

11

3

4

2025

21

5

10

2

3

2024

Residential

Note:Figuresmaynotsum,becauseofrounding.

Source:McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities7

McKinsey&Company

EVcharginginfrastructure

ForEVcharginginfrastructure(EVCI),high-power-density

rectifiersconvertACgridpowertochargeDCbatteries,

andDC–DCconvertersadjustvoltagelevelsdownorup

asrequired.OnekeyEVCIfeatureisvehicle-to-grid(V2G)

functionalitythattransformsEVsintobidirectional,grid-

interactiveenergystorageassets—thatis,EVswithV2G

technologycanbothbechargedbythegridandsendexcessenergybackintothegrid,dependingontheneed.AsV2G

standardsmatureandbidirectionalcharginghardware

becomescommerciallyviable,investmentisacceleratingtobuildtheinfrastructureneededtoenablereal-timeloadbalancingandpeakshaving.

TheglobalEVCImarketisforecasttogrowfromabout

$1.5billionin2024to$4.1billionby2030.Contributing

factorsincludeacceleratingEVadoption,theexpansion

ofpublic-andfleet-chargingnetworks,andthebuild-out

ofhigh-powercharging.Globally,morethan1.3millionDCchargersareexpectedtobedeployedby2030,ataCAGRof20percent,withChinaaccountingfornearly70percentofinstallations.5ThemarkethasachievedconsistentlyhighgrowthandiscurrentlyledbyEuropeanequipmentplayers.AsemergingChinesecompaniesgainglobaltraction,

competitivemarketdynamicsareexpectedtointensify.

5“Electricvehiclecharging”inGlobalEVoutlook2025,IEA,May14,2025.

Theelectric-vehiclecharginginfrastructurepowerconversionmarketislargelydrivenbyChina,withthelargestgrowthinNorthAmerica.

Electric-vehiclecharginginfrastructurepowerconversionequipmentmarketsize1byregion,continuedmomentumscenario,$billion

CAGR,

4.12024–30,%

0.9Restofworld27

1.4GreaterChina9

0.7NorthAmerica27

1.1EU-27+UK25

2030

+18%perannum

2.4

0.5

1.0

0.4

0.6

2027

3.6

0.8

1.2

0.7

1.0

2029

2.9

0.6

1.1

0.5

0.8

2028

1.9

0.4

0.9

0.3

0.4

2026

1.7

0.3

0.9

0.2

0.3

2025

1.5

0.2

0.8

0.2

0.3

2024

Note:Figuresmaynotsum,becauseofrounding.

1IncludesAC–DCrectifierandDC–DCconvertertechnologies.

Source:McKinseyCenterforFutureMobility;McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities8

McKinsey&Company

Industrialheatpumps

Inindustrialapplications,VFDsplayacriticalroleinenablinghigh-capacity,high-temperatureheatpumpsbydynamicallyadjustingtheirmotorspeedsandoptimizingperformance

undervaryingloadconditions.Industrialheatpumpsystemsrequireadvancedcontrol,highefficiency,andintegration

withdigitalindustrialenvironmentstomeetdemandingoperationalrequirements.

Theglobalmarketforpowerconversiontechnologiesin

industrialheatpumpsisexpectedtoreachabout$1billionby2030.NorthAmericaleadswithgrowthofroughly

25percent,followedbyEuropeandChinaatabout

16percent.Despitethesegrowthrates,overallmarket

sizeremainsrelativelysmall,reflectingthelimitedsizeof

underlyingindustrialheatpumpmarket,aswellaslongassetlifecyclesandslowreplacementcyclesinheavyindustry.

Variablefrequencydrivedemandaccelerateswiththescale-upofhigh-capacity,high-temperatureindustrialheatpumps.

Variablefrequencydrivesforindustrialheatpumpsmarketsizebyregion,continuedmomentumscenario,$billion

+18%perannum

0.6

0.22

0.21

0.04

0.09

2027

CAGR,

2024–30,%

21

16

25

16

Restofworld

GreaterChina

NorthAmerica

EU-27+UK

0.8

0.31

0.29

0.06

0.12

2030

0.7

0.28

0.26

0.05

0.11

2029

0.6

0.25

0.23

0.05

0.10

2028

0.5

0.18

0.18

0.04

0.08

2026

0.4

0.14

0.15

0.03

0.06

2025

0.3

0.10

0.12

0.05

2024

0.02

Note:Figuresmaynotsum,becauseofrounding.

Source:McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities9

McKinsey&Company

Electrolyzers

Inhydrogenproduction,electrolyzerssplitwatermoleculesintohydrogenandoxygenusinghigh-powerrectifiers

thatconvertACgridelectricityintostableDCcurrent.

Thesesystemsmustdeliverhighcurrentwithlowripple,precisecontrol,androbustthermalmanagement,makingpowerelectronicscriticaltoenablingelectrolyzersto

scaletomegawattandGWlevels.Assuch,modularandtransformer-coupleddesignswithadvancedharmonicfilteringareincreasinglyrequiredtomeetgridand

performancestandards.

Themarketforrectifiersinelectrolyzerapplicationsisset

forrapidscale-up,expectedtogrowatabout26percent

annuallytoreachroughly$0.6billionby2030.However,

recentyearshaveseenexpectationsmoderated,withprojectdelaysandcancellationsslowingprogressrelativetoearlierdeploymentannouncements.Chinaisexpectedtoaccount

forabout30percentofthemarketby2030,withtherestoftheworldrepresentingasimilarlysizedshareandEuropeandNorthAmericamakingupsmallerportions(roughly20and

15percent,respectively).Competitioncentersoncompact,high-efficiencyrectifierswithplug-and-playcompatibility,enablingfasterdeploymentandcostreduction.

Theelectrolyzerrectifiermarketissetforrapidscale-up,ledbyChinarepresentingabout30percentby2030.

Electrolyzerrectifiermarketsizebyregion,continuedmomentumscenario,$billion

+26%perannum

0.5

0.12

0.19

0.09

0.08

2027

0.7

0.250.6

0.20

0.24

0.20

CAGR,

2024–30,%

48

18

25

22

Restofworld

GreaterChina

NorthAmerica

EU-27+UK

0.6

0.19

0.23

0.12

0.10

2028

0.4

0.09

0.18

0.07

0.08

2026

0.3

0.06

0.13

0.05

0.06

2025

0.13

0.11

2029

0.1

0.020.07

0.020.03

2024

0.08

0.10

2030

Note:Figuresmaynotsum,becauseofrounding.

Source:McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities10

McKinsey&Company

HVDC

HVDCvalvesarecomponentswithinanHVDCconverter

stationandtheyarecriticalinmoderntransmissionnetworks.HVDCconverterstationsperformthekeytaskofconvertingbetweenACandDC,eitherwithAC–DCrectifiersorDC–ACinverters.ThishelpsincreasetheefficiencyandcontrolthatTSOshaveoverhigh-powertransmission;reducesnetwork

losses;andsupportsvoltageregulation,reactivepowermanagement,andinterconnectingasynchronousgrids.

Theglobalpowertransmissionmarket,valuedatabout$165billionin2025,isprojectedtogrowataCAGRof

4percent,edgingpast$200billionby2030.Withinthis

broaderlandscape,theHVDCvalvesmarketisforecast

toincreasefromapproximately$2.7billionin2024to

nearly$3.9billionby2030,aCAGRof6percent.GrowthisdrivenbytheacceleratingdeploymentofHVDCsystemsforoffshorewindandurbangridconnections,theupgradeofultra-high-voltageDCsystemsinChinawithadvancedvalvetechnologyabove800kilovolts,6andtheindustry-

widetransitionfromthyristor-basedvalvestovalvesusinginsulated-gatebipolartransistortechnology,whichofferimprovedcontrolandmodularity.

Themarketiscurrentlyledbyafewglobalplayers

headquarteredintheUnitedStatesandEurope,but

Chinesemanufacturersarebecomingincreasingly

active,supplyingcost-competitive,ultrahigh-voltageDCvalvetechnologiestodomesticmarketsandselectivelyexpandingintointernationalprojects.

6XiaoyingYou,“‘Abullettrainforpower’:China’sultra-high-voltageelectricitygrid,”BBC,November15,2024.

Thehigh-voltageDCvalvemarketissettoreachabout$3.9billionby2030,ledbyEuropeandChina.

High-voltageDCvalveequipmentmarketsizebyregion,$billion

2.4

2.0

0.1

0.60.4

GreaterChina

NorthAmerica1

EU-27+UK

0.1

0.1

0.1

0.80.7

+6%perannum

3.9

0.4

CAGR,

2024–30,%

24

3.9

0.33.4

3.93.9

0.50.6

2024202520262027202820292030

1.8

0.2

1.3

1.6

0.2

1.4

–4

22

21

0.2

1.1

3.9

0.7

Restofworld

2.7

0.2

0.3

2.8

2.5

2.1

Note:Figuresmaynotsum,becauseofrounding.

1NorthAmerica’sperspectiveisbasedonapolicyscenariobeforeUSPresidentTrump’selection.Source:McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities11

McKinsey&Company

SolarPV(residentialandcommercial)

ResidentialandcommercialsolarPVsystemsrelyon

inverterstoconvertDCelectricitygeneratedbysolar

modulesintoACpowerforon-siteconsumptionorgrid

injection.Asthesesystemsbecomemorewidespread,theyincreasinglyincorporatehybridinvertersthatintegrate

storageandenablebidirectionalpowerflows,which

supportsself-consumption(wherepeoplepowertheir

ownhomewiththeirsolarPVpanels),backuppower,andparticipationindistributedenergysystems.Asinstallationmodelsevolvetowardmore-modularanddigitallyenabledsolutions,inverterswillenabledifferentfunctionalities—

particularlyinareassuchasmonitoring,safety,andgridinteraction—thatcoulddifferentiateinnovativesolarsolutions.

ThemarketforpowerconversiontechnologiesinresidentialandcommercialsolarPVisexpectedtoreachapproximately$13billionby2030,butitisprojectedtodeclineatabout

4percentannually.Thiscontractionreflectspricing

pressure,marketsaturationinmatureregionssuchas

Europe,andnormalizationfollowingearlierperiodsof

rapiddeployment.Regionally,asof2025,Europeand

Chinaaccountforthelargestsharesofthemarket(20and

40percent,respectively),whileNorthAmerica(13percent)

representsasmallerbutgrowingportionofthemarket.

Despitedecliningvaluepools,competitionremains

intense,withplayersfocusingoncostoptimization,product

differentiationthroughhybridandsmart-invertercapabilities,andexpansionintoadjacentservicessuchasenergy

managementandstorageintegration.

Thesolarphotovoltaicpowerconversionequipmentvaluepoolforresidentialandcommercialwillfallto$13billionby2030.

Residentialandcommercialsolarphotovoltaicpowerconversionequipmentmarketsize1byregion,$billion

16

15

4

4

7

6

2

CAGR,

2024–30,%

–7

–5

9

–12

Restofworld

GreaterChina

NorthAmerica

EU-27+UK

2024202520262027202820292030

13

3

5

3

2

13

3

5

3

2

13

3

6

2

3

13

2

5

3

2

13

3

5

3

2

–4%perannum

2

3

4

Note:Figuresmaynotsum,becauseofrounding.

1Includesmicroinvertersandbidirectionalhybridinvertersforresidentialapplications.Source:McKinseyPlatformforIndustrialElectrification

Thepowerconversionmarket:Decarbonizationandgrowthopportunities12

McKinsey&Company

Batteryenergystoragesystems

Batteryenergystoragesystem(BESS)technologyconvertsDCpowerfrombatteriesintoACpower(andviceversa)to

supportgrid-wideactivitiessuchaspeakshaving,frequencyregulation,andrenewable-energyintegration.Toenable

furtherusecasessuchasenergytradingandvirtualpower-plantnetworks,OEMsaredevelopingnovelinvertersthat

embedadvancedcontrol,energymanagementsystems,andgrid-formingcapabilities.

TheglobalBESSpowerconversionequipmentmarketis

expectedtotripleby2030(18percentCAGRfrom2024to

2030),reachingapproximately$12billionasallmajorregionsdeployutility-scale,grid-connectedstorage.Asintermittentpowersources(suchassolarandwind)takeupalarger

shareoftheenergysupply,greaterenergy-storagecapacitycanhelpregionsaddresstheincreasedneedforgrid

stability,improvedcapacityutilization,flexibledispatch,andmonetizationofhybridassets.Accordingly,theBESSmarketisexpectedtoexperiencesignificantgrowthinEuropeand

theUnitedStatesaswellasinotherregionsworkingtowardrenewable-energytargets(seesidebar,“Keypurchasing

criteriaforsolarPVandBESScustomers”).

Thebatteryenergystoragesystemspowerconversionequipmentmarketissettoreach$12billionby2030,drivenbyutility-scaleexpansion.

Batteryenergystoragesystempowerconversionequipmentmarketsizebyregion,$billion

+18%perannum

9

2

3

2

3

2027

CAGR,

2024–30,%

22

25

13

14

Restofworld

GreaterChina

NorthAmerica

EU-27+