Micro-Inverter Market

Micro-Inverter Market Market Size

Micro-Inverter Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 18.1% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 2.6 billion and is projected to reach USD 16.2 billion by the completion of 2034.

Micro-inverter is a tiny tool used in solar energy systems to change the DC electricity produced by each solar panel into AC electricity that can be utilized in residences or commercial buildings. Every micro-inverter is mounted directly on a single solar panel, as opposed to traditional string inverters connected to multiple solar panels. This decentralized method enables high efficiency since shading or malfunctions in one panel do not impact the performance of the whole system. In addition, the micro-inverter provides better monitoring features, along with offering immediate data on how each solar panel is performing, thus allowing for speedy identification of problems. Furthermore, micro-inverters come with extended warranties and are seen as safer due to their low-voltage DC input. Therefore, micro-inverters are used to increase the effectiveness and reliability of solar energy systems.

Market Highlights

Micro-Inverter Market is expected to grow at a compound annual growth rate (CAGR) of 18.1% from 2024 to 2034

Micro-Inverter Market is projected to reach USD 16.2 billion over the forecast period, due to the increasing use of solar power systems in residential, commercial, and industrial applications. This growth is driven by several factors, such as greater awareness of renewable energy sources, declining costs for solar photovoltaic technology, and support by the government for clean energy initiatives. Additionally, micro-inverters provide benefits such as monitoring of each panel and higher system dependability in comparison to conventional string inverters. Besides, innovations in technology, such as the development of better power electronics and the integration of smart grids, are also boosting the growth of the market. Thus, due to the increasing focus on sustainability and energy self-sufficiency, it is expected that the market for micro-inverters will continue to grow in the near future.

Source: Fatpos Global

Micro-Inverter Market Segmentation

Wired segment will lead the industry due to its dependability in converting DC to AC electricity

Micro-inverter market is segmented by Technology into Wired and Wireless. The wired segment is projected to lead the micro-inverter market since wired technology has been widely used in solar installations and provides a reliable technique for converting DC to AC electricity. This established history promotes trust among customers and technicians, thus resulting in higher rates of acceptance. In addition, wired micro-inverters provide faster response times than wireless options. This ensures the best performance and minimal energy waste, which are the important elements for maximizing the profit from solar systems. Besides, safety concerns might lead to a desire for wired options, owing to their low vulnerability to signal interruptions. Thus, these factors play an important role in the domination of the wired segment in the micro-inverter market.

Single Phase segment will dominate the market owing to their use in small-scale and residential sector

Micro-inverter market is divided by Type into Single-phase and Three Phases. The single-phase segment is expected to dominate the micro-inverter industry due to several factors. Single-phase micro-inverters are used in solar installations for residential and small-scale commercial purposes, which comprise a notable share of the entire solar market. These systems work on the single-phase AC power grids that are commonly seen in homes. Additionally, single-phase micro-inverters are easier to install and have a simpler design than three-phase models, which makes them an affordable and accessible option for homeowners. Furthermore, although three-phase micro-inverters are ideal for bigger commercial and industrial projects, the growth in small-scale solar installations in residential areas has led to the domination of the single-phase segment in the micro-inverter market.

Source: Fatpos Global

Market Dynamics

Growth Drivers

High Adoption of Solar Energy is Driving Growth in the Micro-Inverter Market

Growing use of solar energy is driving growth in the micro-inverter market, as more people are turning to renewable energy sources. The growing understanding of ecological issues, along with federal support for the use of clean energy, is driving the adoption of solar power systems in residential, commercial, and industrial sectors. In addition, consumers are looking to reduce their carbon footprint and dependence on fossil fuels, where solar energy provides a sustainable option. Thus, micro-inverters are important for maximizing the efficiency of solar PV systems, as they help in increasing the energy output and address problems such as shading and mismatch of solar panels. As a result, the increasing need for solar setups is resulting in higher demand for micro-inverters.

Improvements in technology Act as a Catalyst for Market Growth

Progress in micro-inverter technology plays an essential role in expanding the market. Innovations in power electronics, such as better heat control and grid connection abilities, improve the effectiveness of micro-inverter systems. These advancements in technology lead to high energy production and reduced maintenance expenses, which are reasons why micro-inverters are becoming more appealing to customers. Additionally, improvements in communication and monitoring technologies provide remote monitoring and control of micro-inverter systems. Thus, micro-inverter technology developments are promoting market growth by offering better and dependable solutions to meet the changing requirements of solar PV installations.

Restraints

High Initial Cost Barrier in the Micro-Inverter Market Will Impact the Growth

Despite the benefits they provide in the long run, the high initial cost of micro-inverter systems impacts their adoption. Micro-inverter systems have a higher initial cost per watt installed as compared to traditional inverter setups. The initial cost can discourage certain customers in markets where financial factors are important in making decisions. However, it is important to observe that despite the higher upfront expenses, micro-inverter systems offer better efficiency and higher energy generation throughout their lifespan. Besides, thanks to bulk production, the cost of micro-inverter technology is substantially decreasing, which results in fewer limitations and better accessibility to a wider range of consumers.

Recent Developments

• Enphase Energy, Inc., a renowned global energy technology company known for its microinverter-based solar and battery systems worldwide, introduced the IQ8 Commercial Microinverters in November 2023. This release includes the IQ8P-3P Microinverter, specifically designed for the North American small commercial solar market.
• In May 2023, APsystems unveiled the latest Wi-Fi & Bluetooth EZ1 Microinverter series. This single-phase microinverter solution is tailored for balcony installations and do-it-yourself (DIY) PV systems, showcased at the 16th SNEC International Photovoltaic Power Generation and Smart Energy Conference & Exhibition in Shanghai, China.
• March 2023 saw Hoymiles introducing the cutting-edge HMS-2000DW microinverter series, designed for high-powered PV modules with seamless Wi-Fi integration. Targeted at small home solar systems, these microinverters offer improved efficiency and reduced operational costs compared to alternatives.
• January 2023 marked the launch of innovative microinverters by Hoymiles aimed at reducing initial customer costs while maintaining performance. The HMS-C series is accessible in North America and Oceania, while the HMS-D series is available in Latin America and the Asia Pacific region.

Micro-Inverter Market

Key Players:

• Enphase Energy
• SolarEdge Technologies
• SMA Solar Technology AG
• ABB
• APsystems
• Darfon Electronics Corp
• Silicon Power
• Solantro Semiconductor Corp
• Renesola Power Holdings
• Growatt New Energy Technology
• Omnik New Energy
• Fronius International GmbH
• Ginlong Technologies
• Delta Electronics, Inc.
• GoodWe Power Supply Technology Co., Ltd.
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Micro-Inverter Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is predicted to dominate the Micro-Inverter Market owing to supportive government policies and growing energy demand across the Asia Pacific region. In addition, countries such as China, Japan, and India are aiming for ambitious renewable energy goals, thus promoting the vast use of solar power systems in which micro-inverters are important.

North America, on the other hand, is well-positioned to closely monitor this trend as solar power is gaining popularity in the United States, due to a reduction in the prices of solar panels and favorable legislation. Moreover, innovations in technology, as a result of the presence of major micro-inverter businesses and solar technology developers in North America are also contributing to the growth of micro-inverter businesses.

Source: Fatpos Global

Impact of COVID-19 on the Micro-Inverter Market

Micro-inverter market experienced diverse effects due to the COVID-19 pandemic. In the beginning, disruptions in the market occurred as a result of supply chain difficulties and delays in production. Additionally, unwillingness to invest due to economic uncertainty further impacted the demand for solar power systems and micro-inverters. However, as the pandemic evolved, there was a visible shift towards working from home and digital transformation, that sparked an interest in installing solar panels at homes. Furthermore, governments across the globe offered stimulus packages and incentives to adopt renewable energy, which resulted in high investment in solar projects. Thus, despite the initial obstacles presented by the pandemic, the resilience of the renewable energy industry along with government assistance, helped in reducing the effects of the pandemic, which led to slow recovery and growth in the micro-inverter market.

Micro-Inverter Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Micro-Inverter Market Scope and Segments:

Frequently Asked Questions (FAQ):