Micro Inverter Market Share, Size, Trends, Industry Analysis Report, By Type (Single Phase and Three Phase); By Component; By Communication Technology; By Application; By Region; Segment Forecast, 2024- 2032
- Published Date:Feb-2024
- Pages: 116
- Format: PDF
- Report ID: PM4488
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
Micro Inverter Market size was valued at USD 4.31 billion in 2023. The market is anticipated to grow from USD 5.40 billion in 2024 to USD 33.27 billion by 2032, exhibiting the CAGR of 25.5% during the forecast period.
Industry Overview
Micro inverters are devices used in solar power systems to convert direct current (DC) electricity generated by individual solar panels into alternating current (AC) electricity. In a traditional solar power system, multiple solar panels are connected in series to form a string, and a single central inverter is used to convert the DC power from the entire string into AC power.
The market for solar energy solutions increases as the rising interest in renewable energy and heightened awareness of environmental sustainability are driving the need for microinverters. The decision of key players in the micro inverter market to introduce a new microinverter series is influenced by factors such as market trends, competition, technological advancements, and the overall demand for solar energy solutions, collectively contributing to the growth of the market.
- For instance, In March 2023, Hoymiles unveiled the state-of-the-art HMS-2000DW microinverter series designed specifically for high-powered PV modules, boasting seamless Wi-Fi integration. Geared towards small home solar systems, these microinverters deliver heightened efficiency and lower operational costs when compared to alternative devices.
India is continuously investing in and growing its renewable energy sector as a result of the country's growing need for electricity and its requirement to find new, mainly renewable, ways to create it. An opportunity to supply solar panels for various uses is presented to local producers by the absence of an electricity grid in a rural part of India and by all the government programs aimed at increasing the number of consumers using renewable energy. The Indian market for micro inverters would, therefore, get a major boost from the expansion of the renewable energy sector. Thus, the micro inverter market is expected to see a significant rise in the forecast years.
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To promote the adoption of solar power systems, governments often extend financial incentives, tax credits, or subsidies to individuals, businesses, and utilities investing in solar energy infrastructure. For instance, the Indian government provides subsidies ranging from 30% to 90% for on-grid solar systems, hybrid solar systems, and solar water pumps. Similarly, in the United States, subsidies for renewable energy reached USD 15.6 billion in 2022. These play a significant role in enhancing the economic viability of solar installations, making them more financially feasible for both consumers and businesses, contribute to driving the opportunities in micro inverter market.
Key Takeaways
- Asia pacific accounted for the largest market and contributed to more than 35% of share in 2023
- North America expected to witness the fastest market during the forecast period
- By type category, single phase segment accounted for the largest market share in 2023
- By Application category, the residential segment is projected to grow at fastest rate during the forecast period
What are the market drivers driving the demand for micro inverter market?
Increase in installations of solar products such as solar panels
Growing awareness of environmental sustainability and the need for clean energy sources has led to an increased demand for solar energy solutions. Micro inverters play a crucial role in solar energy systems by improving energy harvesting and overall system efficiency. Micro inverters offer advantages over traditional string inverters by optimizing energy harvesting at the individual solar panel level. This leads to higher overall system efficiency, especially in installations of solar panels with shading, different panel orientations, or varying sunlight conditions.
The industry trend towards module-level power electronics, including micro inverters, is gaining momentum. Module-level power electronics provide more granular control over the performance of individual solar panels, contributing to increased overall system output.
Ongoing technological advancements, such as increased solar PV module efficiency, drive cost reductions. The industrialization of these highly modular technologies has brought tremendous benefits, from economies of scale and stronger competition to improved manufacturing processes and supply chains, further propelling the micro-inverter market growth.
Which factor is restraining the demand for micro-inverters?
Higher Initial Cost
Microinverters are often more expensive upfront compared to traditional string inverters. The initial cost can be a significant barrier for residential and commercial customers, especially in regions where cost considerations play a crucial role in decision-making. The complexity of the installation process, involving the connection of inverters to each solar panel, may lead to increased labor costs. Micro inverters may only be compatible with some types of solar panels, and integration challenges may arise when retrofitting existing solar installations. Compatibility issues can limit the flexibility of system design and lead to additional costs if adjustments or replacements are necessary.
Report Segmentation
The market is primarily segmented based on type, components, communication technology, application and region.
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By Type |
By Components |
By Communication Technology |
By Application
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By Region |
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Category Wise Insights
By Type Insights
Based on type analysis, the market has been segmented on the basis of a single phase and three phases. The single-phase segment accounted for the largest market share in 2023. Single phase micro inverters are so widely used in the residential sector worldwide. Single-phase micro-inverters are tiny and suitable for household as well as commercial applications. Most of the residential market utilizes single-phase systems for electricity transmission.
The photovoltaic modules can generate single-phase power that an individual phase inverter can use to connect to single-phase devices or the grid. Full-bridge and half-bridge inverters are the two varieties of single-phase inverters. The amount of money saved on energy bills when compared to other inverters is one of the main factors propelling the growth of the single-phase micro inverter market. Furthermore, single-phase micro inverters are inexpensive for customers to install at home since they are easy to install. During the projected period, these factors are expected to fuel the market's expansion.
By Application Insights
Based on substrate analysis, the market is segmented on the basis of residential, commercial, PV power plants, and others. The residential segment is projected to grow at the fastest rate during the forecast period. Due to the increasing number of government rules requiring the adoption of energy harvesting systems in the residential sector worldwide, the residential segment is projected to hold the largest share during the forecast. Most micro-inverters are used in residential settings. Over the past few years, there has been a notable increase in the number of residential solar rooftop PV installations.
However, growing energy expenses combined with encouraging national and international policies often lead to a notable increase in the need for energy-saving solutions, which in turn propels the residential market's adoption of micro inverters. The market expansion of microinverters for residential applications is also expected to be driven by the growing adoption of controlled energy expenditure solutions in the residential sector in highly urbanized nations like the US, China, Japan, Australia, and others, where rooftop PV installations are a common trend. As a result, the residential segment is anticipated to have substantial growth during the forecast period.
Regional Insights
Asia Pacific
Asia Pacific region accounted for the largest micro-inverter market share in 2023, due to its demand for clean and sustainable energy solutions is critical. Solar power has seen significant expenditures due to the increased emphasis on renewable energy sources and the goal to reduce greenhouse gas emissions. Micro inverters, with their many benefits, including great energy efficiency and sophisticated monitoring capabilities, are essential to this shift. The capacity of microinverters to optimize energy production even in partially covered or obstructed environments makes them particularly desirable to households and companies seeking to harness the power of the sun in a location with a varied climate.
North America is expected to witness the fastest market during the forecast period. Increasing industrialization across North America has increased the installation of solar panels, and hence, the demand for micro inverters has increased.
Competitive Landscape
The micro inverter market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ several approaches such as mergers and acquisitions, research and development, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- AEconversion GmbH & CO. KG
- Altenergy Power Systems
- Bluesun Solar Co., Ltd.
- Chilicon Power LLC
- Enphase Energy
- Envertech
- Hoymiles
- Ningbo Deye Inverter Technology Co Ltd
- Solar Panels Plus
- ZJBENY
Recent Developments
- In April 2022, Yotta Energy reported securing an additional USD 3.5 million in finance, increasing its Series A fundraising total to USD 16.5 million. Recently investment round and award, Yotta has received over USD 25.5 million in funding in total.
- In July 2021, Chilicon Power, a creator and supplier of grid-interactive micro inverters and solar market monitoring systems, was purchased by Generac.
Report Coverage
The micro inverter market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive types, components, communication technology, application and their futuristic growth opportunities.
Micro Inverter Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 5.40 billion |
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Revenue forecast in 2032 |
USD 33.27 billion |
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CAGR |
25.5% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024– 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Type, By Components, By communication technology, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
We strive to offer our clients the finest in market research with the most reliable and accurate research findings. We use industry-standard methodologies to offer a comprehensive and authentic analysis of the Micro Inverter Market. Besides, we have stringent data-quality checks in place to enable data-driven decision-making for you.
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FAQ's
The global micro inverter market size is expected to reach USD 33.27 billion by 2032
Key players in the market are AEconversion GmbH & CO. KG, Altenergy Power Systems, Bluesun Solar Co., Ltd., Chilicon Power LLC, Enphase Energy
North America contribute notably towards the global Micro Inverter Market
Micro Inverter Market exhibiting the CAGR of 25.5% during the forecast period.
The Micro Inverter Market report covering key segments are type, components, communication technology, application and region.
