The global Solar Microinverter and Power Optimizer Market size was valued at USD 4.2 Billion in 2022 and is projected to attain USD 11.8 Billion by 2032 mounting at a CAGR of 11.2% from 2023 to 2032.
Solar Microinverter and Power Optimizer Market Highlights
A solar microinverter and a power optimizer are two independent technologies used to increase energy generation and overall system performance in solar photovoltaic (PV) systems. Micro-inverters and power optimizers currently represent one of the fastest-growing segments in the global market for solar electricity generation, collectively known as power electronics modules (MLPEs). While centralized or string inverters continue to be the preferred and most widely deployed technology for solar roof systems worldwide, the promise of optimal efficiency and potentially higher production (approximately 25% greater than traditional photovoltaic systems) is particularly enticing, especially when PV systems are installed in shaded or complex areas with multiple orientations. Interestingly, as of 2014, some form of MLPE was integrated into over half of all U.S. residential solar PV installations.
Global Solar Microinverter and Power Optimizer Market Dynamics
Solar Microinverter and Power Optimizer Market Report Coverage
|Market||Solar Microinverter and Power Optimizer Market
|Solar Microinverter and Power Optimizer Market Size 2022||USD 4.2 Billion|
|Solar Microinverter and Power Optimizer Market Forecast 2032||USD 11.8 Billion|
|Solar Microinverter and Power Optimizer Market CAGR During 2023 - 2032||11.2%|
|Solar Microinverter and Power Optimizer Market Analysis Period||2020 - 2032|
|Solar Microinverter and Power Optimizer Market Base Year
|Solar Microinverter and Power Optimizer Market Forecast Data||2023 - 2032|
|Segments Covered||By Type, By Connectivity, By Application, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||ABB, Altenergy Power System Inc., Chilicon Power, LLC, Darfon, Enphase Energy Inc., iEnergy Co. Ltd., LG Electronics, Northern Electric Power Technology Inc., SMA Solar Technology AG, Sparq Systems, and SunPower Corporation.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis|
Solar Microinverter and Power Optimizer Market Insights
Improved power point tracking and panel monitoring will positively impact the market. Additional features that can further enhance business growth include flexibility, compact size, and low DC voltage demand. The increasing adoption of commercial and residential photovoltaic systems is driving the global market for solar microinverters and power optimizers. There is a high demand for upgraded electricity-collection systems with features like independent power generation panel monitoring, which is also catalyzing industry growth. Leading companies are expanding their market share by investing more in R&D for single-product development.
Rise in Installation of PV Systems Contributes to the Solar Microinverter and Power Optimizer Market Growth
Solar microinverters and power optimizers are commonly used in infrastructure, industrial, and business sectors. Projections indicate that sales of solar microinverters and power optimizers in the commercial sector are expected to reach USD 300 million by 2024. The high energy efficiency and increased protection controls are anticipated to drive consumer demand. Strong growth is expected in residential projects, which achieved USD 400 million in sales in 2015. This growth will be fueled by the expanded deployment of PV systems on residential building rooftops. In addition to features such as improved conversion efficiency and high circuit density compared to their counterparts, three-stage solar microinverters and power optimizers reduce system downtime. Over the coming years, the strong demand for continuous electricity will drive the adoption of solar microinverters and energy optimizers in the utility market.
To promote green energy, which positively impacts market share, the U.S. government has initiated various opportunities, including incentives, investment tax credits, net metering, and discounts. In 2019, the UK accounted for over 10% of global sales. The UK solar microinverter and power optimizer market are expected to experience dramatic growth in the next few years, driven by the increased penetration of residential and commercial rooftop solar systems. The government's supportive clean energy policies are expected to have a positive impact on market development compared to fossil coal. China's market exceeded USD 50 million in 2019, driven by the government's emphasis on renewable energy, particularly solar, to meet the increasing demand for electricity. The Indian government is establishing subsidy schemes, including a 40% subsidy on the initial capital expenditure, to support the growth of urban and rural PV programs. Despite these optimistic policy measures, India is expected to achieve a steep Compound Annual Growth Rate (CAGR) of more than 20% from 2016 to 2024 in the solar microinverters and power optimizers industry. In 2019, the Chilean solar microinverter and power optimizer market held a 20% share in Latin America. Factors such as an abundance of solar energy, stable political environments, and low interest rates contribute to the rising business landscape. The nation aims to use renewable energies to account for 70% of overall electricity by 2050.
Solar Microinverter and Power Optimizer Market Segmentation
The worldwide market for solar microinverter and power optimizer is split based on type, connectivity, application, and geography.
Solar Microinverter and Power Optimizer Types
Solar microinverters have gained significant traction in the market due to their advantages. These devices are positioned at the individual solar panel level and convert the direct current (DC) power produced by each panel into alternating current (AC). One of the main reasons for their supremacy is their ability to maximize energy output even when there is a shade or panel mismatch. Because each panel is powered by its own microinverter, the performance of one panel has no bearing on the whole system. This personalized strategy delivers greater overall energy yields and improved system dependability. Microinverters also provide comprehensive monitoring capabilities, allowing users to track the operation of each panel in real-time, allowing for faster problem discovery and resolution.
Power optimizers, on the other hand, are installed at the panel level but do not convert DC to AC like microinverters do. Instead, they optimise each panel's DC output before it reaches a centralised inverter. Power optimizers are very successful in addressing shading and panel mismatch concerns, which can have an impact on system efficiency. They are well-known for improving overall system performance by ensuring that each panel runs at maximum power. They are, however, frequently used in conjunction with a central inverter, and their usefulness is determined on the quality and efficiency of that inverter.
Solar Microinverter and Power Optimizer Connectivity
Standalone microinverters and power optimizers are often employed in off-grid or distant applications where the solar PV system runs independently of the utility grid. These systems are typically found in isolated residences, campers, or other sites where grid energy is unavailable. Standalone connectivity guarantees that the solar system can create and store its own electricity, which is frequently done via batteries.
On-grid microinverters and power optimizers are developed for utility-connected solar PV installations. When the solar panels create more power than is immediately required, these systems send excess electricity back into the grid. They are frequently utilised in residential, commercial, and utility-scale solar projects where the grid acts as a backup or energy storage option.
Solar Microinverter and Power Optimizer Applications
As per the solar microinverter and power optimizer market forecast, residential application are expected to lead the market from 2023 to 2032. The emphasis in the residential sector is frequently on maximising energy output at the individual panel level, particularly in cases where shading or complicated roof layouts might impair system performance. Microinverters and optimizers provide homeowners with greater energy yield, system dependability, and monitoring capabilities.
Microinverters and power optimizers are also used in commercial solar installations, which include enterprises, industrial facilities, and commercial buildings. Energy efficiency, system dependability, and cost-effectiveness are all important considerations in the business sector when selecting technology. These gadgets can assist organizations in lowering their energy expenses and achieving their environmental objectives.
Utility-scale solar projects entail big solar arrays that pump power into the grid in order to fulfill the energy needs of several clients. While utility-scale projects frequently employ central inverters for economies of scale, some may include power optimizers for improved energy output and system monitoring. In utility-scale projects, the choice between microinverters, power optimizers, and central inverters is influenced by a variety of criteria like as project size, geographical location, and grid integration needs.
Solar Microinverter and Power Optimizer Market Regional Segmentation
The Middle East & Africa
Solar Microinverter and Power Optimizer Market Regional Analysis
North America has been an important market for solar microinverters and power optimizers, notably in the United States and Canada. A robust residential and commercial solar industry, backed by government incentives, net metering rules, and increased understanding of the benefits of module-level electronics, is driving adoption. Market dynamics in North America can be influenced by regulatory changes and state-level incentives.
Early users of solar technology in Europe include Germany, France, and the United Kingdom. Feed-in tariffs, renewable energy objectives, and the requirement to maximize energy output in places with fluctuating weather conditions all impact the adoption of microinverters and power optimizers. Because of legislative variances, market dynamics might differ from one European country to the next.
Solar Microinverter and Power Optimizer Market Players
Some of the top solar microinverter and power optimizer companies offered in our report include ABB, Altenergy Power System Inc., Chilicon Power, LLC, Darfon, Enphase Energy Inc., iEnergy Co. Ltd., LG Electronics, Northern Electric Power Technology Inc., SMA Solar Technology AG, Sparq Systems, and SunPower Corporation.
The size of solar microinverter and power optimizer market was USD 4.2 billion in 2022.
The solar microinverter and power optimizer market CAGR during the analysis period of 2023 to 2032 is 11.2%.
The key players operating in the global solar microinverter and power optimizer market are ABB, Altenergy Power System Inc., Chilicon Power, LLC, Darfon, Enphase Energy Inc., iEnergy Co. Ltd., LG Electronics, Northern Electric Power Technology Inc., SMA Solar Technology AG, Sparq Systems, and SunPower Corporation.
North America region held the dominating position in solar microinverter and power optimizer industry during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for market of solar microinverter and power optimizer during the analysis period of 2023 to 2032.
The current trends and dynamics in the solar microinverter and power optimizer industry include increasing demand for higher energy yields and system reliability, growing awareness of shading and panel mismatch issues fuels market growth, and stringent energy efficiency regulations promote the use of these technologies
The solar microinverter held the maximum share of the solar microinverter and power optimizer industry.?