Micro Inverter Market Analysis

Global Micro Inverter Market Overview

Micro Inverter Market Size was valued at USD 2.8 Billion in 2022. The Micro Inverter market industry is projected to grow from USD 3.39 Billion in 2023 to USD 15.91 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.30% during the forecast period (2023 - 2032). It is due to their ability to significantly improve the efficiency and reliability of solar power systems are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Micro Inverter Market Trends

• 
  

  Rising solar PV adoption & higher energy efficiency is driving the market growth

  
  

Market CAGR for Micro Inverter is being driven by the several factors such as rising usage of solar PV, panel level Monitoring. The global shift toward renewable energy sources, particularly solar photovoltaic (PV) systems, has driven the demand for microinverters. Solar panels are becoming more common on rooftops and in commercial installations, and microinverters play a crucial role in maximizing the energy yield of these systems. Microinverters offer higher energy efficiency compared to traditional string inverters. By converting DC to AC at the panel level, they reduce losses from shading, panel mismatch, and other issues. This increased efficiency results in more electricity production and faster payback periods for solar system owners. Thus, driving the Micro Inverter solutions market revenue.

In addition, microinverters are equipped with advanced monitoring systems that allow users to track the performance of each individual solar panel in real-time. This granular data helps identify underperforming panels, soiling, or other issues, enabling timely maintenance and optimizing system output.

Moreover, microinverters provide increased system reliability compared to string inverters. In traditional string systems, if one panel is shaded or malfunctions, it can affect the entire string's performance. Also, the modular design of microinverters allows for easy scalability of solar installations. Homeowners and businesses can start with a smaller number of panels and microinverters and add more as their energy needs or budgets grow. This flexibility makes solar systems accessible to a wider range of users. Microinverters are suitable for various rooftop configurations, including those with shading, different panel orientations, and complex layouts. Their adaptability makes them an excellent choice for urban and residential settings with less-than-ideal rooftop conditions.

Micro Inverter Market Segment Insights:

Micro Inverter Offering Insights

The Micro Inverter Market segmentation, based on offering includes Hardware, Software & Services. The hardware segment dominated the market accounting for more than three-fourth of market revenue due to the rising demand for industrial & commercial and other sectors has led to increased adoption of Micro Inverter.

Figure 1: Micro Inverter Market, by Offering, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Micro Inverter Communication Technology Insights

The Micro Inverter Market segmentation, based on communication technology, includes Wired, Wireless. The wired category generated the most income (79.4%) as Microinverters are physically connected to each individual solar panel through DC wiring. This allows them to convert the DC electricity produced by each panel into AC electricity.

Micro Inverter Type Insights

The Micro Inverter Market segmentation, based on type includes Single Phase, Three Phase. The Single-Phase segment dominated the market, accounting for two third of market revenue as Single-phase microinverters are scalable, allowing homeowners to start with a small number of solar panels and expand their solar array over time. This flexibility makes solar energy accessible to a wider range of consumers who may have budget constraints or varying energy needs.

Micro Inverter Power Rating Insights

The Micro Inverter Market segmentation, based on power rating includes Below 250 W, between 250 W and 500 W, above 500 W. Between 250 W and 500 W dominated the market, accounting for three-fifth third of market revenue. This power range of microinverters is often utilised in small-scale commercial and residential solar installations. They are made to transform the direct current (DC) electricity produced by individual solar panels into alternating current (AC) electricity, which can then be fed back into the grid or used to power homes.

Micro Inverter Connection Type Insights

The Micro Inverter Market segmentation, based on connection type includes Stand-alone, Grid-tied. The Stand-alone segment dominated the market, accounting for more than two third of market revenue. These are independent-functioning microinverters, which are frequently built into each solar panel. Without the need of a central inverter, they maximise the performance of the particular solar panel to which they are attached by working directly with it.

Micro Inverter Sales Channel Insights

The Micro Inverter Market segmentation, based on sales channel includes Direct, Indirect. The direct segment dominated the market, accounting for more than three- firth of market revenue. It entails suppliers or manufacturers selling microinverters to consumers or end users directly. Some producers of microinverters decide to market to consumers directly. They can use an internet platform or their own sales personnel to do this. Manufacturers are able to control more aspects of the client experience and price through direct sales.

Micro Inverter Application Insights

The Micro Inverter Market segmentation, based on application includes Residential, Commercial PV Power Plant. The commercial PV Power plant segment dominated the market, accounting for more half of market revenue as more than 50% electricity are consumed by industrial area. In solar PV systems, microinverters are components that convert the direct current (DC) power produced by solar panels into alternating current (AC) electricity suitable for usage in residences or commercial buildings. Their advantages over conventional string inverters have made them especially popular in business installations.

Micro Inverter Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Micro Inverter market area will dominate this market, due to heavily demand by commercial sectors. In North America, particularly the United States, has experienced significant growth in residential solar installations. Microinverters are well-suited for these smaller-scale systems commonly found on residential rooftops. Homeowners seeking to harness solar power often prefer microinverters due to their compatibility with residential electrical systems and ease of installation. Microinverters, especially those with panel-level optimization, offer superior shade tolerance. In areas where shading from trees, nearby structures, or rooftop obstructions is common, microinverters ensure that energy production is maximized, even if one or more panels are shaded..

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MICRO INVERTER MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Micro Inverter market accounts for the second-largest market share. Europe has been at the forefront of embracing renewable energy sources and taking significant steps to transition towards a sustainable energy future. Solar photovoltaic (PV) systems play a crucial role in this transition, and microinverters have emerged as a preferred choice in the European market. Their increasing demand is driven by their ability to enhance the efficiency and performance of solar installations, especially in residential and small-scale systems. Microinverters offer a solution to the common issue of shading, a challenge in many parts of Europe due to its varying climate and building structures. With microinverters, each solar panel operates independently, optimizing energy production and reducing energy losses caused by shading, dust, or other obstructions.

The Asia-Pacific Micro Inverter market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region is home to some of the world's most populous countries, including China and India, where the need for clean and sustainable energy solutions is paramount. The growing emphasis on renewable energy sources and the desire to reduce greenhouse gas emissions have led to substantial investments in solar power. Microinverters play a crucial role in this transformation, as they offer several advantages, such as high energy efficiency and advanced monitoring capabilities. In a region characterized by varying climate conditions, microinverters' ability to maximize energy production, even in shaded or partially obstructed environments, is highly appealing to homeowners and businesses looking to harness the power of the sun. Moreover, China’s Micro Inverter market held the largest market share, and the Indian Micro Inverter market was the fastest growing market in the Asia-Pacific region.

Micro Inverter Key Market Players & Competitive Insights

Leading market players are investing heavily in advanced technologies in order to expand their solutions and services, which will help the Micro Inverter market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new solution launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Micro Inverter industry must offer cost-effective solutions.

Growing demand for various sectors and rising awareness and other tactics used by key players in the global Micro Inverter industry to benefit clients and increase the market sector. In recent years, the Micro Inverter industry has offered some of the most significant advantages to enterprises. Major players in the Micro Inverter market, including SunPower Corporation, P and P Energy Technology Co Limited, Enphase Energy, Inc, SolarEdge Technologies Inc., Siemens AG, Involar, ReneSola, ABB Group, Delta Energy Systems GmbH, SMA Solar Technology AG, are attempting to increase market demand by investing in research and development operations.

SunPower Corporation is a leading American solar energy company headquartered in San Jose, California. One of SunPower's key distinguishing features is its commitment to producing some of the most efficient solar panels on the market. The company's proprietary Maxeon® solar cell technology is renowned for its efficiency, durability, and performance. Maxeon cells are built on a solid copper foundation, eliminating the need for traditional grid lines found in conventional solar cells, which can block sunlight and reduce efficiency. This design ensures that SunPower's solar panels offer industry-leading efficiency levels, capturing more energy from the sun and delivering higher energy yields over the life of the system. This high efficiency is particularly valuable for space-constrained residential installations and large-scale solar projects where maximizing energy production from available space is crucial. SunPower's solar panels are also known for their exceptional durability, able to withstand extreme weather conditions and providing a long operational life, reducing the cost of ownership and maintenance for customers.

Enphase Energy, Inc. is a leading American company headquartered in Fremont, California, that specializes in the development and manufacturing of innovative energy management solutions for the solar industry. A hallmark of Enphase's technology is its microinverter systems, which are designed to optimize the performance of solar photovoltaic (PV) installations. Unlike traditional string inverters, microinverters are installed on a per-panel basis, ensuring that each solar panel operates independently and at its maximum efficiency. This results in improved energy production, even in situations where shading, soiling, or panel mismatch may affect a portion of the solar array. Enphase's microinverters are renowned for their reliability and are engineered to withstand harsh environmental conditions, providing a long operational life and minimizing maintenance requirements for solar system owners. Furthermore, these microinverter systems enable real-time monitoring and control, allowing homeowners and businesses to track the performance of their solar panels, identify and address any issues promptly, and maximize energy production.

Key Companies in the Micro Inverter market include

• SunPower Corporation,


• P and P Energy Technology Co Limited,


• Enphase Energy, Inc,


• SolarEdge Technologies Inc.,


• Siemens AG, Involar,


• ReneSola,


• ABB Group,


• Delta Energy Systems GmbH,


• SMA Solar Technology AG

Micro Inverter Industry Developments

April 2022: Yotta Energy announced obtaining USD 3.5 million in new capital, bringing its total Series A funding to USD 16.5 Million. Yotta's total funding is now over USD 25.5 million due to the current funding round and award.

October 2021: Enphase Energy, Inc., the world's premier microinverter-based solar and battery system manufacturer, unveiled the Enphase Energy System with IQ8TM solar microinverters for clients in North America. IQ8 is Enphase's most advanced microinverter to date. Unlike rival gadgets, IQ8 can build a microgrid using sunlight throughout a power outage, delivering backup energy without a battery.

Micro Inverter Market Segmentation

Micro Inverter Offering Outlook

• Hardware


• Software & Services

Micro Inverter Communication Technology Outlook

• Wired


• Wireless

Micro Inverter Type Outlook

• Single Phase


• Three Phase

Micro Inverter Power Rating Outlook

• Below 250 W


• Between 250 W and 500 W


• Above 500 W

Micro Inverter Connection Type Outlook

• Stand-alone


• Grid-tied

Micro Inverter Sales Channel Outlook

• Direct


• Indirect

Micro Inverter Application Outlook

• Residential


• Commercial PV Power Plant

Micro Inverter Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America