Market Overview
Global Micro Inverter Market reached USD 2.8 billion in 2022 and is expected to reach USD 8.5 billion by 2031, growing with a CAGR of 20.5% during the forecast period 2024-2031. Microinverters optimize the performance of each individual solar panel by converting DC to AC at the panel level and this ensures that shading, dust or other issues affecting one panel do not impact the performance of the entire solar array, resulting in higher energy yields.
North America is expected to hold a market share of 1/3rd of the global micro inverter market during the forecats period 2024-2031. North America witnessed a rapid increase in the adoption of solar energy which is driven by governmental incentives and environmental concerns. Governments in North America including U.S. and Canada have implemented various policies such as tax credits and incentives that promoted the adoption of solar energy.
Due to the rising demand for micro inverters, companies have been able to manufacture more battery storage. Yotta Energy, Austin, Texas, said in April 2022 that it has been given a US$ 1.97 million deal for the installation of a solar + storage microgrid at Nellis Air Force Base in Las Vegas.
Market Scope
| Metrics | Details |
| CAGR | 20.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Component, Communication Technology, Distribution Channel, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Investment in Renewable Energy
Shifting from fossil fuel to cleaner energy sources the demand for renewable energy that includes solar power increases. Micro inverter plays an important role in optimizing the efficiency of solar panels by converting direct current generated by the panels into alternating current that can be used in homes and businesses.
For instance, on 6 July 2023, President Joe Biden is set to announce a USD 60 million investment from Enphase Energy Inc. a prominent solar-energy equipment manufacturer, during his visit to South Carolina. Enphase's plan involves establishing six new manufacturing lines, which will strengthen clean-energy supply chains and contribute to powering up to 1 million homes annually using solar energy.
Increased Demand for Energy Storage Systems
Micro inverters optimize energy production by converting direct current from solar panels into alternating current for immediate use or storage and when integrated into energy storage systems micro inverters ensure efficient AC-to-DC conversion during the charging and discharging of batteries, minimizing energy losses and maximizing overall system efficiency.
For instance, on 17 May 2023, Sineng Electric, a leading solar inverter manufacturer, is partnering with Onsemi, a semiconductor solutions provider, to integrate Onsemi's EliteSiC silicon carbide MOSFETs and IGBT-based high-density power modules to its utility-scale solar inverters and energy storage system for 200kW. The collaboration aims to optimize the performance of solar inverters and energy storage systems.
Cost Effective and Complex Structure
Micro inverters are more expensive than their central inverter counterparts. The need for multiple inverters for each panel adds to the overall system cost which impacts the upfront investment required for a solar installation. Installing micro inverters on each panel can be more complex and time-consuming compared to a single central inverter installation.
Micro inverters are distributed across the solar array, making maintenance more intricate. Accessing and servicing individual inverters may require additional effort and expertise, potentially increasing maintenance costs. The wiring and connection of multiple micro-inverters increases complex installation labor and potential points of failure.
Segment Analysis
The global micro-inverter market is segmented based on type, component, communication technology, distribution channel, application and region.
Adoption of Micro inverter in Residential Areas
The micro inverter in residential application is expected to dominate the global market holding around 1/3rd of the market share in 2022. Unlike from traditional string inverters, microinverters are connected to each individual solar panel and this enables each panel to operate independently, optimizing energy production even if some panels are shaded or facing different directions, this individual panel optimization leads to higher overall system efficiency and output.
For instance, on 15 March 2023, Solinteg, a solar inverter and solutions provider, is set to open a new factory in Wuxi, China, to meet the growing demand for its products. The facility will have four production lines and add an initial manufacturing capacity of 4GW. The move is driven by the popularity of its hybrid inverters, particularly the Integ M 3-20kW and the newly launched Integ M 25-50kW model, among commercial and industrial customers.
Geographical Penetration
Adoption of Urban Rooftops in Asia-Pacific
Asia-Pacific is expected to grow at the highest CAGR in the global micro inverter market during the forecast period 2024-2031. Asia-Pacific has growth in urbanization and industrial development led to increasing energy consumption. Microinverters provide a decentralized solution that can be easily integrated into various settings, including urban rooftops and industrial facilities. Also, the adoption of residential solar systems boosts the growth of the market.
For instance, on 31 March 2023, Chinese solar module manufacturer DAH Solar introduced an integrated solar system for residential use, designed to be used on balconies and rooftops. The turnkey system, called SolarUnit, features a plug-in connection that allows it to be easily connected to the electrical grid. The system can accommodate up to six of DAH Solar's special panels, which have power outputs of 460 W and 550 W and an efficiency rating of up to 21.3%.
Major Key Players
The major global players include Enphase Energy, ABB, Siemens, Infineon Technologies, Canadian Solar, Chilicon Power, SolarEdge Technologies, Altenergy Power System, Darfon Electronics and Renesola.
COVID-19 Impact Analysis
The micro-inverter industry heavily relies on the global supply chain for components and materials and with lockdowns, travel restrictions and temporary closures of factories, the supply of essential parts and components was disrupted, leading to delays in manufacturing and project deployments.
Many different micro-inverter manufacturers faced challenges in maintaining their production levels due to reduced workforce availability, safety protocols and limitations on factory operations and this resulted in delays in fulfilling orders and delivering products to customers. Due to these factors, there is a downfall in the growth of the market.
AI-Impact
AI algorithms can optimize the operation of micro-inverters by continuously analyzing data from solar panels, environmental conditions and energy demand and this allows for real-time adjustments to maximize energy production and efficiency and AI-powered predictive maintenance techniques monitor the health of micro-inverters and also predict potential failure.
For instance, on 7 May 2020, Huawei, the Chinese conglomerate, is intensifying its integration of artificial intelligence into its solar inverter technology. After unveiling its first AI-based solar inverter last year, Huawei has laid out its plans to further incorporate AI into its string inverters for improved performance and efficiency. The company's approach includes transforming inverters into smart PV controllers and establishing an AI training and inference platform.
Russia- Ukraine War Impact
Economic sanctions and trade disruptions between Russia and Ukraine war are affecting the global supply chain for electronic components and materials used in micro-inverter manufacturing which delaying the production and potential shortages of certain components. Due to these factors, there is a downfall in the market growth.
Geopolitical conflicts impact energy security concerns in the region. Depending on the war conditions and governments prioritize domestic energy production and security, which could impact the development and deployment of renewable energy technologies that include micro-inverters.
By Type
- Single Phase
- Three Phase
By Component
- Software
- Services
- Hardware
By Communication Technology
- Wired
- Wireless
By Distribution Channel
- Direct
- Indirect
By Application
- Residential
- Commercial
- Solar Power Plant
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- On 29 March 2023, Enphase Energy, a global energy technology company known for its micro inverter-based solar and battery systems announced the shipment of IQ8 Micro inverters with a peak output AC power of 384VA to France and the Netherlands and these micro inverters are designed to support high-powered solar modules and enhance energy production.
- On 12 May 2023, International solar energy company Sun King introduced a new solar inverter in Nigeria with the aim of reducing the country dependence on expensive fossil fuel-powered generators and the unreliable national grid. The solar inverter, designed by Sun King, represents a significant advancement in solar generating capacity for the company.
- On 19 January 2023, SOFAR, a global solar energy solutions provider, has unveiled its latest string inverter solution, the SOFAR 100-125KTL-G4, at the World Future Energy Summit and this new inverter is optimized for commercial and industrial and small-scale utility solar applications. It features industry-leading ultra-high current capabilities, easy installation and intelligent protection features.
Why Purchase the Report?
- To visualize the global micro inverter market segmentation based on type, component, communication technology, distribution channel, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of micro inverter market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global micro inverter market report would provide approximately 77 tables, 74 figures and 205 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
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