Micro Inverter Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the micro-inverter market was valued at USD 3.1 billion in 2022, and a CAGR of 24.5% is expected during the forecast period. Rising investment in solar energy and technological advancements is driving the growth of the market. Government subsidies and incentives are another major reason behind the growth in the micro inverter market.

Increased energy demand in every sector is driving the growth of the market significantly. Product launches and developments are expected to offer lucrative growth in the market. Increasing demand for higher efficiency and better performance compared to traditional string inverters by optimizing the power output of individual solar panels and maximizing energy production is driving growth in the market.

With improved monitoring and control and decreasing costs due to advancements in technology, increased competition among competitors is driving the growth of the market significantly. Micro inverters are known for their better reliability and durability.

Impact of Covid-19

The pandemic brought a significant slowdown in the market due to economic uncertainties, disruption in the supply chain, stringent lockdown, and social distancing. The pandemic has highlighted the importance of renewable energy sources for resilience and sustainability. Increasing interest in solar energy solutions is driving the growth of the market. With restrictions on travel and the trend toward remote work, micro inverters became a much better option. Delays in manufacturing and delivery of micro-inverter components impacted the availability of products. The economic downturn resulting from the pandemic has affected consumer spending. Social distancing measures and safety protocols have made it challenging to conduct on-site installations. It resulted in project delays and poor overall performance.

Growth Drivers

Increasing demand for Higher efficiency in the conversion of solar to electrical energy in comparison to traditional string inverters. This efficiency improvement translates into higher energy yields for solar installations, making micro inverters an attractive option for both residential and commercial customers. Micro inverters allow greater modularity and scalability in solar installations.

Increasing demand for advanced monitoring and control capabilities allows users to monitor the performance of each solar panel individually. Early detection of issues, such as panel malfunctions, is leading to better system optimization. Micro inverters are well known for their durability and reliability. It offers extensive warranties and a long product life span. Improvements in power electronics, communication protocols, and grid integration capabilities drive market growth. Government policies, incentives, and regulations promoting renewable energy adoption play a significant role in driving the adoption of micro inverters. Declining solar panel costs, environmental concerns, and energy security considerations directly impact the demand for micro inverters.

Segmentation

Offering

·         Hardware

·         Software and Services

Communication Technology

·         Wired

·         Wireless

Based on Type

·         Single Phase

·         Three Phase

Based on Application

·         Residential

·         Commercial

·         PV Power Plant

Based on Connection Type

·         Stand Alone

·         Grid Type

Based on Power Rating

·         Below 250 W

·         In between 250-500 W

·         Above 500 W

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Micro Inverters Market Offering Segmentation

On the basis of its offerings, the micro-inverter market is segmented into hardware, software, and services. Hardware includes the physical components of the micro inverter, such as electronic circuits, power electronics, connectors, and enclosures. These components are essential for converting DC into AC. Electricity for use in homes or businesses.

Micro-inverters often come with embedded software that controls their operations, monitors performance, and communicates with other components of solar power systems. This software includes features for optimizing solar power services. Companies in the micro-inverter market offer various services to support their products and customers. These services include installation, maintenance, repair, monitoring, and customer support.

Micro Inverters Market Communication Technology Segmentation

On the basis of communication technology, the micro-inverter market was bifurcated into two parts: wired and wireless. The wired segment is the leading one and is expected to dominate during the forecast period. It offers a stable and reliable data transfer environment. Due to the consistent and uninterrupted communication requirements for effective performance in solar energy systems, Wired technology is useful where a large amount of data is required in an organization.

Micro Inverter Market Application Based Segmentation

On the basis of application, the micro-inverter market is segmented into residential, commercial, and PV power plants. The residential segment is the leading one and is expected to dominate the market during the forecast period. Micro inverters are often preferred in residential solar installations because they offer advantages such as individual panel optimization, which maximizes energy production even in partial shading conditions.

Micro inverters are a bit costly in comparison to central inverters, but their performance, scalability, and flexibility, along with enhanced safety and reliability, are the key factors behind their adoption. Ease of installation and maintenance are the other factors driving the growth of the micro-inverter market.

Regional Outlook

On the basis of the regions, the micro inverters market is segmented into 5 parts: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. Asia Pacific, due to the presence of key players in the region, is the leading segment and is expected to dominate the market during the forecast period. India, China, and Australia are continuously emphasizing the adoption of renewable energy resources. Increasing awareness of maintaining environmental sustainability.

This heightened demand is contributing in expansion of micro inverter market significantly. These markets are offering lucrative opportunities, especially incentives for the development of micro inverters. The increasing demand for efficient conversion of solar energy into electricity is driving the demand for micro inverters. Regions with high solar energy penetration, such as North American countries like the United States and Canada, have significant market shares. Government incentives and subsidies are driving growth in the European market.

Countries like Russia, Germany, Greece, France, Spain, Italy, and the United Kingdom are big markets for micro inverters. Increasing adoption of solar energy and increasing emphasis on renewable energy resources in these countries are the key factors behind the significant growth in the market. Improved efficiency and reliability of micro inverters have facilitated market expansion by providing integrated solutions and services to consumers.

Key Players

·         Enphase Energy

·         Hoymiles

·         Ninghbo Deye Inverter Technology Co. Ltd

·         Chilicon Power LLC

·         AEconversion GmbH and Company

·         Envertech

·         ZJBENY

·         BlueSun Solar Company Limited

·         Solar Panels Plus

·         Other Players