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Solar Microinverter and Power Optimizer Market Size By Product (Micro Inverter, Power Optimizer), By Connectivity (Standalone, On-grid), By Application (Residential, Commercial & Industrial, Utility) & Global Forecast, 2023 – 2032

  • Report ID: GMI289
  • Published Date: Jun 2023
  • Report Format: PDF

Solar Microinverter and Power Optimizer Market Size

Solar Microinverter and Power Optimizer Market size surpassed USD 4.3 billion in 2022 and is projected to grow at a CAGR of 13.5% during 2023 to 2032. The residential sector has been a key driver for micro inverter adoption, as it offers advantages such as panel-level optimization, system design flexibility, and potential improvements in energy yield.

 

Solar Microinverter and Power Optimizer Market

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The increasing espousal of residential solar PV systems is expected to drive the demand for micro inverters and power optimizers. Moreover, power optimizers have also gained traction in utility-scale solar PV installations. Power optimizers allow for panel-level optimization, mitigating the effects of shading, soiling, and panel mismatch, thus increasing energy production and system efficiency, which will further boost the product demand.

 

The increasing awareness of clean energy generation and the adoption of advanced technological solutions are driving the growth of the solar microinverter and power optimizer market. These technologies are developed to enhance the energy output from solar PV cells and wind turbines. Moreover, the growing global population, ongoing urbanization, and the rapid development of commercial and residential infrastructures are fueling the product demand.

 

The global deployment of solar PV has shown significant improvement; however, micro inverter and power optimizer manufacturers have faced challenges in the supply of raw materials and components due to the widespread pandemic. The disruptions caused by COVID-19 have led to the cancellation of long-term supply agreements as supply chains were realigned. These constraints have resulted in price hikes for components and products that are in high demand. As a result, the product requirement by end-users may be affected, potentially restraining the growth of the industry.

 

COVID-19 Impact

The COVID-19 pandemic has had a profound impact on major economies worldwide, including North America, Europe, the Middle East, and Asia Pacific. The commercial and industrial sectors have been particularly affected, leading to delays in various projects, including the manufacturing of solar PV modules and inverters. The disruption in global supply chains and the mining of raw materials has significantly impacted the solar microinverter and power optimizer market development. Organizations are prioritizing the resumption of normal operations as opportunities arise, especially in developed economies.
 

These economies are aiming to compensate for the recent impacts of COVID-19 by expediting the construction activities of existing solar PV projects. The continuous demand for electricity to sustain various industrial operations will be a significant growth driver for the market. Additionally, ongoing research and development efforts towards the development of vaccines or medications to control the spread of COVID-19 are expected to have a positive impact on the industry demand.
 

Solar Microinverter and Power Optimizer Market Trends

The solar microinverter and power optimizer market continues to witness technological advancements aimed at improving efficiency, reliability, and cost-effectiveness. These advancements include the integration of advanced MPPT algorithms, communication capabilities, enhanced monitoring software, and increased power density. With the growth of smart homes and smart energy management systems, the demand for micro inverters that can integrate with these systems is increasing.

 

Power optimizers are finding increased adoption in commercial and industrial PV installations. These applications often involve complex rooftops, shading challenges, and multiple orientations. Retrofitting existing PV systems with power optimizers has become a cost-effective solution to enhance energy production. By adding power optimizers to already installed string inverter systems, the performance of the system can be improved without the need for a full system replacement.

 

Solar Microinverter and Power Optimizer Market Analysis

Solar Microinverter and Power Optimizer Market Size, By Product

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The power optimizer segment in solar microinverter and power optimizer market held majority of installed capacity of over 17 GW in 2022. The restructuring of key energy markets and rapid technological advancements have played a crucial role in the evolution and adoption of power optimizers. These advancements include improvements in product operations, efficiency, and flexibility. Increasing environmental concerns and stringent government regulations aimed at reducing emissions have further driven the industrial focus towards integrating effective energy conservation measures.

 

As a result, manufacturers in the industry are prioritizing efficient manufacturing processes, optimization, precision, and the delivery of standardized products. These efforts have led to enhanced power output, improved environmental compatibility, and reduced installation costs, which is set to increase the product demand.

 

The standalone installations held 23% of the solar microinverter and power optimizer market market share in 2022 and is expected to grow at a lucrative pace by 2032. Standalone solar applications are predominantly deployed in regions where access to the electric grid is limited or connecting to the grid is prohibitively expensive. These applications provide a sustainable and cost-effective solution for electricity access in such areas. Policymakers, end-users, and private investors have actively encouraged the use of off-grid solar products to address energy access challenges.

 

Solar Microinverter and Power Optimizer Market Revenue Share, By Application,

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The residential solar PV installations have experienced significant growth in recent years. Increasing awareness about renewable energy, declining costs of solar panels, and favorable government policies and incentives have contributed to the growing acceptance of residential solar PV systems. The cost of solar PV systems has been steadily declining, making residential solar more affordable for homeowners.

 

The decreasing cost of solar panels, inverters, and installation services has played a key role in expanding the solar microinverter and power optimizer market. By individually optimizing the output of each solar panel, power optimizers help mitigate shading issues, module-level performance variations, and mismatch losses. This results in increased energy production and improved overall system performance.

 

 North America Solar Microinverter and Power Optimizer Market Size,

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The North American sub-continent has made significant progress in making solar energy more accessible, prevalent, and affordable. This progress is driven by the robust integration of solar energy sources and a shifting consumer focus towards renewable energy in residential and commercial establishments. Solar energy has become increasingly competitive in terms of cost when compared to conventional energy sources, thanks to the maturing solar microinverter and power optimizer market.

 

The increased accessibility and affordability of solar energy in North America can be attributed to several factors. These include advancements in solar technology, economies of scale in manufacturing, favorable government policies and incentives, and a growing public awareness of the environmental benefits of renewable energy sources.

 

Solar Microinverter and Power Optimizer Market Share

Some of the key companies operating across the solar microinverter and power optimizer market are

  • Tigo Energy, Inc.
  •  Ampt, LLC.
  •  Huawei Technologies Co., Ltd.
  •  Enphase Energy
  • APsystems
  •  SolarEdge Technologies Inc.
  •  Alencon Systems, LLC
  •  ferroamp
  •  Fronius International GmbH
  •  PCE Process Control Electronic GmbH
  •  Altenergy Power System Inc
  •  Infineon Technologies AG
  •  Sun Sine Solution Private Limited
  •  Suzhou Convert Semiconductor Co., Ltd.

     

Major manufacturers in Asia Pacific, the U.S., and the Middle East & Africa are inclined toward mergers & acquisitions, strategic collaborations, partnerships, and joint ventures to further gain a competitive advantage in the market.

 

Solar Microinverter and Power Optimizer Industry News:

  • In October 2021, Enphase Energy introduced IQ8, which is the first microgrid-forming software defined solar microinverter for customers in North America. IQ8 can form a microgrid using only sunlight, during a power outage, providing power backup even without a battery. The IQ8 product line consists of five types of software-, IQ8, IQ8A, IQ8H, IQ8M, and IQ8+with peak output of 384VA, 366VA, 330VA, 300VA, 245VA, and, having an efficiency of 97%.
     
  • In September 2021, APsystems launched the single microinverter product line, DS3 series, which is for residential & commercial applications in the Netherlands. It can be the most powerful dual module microinverter due to its fast power control, high-power output, remote upgradeability. These product series offer faster installation, better communication, lowered transportation costs, and a wide power range for greater energy harvest during relatively low light conditions.
     

This solar microinverter and power optimizer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in MW & USD Million from 2019 to 2032, for the following segments:

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Market, By Product

  • Micro Inverter
  • Power Optimizer

Market, By Connectivity

  • Standalone
  • On Grid

Market, By Application

  • Residential
  • Commercial & Industrial
  • Utility

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Italy
    • Poland
    • Netherlands
    • Austria
    • UK
    • France
  • Asia Pacific
    • China
    • Australia
    • India
    • Japan
    • South Korea 
  • Middle East & Africa
    • Israel
    • Saudi Arabia
    • UAE
    • South Africa
    • Egypt
    • Nigeria
  • Latin America
    • Brazil
    • Chile
    • Mexico

 

Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of solar microinverter and power optimizer reached USD 4.3 billion in 2022 and will witness 13.5% CAGR from 2023 to 2032, due to the higher adoption of residential solar PV systems.

The standalone installation connectivity segment held 23% of the market share in 2022, owing to the rising need for sustainable and cost-effective solution for electricity access.

The residential application segment is set to record significant traction through 2032, driven by the growing awareness about renewable energy and the declining costs of solar panels.

North America market will foresee considerable growth from 2023-2032, due to the robust integration of solar energy sources.

Solar Microinverter and Power Optimizer Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 14
  • Tables & Figures: 703
  • Countries covered: 23
  • Pages: 174
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