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Solar Microinverter and Power Optimizer Market size surpassed USD 4.9 billion in 2023 and is projected to grow at a CAGR of 13.3% during 2024 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.
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.
Report Attribute | Details |
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Base Year: | 2023 |
Solar Microinverter and Power Optimizer Market Size in 2023: | USD 4.9 Billion |
Forecast Period: | 2024 to 2032 |
Forecast Period 2024 to 2032 CAGR: | 13.3% |
2032 Value Projection: | USD 15.3 Billion |
Historical Data for: | 2019 to 2023 |
No. of Pages: | 174 |
Tables, Charts & Figures: | 703 |
Segments covered: | Product, Connectivity, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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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.
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.
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.
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.
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.
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.
Some of the key companies operating across the solar microinverter and power optimizer market are
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.
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