Global Micro Inverter Market Size, Share & Industry Trends Analysis Report By Type (Single phase and Three phase), By Connection (Grid Connected and Stand Alone), By End User, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Micro Inverter Market
Market Report Description
The Global Micro Inverter Market size is expected to reach $7.4 billion by 2028, rising at a market growth of 17.8% CAGR during the forecast period.
In photovoltaic systems, a micro inverter is an electrical device that transforms direct current (DC) from solar modules into alternating current (AC). To convert DC electricity to AC power at the device power source, such inverters are generally mounted separately on each solar panel. In addition, when compared to central inverters and string inverters, a micro inverter is simple to install and operate. Additionally, by conducting maximum power point tracking (MPPT) for the connected module, it aids in the production of optimal power. Moreover, it has various advantages over standard inverters, including increased dependability, higher output, and improved safety.
Technical benefits over other traditional solar inverters, capabilities, and design flexibility, such as generating maximum power from solar panels are driving the micro inverter market ahead. Additionally, the market is expected to develop due to an increase in demand for sustainable and clean energy as a result of rising concerns about greenhouse gas emissions. There is an increase in the frequency of solar photovoltaic (PV) installations for various applications around the comprehensive market.
When first firefighters or responders are on rooftops or maintaining power lines, new electrical rules require speedy solar system shutdown to keep them safe from high voltage. Such rapid shutdown needs are met by micro inverters, which have this functionality built into each module. The main benefit of employing micro-inverters is that firefighters can theoretically generate more solar electricity. The basis for this is that the currents across solar panels differ slightly. When solar panels are joined in a string, the current is reduced to the least-generating panel in the string.
COVID-19 Impact Analysis
The COVID-19 pandemic has an overall influence on society and the economy. The COVID-19 pandemic has had a significant impact on the electronics and semiconductor industries. Due to an increase in the number of COVID-19 cases, manufacturing and business units in several nations were closed. Additionally, the partial or complete shutdown impacted the worldwide supply chain, making it difficult for manufacturers to access customers and raw materials.
Additionally, this pandemic has had an influence on the electronics industry, as production facilities have halted, boosting demand for semiconductor and electronics products in the businesses. Its main effects include a significant manufacturing halt in Europe and a halt in Chinese parts exports, both of which limit the micro-inverter market's potential.
Market Growth Factors
Technological benefits of micro inverters over traditional solar inverters
Micro-inverters provide a number of technical advantages over other types of solar inverters, such as string and central inverters. Micro-inverters are located beneath each solar panel and convert direct current (DC) power produced by a single solar panel, contrasting conventional inverters, which are positioned at a distance from the solar array and can run and monitor a number of solar panels at the same time. This allows users to work independently. The photovoltaic (PV) system's maximum potential output is delivered by the micro-inverter. The ability of micro-inverters to sustain the consistent and strong flow of power amidst the shading of one or more of their panels is their prime advantage, which has increased their popularity among end-users.
Growth in solar PV installations due to incentive schemes by governments of different countries
Rapid advancements in the solar energy sector in order to power generation and use are helping to boost the number of solar PV installations for diverse applications around the world. For instance, as per Solar Power Europe's research, the Global Market Outlook for Solar Power/2020–2024, a numerous amount of countries installed above 1 GW of solar panels in 2019, which is in 2018, there were 5 GW of solar panel installations, up from 11 GW in same year. There has been a substantial increase in the number of new solar installations in recent years. Inverters have a greater penetration potential in new solar systems than it is done in existing or ongoing solar installations.
Market Restraining Factors
Variable environmental conditions may hamper the performance of solar micro inverter
The solar micro inverter solely depends on the balance and required amount of solar energy that is provided by sun. However, it is Some days it will be sunny, cloudy, and rainy or other kind of whether condition. Hence, in such conditions where micro inverter would not be able to perform to its maximum capacity, and in such scenario many operational activities that depend on micro inverter would come to temporary halt, and ultimately hamper the overall performance of the organization. Even during the sunny days, the level of sunlight may differ and create a probable variability in performance of the micro inverter.
Based on Type, the market is segmented into Single phase and Three phase. The single-phase inverter segment acquired the highest revenue share in the micro-inverter market in 2021. Due to their modular nature, plug-and-play capability, and control flexibility, single-phase micro-inverters have become increasingly popular in grid-connected residential PV systems. Such inverters are equipped with power decoupling capabilities to prevent pulsing output power from being reflected on PV outputs. There is an increase in the usage of an intermediate capacitor for power decoupling in a single-stage buck-boost derived PV micro-inverter. The transformer-free doubly grounded architecture eliminates common mode ground current problems.
Based on Connection, the market is segmented into Grid Connected and Stand Alone. The standalone segment witnessed a significant revenue share in the micro-inverter market in 2021. Due to the tiny size, which eliminates the need for an electrolyte capacitor and large transformer, standalone systems would record a significant popularity throughout the projection period. To stay in business, many market participants are focusing on R&D, production, and installation.
End User Outlook
Based on End User, the market is segmented into Residential and Commercial. The residential segment recorded the largest revenue share in the micro-inverter market in 2021. Solar photovoltaic adoption is expanding in the residential sector, owing to anticipated cost reductions, the requirement for a substitute origin of electricity, and the intention to decrease climate change risk. As a result, the micro inverter market's growth prospects have improved. The share of rooftop solar PV is expected to grow during the forecast period due to lower solar PV costs, favorable government policies for residential solar PV, FIT programs & incentives, and solar energy targets set by various governments. Continuous technological advancements, such as improved solar PV module efficiencies, are driving cost reductions.
|Market size value in 2021||USD 2.4 Billion|
|Market size forecast in 2028||USD 7.4 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 17.8% from 2022 to 2028|
|Number of Pages||173|
|Number of Tables||322|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Connection, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific emerged as the leading region in the micro-inverter market with the largest revenue share in 2021. The presence of many nations such as Japan, China, Australia, and India are striving to increase their solar PV installation capacity via sophisticated solar PV systems, which might improve electric stability. For commercial, residential, and PV power plant applications, APAC has multiple operating micro-inverter installations. Micro-inverter technology has been widely adopted in Japan and Australia. In addition, the growing number of residential rooftop solar PV installations in Japan and India motivates manufacturers to meet the needs of potential clients in the countries.
Free Valuable Insights: Global Micro Inverter Market size to reach USD 7.4 Billion by 2028
KBV Cardinal Matrix - Micro Inverter Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Siemens AG and Texas Instruments, Inc. are the forerunners in the Micro Inverter Market. Companies such as STMicroelectronics N.V, Sensata Technologies Holdings PLC, SolarEdge Technologies are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, Delta Electronics, Inc., STMicroelectronics N.V., Texas Instruments, Inc., Sensata Technologies Holdings PLC, Darfon Electronics Corporation, Enphase Energy, Inc., Sparq Systems Inc., Fimer S.p.A., and SolarEdge Technologies, Inc.
Recent Strategies Deployed in Micro Inverter Market
» Partnerships, Collaborations and Agreements:
- Dec-2021: STMicroelectronics introduced a new series of GaN power semiconductors in the STPOWER portfolio. This product launch aimed to drastically lower energy consumption and fit slimmer design in a large variety of electronic products. Target applications include consumer equipment like chargers, external power adapters for PCs, LED-lighting drives, and power supplies within home appliances and televisions. This new equipment is generated in high volumes globally, and with higher efficiency can realize significantly CO2 savings.
- Oct-2021: Enphase Energy released an all-in-one Enphase Energy System with IQ8 solar microinverters for customers based in North America. This new product is Enphase's smartest microinverter.
- Jul-2021: SolarEdge Technology unveiled a new series of inverters for industrial and commercial installers, with modular designs in different variants. This product launch aimed to enable industrial and commercial installers would just need a two-person crew to unify the inverters into their solar arrays.
- Jun-2021: FIMER introduced two new platforms, a modular conversion solution, and a high power multi MPPT string inverter, for the utility-scale sector. This product launch aimed to serve both centralized and decentralized applications including all the utility applications. This new product is the powerful and power-dense multi-MPPT string inverter in the solar industry, enhanced for decentralized PV system architecture with a maximum efficiency of nMAX>99 % To ensure the highest energy yield. PVS-350 has the smallest footprints when compared to other similar products, and drastically lowers the risk of downtime that could occur with central inverters.
- Jan-2021: FIMER introduced a new PVS-10/33-TL three-phase string inverter solution for industrial and commercial applications. This product launch aimed to provide a host of additional performance features and solve any type of application. The string inverters provide high power density and strong energy harvesting potential, with output ranging from 10kW to 33 kW. PVS-10/33-TL, is designed for ease and agile enough to adjust anywhere and could be simply installed in existing or new plants to give lower installation and maintenance costs.
» Acquisitions and Mergers:
- Apr-2022: Sensata Technologies took over Dynapower, renowned energy storage, and power conversion provider. This acquisition aimed to deliver energy storage and power conversion systems comprising inverters, rectifiers, converters, and custom transformers for renewable energy generation, electric vehicle charging stations, and green hydrogen production.
- Dec-2021: FIMER joined hands with Entreprise Nationale des Industries Electroniques (ENIE), an Algerian electronic components producer. This joint venture aimed to establish an inverter factory at an undisclosed location in Algeria. This agreement provides for the assessment of joint prospects in the fields of renewables, hydrogen, the capture, use, and storage of CO2, bio-refining, and many initiatives in line with the companies’ respective decarbonization objectives.
Scope of the Study
Market Segments Covered in the Report:
- Single phase
- Three phase
- Grid Connected
- Stand Alone
By End User
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Siemens AG
- Delta Electronics, Inc.
- STMicroelectronics N.V.
- Texas Instruments, Inc.
- Sensata Technologies Holdings PLC
- Darfon Electronics Corporation
- Enphase Energy, Inc.
- Sparq Systems Inc.
- Fimer S.p.A.
- SolarEdge Technologies, Inc.
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North America Micro Inverter Market Report 2022-2028
Europe Micro Inverter Market Report 2022-2028
Asia Pacific Micro Inverter Market Report 2022-2028
How valuable will the micro inverter market be in the future?
The micro inverter market size is projected to reach USD 7.4 billion by 2028.
What are the key driving factors and challenges in the micro inverter market?
Technological benefits of micro inverters over traditional solar inverters are increasing are driving the market in coming years, however, variable environmental conditions may hamper the performance of solar micro inverter growth of the market.
What are the major top companies in the competitive landscape?
Siemens AG, Delta Electronics, Inc., STMicroelectronics N.V., Texas Instruments, Inc., Sensata Technologies Holdings PLC, Darfon Electronics Corporation, Enphase Energy, Inc., Sparq Systems Inc., Fimer S.p.A., and SolarEdge Technologies, Inc.
Which segment shows a high revenue share of the micro inverter market in 2021?
The Grid Connected segment acquired maximum revenue share in the Global Micro Inverter Market by Connection in 2021, thereby, achieving a market value of $5,059.5 million by 2028.
Which segment shows the high growth rate of the micro inverter market over the forecast period?
The Commercial segment has shown growth rate of 19.5% during (2022 - 2028).
Which region dominated the micro inverter market in 2021?
The Asia Pacific market dominated the Global Micro Inverter Market by Region in 2021, and would continue to be a dominant market till 2028.