Micro inverters convert the direct current (DC) output of a photovoltaic (PV) panel into alternating current (AC) that can be fed into a utility grid or used by a local, off-grid system. They are installed directly under solar panels, intelligently monitoring and maximizing the performance of each individual panel and optimizing the whole solar array performance. The global solar market faces many challenges like shading effect, module mismatch effect, partial shading effect etc. Micro inverters help overcome these challenges by maximizing the solar array performance by monitoring each module independently.
The micro inverter market is estimated to be valued at USD 3.74 Bn in 2024 and is expected to reach USD 4.17 Bn by 2031, growing at a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031.Key Takeaways:
Key players operating in the Micro Inverter market are Enphase Energy, SolarEdge Technologies, Tigo Energy, Altenergy Power Systems, SunPower Corp, Ampt, Darfon Electronics and Delta Energy Systems among others.
Enphase Energy and SolarEdge dominate the global micro inverter market with more than 70% market share collectively owing to their strong product portfolio and global presence.The growing demand for solar energy resources owing to rising energy costs and focus on sustainable energy is driving the Micro Inverter Market Growth. Government incentives and subsidies especially in the US and Europe are encouraging solar rooftop installations among residential and commercial sectors fueling the micro inverter demand.Leading micro inverter manufacturers are expanding their global footprint by strengthening their distribution channels across key solar markets. Partnerships with solar installers are helping micro inverter suppliers scale up their project business worldwide. Growing solar PV installations in emerging economies of Asia Pacific and Middle East Africa region will provide significant opportunities for micro inverter market in the coming years
.Market key trends:String optimization is the key trend being witnessed in the micro inverter market currently. Advanced string level optimization algorithms and communication between micro inverters and cloud-based monitoring portals help improve system yield and energy outputs. Solar panel level monitoring ensures underperforming panels are isolated and optimized individually enhancing overall system performance. Rapid advancements in power electronics and new product launches with enhanced features are further driving the adoption of micro inverters in the solar market.
Porter’s AnalysisThreat of new entrants: Low as it requires high initial investments and established brands have economies of scale. However, threat is moderate from Chinese manufacturers.Bargaining power of buyers: Moderate as few large module manufacturers produce micro inverters but established brands have brand acceptance.Bargaining power of suppliers: Moderate as technologies and components can be sourced easily but production requires precision.Threat of new substitutes: Low as micro inverters effectively maximize solar electricity generation and have advantages over traditional inverters.Competitive rivalry: High among global manufacturers to expand market share through innovations, partnerships and geographic expansion.
Geographical RegionsNorth America holds the largest share in the micro inverter market due to growing installations of solar PV systems for both residential and non-residential segments. States like California and countries like the U.S. and Canada are primary revenue generators.Asia Pacific region is expected to grow at the fastest rate during the forecast period majorly due to the increasing focus of countries like China, India, Japan and South Korea on installation of decentralized renewable power through supportive government policies and investments in solar energy. Rising industrial and construction activities have further boosted the regional market.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
