Micro inverter Market

Micro inverter Market Sizes by Phase (Single-phase, and Three-phase), By Connectivity (Standalone and On-grid), By Application (Residential, and Commercial), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14577
  • Published Date: Nov, 2024
  • Pages: 235
  • Category: Consumer Goods
  • Format: PDF
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The global micro inverter market was valued at USD 2.6 Billion in 2023 and is anticipated to grow at a CAGR of 18.2% from 2024 to 2033. A micro inverter is an electrical device that transforms direct current (DC) from solar panels into alternating current (AC) within photovoltaic systems. Typically, these inverters are mounted separately on each solar panel, enabling DC power conversion to AC right at the source. Micro inverters boast easier installation procedures and simpler functionality than string and central inverters. Additionally, they enhance energy production by performing maximum power point tracking (MPPT) for each connected module individually. Micro inverters also provide several advantages over traditional inverter models; they offer increased reliability, higher efficiency output or energy yield with improved safety features.

Market Introduction:

A micro inverter is an electrical device in solar power systems that transforms the direct current (DC) produced by individual solar panels into alternating current (AC), suitable for household use or distribution to the power grid. Unlike traditional central inverters, which process the DC output from a whole array of solar panels collectively, a micro-inverter pairs with each panel individually. This setup allows every panel within a system to function independently, enhancing performance and minimizing negative effects caused by shading or obstructions on nearby panels. Consequently, this can increase both energy output and overall efficiency. Microinverters are typically installed either on the back of each solar panel, integrated into its frame, or mounted nearby. This setup allows for the conversion from DC to AC power right at the generation source. Each solar module's DC output is immediately converted to AC at the panel level, eliminating the need for high-voltage DC strings in traditional string inverter systems. The proximity reduces potential energy loss during transmission and ensures maximum power delivery to either end-users or the grid, depending on how it's configured. Furthermore, microinverters have built-in maximum power point tracking (MPPT) technology that optimizes each panel's performance based on specific operating conditions like temperature, sunlight exposure, and shading.

Micro inverter Market Size

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Recent Development
  • In April 2022: Yotta Energy has announced that it is securing an additional USD 3.5 million in new funding, increasing its total Series A financing to USD 16.5 million. With this latest funding round and award, the company’s overall funding now exceeds USD 25.5 million.        

Market Dynamics:

Drivers

Gradual Shift Towards Renewable Energy - The shift to renewable energy is a major stimulus for expanding the global micro inverter market. As countries became aware of environmental sustainability, there has been a notable increase in solar PV system installations, with solar power making up an increasing part of the worldwide energy landscape. Micro inverters are perfect for this transition due to their high energy efficiency and capability to optimize solar production even under difficult environmental conditions. The International Energy Agency (IEA) forecasts that by 2030, solar power will compose a substantial segment of renewable energy capacity, which directly boosts demand for efficient technologies like micro inverters. The increasing consumer awareness of climate change, coupled with government efforts to reduce carbon emissions, has led to a surge in investment in solar systems for homes and businesses. In countries such as the United States, Germany, China, and Australia, where policies support the adoption of solar photovoltaic (PV) installations, rooftop solar technology is widely accepted. Microinverters, with their high efficiency and independent operation capabilities, are particularly popular in these countries. They are an ideal choice for residential rooftops, where panel shading often occurs, and play a significant role in reducing carbon emissions at an individual consumer level. This factor is stimulating the market growth and development.

Restraints:

High Initial Costs – A major obstacle to the expansion of the micro inverter market is their high initial cost. Unlike conventional string inverters, micro inverters necessitate an individual unit for each solar panel, resulting in a higher upfront investment. This requirement can lead to significant capital expenses for larger installations that might deter residential and commercial customers. While micro inverters provide long-term benefits like enhanced energy yield and efficiency, these advantages may not always balance out the concerns over costs for budget-minded consumers. Despite the challenges, there is a significant potential for market growth in emerging economies. Many potential buyers, especially in these markets where economic limitations are common, might opt for more budget-friendly centralized inverter solutions. This trend, while it may involve some compromises on performance, presents an opportunity for market expansion. Furthermore, as the costs for raw materials and components continue to rise, manufacturers of micro inverters are actively seeking cost-effective solutions to maintain quality. This proactive approach is a reason for optimism in the face of market challenges. This factor is limiting the market growth.

Opportunities:

Ongoing Technological Advancements - Technological advancements in micro inverter technology have significantly fueled their market expansion by enhancing efficiency, reliability, and cost-effectiveness. A key driver of these advancements is the use of advanced materials like gallium nitride (GaN) and silicon carbide (SiC). These materials enhance operational efficiency and power density while reducing energy loss, thereby allowing micro inverters to perform more effectively across a wider array of environmental conditions. This continuous innovation is boosting the overall energy output of solar installations. The integration of built-in maximum power point tracking (MPPT) technology in microinverters has dramatically improved their performance in real-world applications. MPPT allows each solar panel to independently achieve its optimal power output, making it especially beneficial for installations where some panels may be affected by shading, debris, or dust while others are not. Unlike traditional inverters, which could experience reduced system-wide efficiency due to a single compromised panel, microinverters isolate the issue and ensure each panel operates at peak capacity. This unique problem-solving capability makes microinverters increasingly attractive for residential users, commercial businesses, and small-scale utilities, driving market growth.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region emerged as the most prominent micro inverter market, with a 38.0% market revenue share in 2023. The North American microinverter market is expected to lead the industry, driven by strong demand from commercial sectors. In particular, the U.S. has seen substantial growth in residential solar installations. Microinverters are ideally suited for these smaller systems typically installed on residential rooftops. Homeowners who adopt solar energy often favor microinverters because they integrate seamlessly with residential electrical setups and are easy to install. Additionally, microinverters equipped with panel-level optimization provide excellent shade tolerance. This feature ensures optimal energy production even if some panels experience shading due to trees, nearby buildings, or rooftop obstructions—a common concern in many areas.. The regional market players also engage in various market strategies such as product innovation, product differentiation, mergers, acquisitions, partnerships, and strategic alliances to maintain their competitive edge.

North America Region Micro Inverter Market Share in 2023 - 38.0%

 

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  • In October 2021: Enphase Energy, Inc., a leading global manufacturer of microinverter-based solar and battery systems, has introduced the Enphase Energy System featuring IQ8 solar microinverters for North American customers. The IQ8 represents Enphase's most sophisticated microinverter yet. Unlike competing products, it can create a microgrid using sunlight during power outages, providing backup energy without needing a battery.
Phase Segment Analysis

The phase segment includes three phase and single phase. The single phase segment dominated, with a market share of around 54% in 2023. Regarding performance and efficiency, single-phase microinverters surpass traditional string inverters. By converting DC to AC at the panel level, these systems minimize power losses due to soiling, panel mismatch, and shading. Optimizing individual panels enhances overall system efficiency by allowing each panel to operate independently at its maximum power point (MPP). Separating the output of each solar panel from the rest of the system enhances safety and reliability. In traditional string inverter systems, a single panel failure or shading can affect the performance of an entire string. This risk is minimized by employing microinverters because they ensure continuous power production; consequently, if one panel fails, it does not negatively impact others in the array.

Connectivity Segment Analysis

The connectivity segment includes on-grid and standalone. The on-grid segment dominated, with a market share of around 56% in 2023. Demand for solar energy solutions has surged significantly as the global emphasis on renewable energy expands. Seeking sustainable energy sources to reduce their carbon footprint, businesses, consumers, and governments are all actively pursuing these alternatives. This heightened demand has directly bolstered the market for micro inverters, especially within the on-grid segment, since these devices play a crucial role in grid-connected solar photovoltaic (PV) installations. Owing to increased supplier competition, improved manufacturing methods, and economies of scale, the price of on-grid micro inverters has significantly decreased over time. This affordability has made these inverters a more attractive option, opening up utility-scale projects to small businesses and homeowners who were previously priced out of the market.

Application Segment Analysis

The application segment includes residential and commercial. The residential segment dominated, with a market share of around 58% in 2023. Microinverters enhance energy extraction by operating at the individual panel level, making them particularly beneficial in residential settings where rooftops might vary in orientation, tilt, and shading. Unlike string inverters that can suffer performance losses due to shade or mismatched panels, microinverters allow each solar panel to operate optimally, maximizing overall energy production. The home solar market has expanded significantly thanks to decreasing costs of solar panels, government incentives, and increasing environmental awareness among homeowners. As more households transition to solar power solutions, the demand for micro inverters rises.

Some of the Key Market Players:
  • Yotta Energy
  • Altenergy Power Systems
  • ZJBENY
  • Ningbo Deye Inverter Technology Co Ltd
  • Chilicon Power LLC
  • AEconversion GmbH & CO. KG
  • Envertech
  • Enphase Energy
  • New Energy Technologies Co., Ltd.
  • Bluesun Solar Co., Ltd.
  • Solar Panels Plus
  • Northern Electric Power Technology Inc.
  • Sparq Systems Inc.
  • U R Energy
  • Hoymiles
  • Grace Renewable Energy
  • Zhejiang Sandi Electric Co., Ltd.
  • Sunrover Power Co Ltd.
  • Crystal Solar Energy
  • Sunsights Solar
  • Leadsolar
  • Chisageess
  • Tsuness Co Ltd.
  • Shenzhen WoCor Poweray Technology Co., Ltd.
  • Ningbo Austa Solar Tech Co., Ltd.
  • Grace Renewable Energy

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 2.6 Billion
Market size value in 2033 USD 13.84 Billion
CAGR (2024 to 2033) 18.2%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Phase, Connectivity, Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global micro inverter market was valued at USD 2.6 billion in 2023 to USD 13.84 billion by 2033.

The global micro inverter market is growing at a CAGR of 18.2% during the forecast period 2024-2033.

North America region became the largest market for micro inverter.

The increasing focus on renewable energy to meet the sustainability goals is driving the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global Micro Inverter market based on below-mentioned segments:

Global Micro Inverter Market by Phase:

  • Single-phase
  • Three-phase

Global Micro Inverter Market by Connectivity:

  • Standalone
  • On-grid

Global Micro Inverter Market by Application:

  • Residential
  • Commercial

Global Micro Inverter Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
  • We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
    • Import & Export Data
    • Business Trade Information
    • Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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