The global micro inverter market size touched a valuation of USD 1.59 Billion in 2021 and is likely to reach USD 3 Billion by 2028. Moreover, with rising investments in renewable power generation technologies to counter power crises and growing awareness about the technical advantages of micro inverters over other conventional solar inverters, the overall micro inverter sales are slated to rise at an impressive CAGR of 9.6% during the forecast period between 2022 to 2032, totaling over USD 4.36 Billion by the end of 2032.
| Attribute | Details |
|---|---|
| Micro Inverter Market Estimated Size in 2021 | USD 1.59 Billion |
| Micro Inverter Market Size (2028) | USD 3 Billion |
| Micro Inverter Market Projected Size in Market Size (2032) | USD 4.36 Billion |
| Micro Inverter Market Value-based CAGR (2022 to 2032) | 9.6% |
A micro inverter is a miniaturized inverter designed for individual solar panels rather than a string of solar modules. This plug-and-play device is mostly used in photovoltaics to convert the direct current (DC) generated by a simple solar module into an alternative current (AC). It offers various benefits including simple installation procedures, better optimization, design flexibility, and improved safety. Further, it helps to produce optimal power by performing maximum power point tracking (MPPT) for the connected module.
Growing concerns regarding the depletion of fossil fuels along with the rise in emission levels are prompting people to use alternative energy technologies such as solar panels. As micro inverters form an integral part of solar energy systems, a rise in the number of solar panel installations will eventually boost micro inverter sales.
Similarly, there has been a rapid surge in power consumption across the world due to urbanization, industrialization, and improved standard of living. According to the International Energy Agency’s (IEAs) latest report, there was a 5% rise in electricity demand in 2021. In order to get a continuous and uninterrupted supply of electricity as well as reduce bills, households use solar micro inverters, thereby fostering the growth of the micro inverter market.
Advancements in micro inverter technology coupled with increasing usage of solar panels with built-in micro inverters will further expand the global micro inverter market size in the future.
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The global demand for micro inverters is projected to grow at a healthy CAGR of 9.6% during the forecast period between 2022 to 2032, reaching around USD 4.36 Billion by 2032. Growth in the micro inverter market is driven by the increasing power crisis worldwide, a rise in the number of roof-top solar installations and power backup systems in households, the rising government initiates and investments to strengthen renewable energy infrastructure, innovations in micro inverter technologies, and growing concerns about depletion of fossil fuels.
Micro inverters have become an indispensable part of solar energy systems. They convert the direct current generated by photovoltaic cells (PV cells) into alternating current, which the electrical grid uses. Rising adoption of solar panels across residential and commercial sectors will therefore continue to push the demand for micro inverters dyeing the forecast period. According to a report published by the World Economic Forum, it is estimated that the world will add 70,000 solar panels every hour in the next 5 years.
Consequently, the depletion of fossil fuels at an alarming pace and growing environmental concerns regarding the increasing carbon emission levels will drive the micro inverter market in the future. Besides this, the introduction of advanced and reliable micro inverters that can disseminate high power output and perform multiple applications is expected to create opportunities for micro inverter manufacturers.
Regionally, North America, spearheaded by the USA, is emerging as a promising market for micro inverters owing to the presence of leading market players like Enphase Energy, increasing government investments in expanding solar infrastructure, and availability of advanced micro inverter products.
Over the years, Enphase Energy has made a strong base across major North American countries like the United States and Canada. Most of the people residing in these countries prefer to use Enphase micro inverters like Enphase Iq7 and Enphase IQ8+ as they are more reliable and comply with government standards.
Which Factors Are Limiting the Growth of the Micro Inverter Market?
Despite positive growth projections, the global micro inverter market is facing various challenges that are limiting its growth to a large extent. Some of these factors include high installation costs of solar panels and increased use of string inverters.
Looming Power Crisis Creating Space for Micro Inverter Market Growth in the United Kingdom
As per FMI, the USA will continue to remain the most lucrative market for micro inverters across Europe, owing to the growing adoption of green technologies, increasing investments in renewable energy infrastructure, rising demand for solar inverters, escalating power crisis, favorable government support, and booming solar panel micro-inverter market.
Growing concerns about the depleting fossil fuels and increasing incidence of power outage across the United Kingdom is prompting people and the government to invest in greener technologies like solar panels and solar micro inverters, which in turn is creating a conducive environment for the growth of micro inverter market.
Growing Solar Energy Market Fueling the Demand for Micro Inverters in Japan
With the rapid transition towards renewable energy resources, robust urbanization, the growing popularity of PV inverters, and the heavy presence of leading micro inverter manufacturers, the micro inverter market in Japan is set to grow at a robust pace during the forecast period between 2022 to 2032.
People in Japan are increasingly installing solar panels on the rooftops of their houses, commercial buildings, and farms as a source of electricity. This will continue to provide a strong thrust to the micro inverter market across the country during the forecast period.
Similarly, advancements in solar energy technologies and the availability of reliable micro inverters will further boost the micro inverter market growth in the country.
Single Phase Micro Inverter Remains a Highly Sought-After Power Electronic Device
According to Future Market Insights, the single-phase micro inverters segment will continue to dominate the global micro inverter market, accounting for around 90% revenue share in 2022.
Over the years, single-phase micro inverters have become the most commonly used power electronic device in commercial and residential buildings as they comply with a wide range of standards. These micro inverters enable users to save money by just using one unit instead of two or more.
Demand for Standalone Micro Inverters to Grow at a Higher Pace
Emerging micro inverter market trends indicate that the standalone micro inverter segment will grow at a relatively higher CAGR during the forecast period, owing to their compact size and ability to be installed in remote areas without grid connectivity. In fact, they have become highly sought-after products in residential buildings.
On the other hand, sales of on-grid micro inverters are also expected to rise at a significant pace as a result of their greater flexibility and higher energy conversion ratios. The segment accounted for USD 1.1 Billion in 2021.
Majority of the Micro Inverter Sales Remain Coventrated in the Residential Sector
Based on application, the global micro inverter market is segmented into residential and commercial. Among these, the residential segment will grow at the highest CAGR during the forecast period, owing to the increased usage of both on-grid and off-grid solar panels with micro-inverters built-in by residential units across the world.
Frequent power outages and rising electricity costs are prompting people to adopt electronic power products like micro inverters in their homes. Similarly, rapid urbanization and growing awareness among people about the benefits of micro inverters will further boost segment growth in the future. A robust CAGR of 9.4% has been predicted for the residential segment by FMI.
Leading micro inverter manufacturers are continuously adopting various strategies such as new product launches, partnerships, acquisitions, collaborations, mergers, price reduction, and strengthening of distribution channels to gain a competitive edge in the global micro inverter market. Further, they are putting various efforts to educate people about the advantages of using clean energy technologies on the environment.
For instance:
FMI’s latest report uncovers key investment pockets within the global micro inverter market. It provides an in-depth analysis of consumer demands, growth drivers, restraints, and emerging opportunities that somehow affect the market dynamics.
The study offers inclusive details about emerging micro inverter market trends. It illustrates how unscheduled power cuts and rising electricity costs are influencing micro inverter sales.
FMI also offers exhaustive research into factors pushing demand for micro inverters across developed and developing regions. It attempts to explore the growth potential of regions with power outages.
The report breaks down the market into various segments based on phase, connectivity, application, and region, and highlights the leading market segments as well. Besides this, it explains how the growing popularity of power inverters will impact the micro inverter market growth.
The Micro Inverter Market analysis includes:
| Attribute | Details |
|---|---|
| Projected Market Value (2032) | USD 4.36 Billion |
| Estimated Growth Rate (2032) | 9.6% |
| Forecast Period | 2022 to 2032 |
| Historic Data Available for | 2015 to 2021 |
| Market Analysis | USD Million for Value |
| Report Coverage | Market forecast, company share analysis, competition intelligence, Drivers, Restraints, Opportunities and Threats analysis, market dynamics and challenges, and strategic growth initiatives |
| Key Segments Covered | Phase, Connectivity, Application, Region |
| Key regions covered | North America; USA; Canada; Rest of North America; Latin America; Brazil; Argentina; Mexico; Rest of Latin America; Western Europe; Germany; United Kingdom; France; Rest of Western Europe; Eastern Europe; Russia; Spain; Rest of Eastern Europe; South Asia Pacific; China; India; Japan; Malaysia; Thailand; Indonesia; South Korea; Rest of South Asia &Pacific; Middle East & Africa; GCC Countries; Turkey; Israel; Rest of the Middle East and Africa(MEA); Rest of the World; Oceania; Africa; South America |
| Application | Residential, Commercial |
| Key companies profiled | Darfon Electronics Corp., Siemens, Solar Edge Technologies, Inc., Alternative Power System, Inc., Enphase Energy, Sensata Technologies, Inc., TMEIC, Fimer Group, Chilicon Power, LLC, AEconversion GmbH & Co. KG, Sparq Systems, Yotta Energy |
| Customization & pricing | Available upon request |
The global micro inverter market was valued at USD 1.59 Billion in 2021.
As per FMI, the global micro inverter market is likely to grow at 9.6% CAGR during the forecast period (2022 to 2032).
The micro inverter market is projected to reach a valuation of USD 4.36 Billion by 2032.
Europe accounts for the largest revenue share of the global micro inverter market.
Darfon Electronics Corp., Siemens, Enphase Energy, Solar Edge Technologies, Inc., Alternative Power System, Inc., TMEIC, Fimer Group, and Chilicon Power, LLC are some of the prominent micro inverter manufacturers.
Micro Inverter Market
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