June 12, 2024

Projected Rapid Adoption Of Microinverters To Boost The Growth Of Solar Micro Inverter Market

The Global Solar Micro Inverter Market is estimated to be valued at US$ 323.28 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
A solar micro inverter is a DC to AC power conversion device used in photovoltaic systems, which converts direct current (DC) generated by a single solar module to alternating current (AC). Solar micro inverters are mounted under each individual solar panel or module rather than using a single central inverter system for an entire rooftop solar installation. This has advantages such as module level Maximum Power Point Tracking (MPPT), easier maintenance in case of hardware failures, reduced replacement costs, and enhanced energy harvesting through monitoring each panel individually. The need for solar micro inverters is growing due to their advantages over central or string inverters for residential and commercial rooftop solar installations.

Market key trends:
One of the key trends in the solar micro inverter market is the rapid adoption of microinverters owing to their benefits over string and central inverters. Microinverters allow module-level monitoring which helps optimize the performance of each solar panel individually. They also ensure higher energy harvest even if one panel is affected by shading or module failure. This reduces replacement costs and enhances returns on investment for solar installation projects. With technology advancements, microinverters are becoming more efficient and reliable. Ongoing product innovation focused on ease of installation and operation is expected to further drive the demand.

Porter’s Analysis
Threat of new entrants:
The threat of new entrants is low as solar micro inverters require huge capital investment and established distribution networks. Manufacturers also need technological expertise and economies of scale to produce micro inverters at low costs.

Bargaining power of buyers:
The bargaining power of buyers is moderate as buyers have options to choose from various global brands. However, switching costs make it difficult for buyers to change suppliers frequently.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of many component manufacturers. Suppliers do not have control over prices as top vendors make bulk purchases.

Threat of new substitutes: Threat of substitutes is moderate as traditional string inverters and ac module micro inverters are alternatives. However, solar micro inverters offer higher yields, optimum performance, and flexibility.

Competitive rivalry: The competitive rivalry is high owing to the presence of global and regional vendors competing on capabilities, technology, pricing, customer service, and product portfolios.

Key Takeaways
The Global Solar Micro Inverter Market is expected to witness high growth, exhibiting a CAGR of 18% over the forecast period, due to increasing solar rooftop installations worldwide.

Regional analysis: North America region dominated the solar micro inverter market in 2023 and is expected to continue its dominance over the forecast period. This is attributed to supportive government policies and increasing solar PV installations in the US and Canada. Asia Pacific is expected to be the fastest growing market, growing at a CAGR of over 20% owing to rapid development of renewable energy in China, Japan, and India.

Key players: Key players operating in the solar micro inverter market are SunPower Corporation, Enphase Energy Inc., iEnergy Co. Ltd., Altenergy Power System Inc. These players are investing heavily in R&D to develop advanced and efficient micro inverters. SunPower Corporation and Enphase Energy Inc. collectively account for over 50% of the global market share.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it