Micro Inverter Market - By Type (Single-phase & Three-phase), By Component (Hardware, Software, & Services), By Communication Technology (Wired & Wireless), By Connection Type (Stand-Alone & Grid-Connected), By Application (Residential, Commercial, PV Power Plant, & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Micro Inverter Market Overview

Micro Inverter Market is analyzed to grow at a CAGR of 19.4% during the forecast 2021-2026 to reach $7.32 billion by 2026. Micro inverter is an emerging solar inverter technology that is generally used to convert direct current (DC) electricity generated by solar panels into alternating current (AC) electricity with the help of electrolytic capacitors. Increasing demand for improved efficiency and higher power output photovoltaic inverters tend to drive the Micro inverters market share in the global market. Micro inverter is a type of Module Level Power Electronics (MLPE) technology that has separate inverters for each solar cell. These inverters use different semiconductor materials such as Copper Indium Gallium Diselenide, Photovoltaic thermal hybrid solar Indium, gallium arsenide antimonide to convert DC to AC with respect to the power output. Currently, micro inverter market is driven by its various benefits for smaller (less than 6kW) size photovoltaic systems in addition to being more cost-effective, which is further supported by the enhanced safety. Moreover, the fast-growing residential market and technological advancements in the field of micro inverters to increase efficiency are analyzed to bring significant market growth opportunities during the forecast period.

Report Coverage

The report: “Micro inverter Industry Outlook – Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Micro inverter Market.

By Type: Single-phase and Three-phase.
By Component: Hardware, Software, and Services.
By Communication Technology: Wired and Wireless.
By Connection Type: Stand-Alone and Grid-Connected.
By Application: Residential, Commercial, PV Power Plant, and Others.
By Geography: North America(the U.S., Canada, and Mexico); Europe(U.K., Germany, Italy, France, Spain, Russia, Rest of Europe); APAC (China, Japan, South Korea, India, Australia, Rest of APAC); South America(Brazil, Argentina, Rest of Americas); Row (the Middle East & Africa).

Key Takeaways

• A wide range of technical advantages of micro-inverters over conventional solar inverters and rising demand for energy harvest solutions is analyzed to significantly drive the Micro inverter Market during the forecast period 2021-2026.
• Single-phase micro inverters are analyzed to hold the highest share 58.12% in 2020 owing to its huge adoption in residential applications across various parts of the world.
• Residential application is expected to hold the highest market share 33.73% in the forecast period owing to the rise in government regulations for adopting energy harvesting solutions in the residential sector across various parts of the world.
• Asia-Pacific is analyzed to hold the highest share 35% in 2020 owing to the availability of a huge population and increasing urbanization in this region.

By Type, the Micro inverter Market Report is segmented into Single-phase and Three-phase. Single-phase micro inverters are analyzed to hold the highest share 58.12% in 2020 owing to its huge adoption in the residential sector across the globe. Single-phase micro-inverters are compact and suitable for residential as well as commercial applications. The majority of the residential segment operates on single-phase systems for the transmissions of electricity. A single-phase inverter can produce single-phase power from the photovoltaic modules and connect to single-phase equipment or the grid. There are two types of single-phase inverters which are full-bridge inverter and half-bridge inverter. One of the major factors driving the market growth of single-phase micro inverters is the amount of money saved in electricity bills as compared to other inverters. Moreover, the installation of single-phase micro inverters is quite simple which makes it effective for consumers to install them at their resident. These factors are anticipated to drive its market growth during the forecast period.

Micro inverter Market Segment Analysis–By Application

By Application, the Micro inverter Market Report is segmented into Residential, Commercial, PV Power Plant, and Others. The residential segment is analyzed to hold the highest share 33.73% during the forecast period 2021-2026 owing to the rise in government regulations for adopting energy harvesting solutions in the residential sector across various parts of the world. Micro-inverters are mainly adopted for residential applications. Residential solar rooftop PV installations have witnessed significant growth over the last few years. Increasing energy costs, coupled with supportive government policies across the globe tend to bring significant growth in the demand of energy conservation measures further driving the adoption of micro inverters in the residential sector. Moreover, increasing adoption of controlled energy expenditure solutions in the residential sector in countries with a huge urbanized density such as the US, China, Japan, Australia, and others where residential rooftop PV installations is a popular trend are analysed to drive the market growth of micro inverters for residential applications during the forecast period.

Micro inverter Market Segment Analysis – By Geography

Asia-Pacific is analysed to be the major region with a share of 35% in 2020 for the Micro inverter Market owing to the availability of huge population and increasing urbanization in this region. APAC is expected to be the fastest-growing market for micro-inverter as currently, many countries such as China, Japan, India, and Australia are striving to boost their solar PV installation capacity through advanced solar PV systems that could in turn enhance electric stability. Asia-Pacific region holds a huge market for the installation of micro inverters for residential, commercial, and PV power plants sectors. Japan and Australia have been the major adopters of micro-inverter technology. According to India Brand Equity Foundation (IBEF), in July 2021, NTPC announced that it would invest US$ 0.27-0.34 million over the next 10 years to expand renewable capacity across various parts of India with photovoltaic energy harvesting systems. These factors tend to drive the demand for micro inverters in the Asia-Pacific region during the forecast period.

Micro inverter Market Drivers

Wide range of technical advantages of micro-inverters over conventional solar inverters is driving its market growth

Micro-inverters have several technical advantages over other conventional string and central solar inverters. Unlike conventional inverters, which are placed at a distance from the solar array and can operate and monitor a number of solar panels at a time, micro-inverters are placed beneath every solar panel and convert direct current (DC) electricity produced by a single solar panel. This enables them to operate individually. Micro-inverter delivers a maximum potential output of the photovoltaic (PV) system. The main advantage of micro-inverters is their ability to maintain a robust and consistent flow of power despite the shading of one or more of its panels. These advantages have increased the popularity of micro-inverters among end-users which tends to drive its market growth across the globe.

Increasing demand of energy harvesting solutions is propelling the Micro inverter Market growth

Rapid developments in the solar energy sector in terms of power generation and utilization are contributing to the increase in the number of solar PV installations for various applications across the world. According to the International Renewable energy agency (IRENA), the global installed capacity of solar photovoltaic across the globe elevated from 482,912 MW in 2018 to 709,674 MW in 2020. Countries such as China, the US, Germany, and Japan are major markets to have witnessed an increased number of new solar installations in 2020. This increasing installation of solar photovoltaic across the globe tends to bring significant growth in the demand for micro inverters, further driving its market growth during the forecast period. Moreover, inverters have a higher penetration potential in new solar installations than the existing ones or the installations underway. Therefore, flourishing solar energy markets that include India, Brazil, and France create significant growth opportunities for solar inverter systems. Moreover, an increased number of global PV power plant installations also act as potential growth opportunities for micro-inverter market.

Micro inverter Market Challenges

Higher initial cost and higher cost of replacement is analyzed to hamper the Micro inverter Market growth

One of the most important factors restraining the market growth of Micro inverters is its higher initial cost. During the installation of micro inverters, there are many technical challenges in installing a solar array such as shading issues that could cause the entire system to underperform. Moreover, as an inverter is located below the solar panel, it might be very difficult to replace the micro inverter due to existing site conditions and might require more than 1 technician on-site to replace it. These factors tend to bring major challenges in its market growth during the forecast period. In addition, a micro-inverter system basically includes a communication gateway, expensive AC trunk cables, and different custom tools. The limited current of an AC trunk cable limits the number of inverters that can be connected to the same cable trunk. This further increases the overall installation cost which tends to hamper its adoption, especially in the residential and commercial sector. 

Micro inverter Market Landscape

Production Innovation, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Micro inverter Market. In 2020, the market of Vehicle-mount computer industry outlook has been fragmented by several companies. Global Vehicle-mount computer top 10 companies include

1. Enphase Energy, Inc
2. ABB Group
3. Sun Power Corporation
4. SMA Solar Technology AG
5. Delta Energy Systems GmbH
6. Solar Edge Technologies Inc.
7. ReneSola
8. Siemens AG
9. P&P Energy Technology Co., Limited
10. Involar

Acquisitions/Technology Launches/Partnerships

• In June 2020, Enphase Energy entered into a partnership with an Australia-based Company named Excel Power. Under this partnership, Excel Power installed a 50 kW Enphase micro-inverter-based system for Wippells Autos, a Jaguar and Land Rover dealer based in Toowoomba City, Queensland (Australia). 
• In January 2020, Enphase Energy collaborated with Netherlands-based Teslandi. pro for a commercial project. The commercial solar division of Teslandi.pro was chosen by a sustainable building developer, E-Unit, for deploying a 780 kW solar energy system for its new 42-unit building in Arnhem (Netherlands). This commercial solar system comprises 2,600 Enphase IQ 7+ micro-inverters.

Relevant Report Titles:

Europe PV Inverter Market – Forecast (2021 - 2026)

Report Code: ESR 0348

String Inverter Market – Forecast (2021 - 2026)

Report Code: EPR 42306 

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