Global Micro Inverter Market - 2023-2030

Global Micro Inverter Market - 2023-2030
Global Micro Inverter Market reached US$ 2.8 billion in 2022 and is expected to reach US$ 8.5 billion by 2030, growing with a CAGR of 20.5% during the forecast period 2023-2030. The micro inverter market is driven by continuous R&D initiatives and considerable cost reductions in microinverters. Furthermore, the market benefits significantly from its small size and diversity. Furthermore, the growing customer demand for modularity, safety and maximum energy harvest will drive the market at a rapid rate during the forecast period.

Asia-Pacific is expected to hold a market share of about 1/4th of the global micro inverter market during the forecats period 2023-2030. Asia-Pacific experienced an increase in demand for renewable energy including solar power, this drives the demand as there is increasing concerns about climate change and environmental sustainability and led to reducing its reliance on fossil fuels. In some part, microinverters offer better stability because they have the ability to manage individual panels separately.

Market Dynamics

Increased Demand for Energy Storage Systems

Energy storage systems equipped with microinverters offer modularity and scalability. Each solar panel or energy storage unit has its microinverter that enables the system to be easily expanded by adding more panels or batteries as needed and this flexibility allows users to start with a smaller system and gradually increase capacity to match changing energy demands.

For instance, on 15 March 2023, a rapidly growing energy-tech startup with a presence in Silicon Valley, China and Japan introduced SolarFlow, a pioneering plug-and-play solar energy storage system designed for balconies. This innovative system consists of a PV hub and can accommodate up to four batteries. It's compatible with common balcony solar panels, providing apartments and residents with the ability to harness and store solar energy during the day for nighttime use.

Advancements in Technology

Technology advancement led to improving the efficiency of micro inverters. Higher efficiency means more energy generated by solar panels that can be converted into usable electricity that maximize the overall energy output of overall systems. Modern microinverters are capable of handling higher power output generated from solar panels.

For instance, on 11 May 2023, Solis, a prominent global manufacturer of solar and energy storage solutions, introduced its latest product, the S6 Advanced Power Hybrid Inverter. The inverter is designed with a focus on generator connectivity and multiple input methods, offering features like automatic UPS switching and impressive backup capabilities, including up to 10 seconds of 200% surge power backup overload capability.

Compatibility and Retrofitting

Advancements are being made, not all micro-inverters are fully compatible with energy storage systems. Integrating battery storage with micro inverters can sometimes require additional components and complexity. Also, integrating energy storage requires a deep understanding of battery chemistry and its charging and discharging protocols.

Retrofitting existing solar installations with micro-inverters can be challenging due to compatibility issues and potential differences in panel characteristics. In large-scale solar installation, the cost-effectiveness of micro-inverters is affected and especially when the system design requires a high number of micro-inverters.

COVID-19 Impact Analysis

Lockdowns and social distancing measures impacted the installation of solar energy systems which in turn affected the demand for micro-inverters. Many construction projects, including residential and commercial solar installations, were put on hold leading to delayed or canceled orders for micro-inverters.

The shift to remote work practices affected communication and collaboration among manufacturers, installers and customers and while digital tools enabled virtual meetings and remote support, the absence of in-person interactions could sometimes lead to delays in addressing technical issues.

AI Impact

AI-based energy management systems can intelligently balance energy production, storage and consumption and this is particularly useful when integrating energy storage systems with micro-inverters, as AI can optimize when to charge and discharge batteries for maximum benefit. By leveraging AI algorithms, these systems can analyze a multitude of variables, such as solar irradiance, energy demand, battery state of charge and grid conditions.

Artificial intelligence-based Maximum Power Point Tracking control technique is integrated, which enables the extraction of the Maximum Power Point from the solar panels in a shorter tracking time. Artificial Neural Networks based controller is employed for closed-loop control and this application of artificial intelligence results in increased output voltage and reduced switching losses.

Russia-Ukraine War Impact

In armed conflict, there is direct physical damage to commercial buildings, that includes offices, shops, warehouses and factories. Infrastructure such as roads, bridges and utilities could also be affected, disrupting access to and functionality of commercial properties. Due to the rise in conflict, it impacted the region and there is economic instability, currency devaluation and global disruption of the supply chain.

Solar power plant infrastructure, such as panels, mounting structures and electrical components, is damaged during military operations or as collateral damage and this could result in reduced energy generation and there is a need for costly repairs. In the affected area, labor shortages occur due to the displacement of workers and also there is restriction in the movement.

Segment Analysis

The global micro-inverter market is segmented based on type, component, communication technology, distribution channel, application and region.

The Real-Time Monitoring from Software

Software component in the global micro inverter market is expected to hold more than 1/4th of the market share in 2022. Software updates can introduce improvements to the monitoring and reporting capabilities of microinverter systems, this includes more detailed insights into energy production, real-time monitoring and predictive maintenance features that help homeowners and installers track system performance and address potential issues proactively.

For instance, on 17 July 2023, Tesla introduced a new feature called Charge on Solar which enables owners of solar panels, power walls and Tesla vehicles to charge their cars using excess solar power. As renewable energy sources like solar, wind and hydro become more crucial. Tesla allows surplus energy to store back into power walls and to charge Tesla when needed and the new features is operated from phones.

Geographical Penetration

The Rising Metering Program in North America

North America is expected to hold a market share of 1/3rd of the global micro inverter market during the forecats period 2023-2030. Many states in North America such as U.S. offer a metering program that allows solar system owners to receive credits as they excessively generate electricity and feed it back into the grid. Microinverter enhances the accuracy of net metering and optimizes the energy output of individual solar panels. It enables the decentralization of energy generation by converting DC power to AC power.

For instance, on 1 March 2023, Hoymiles Power Electronics, a prominent global ""smart solar"" supplier headquartered in China, established its first U.S. subsidiary in Plano, north of Dallas. Hoymiles offers a comprehensive ecosystem for clean, open energy to homeowners. Solar panels on roofs collect energy, which is converted into AC current through Hoymiles microinverters.

Competitive Landscape

The major global players include Enphase Energy, ABB, Siemens, Infineon Technologies, Canadian Solar, Chilicon Power, SolarEdge Technologies, Altenergy Power System, Darfon Electronics and Renesola.

Why Purchase the Report?
• To visualize the global micro inverter market segmentation based on type, component, communication technology, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of micro inverter market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global micro inverter market report would provide approximately 77 tables, 74 figures and 205 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies