by Solar micro inverters are devices used to convert the direct current (DC) output of a photovoltaic (PV) solar panel into alternating current (AC) that can be fed into a residential power grid or used by a local, off-grid electrical network. They are commonly used in residential and small commercial rooftop solar installations. Each solar module has its own micro inverter, so that modules with uneven illumination or shadowing do not reduce the output of the whole array. This architecture avoids downtime and ensures that all modules in an array produce maximum power at all times. The global micro inverter industry has also witnessed increased demand for its various applications across the residential and commercial sectors. The growing preference for clean energy resources and government initiatives to promote solar energy are expected to boost the adoption of solar micro inverters in the coming years.
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 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for energy-efficient power generation solutions is expected to drive the growth of the global solar micro inverter market over the forecast period. Solar micro inverters improve the energy harvest of solar PV systems by converting direct current produced by each individual solar module. This helps maximize solar power generation even under shadowing conditions or module-level power mismatches compared to traditional string and central inverters. Additionally, solar micro inverters enable module level monitoring that provides insights into overall system performance at the individual module level. This helps detect underperforming modules and take corrective actions quickly. Furthermore, micro inverters do not shut down the entire PV system if one module has an issue, allowing the rest of the array to continue producing power.
Government initiatives in various countries to promote renewable energy adoption are also expected to fuel market growth. Many governments provide subsidies for solar panel installation, which has increased global solar PV deployment in recent years. This rising installation of solar rooftop and ground-mounted systems is creating significant demand for associated micro inverter solutions as well. However, high initial installation costs associated with micro inverters compared to traditional string inverters may hamper market growth over the forecast period.
Segment Analysis
The global solar micro inverter market is dominated by the residential sub-segment. Around 70% of the total installations of solar micro inverters are currently taking place in residential sector as it requires fewer numbers of micro inverters compared to commercial sector to setup a solar power system. Also, easy installations and flexible designs make micro inverters for residential use more cost effective.
PEST Analysis
Political: Favorable government policies and initiatives towards adoption of renewable sources of energy along with declining costs of solar setups are boosting the solar micro inverter market growth.
Economic: Lower cost of electricity from solar energy compared to grid is driving its demand for residential and commercial users. Micro inverters further helps maximize solar energy output.
Social: Increasing concerns towards climate change and carbon emission is catalysing consumers to shift to cleaner energy sources like solar. Also, declining prices of solar components including micro inverters is making individual setups viable.
Technological: Continuous innovations are helping micro inverters deliver higher efficiency, provide module level power monitoring, easier installation and integrate newer technologies like powerline communication. This is further expanding their application scope.
Key Takeaways
The Global Solar Micro Inverter Market Size is expected to witness high growth due to supportive government policies and growing shift towards renewable energy sources. 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 5.8% over the forecast period 2023 to 2030.
Regionally, the market in North America holds dominant share currently attributed to large solar installations and supportive renewable policies in the US. However, Asia Pacific region is emerging as a high growth market led by countries like China, India, Japan and South Korea.
Key players operating in the solar micro inverter market are Ethicon (Johnson & Johnson), Medtronic, Intuitive Surgical, Olympus Corporation, Karl Storz, Teleflex Incorporated, Accuray Incorporated, AngioDynamics, CONMED Corporation, Trovagene, Varian Medical Systems, Medrobotics Corporation, Siemens Healthineers, Atricure, Inc., Novadaq Technologies Inc. Players are focusing on new product launches, partnerships and mergers & acquisitions to strengthen their market presence. For instance, Enphase Energy acquired solar design software company Gridfinity to enhance its digital capabilities and offerings for residential installations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
