Solar Microinverter Market by Application (Commercial, Residential, Utility, and Others), By Products (Stand-alone Inverters, Grid-tie Inverters, and Battery Backup Inverters), and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022- 2030

Industry Perspective

The global Solar Microinverter Market size was worth around USD 2.63 billion in 2021 and is predicted to grow around USD 5.86 billion by 2030 with a compound annual growth rate of roughly 9.32% between 2022 and 2030. It is anticipated that new solar companies will enter the microinverter industry as a result of the achievement of prominent microinverter companies, the increasing use of AC modules, and the implementation of stringent standards.

The market for solar microinverter is competitively contested by a number of companies with specialized technologies. In addition to mergers and acquisitions, demand for solar microinverter is projected to increase during the forecasted period.

Market Overview

A solar microinverter is a small electrical device that facilitates the collection and conversion of solar energy into alternating current. It is used to improve the performance of photovoltaic systems by regulating the flow of current from one or more solar panels to a battery, thereby increasing the system's power output.

Microinverters are installed on residential and commercial roofs to provide electricity to individual buildings or building clusters. Due to rising awareness of the advantages of renewable energy sources and concerns about climate change, the global demand for solar energy is increasing rapidly. Consequently, the solar microinverter and power optimizer market is expanding.

The increase in the cost of electricity for U.S. households has contributed to the rise in microinverter sales this year. In fact, electricity costs in 2021 were the highest in over a decade. Compared to October 2020, the price of electricity increased by 6.5% in October of the previous year. As a result, an increasing number of individuals have installed solar panels to offset the costs.

Key Insights

• As per the analysis, the global solar microinverter market share is estimated to grow annually at a CAGR of around 9.32% over the forecast period (2022-2030).
• In terms of revenue, the global market size was valued at around USD 2.63 billion in 2021 and is projected to reach USD 5.86 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on application, the utility segment held the largest market share in the year 2021
• Based on product, the stand-alone inverters segment dominated the market share in the year 2021
• On the basis of region, Asia-Pacific was the leading revenue generator in 2021

Subsidies Provided by Government to Aid Market Development

Governments across the globe are providing incentives and subsidies for the installation of rooftop solar systems, thereby promoting their adoption and driving the expansion of the solar microinverter market.

The World Bank has pledged support for India's solar energy initiative. The Bank is providing more than USD 1 billion to support India's solar plans, beginning with a Grid Connected Rooftop Solar plan that aims to install solar panels on roofs across the nation, and 100MW of energy has already been backed through this plan. The institution signed an agreement in June 2017, with the International Solar Alliance, a group of 121 countries led by India, to collaborate on increasing the use of solar energy worldwide and to mobilize $1 trillion in investments by 2030. India is installing rooftop solar panels and solar platforms that float on rivers and other bodies of water.

Growing Adoption of Photovoltaic Installation to Gain Market Traction

The growing acceptance of photovoltaic systems is one of the major factors propelling the growth of the solar micro-inverters market. Demand for solar micro-inverters is also anticipated to increase as completely unified PV modules or AC Units become more popular. The use of micro-inverter technology is also encouraged by the U.S. National Electric Code (NEC), which increases demand for the product in the North American market. The market for solar micro-inverters may, however, be constrained by the use of power optimizers as a substitute for micro-inverters.

Segmentation Analysis

Based on application, the market is segmented into commercial, residential, utility, and others. The utility segment dominated the market in 2021 due to the increasing demand for electricity in remote regions that lack access to conventional energy sources. In addition, governments are encouraging large-scale investments in solar power plants by offering tax credits and subsidies under various programs such as Feed-in Tariffs (FiT) and net metering. Such tendencies have led to a worldwide increase in the use of these devices in utility applications. 

The residential segment is anticipated to experience significant growth over the forecast period as a result of increasing government support for green buildings and rising consumer awareness of renewable energy. Microinverter helps homeowners save approximately 20% on their electricity bills.

Based on type, the market is segmented into acceleration, Grid-tie Inverters, Battery Backup Inverters, and others. In 2020, standalone inverters held the largest market share and are anticipated to grow at a significant rate during the forecast period. This is due to the increasing demand for stand-alone inverters in developing nations like China and India.

In recent years, digitalization in the Asia-Pacific region has led to an increase in the use of technology in various business processes. The rising implementation of online platforms across a variety of industries, as well as analytical solutions, AI, IoT, and blockchain technology to gain a competitive edge, is also driving the solar microinverter market revenue.

Recent Development

August 2022- Enphase Energy Inc. has acquired GreenCom Networks, a German provider of internet of things software solutions. It is anticipated that the acquisition will provide installers with a comprehensive selection of home energy management systems and facilitate green EV charging.

April 2022- Celanese's proposed acquisition of DuPont's engineering polymer unit, which includes the company's mobility and materials business, has been granted conditional approval by the European Commission. The amount of the proposed acquisition is eleven billion euros.

Regional Landscape

Asia Pacific is Dominating the Market Share Due to Increasing Product Demand from Developing Countries

Asia-Pacific accounted largest market share in the year 2021 owing to the expanding trade of low-cost inverters in China and India that is anticipated to increase the demand for solar micro inverters in the APAC region. Darfon Electronics, SMA, APSytems, ABB, Chilicon Power, SunPower, iEnergy, Enphase, NEP, and Sparq Systems are some leading companies contributing to the expansion of the solar micro inverters industry.

The Indian solar micro inverter market is primarily driven by the transition from fossil fuel-based to renewable and clean energy sources. Moreover, in response to growing environmental concerns, the Indian government has implemented a number of policies that encourage the use of renewable energy sources. This has increased the demand for solar microinverter, which contribute to the reduction of carbon emissions. In addition, the rising price of fossil fuels makes solar power a cost-effective alternative, thereby increasing the demand for microinverter throughout the region.

Competitive Landscape

Enphase Energy., SMA Solar Technology AG, ABB, SunPower Corporation, DARFON, Northern Electric Power Technology Inc., Sparq Systems, CHILICON POWER, LLC., TransX, Schneider Electric, amongst others.

The global solar microinverter market is segmented as follows:

By Application

• Commercial
• Residential
• Utility
• Others

By Products

• Stand-alone Inverters
• Grid-tie Inverters
• Battery Backup Inverters

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America