by Solar micro inverters play a vital role in converting direct current (DC) power generated by solar panels into alternative current (AC) power that can be utilized by homeowners or fed into the electricity grid. These compact power electronic devices are installed between individual solar modules and the main power lines and ensure optimal power yield from each module. With residential solar power installations experiencing exponential growth worldwide owing to reducing capital costs and rising awareness about clean energy, the demand for solar micro inverters is expected to surge substantially 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 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends observed in the solar micro inverters market is the ongoing technological advances to enhance energy harvesting and maximize solar system output. Manufacturers are developing more efficient micro inverters with higher power density and power conversion capabilities. They are also integrating advanced monitoring and data analysis features to provide homeowners with real-time performance insights. Furthermore, innovations in design and battery energy storage are allowing micro inverters to work independently of the main utility grid during power outages, adding resiliency. Growing research in materials science and power electronics is expected to lead to lighter, more durable and economical solar micro inverters with an even wider adoption across both on-grid and off-grid residential PV installations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the solar micro inverter market is moderately high due to the technological expertise and resources required. However, the growing market demand is creating opportunities.
Bargaining power of buyers: The bargaining power of buyers in the solar micro inverter market is high as the market has large buyer base with several options available. Thus, buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers in the market. However, specialist technical skills and expertise related to micro inverter manufacturing provides some bargaining power to suppliers.
Threat of new substitutes: Threat from substitutes is moderate as solar panel systems and string inverters are alternatives. However, micro inverters have advantages related to module level monitoring, higher energy yields and design flexibility.
Competitive rivalry: The competitive rivalry in the market is high owing to presence of numerous global and regional players competing on performance, pricing and technological innovation.
Key Takeaways
The Global Solar Micro Inverter Market Share is expected to witness high growth due to rapid installation of rooftop solar PV systems across both residential and commercial sectors.
Regional analysis: North America holds the major share in the solar micro inverter market and is expected to continue dominating through the forecast period supported by ongoing subsidy schemes for residential solar installations in the US. Asia Pacific is expected to register fastest growth attributed to rapid capacity additions in China, India, and other emerging countries.
Key players operating in the solar micro inverter market are Gevo, Inc., Red Rock Biofuels LLC, Honeywell International Inc., Virent Inc., Fulcrum BioEnergy, Inc., Neste Oil Corporation, AltAir Paramount LLC, S.G. Preston Company, SkyNRG BV, Eni SpA Total S.A., and BP PLC. These players continuously focus on new product launches and expanding their global presence through collaborations with module manufacturers and project developers. For instance, in 2021, Enphase Energy collaborated with several module manufacturers in Asia to integrate microinverters with their solar panels.
