Micro Inverter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Micro Inverter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Micro Inverter Market is expected to register a CAGR of 20.8% during the forecast period of 2021 - 2026.Microinverter is a device which converts direct current (DC) generated by solar cells to alternating current (AC). The demand for these inverters is increasing amongst the commercial sector on account of increasing electricity cost and longer installation duration of string inverters.

Key Highlights

• The factors like enabling module-level monitoring, easier installation, enhanced design flexibility, removing the need for DC switching points and better safety than conventional inverters are some factors that are fueling the growth of micro inverter market.
• The microinverter market is driven by constant R&D activities and significant reduction in the costs of microinverters.Further, market also receives a great boost due to its compact size and versatility.Also, increasing requirement of consumers, based on modularity, safety, and maximum energy harvest will continue to drive the market at a considerable pace in the forecast period.
• Due to the varying use of micro inverters, they are widely adopted across the world as they provide various benefits such as design flexibility, and capabilities like producing maximum power from solar panels through maximum power point tracking (MPPT) technology. These factors have helped the micro-inverter market to gain advantage from other inverters in residential and commercial applications.
• Due to COVID-19 pandemic spread around the world, disruption in supply of micro inverters has quickly turned to an unprecedented stall in global demand, switching the industry almost overnight from a sellers’ market to a buyer’s markets.
• COVID-19 is also expected to severely hit the planning and completion of new projects in 2020 for this market. In solar, a shortage of installation components including inverters and modules is pushing prices up by as much as 15 per cent in markets like United States.

Key Market TrendsResidential Segment to Drive the Market Growth

• The increasing adoption of solar photovoltaic in the residential sector is primarily driven by expected savings in electricity costs, the need for an alternative source of electricity, and the desire to mitigate climate change risk.Therefore, boosting the growth opportunities for micro inverter market.
• During the forecast period, the share of the rooftop solar PV is expected to increase, on account of decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and targets set by various governments for solar energy are some of the key factors that are driving the micro inverter market.
• The cost reductions are driven by continuous technological improvements, including higher solar PV module efficiencies. The industrialization of these highly modular technologies has yielded impressive benefits, from economies of scale and greater competition to improved manufacturing processes and competitive supply chains which further accelerate the growth of micro inverter market.

Asia-Pacific to Register Highest Market Growth

• 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.
• APAC has several operational micro-inverter installations for residential, commercial, and PV power plant applications. Japan and Australia have been the major adopters of micro-inverter technology. Also, the growth in residential rooftop solar PV installations in India and Japan encourages manufacturers to cater to the needs of potential customers in this region.
• In countries such as India, China, and Japan, respective governments have laid regulations and reforms, as well as initiatives, for modernizing the power sector.
• In India, the residential PV installation cost is estimated to be at USD 1000 per KW, which is higher, when compared to its commercial counterpart (USD 692 per KW). However, the Indian costs of installations are cheaper, when compared to the global average for both residential (USD 1638 per KW) and commercial (USD 1379 per KW).These factors fuel the market growth in the region.

Competitive Landscape

The micro-inverter market is highly fragmented and the major players such as Enphase Energy Inc., Altenergy Power System Inc., SunPower Corporation, zand Siemens AG among others are using various strategies such as new product launches, expansions, partnerships, acquisitions, and others to increase their footprints in this market.Some of the key developments in the market are:

• In April 2020 - Power electronics researchers from Estonia’s TalTech Power Electronics Research Group and startup Ubik Solutions have developed a hybrid inverter solution that integrates a microinverter and power optimizer.The developers claim that the new solution can provide 30% more power than traditional microinverters under partially shaded conditions.
• In Feb 2020 - Enphase Energy collaborated with CREATON GmbH, one of the leading residential roof manufacturers in Europe, to deliver photovoltaic (PV) in-roof systems to residential solar customers throughout Germany.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Sensormatic Solutions (Johnson Controls International plc)
Nedap N.V.
Gunnebo Gateway AB
Ketec, Inc.
Checkpoint Systems, Inc. (CCL Industries Inc.)
Agon Systems
All
Tag Corporation
Shenzhen Emeno Technology
Dexilon Automation S.L.
Tag Company (UK) Ltd

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