Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Solar Microinverter and Power Optimizer Market size was over USD 4.85 billion in 2024 and is projected to reach USD 24.31 billion by 2037, growing at around 13.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of solar microinverter and power optimizer is assessed at USD 5.36 billion.
This sector expansion is poised to surge on account of the rising capacity of solar products. According to the Environmental Impact Assessment estimations, solar PV generation upsurged by about 270 TWh which makes up to 26%, in the year 2022, stretching out to at most 1300 TWh.
Solar Microinverter and Power Optimizer Sector: Growth Drivers and Challenges
Growth Drivers
- Growing initiatives by the government to promote solar energy - The concern over greenhouse gas emissions is growing globally. As per Electronic Data Gathering, Analysis, and Retrieval (EDGAR) date, worldwide GHG emissions per capita climbed modestly (0.4%) in 2022, bringing the total expansion between 1990 and 2022 to 8.3% (from 6.24 to 6.76 t CO2eq/cap). Hence, the importance of renewable energy is growing.
Also, the government has recognized the need for renewable energy to regulate emission levels. Therefore, they are launching various policies and tax incentives to encourage the deployment of renewable energy. - Surging trend of smart homes and buildings - With the growing standard of living the popularity of smart homes and buildings is rising. As of 2022, there were over 257 million smart homes around the globe. However, with this, the installation of solar panels has become an integral part of smart home initiatives. The amalgamation of solar energy and smart home technology optimizes the advantages of both systems.
By pairing solar panels with smart inverters and energy storage technologies, householders could boost the effectiveness of their solar installations. These intelligent parts actively manage energy flow, conserving extra power for later utilization or releasing it back into the grid to ensure continuous power supply and maximize cost savings. - Rising advancement in solar microinverter and power optimizer technology - The solar microinverter and power optimizer market has experienced technological improvements aimed at improving performance, dependability, and cost-effectiveness.
These advances encompass the implementation of modern MPPT algorithms, communication capabilities, enhanced surveillance software, and higher power density. As smart energy management systems become increasingly common, there is a growing need for micro inverters that may communicate with them.
Challenges
- Strict regulation for electrification - The solar microinverter and power optimizer market might be impacted greatly by strict regulatory standards regulating electric safety, which are predicted to limit market growth. It is believed that these issues are going to hinder the market's overall progress.
- Growing adoption of DC optimizer - The primary advantage of DC optimizers against micro inverters is their cheaper cost when compared to solar microinverters and power optimizer systems. Because an optimizer system demands a central/string inverter and sophisticated DC wiring, the total expense of a microinverter system is about the same as that of an optimizer.The cost-effective solutions delivered by DC optimizers are consequently forecast to limit solar microinverter and power optimizer market growth, representing a significant barrier to the growth of the solar microinverter and power optimizer sectors.
- High price of solar microinverter and power optimizer
Solar Microinverter and Power Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
13.2% |
|
Base Year Market Size (2024) |
USD 4.85 billion |
|
Forecast Year Market Size (2037) |
USD 24.31 billion |
|
Regional Scope |
|
Solar Microinverter and Power Optimizer Segmentation
Type (Solar Microinverter, Power Optimizer)
Solar Microinverter segment is estimated to hold over 60% solar microinverter and power optimizer market share by the end of 2037. This segment expansion can be encouraged by the growing need for energy. However, in 2022 International Energy Agency evaluated that over 760 million in the world will lack access to electricity and this was indicated to be the highest. Hence, the need for solar energy is growing since it is estimated to be a suitable option in rural regions.
Due to this factor, the solar microinverter is also foreseen to observe growth in the upcoming years. Microinverters enable solar panels to generate electricity individually, however may also accommodate several panels in certain situations. The economic advantage of two-in-one or four-in-one microinverters is that they require fewer microinverters for installation.
Application (Residential, Commercial, Utility)
The residential segment in solar microinverter and power optimizer market is projected to generate significant revenue by 2037. This could be on account of the growing installation of solar panels on rooftops. For instance, considering the US, over 4,227,502 million residents installed rooftops as of February 2024. Moreover, microinverters enable real-time monitoring capabilities, which assist residential customers. These inverters enable users to monitor the functioning of the system and quickly detect any anomalies.
Also, microinverter systems' modular design renders them ideal for an extensive variety of home installations. Furthermore, microinverters additionally appeal to residences due to their security, scalability, and ease of maintenance.
Our in-depth analysis of the solar microinverter and power optimizer market includes the following segments:
|
Type |
|
|
Connectivity |
|
|
Application |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportSolar Microinverter and Power Optimizer Industry - Regional Synopsis
North American Market Statistics
North America industry is poised to account for largest revenue share of 35% by 2037. This growth of the sector in this region is poised to be influenced by the growing consumption of electricity. Consumption of energy in North America reached around 117 exajoules in 2022, compared to the previous year when consumption was over 114 exajoules. Hence, the share of solar microinverter and power optimizer market is estimated to grow.
Additionally, the US market for solar microinverter and power optimizer is to gather notable value in the market compared to other nations. This is expected to be dominated by rising advancements in the technology of battery storage.
Furthermore, the market in Canada is also projected to rise in this region on account of the growing prevalence of small-scale installation.
APAC Market Analysis
The Asia Pacific solar microinverter and power optimizer market is also predicted to have notable growth in the revenue between 2025–2037. This growth in the region’s market is expected to be encouraged by the increasing population. According to United Nations Population Fund estimations, it is anticipated that close to 60% of the worldwide population resides in the Asia Pacific region. Moreover, this indicates approximately 4.3 billion people. As a result, the electricity demand is also estimated to rise further influencing the market expansion.
Furthermore, the solar microinverter and power optimizer market in China for solar microinverter and power optimizers is set to rise due to the rising disposable income of people, followed by the adoption of smart home projects.
Additionally, the market in India is also growing over the forecast period. The major factor dominating the market growth in this nation is the growth in the number of commercial complexes such as offices and hospitals.
Moreover, the Japanese solar microinverter and power optimizer market is to observe a rise on account of growing investment in solar microinverter and power optimizers to boost its production.
Companies Dominating the Solar Microinverter and Power Optimizer Landscape
- SolarEdge Technologies, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Enphase Energy, Inc.
- SunPower Corporation
- LG Electronics
- ABB
- Altenergy Power System Inc.
- Chilicon Power, LLC
- SMA Solar Technology AG
- Sparq Systems
- Northern Electric Power Technology Inc
The solar microinverter and power optimizer market consists of a number of key players who are launching enhanced products and investing significantly in the deployment of advanced technology. Some of these include:
In the News
- SolarEdge Technologies, Inc. and Shawton Energy announced that they have established a relationship in the UK. Shawton Energy is going to provide power purchase agreements (PPAs) for projects that employ SolarEdge's DC-optimized PV solution for enhancing the performance, safety, and profitability of its commercial and industrial (C&I) installations.
- Enphase Energy, Inc. and Semper Solaris, announced a strategic partnership aimed at deploying Enphase Energy Systems fueled by IQ Microinverters and IQ Batteries all through the state.
Author Credits: Dhruv Bhatia
- Report ID: 6225
- Published Date: Nov 15, 2024
- Report Format: PDF, PPT
