The Solar Micro Inverter Market is estimated to be valued at US$ 323.28 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The solar micro inverter market consists of small microprocessors installed behind each solar module on a solar array that convert DC power from each solar module to AC power and feed it to the electrical grid. Solar micro inverters help maximize energy harvest through module level MPPT and ensure high reliability through module level shut off. They eliminate single points of failure from traditional string and central inverters.
Market key trends:
The key trend fueling the growth of the solar micro inverter market is the increasing adoption of decentralized solar systems. While traditional string and central inverters require many solar panels connected in series to a single power converter, micro inverters allow for decentralized installation of solar panels with each panel generating power individually. This enables optimal power harvesting from each solar panel and makes the solar system tolerant to shading and equipment failure. Micro inverters greatly simplify design, installation and maintenance of residential and commercial rooftop solar systems. Their module level monitoring capabilities also help improve overall system performance and energy output over time. The advantages of micro inverters are driving stronger preference for this technology compared to traditional inverters.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as huge capital requirement and established distribution channel act as entry barriers.
Bargaining power of buyers: Buyers have high bargaining power as they can choose from various suppliers and brands. They compare price and quality before making purchase decision.
Bargaining power of suppliers: Suppliers have moderate bargaining power as major players source components from limited number of suppliers.
Threat of new substitutes: Threat of substitute is medium as technology shifts towards more efficient renewable energy solutions like larger solar panels but micro inverters offer flexibility.
Competitive rivalry: Intense rivalry exists among the key players to gain market share.
SWOT Analysis
Strength: Micro inverters provide module level MPPT, optimizes energy harvest from each panel and ease installation process.
Weakness: Higher initial investment compared to traditional string inverters. Require individual unit replacement if faulty.
Opportunity: Growing installation of decentralized renewable energy systems and falling prices will boost demand. Supportive government policies and subsidies promote solar adoption.
Threats: Trade barriers and import tariffs can raise component costs. Competition from substitute renewable technologies.
Key Takeaways
The Global Solar Micro Inverter Market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing solar PV deployment across both residential and commercial sectors. Geographically, the Asia Pacific region dominates the global market and is expected to grow at a fastest pace due to continuous infrastructure development and growing energy needs in major economies like China and India.
Regional analysis: North America and Europe hold a sizable share of the global market due to supportive regulations and incentives. China holds the largest market share in APAC region owing to low-cost manufacturing and favorable government initiatives to achieve carbon emission reduction goals.
Key players analysis: Key players operating in the solar micro inverter market are SunPower Corporation, Enphase Energy Inc., iEnergy Co. Ltd., Altenergy Power System Inc., Chilicon Power, LLC, SMA Solar Technology AG, Sparq Systems, SMA Solar Technology AG, Northern Electric and Power Co. Ltd, ABB Ltd., LG Electronics, and Darfon Electronics Corporation. Major players focus on new product launches and expansion plans to strengthen their global presence.
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