Micro-inverter Market by Offering, Communication Technology (Wired, Wireless), Type (Single Phase, Three Phase), Power Rating (Below 250 W, Between 250 & 500 W, Above 500 W), Connection Type, Sales Channel, Application - Global Forecast to 2029
Micro-inverter Market
Micro-inverter Market and Top Companies
Enphase Energy : Enphase Energy designs, develops, and sells micro-inverter systems for residential and commercial end users in the US and internationally. The company offers its products such as AC modules, micro-inverters, battery energy storage systems, accessories, and supportive software applications. It also provides IQ Envoy—a communication gateway.
Darfon Electronics: Darfon Electronics offers micro-inverters through its US-based subsidiary, Darfon Solar. Its product portfolio consists of an extensive range of micro-inverters, storage solutions, and monitoring systems. Darfon Solar offers G640 micro-inverter series. These micro-inverters are well-suited for residential and commercial applications. The company also provides data loggers, programmable logic controller (PLC) boxes, and ComBox. The cloud-based monitoring systems offered by Darfon enable users to efficiently troubleshoot problems in PV systems, thereby resulting in low maintenance costs.
Altenergy Power System: Altenergy Power System, also known as APsystems, is a global company that develops, manufactures, and markets micro-inverters. The micro-inverters offered by the company are based on its proprietary solar technology. APsystems offers advanced solar micro-inverters for use in residential and commercial applications. It offers QS1, YC600, and YC1000 micro-inverters, as well as an energy monitoring & analysis (EMA) web portal and mobile apps to monitor and control the panel-by-panel performance of solar systems. Its proprietary system architecture combines highly efficient power inversion systems with user-friendly monitoring interfaces to offer reliable and intelligent energy solutions that ensure maximum output of solar arrays.
ReneSola : ReneSola is a leading manufacturer and supplier of green energy products. Its micro-inverter solution is branded as Micro Replus and comprises micro-inverters, Micro Replus Gateway (MRG), and monitoring software. The micro-inverters offered by ReneSola are designed to improve the reliability of solar PV harvesting in residential applications. Its LED portfolio includes LED outdoor lighting, LED indoor lighting, compact fluorescent lamps (CFL), and LED retrofit lamps.
Chilicon Power: Chilicon Power develops, manufactures, and sells advanced micro-inverters. The offerings of the company include CP-720 and CP-250E micro-inverters, and a gateway. The micro-inverters of Chilicon Power can replace large central inverters. They integrate with advanced networking technologies and web-based software to enable a new level of intelligence and connectivity for solar arrays. The CP-720 inverter of the company offers sustainable power production of 720 watts AC, which acts as a well-scaled output power that is compatible with 60-cell, 72-cell, or 96-cell modules up to 840 W DC.
Micro-inverter Market and Top Applications
- Residential: PV installations in the residential sector have been increasing tremendously and are projected to continue in the coming years. Solar inverter systems at residential levels have also become critical due to the increased adoption of residential-scale PV. Micro-inverters are mainly used in residential applications. Owing to its features such as great scalability and flexibility and because they are easy to install as compared to conventional string or central inverter technology, these micro-inverters are well suited in residential solar rooftop PV installations.
- Commercial: A commercial-scale PV system is among the most familiar ways to enhance the company’s green credentials, as well as reduce electricity bills. Installing a solar PV system at a commercial level not only protects against the ever-rising retail energy prices but can also provide financial incentives by selling power to the grid. Mostly college and school campuses, as well as commercial buildings, hotels, and farms, have rooftop and ground solar PV installations. A micro-inverter helps in increasing the amount of energy harvested from an array in commercial applications. In addition, the lower voltages of micro-inverters make them a safer choice for commercial applications.
- PV Power Plant: PV power plants are a relatively newer application segment for micro-inverters. It accounts for a smaller share than residential and commercial applications. The number of solar panels installed in a PV plant is huge, and it may not be convenient and cost-efficient to integrate micro-inverters for each panel. Also, most micro-inverters are single phased and are not suitable for this application as the electricity generated is transmitted directly to the grid, which requires a three-phase connection. However, a few manufacturers, such as Altenergy Power Systems, have expanded their micro-inverter product portfolio and offer three-phase micro-inverters that can handle up to 3–4 modules per unit, which is suitable for PV power plant applications.
Micro-inverter Market and Top Types
- Single Phase: Most micro-inverters available in the market, at present, are single phased. New homes and small businesses adopt single-phase micro-inverters, wherein single-phase electric power is transmitted via 2 wires—active and neutral. Electricity from the solar PV system flows through one active wire, while the neutral wire is connected to the ground (earth) at the switchboard.
- Three Phase: A three-phase micro-inverter is invented recently. These inverters are specifically designed to supply three-phase electric power and are mostly suitable for PV power plant applications. In conventional micro-inverter designs that work on single-phase power, the energy from the panel must be stored during the period when the voltage is passing through zero, which it does twice per cycle. In contrast, in a three-phase system, throughout the cycle, one of the three wires has a positive or negative voltage, and thus the need for storage can be greatly reduced by transferring the output of the panel to different wires during each cycle.
[204 Pages Report] The global micro-inverter market was valued at USD 4.9 billion in 2024 and is estimated to reach USD 14.5 billion by 2029, registering a CAGR of 24.1% during the forecast period. Government subsidies, incentives, and renewable energy adoption have driven the demand for micro-inverters. Also, rising investments in solar energy and technological advancements in solar energy systems are fueling the market's growth.
Micro-inverter Market Forecast to 2029
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Market Dynamics:
Driver: Increasing energy prices across the globe
Over the recent years, gas, coal, and electricity prices have surged to levels not seen in decades. The simultaneous increase in gas and coal prices and the rising trajectory of carbon prices in Europe have resulted in a noticeable upswing in electricity prices. These price upswings are expected to place significant upward pressure on household energy bills, presenting a potential difficulty for consumers dealing with heightened costs in the energy sector. With the ongoing escalation of traditional energy prices, homeowners and businesses are increasingly exploring alternative and cost-efficient solutions to fulfill their energy requirements. Rooftop solar panel installations powered by microinverters emerge as a compelling solution in response to this challenge.
Restraint: Limited power handling capacity
Microinverters are tailored to manage designated power ranges, and this constraint can pose challenges, especially in expansive solar installations. There are instances where a lone microinverter might be unable to control the power output from specific high-wattage solar panels. Consequently, larger systems may require multiple microinverters per panel or additional units to effectively handle the overall power generation.
Opportunity: Government incentives and policies for renewable energy
Governments worldwide have acknowledged the significance of transitioning to cleaner and sustainable energy sources to address environmental concerns and diminish reliance on traditional fossil fuels. Governments frequently provide financial incentives, tax credits, or subsidies to individuals, businesses, and utilities investing in solar energy infrastructure to encourage the adoption of solar power systems. For example, the government of India offers subsidies ranging from 30% to 90% for on-grid solar systems, hybrid solar systems, and solar water pumps. Additionally, in the US, subsidies for renewable energy reached USD 15.6 billion in 2022. These incentives can substantially impact the economic viability of solar installations, rendering them more financially feasible for consumers and businesses.
Challenge: Complexity during installations
The installation complexity is a notable hurdle for the micro inverter market. In contrast to string inverters, usually centralized in a solar power system, microinverters are situated on or near individual solar panels. This decentralized positioning demands a more intricate installation procedure, given that each microinverter must be connected to its respective solar panel. This complexity extends the time and labor necessary for installation, potentially resulting in increased overall installation expenses. Furthermore, the requirement for specialized knowledge and training among installers presents an additional challenge, as not all solar technicians may be acquainted with the distinctive demands of micro-inverter setups.
Micro-Inverter Market Ecosystem
The Micro-inverter market is consolidated, with major companies such as Enphase Energy, Altenergy Power Systems, Hoymiles, Ningbo Deye Inverter Technology Co Ltd, Chilicon Power LLC, and numerous small- and medium-sized enterprises. Almost all players offer various products in micro-inverter. These products are used for residential, commercial, and PV power plant applications.
Based on communication technology, the wired segment is expected to dominate during the forecast period.
Wired communication methods offer a stable and reliable data transfer environment. This is crucial for micro-inverters, as consistent and uninterrupted communication is essential for their effective performance in solar energy systems. Wired communication typically provides higher data transfer speeds compared to wireless options. This is advantageous for micro-inverters, especially in scenarios where large amounts of data need to be transmitted quickly, such as monitoring and optimizing solar system performance. These advantages of wired over wireless communication technology is fueling the market growth.
Based on application, the residential segment is projected to have the largest market share during the forecast period
The residential solar market has experienced significant growth in recent years, with more homeowners adopting solar energy systems to reduce electricity costs and environmental impact. This surge in residential solar installations naturally contributes to the prominence of micro-inverters. Micro-inverters are effective in mitigating the effects of shading and panel mismatch issues. In residential settings, shading from nearby structures or trees is more likely, and micro-inverters enable individual panels to operate optimally, even if others are partially shaded. Micro-inverters are generally easier to install and maintain than centralized string inverters, making them more appealing for residential solar installations. Moreover, simplified installation processes can save homeowners and installers costs. Some regions offer specific regulatory support or financial incentives for residential solar installations, further driving this sector's market share of micro-inverters. These advantages are leading to the installation of micro-inverters for residential applications.
Based on region, the Asia Pacific region is projected to grow at the highest CAGR for the micro-inverter market
Numerous countries in the Asia Pacific region, including India, China, and Australia, are actively engaging in investments and advocacy for adopting renewable energy sources. The rising awareness of environmental sustainability and the imperative to diminish carbon footprints have resulted in a notable upswing in the request for solar power. This heightened demand is contributing to the expansion of the micro-inverter market. Moreover, these countries are implementing supportive policies, offering financial incentives, and promoting research and development initiatives to further accelerate the adoption of solar technologies, particularly micro-inverters, in their pursuit of sustainable energy solutions.
Micro-inverter Market by Region
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Key Market Players
The micro-inverter companis is dominated by a few globally established players such as Enphase Energy (US), Altenergy Power Systems (US), Hoymiles (China), Ningbo Deye Inverter Technology Co Ltd (China), Chilicon Power LLC (US), AEconversion GmbH & CO. KG (Germany), Envertech (China), ZJBENY (China), Bluesun Solar Co., Ltd. (China), and Solar Panels Plus (US).
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Report Metric |
Details |
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Market Size Availability for Years |
2020–2029 |
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Base Year |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
By offerings, communication technology, type, power rating, connection type, sales channel, application, and region |
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Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the world |
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Companies Covered |
Enphase Energy (US), Altenergy Power Systems (US), Hoymiles (China), Ningbo Deye Inverter Technology Co Ltd (China), Chilicon Power LLC (US), AEconversion GmbH & CO. KG (Germany), Envertech (China), ZJBENY (China), Bluesun Solar Co., Ltd. (China), and Solar Panels Plus (US) |
Micro-inverter Market Highlights
This research report categorizes the micro-inverter market based on offerings, communication technology, type, power rating, connection type, application, and region
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Recent Developments
- In November 2023, Enphase Energy, Inc., a renowned global energy technology firm and the primary provider of microinverter-based solar and battery systems worldwide, unveiled its latest offering – the IQ8 Commercial Microinverters. This release includes the IQ8P-3P Microinverter, explicitly designed for the North American small commercial solar market.
- In May 2023, APsystems introduced the latest Wi-Fi & Bluetooth EZ1 Microinverter series. This single-phase microinverter solution is designed for balcony installations and do-it-yourself (DIY) PV systems, and it was unveiled at the 16th SNEC International Photovoltaic Power Generation and Smart Energy Conference & Exhibition in Shanghai, China.
- In March 2023, Hoymiles introduces the cutting-edge HMS-2000DW microinverter series, tailored for high-powered PV modules and featuring seamless Wi-Fi integration. Tailored for small home solar systems, these microinverters offer enhanced efficiency and reduced operational costs compared to alternative devices.
- In January 2023, Hoymiles launched innovative microinverters to reduce initial customer costs without compromising overall performance. The HMS-C series is accessible in North America and Oceania, while the HMS-D series is available in Latin America and the Asia Pacific region.
- In August 2022, Enphase Energy, Inc., a prominent global energy technology firm and the top microinverter-based solar and battery systems provider, announced its agreement to acquire GreenCom Networks AG. Headquartered in Munich, Germany, GreenCom Networks specializes in Internet of Things (IoT) software solutions, enabling users to connect and oversee various distributed energy devices within their homes.
- In June 2020, Enphase Energy partnered with Australia-based Excel Power. Under this partnership, Excel Power installed a 50 kW Enphase micro-inverter-based system for Wippells Autos, a Jaguar and Land Rover dealer based in Toowoomba City, Queensland (Australia).
Frequently Asked Questions (FAQs):
Which are the major companies in the micro-inverter market? What are their significant strategies to strengthen their market presence?
The major companies in the EMI shielding market are – Enphase Energy (US), Altenergy Power Systems (US), Hoymiles (China), Ningbo Deye Inverter Technology Co Ltd (China), Chilicon Power LLC (US). The major strategies adopted by these players are product launches and developments, collaborations, acquisitions, and expansions.
What is the potential market for the micro-inverter in terms of the region?
The North American region is expected to dominate the micro-inverter market due to the presence of major manufacturing companies for residential, commercial, as well as PV power plants.
What are the opportunities for new market entrants?
There are significant opportunities in the micro-inverter market for start-up companies. These companies provide innovative and diverse product portfolios for residential and commercial applications.
What are the drivers and opportunities for the micro-inverter market?
Factors such as Increasing investments in solar energy, Technical advantages over conventional solar inverters, Increasing energy prices contributing towards installations of solar panels, and rising energy demand is fueling the growth of microinverters are among the factors driving the development of the micro-inverter market.
What are the major applications of micro-inverters that are expected to drive the market's growth in the next 5 years?
The major application for the micro-inverter is residential. The micro-inverter is also in demand from commercial and PV power plants. They are expected to have a significant share in this market.
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To estimate the size of the micro-inverter market, the study utilized four major activities. Exhaustive secondary research was conducted to gather information on the market, as well as its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the micro-inverter market. Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
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United Nations Environment Programme |
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Primary Research
To gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting, primary interviews were conducted. Additionally, primary research was used to comprehend the various technology, application, vertical, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customer/end-user installation teams using micro-inverter, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of micro-inverter, which will impact the overall market. Several primary interviews were conducted across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
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Market Size Estimation
To estimate and validate the size of the micro-inverter market and its submarkets, both top-down and bottom-up approaches were utilized. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The entire process involved studying the annual and financial reports of top players and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, which were then verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
Global Micro-Inverter Market Size: Botton Up Approach
- First, companies offering Micro-Inverter products have been identified, and their product mapping with respect to different parameters, such as offering, communication technology, type, power rating, connection type, sales channel, and application has been carried out.
- The market size has been estimated based on the demand for different types of micro-inverters for different applications. The anticipated change in demand for micro-inverters offered by these companies in the recession and company revenues have been analyzed and estimated.
- Primary research has been conducted with a few major players operating in the micro-inverters market to validate the global market size. Discussions included the recession impact on the micro-inverters ecosystem.
- Then, the size of the micro-inverters market has been validated through secondary sources, which include the International Trade Centre (ITC), world trade organization, and world economic forum.
- The CAGR of the micro-inverters market has been calculated considering the historical and future market trends and the impact of recession by understanding the adoption rate of micro-inverters for different applications.
- The estimates at every level have been verified and cross-checked through discussions with key opinion leaders, such as corporate executives (CXOs), directors, and sales heads, as well as with the domain experts in MarketsandMarkets.
- Various paid and unpaid information sources, such as company websites, annual reports, press releases, research journals, magazines, white papers, and databases, have also been studied.
Global Micro-Inverter Market Size: Top Down Approach
The top-down approach has been used to estimate and validate the total size of the micro-inverter market market.
- Focusing initially on the R&D investments and expenditures being made in the ecosystem of the micro-inverter market, further splitting the market on the basis of offerings, communication technology, type, power rating, connection type, sales channel, and region and listing the key developments.
- Identifying leading players in the micro-inverter market through secondary research and verifying them through brief discussions with industry experts
- Analyzing revenue, product mix, geographic presence, and key applications for which products are served by all identified players to estimate and arrive at percentage splits for all key segments.
- Discussing splits with industry experts to validate the information and identify key growth pockets across all key segments.
- Breaking down the total market based on verified splits and key growth pockets across all segments.
Data Triangulation
Once the overall size of the micro-inverter market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. To triangulate the data, various factors and trends from the demand and supply sides were studied. The market was validated using both top-down and bottom-up approaches.
Market Definition
A micro-inverter is a device used in solar photovoltaic (PV) systems to convert direct current (DC) electricity generated by individual solar panels into alternating current (AC) electricity. Unlike traditional string inverters, which are designed to handle the output of multiple solar panels in a series, micro-inverters operate on a per-panel basis. Micro-inverters are often more flexible in terms of system design and installation. They can be used in complex roof layouts or situations where shading is a concern, offering greater design flexibility. The micro-inverters are used for applications such as residential, commercial, and PV power plants.
Key Stakeholders
- Associations and industrial bodies
- End-user industries
- Government bodies such as regulating authorities and policymakers
- Market research and consulting firms
- Raw material suppliers and distributors
- Research institutes and organizations
- Original equipment manufacturers (OEMs)
- Micro-inverter system manufacturers
- Micro-inverter system traders and suppliers
Report Objectives
- To define, describe, and forecast the micro-inverter market based on offerings, communication technology, type, power rating, connection type, sales channel, application, and region.
- To forecast the market size, in terms of value, for the concerned segments with regard to four main regions, namely, Americas, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
- To strategically analyze the micromarkets with regard to the individual growth trends, prospects, and contribution to the micro-inverter market
- To provide detailed information regarding the major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the growth of the micro-inverter market
- To analyze opportunities in the market for stakeholders and the details of the competitive landscape for the market leaders
- To provide a detailed overview of the micro-inverter value chain
- To benchmark players within the market using a proprietary “Competitive Leadership Mapping” framework, which analyzes market players on various parameters within the broad categories of business and product strategy
- To analyze competitive developments such as partnerships, acquisitions, expansions, agreements, collaborations, contracts, and product launches, along with research and development (R&D) in the micro-inverter market
- To strategically profile key players of the micro-inverter market and comprehensively analyze their market shares and core competencies
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the micro-inverter market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the micro-inverter market.
Growth opportunities and latent adjacency in Micro-inverter Market