The global PV micro inverters market size was valued at USD 967.2 million in 2022 and is estimated to reach USD 1132.6 million by 2033. Over the forecast period, global PV micro inverter sales are predicted to soar at 15.1% CAGR, taking the overall market valuation to USD 4630.0 million by 2033.
Demand for PV micro inverters is expected to remain high in the residential sector. This is due to increasing adoption of solutions such as rooftop solar PVs across residential buildings. The target segment is set to exhibit a CAGR of 14.6% through 2033.
PV micro inverters, also called microinverter systems, are DC-to-AC power conversion devices used in photovoltaic energy systems. These plug-and-play devices convert DC electricity generated by solar panels into AC electricity used in homes or fed back into electrical grids.
Photovoltaic (PV) micro inverters are becoming ideal alternatives to string inverters to perform the DC to AC power conversions at the solar panel level in photovoltaic systems. This is due to several advantages of these microinverters.
PV microinverters are easy to install and provide benefits such as enhanced energy harvesting, improved efficiency, optimization, higher safety, and panel-level monitoring. They are embedded with maximum power point tracking (MPPT) technology to enhance the efficiency of photovoltaic generation systems.
Increasing awareness about the benefits of PV micro inverters is expected to play a key role in fueling their demand through 2033. New projections indicate PV micro inverters to remain the most sought-after type globally through 2033.
PV micro inverters take full advantage of each panel’s production and convert the power generated per panel to the grid’s voltage. They also allow end users to track the performance of individual panels in real time, thereby helping to identify panel-level failures.
Growing adoption of solar photovoltaic systems across residential, commercial, and utility sectors is expected to boost the global PV micro inverters through 2033. Subsequently, increasing investments in renewable power generation technologies are set to uplift global demand.
Rising concerns about depleting fossil fuels and elevating energy costs motivate people to use alternative energy technologies such as solar panels. As PV micro inverters form an integral part of solar energy systems, a rise in solar panel installations will eventually boost PV micro inverter sales.
The United States is expected to remain at the epicenter of the global PV micro inverters industry during the assessment period. This is attributable to rising government investments in expanding solar infrastructure, the availability of advanced micro inverter products, and the strong presence of leading market players like Enphase Energy.
Top United States-based PV micro inverter manufacturers and suppliers, such as Enphase Energy, are concentrating on introducing novel solutions with improved features. For instance, Enphase Energy, Inc. introduced the new Enphase Energy System with IQ8 solar microinverters in October 2021.
Enphase’s micro inverters, such as Enphase IQ7 and Enphase IQ8, are becoming quite popular across North America and other regions. This is because they are more reliable and comply with government standards. Growing popularity of these products is improving the market share of Enphase and other leading companies.
Developing new advanced micro inverters that offer enhanced energy harvesting and improved efficiency is expected to influence PV micro inverters market projections.
| Attributes | Key Insights |
|---|---|
| Global PV Micro Inverters Market Size in 2022 | USD 967.2 million |
| Estimated PV Micro Inverters Market Value (2023) | USD 1132.6 million |
| Projected Market Size (2033) | USD 4630.0 million |
| Predicted PV Micro Inverters Market CAGR (2023 to 2033) | 15.1% |
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The global market for PV micro inverters exhibited a CAGR of 17.6% during the historical period. However, as per the latest analysis, it is predicted that there might be a slight decrease in the CAGR of the target market during the forecast period. This reduction, however, does not necessarily indicate a decrease in the popularity of microinverters.
| Historical CAGR (2018 to 2022) | 17.6% |
|---|---|
| Forecast CAGR (2023 to 2033) | 15.1% |
Short-term Analysis of PV Micro Inverters Market from 2018 to 2022
Worldwide sales of PV micro inverters increased rapidly between 2018 and 2022. This was primarily due to high electricity demand and increased solar panel installation.
During 2018 and 2022, there was a sharp rise in the number of solar panel installations globally. For instance, it was estimated that the world will add about 70,000 solar panels every hour between 2018 and 2023, as per the World Economic Forum. This increased sales of micro inverters, often used in solar panels.
High awareness about the benefits of PV micro inverters also played a key role in fueling their demand during this period. As a result, the worldwide PV micro inverters market revenue totaled USD 967.2 million in 2022.
Amid towering energy costs and the depletion of fossil fuels, governments worldwide are introducing new subsidies, incentives, and favorable policies to encourage the adoption of solar power systems. This, in turn, is expected to create high demand for PV micro inverters.
People are expected to increasingly install more rooftop solar power systems to benefit from government policies and reduce electricity bills. This is likely to create growth prospects for PV micro inverter manufacturers during the assessment period.
The PV micro inverters industry outlook looks positive amid rising government investments in renewable energy infrastructure. As per the global industry projection of PV micro inverters, overall demand is expected to grow at an impressive pace throughout the forecast period.
Principal Consultant
In the long run, a favorable regulatory environment and technological advancements in PV technologies are expected to create growth prospects for the market. Subsequently, the declining cost of both PV solar panels and micro inverters is likely to fuel demand in the market.
Governments worldwide are introducing supportive policies, regulations, and incentives to promote solar power. Steps such as feed-in tariffs and renewable energy targets are expected to encourage the adoption of solar PV panels. This, in turn, is set to elevate PV micro inverter demand.
Leading companies are expected to invest in advanced manufacturing technologies to reduce the cost of solar cells and microinverters. This cost reduction is expected to make solar energy more affordable and increase acceptance of products such as solar cells and panels.
With solar energy becoming more cost-effective, there is expected to be an uptick in PV installations, especially across countries such as Japan, India, and China. This, in turn, is set to fuel global sales of PV micro inverters.
Top players are also developing technologically advanced and reliable PV micro inverters to disseminate high power output and perform multiple applications. This will help them to boost their revenues.
The target market is expected to witness an increase in the development of novel solutions such as multi-input micro inverters and hybrid inverters. The latest PV micro inverters market analysis estimates total revenues, with these dynamics, to reach USD 4630.0 million by 2033.
| Particular | Value CAGR |
|---|---|
| H1 | 14.70% (2022 to 2032) |
| H2 | 14.90% (2022 to 2032) |
| H1 | 15.40% (2023 to 2033) |
| H2 | 14.80% (2023 to 2033) |
Key Factors and Trends Driving the Global PV Micro Inverters Market
Factors Limiting Market Growth
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The table below provides holistic research about PV micro inverters market revenue across top countries. The United States, China, and Japan are the top three dominant markets for PV micro inverters, with estimated valuations of USD 844.6 million, USD 747.3 million, and USD 502.2 million in 2033, respectively.
Countries such as South Korea and the United Kingdom are also expected to present lucrative opportunities for solar micro inverter manufacturers. This is due to rising adoption of solar PVs.
| Countries | Market Value (2033) |
|---|---|
| United States | USD 844.6 million |
| United Kingdom | USD 177.8 million |
| China | USD 747.3 million |
| Japan | USD 502.2 million |
| South Korea | USD 307.6 million |
The below table highlights the anticipated PV micro inverters market growth rates of top countries. South Korea, China, and Japan are expected to witness dominant CAGRs of 17.1%, 16.0%, and 15.6% respectively through 2033.
| Countries | Projected PV Micro Inverters Market CAGR (2023 to 2033) |
|---|---|
| United States | 15.3% |
| United Kingdom | 15.4% |
| China | 16.0% |
| Japan | 15.6% |
| South Korea | 17.1% |
The below table shows the historical PV micro inverters market growth rates of the top 5 countries. With CAGRs of 21.2%, 20.1%, and 19.9%, respectively, South Korea, Japan, and the United Kingdom were the key markets for PV micro inverter manufacturers during the historical period.
| Countries | Historical PV Micro Inverters Market CAGR (2018 to 2022) |
|---|---|
| United States | 18.2% |
| United Kingdom | 19.9% |
| China | 18.7% |
| Japan | 20.1% |
| South Korea | 21.1% |
The United States PV micro inverters market value is estimated to reach USD 844.6 million by 2033. Over the forecast period, PV micro inverter demand in the country is predicted to rise at 15.3% CAGR.
Several factors are expected to spur growth in the United States market. Among these, increasing investments in renewable energy infrastructure, growing popularity of smart grid technologies, and booming solar PV industry are key PV micro inverters market drivers in the country.
The United States government is investing heavily to improve its utility-scale solar capacity to meet energy demand. According to the Solar Energy Industries Association, the United States solar industry installed a total capacity of about 6.1 gigawatts-direct current in the first quarter of 2023.
Further, the solar industry size is expected to triple over the next five years, taking the total installed solar capacity to 378 GW by 2028. This, in turn, elevates demand for PV micro inverters as they are essential components of solar PV systems.
The United States also leads from the forefront when it comes to the deployment of smart grid infrastructure. Rising deployment of smart grids is expected to power up sales of PV micro inverters as they are often integrated into these grids. This will boost the PV micro inverters industry in America.
The PV micro inverters market revenue in China is forecast to experience a growth rate of 16.0% CAGR through 2033 compared to 18.7% CAGR registered between 2018 and 2022. By 2033, total PV micro inverter sales revenue in China is projected to reach USD 747.3 million.
During the forecast period, China is anticipated to dominate the East Asia PV micro inverters market. This is due to rising PV installations, favorable government support, and the strong presence of leading PV micro inverter manufacturing companies.
Growing environmental concerns and rising incidence of power outages are prompting people and the government across China to invest in greener technologies such as solar cells. This, in turn, is expected to fuel sales of PV micro inverters.
PV micro inverters can enhance the efficiency and performance of solar PV systems. Hence, they are gaining wider popularity in emerging nations such as China.
Advancements in PV technologies and increasing government incentives & subsidies are anticipated to boost the China market further. Thanks to these factors, China PV micro inverters market share is expected to increase significantly through 2033.
The United Kingdom PV micro inverters market size expanded at a CAGR of 19.9% from 2018 to 2022. In the forecast period, sales of V micro inverters in the country are forecast to soar at 15.4% CAGR, taking the market valuation to USD 177.8 million by 2033.
Within Europe, the United Kingdom is expected to remain one of the key markets for PV micro inverters. This is due to increasing installation of solar panels, escalating energy crisis, and rising government initiatives & incentives.
The United Kingdom is implementing supportive policies and regulations to promote renewable energy, including solar power. Measures such as renewable energy targets and feed-in tariffs have incentivized the adoption of PV systems. They are creating a favorable environment for expanding the PV micro inverters industry.
Japan PV micro inverters market is expected to reach a valuation of USD 502.2 million by 2033. Overall demand in Japan for PV micro inverters will likely increase at 15.6% CAGR through 2033.
Japan is set to witness robust growth during the projection period. This is due to booming solar energy sector and increasing adoption of solar PVs in the residential sector.
People across Japan are increasingly installing solar PVs in their houses and commercial buildings as a source of electricity. This is because they seek to generate electricity and benefit from government incentives.
Increasing adoption of solutions such as rooftop PV systems or rooftop solar power systems, in turn, is expected to boost Japan PV micro inverters market. Subsequently, increasing government efforts towards expanding the country’s solar infrastructure are set to uplift PV micro inverter demand through 2033.
The PV micro inverters market in South Korea is set to thrive at 17.1% CAGR during the forecast period. It is projected to attain a valuation of USD 307.6 million by 2033.
PV micro inverter sales in South Korea are predicted to rise at an impressive pace through 2033. This is attributable to the robust expansion of the renewable energy sector and increasing awareness about the benefits of PV micro inverters.
People across Korea are becoming aware of the benefits of micro inverters over traditional string inverters. As a result, they are showing a keen inclination towards using these items.
The below section predicts standalone systems to remain high in demand throughout the forecast period. The target segment will likely exhibit a 14.8% CAGR through 2033.
Based on end use, the residential segment is set to hold a dominant market share through 2033. It is forecast to thrive at a CAGR of 14.6% during the assessment period.
| Top Segment (System) | Standalone Systems |
|---|---|
| Projected CAGR (2023 to 2033) | 14.8% |
The PV micro inverters market by system is segmented into standalone and integrated systems. Among these, standalone PV micro-inverter systems are expected to witness a higher demand during the projection period.
From 2018 to 2022, the standalone systems segment exhibited a CAGR of 17.5%. Over the assessment period, it is expected to progress at 14.8% CAGR. This is attributable to growing end-user preference for standalone systems because of their multiple benefits.
Standalone PV micro-inverters are used separately on each solar panel to convert DC power to AC. This allows for maximum energy harvesting, as shading or soling on one panel does not affect the performance of the entire array. They provide module-level monitoring capabilities.
Standalone systems do not depend on other electrical systems, such as batteries or grids. They are easy to install, cost-effective, and offer greater design flexibility. These features are expected to encourage their adoption throughout the forecast period.
| Top Segment (End Use) | Residential |
|---|---|
| Projected CAGR (2023 to 2033) | 14.6% |
The PV micro inverters market by end-use is segmented into residential, commercial, and utility. Among these, most sales are expected to remain concentrated in the residential sector during the assessment period.
The residential segment is estimated to thrive at 14.6% CAGR during the assessment period compared to 17.3% CAGR recorded from 2018 to 2022. This is due to rising adoption of solar panels in residential houses to meet energy demand.
Amid elevating energy costs and supportive government policies, the adoption rate of PV installations, especially in residential houses, is expected to rise dramatically during the next few years. This, in turn, is predicted to uplift global demand for PV micro inverters.
Photovoltaic micro inverters are suitable for homeowners looking to harness solar energy efficiently. They have become a valuable component of modern residential solar energy systems, offering improved energy production, design flexibility, and better safety & monitoring.
Increasing adoption of rooftop solar photovoltaics in the residential sector is expected to bolster global PV micro inverters sales through 2033. Subsequently, a reduction in solar PV costs is expected to bode well for the target segment and the overall market performance.
Top players of the PV micro inverters industry profiled in the report include ABB Ltd, Darfon Electronics Corporation, Enphase Energy, Inc., Shenzhen KSTAR Science and Technology Co., Ltd, and Sungrow Power Supply Co., Ltd.
The market competition for PV micro inverters is getting fiercer due to presence of several local and regional manufacturers and PV micro inverter suppliers. Key PV micro inverter companies primarily focus on developing new solar micro-inverters with enhanced features. They also leverage strategies such as partnerships, contracts, distribution agreements, collaborations, mergers, and acquisitions to gain a competitive edge in the market.
Recent PV Micro Inverters Market developments
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 1132.6 million |
| Projected Market Value (2033) | USD 4630.0 million |
| Anticipated Growth Rate (2023 to 2033) | 15.1% CAGR |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million/Billion, Volume (Units), and CAGR from 2023 to 2033 |
| Segments Covered | System, End Use, and Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia, and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Companies Profiled | ABB Ltd; Darfon Electronics Corporation; Enphase Energy, Inc; Shenzhen KSTAR Science and Technology Co., Ltd; Sungrow Power Supply Co., Ltd.; Others |
The global market was valued at USD 967.2 million in 2022.
The global market value is estimated to reach USD 1132.6 million in 2023.
The global market size is projected to reach USD 4630.0 million by 2033.
The global industry exhibited a CAGR of 17.6% from 2018 to 2022.
Global demand is expected to rise at 15.1% CAGR through 2033.
Thriving at 14.8% CAGR, demand is expected to remain high for standalone systems.
The United States market is set to reach a valuation of USD 844.6 million by 2033.
Integration of micro inverters in smart grids is a key market trend.
ABB Ltd and Darfon Electronics Corporation are a few of the leading companies.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System 5.1. Standalone Systems 5.2. Integrated Systems 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 6.1. Residential 6.2. Commercial 6.3. Utility 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. ABB Ltd. 17.2. Darfon Electronics Corporation 17.3. Enphase Energy Inc 17.4. Shenzhen KSTAR Science and Technology Co. Ltd 17.5. Sungrow Power Supply Co. Ltd 17.6. SunPower Corporation 17.7. TMEIC Corporation 17.8. Altenergy power system 17.9. Renesola 17.10. AE conversion 18. Assumptions & Acronyms Used 19. Research Methodology
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PV Micro Inverters Market
