by Solar micro inverters are power electronic devices that convert direct current (DC) generated from a single photovoltaic (PV) module to alternating current (AC) and maximize the energy harvest of each PV module. They ensure module-level maximum power point tracking to optimize energy harvest even when modules are in the shade. This results in improved system efficiencies and minimal energy losses as compared to traditional centralized or string inverters. The increasing solar rooftop installations particularly in the residential sector is driving the demand for micro inverters as they provide module-level monitoring and optimize output from each PV module individually. Rapid decline in prices of PV modules and supportive government policies promoting renewable energy adoption have boosted rooftop solar installations globally. Additionally, micro inverters help overcome issues associated with partial shading and suit well for distributed rooftop applications as they avoid dealing with an entire string or array of panels.
The global solar micro inverter market is estimated to be valued at US$ 323.28 Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The solar micro inverter market is witnessing the trend of increasing integration of energy storage and development of hybrid inverters. Battery storage solutions are being widely integrated with PV installations to provide power during grid outages and help achieve self-consumption of solar power. Micro inverters are increasingly being offered with integrated storage capabilities to provide backup power solutions. Manufacturers are also developing hybrid inverters that combine capabilities of traditional string inverters and micro inverters to optimize power harvesting across modules and support storage solutions. Technological advances aimed at developing more efficient and cost-effective micro inverters with energy monitoring and communications capabilities will further accelerate the adoption of these devices.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low to moderate as solar micro inverter market is already dominated by major players and requires substantial capital investments. However, ease of obtaining patent licenses or technological expertise can lower entry barriers for new firms.
Bargaining power of buyers: Buyers have moderate bargaining power as they can choose between various solar micro inverter vendors and models. However, switching costs associated with replacing existing micro inverters limit buyers’ options.
Bargaining power of suppliers: Suppliers of key components like microchips have moderate bargaining power due to scarce availability and niche technical expertise required. This leads to suppliers exerting pricing pressures.
Threat of new substitutes: Threat of substitutes is low as solar micro inverters improve overall photovoltaic system efficiency with module level monitoring. Alternatives like string inverters cannot match performance benefits.
Competitive rivalry: The market is consolidated with major global players occupying bulk share. Players differentiate by performance specifications, pricing and brand value to gain edge.
Key Takeaways
The Global Solar Micro Inverter Market Demand is expected to witness high growth. It is forecast to reach a value of US$ 323.28 Mn by 2023.
Regional analysis: North America dominates the market currently owing to supportive government policies and initiatives for solar energy adoption. However, Asia Pacific is projected to witness fastest growth till 2030 led by countries like China, Japan and India increasing their solar power generation capacities.
Key players: Key players operating in the solar micro inverter market are Ethicon (Johnson & Johnson), Medtronic, Intuitive Surgical, Olympus Corporation, Karl Storz, Teleflex Incorporated, Accuray Incorporated, AngioDynamics, CONMED Corporation, Trovagene, Varian Medical Systems, Medrobotics Corporation, Siemens Healthineers, Atricure, Inc., Novadaq Technologies Inc. Players compete on technology innovation and aftersales services to expand their customer base.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
