Micro Inverter Market Size (2024 - 2029)

The micro inverter market is experiencing significant growth, driven by factors such as module-level monitoring, easier installation, and enhanced design flexibility. The market's expansion is further supported by ongoing research and development activities and reductions in micro inverter costs. Its compact size and versatility, along with the increasing consumer demand for modularity, safety, and maximum energy harvest, are key contributors to the market's growth. The adoption of micro inverters is widespread due to their ability to maximize power output through advanced technology, making them advantageous for residential and commercial applications.

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Market Size of Micro Inverter Industry

Micro Inverter Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 3.15 Billion
Market Size (2029) USD 7.74 Billion
CAGR (2024 - 2029) 19.70 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Micro Inverter Market Major Players

*Disclaimer: Major Players sorted in no particular order

Micro Inverter Market Analysis

The Micro Inverter Market size is estimated at USD 3.15 billion in 2024, and is expected to reach USD 7.74 billion by 2029, growing at a CAGR of 19.70% during the forecast period (2024-2029).

The factors like enabling module-level monitoring, easier installation, enhanced design flexibility, removing the need for DC switching points, and better safety than conventional inverters are some factors that are fueling the growth of the micro inverter market.

  • Constant R&D activities and significant reductions in the costs of microinverters drive the micro inverter market. Furthermore, the market also receives a considerable boost due to its compact size and versatility. Additionally, the increasing requirement of consumers, based on modularity, safety, and maximum energy harvest, will continue to drive the market at a considerable pace in the forecast period.
  • The demand for micro inverters has enabled companies to develop increased battery storage. In April 2022, energy storage provider Yotta Energy, Austin, Texas, announced that it had been awarded a USD 1.97 million contract to install a solar + storage microgrid at Nellis Air Force Base in Las Vegas.
  • Due to the varying use of micro inverters, they are widely adopted worldwide. They provide various benefits such as design flexibility and capabilities like producing the maximum power from solar panels through maximum power point tracking (MPPT) technology. These factors have helped the micro-inverter market gain an advantage over other inverters in residential and commercial applications.
  • The demand for micro inverters has enabled companies to develop increased battery storage. In April 2022, Yotta Energy of Austin, Texas, was awarded a USD 1.97 million contract to install a solar + storage microgrid at Nellis Air Force Base in Las Vegas. The company believes batteries are headed in the same direction: module-level microstorage. The business is deploying a 52lb, 1kWh lithium-iron-phosphate battery on the same solar module racking gear, which holds the ballast.
  • Worldwide renewable electricity capacity is predicted to expand by more than 60% from 2020 to over 4,800 (GW) by 2026, equaling the total global power capacity of fossil fuels and nuclear power combined, according to the International Energy Agency (an intergovernmental agency).

Micro Inverter Industry Segmentation

A micro inverter is a plug-and-play device used in photovoltaics that converts the direct current generated by a single solar module to alternating current. The micro inverter is segmented based on type (single phase and three phases), communication technology (wired and wireless), sales channel (direct and indirect), application (residential, commercial, and PV power plant), geography (North America, Europe, Asia-Pacific, and Rest of the world). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Type
Single Phase
Three Phase
By Communication Technology
Wired
Wireless
By Sales Channel
Direct
Indirect
By Application
Residential
Commercial
PV Power Plant
Geography
North America
Europe
Asia-Pacific
Rest of the World
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Micro Inverter Market Size Summary

The micro inverter market is poised for significant growth, driven by factors such as module-level monitoring, easier installation, and enhanced design flexibility. These inverters offer better safety compared to conventional options, making them increasingly popular in residential and commercial applications. The market benefits from ongoing research and development, cost reductions, and the compact, versatile nature of micro inverters. The demand for these devices is further bolstered by the need for modularity, safety, and maximum energy harvest, which are crucial for solar photovoltaic systems. The adoption of micro inverters is expanding globally, with notable developments such as Yotta Energy's solar + storage microgrid installation at Nellis Air Force Base, highlighting the technology's growing importance in energy storage solutions.

The micro inverter market is expected to experience robust growth, particularly in the Asia-Pacific region, where countries like China, Japan, India, and Australia are enhancing their solar PV installation capacities. The increasing adoption of solar photovoltaics in residential sectors, driven by cost savings and climate change mitigation efforts, is a key factor propelling market expansion. Government policies, financial incentives, and decreasing solar PV costs are also contributing to the market's growth. The market is characterized by a high level of fragmentation, with major players such as Enphase Energy Inc., Altenergy Power System Inc., and ABB Ltd. actively engaging in strategies like product launches and partnerships to strengthen their market presence.

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Micro Inverter Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rise in benefits and awareness about the renewable energy sources along with increased adoption

      2. 1.2.2 Cost-effectiveness and increased developments of these products

    3. 1.3 Market Restraints

      1. 1.3.1 High installation and maintenance costs

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of Impact of Covid-19 on the Micro Inverter Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Single Phase

      2. 2.1.2 Three Phase

    2. 2.2 By Communication Technology

      1. 2.2.1 Wired

      2. 2.2.2 Wireless

    3. 2.3 By Sales Channel

      1. 2.3.1 Direct

      2. 2.3.2 Indirect

    4. 2.4 By Application

      1. 2.4.1 Residential

      2. 2.4.2 Commercial

      3. 2.4.3 PV Power Plant

    5. 2.5 Geography

      1. 2.5.1 North America

      2. 2.5.2 Europe

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Rest of the World

Micro Inverter Market Size FAQs

The Micro Inverter Market size is expected to reach USD 3.15 billion in 2024 and grow at a CAGR of 19.70% to reach USD 7.74 billion by 2029.

In 2024, the Micro Inverter Market size is expected to reach USD 3.15 billion.

Micro Inverter Market Report Snapshots

Micro Inverter Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)