Power Optimizer Market

Power Optimizer Market Research, 2031

The global power optimizer market was valued at $2.6 billion in 2021, and is projected to reach $7.3 billion by 2031, growing at a CAGR of 10.81% from 2022 to 2031.

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for solar related equipment in most of the countries across the world led to decline in the demand of the power optimizer market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.

Power optimizer is a DC to DC converter technology developed to maximize the energy harvest from solar photovoltaic systems. The major work process is that it tunes or optimizes the performance of the panel through maximum power point tracking (MPPT) and to match with the performance of the string inverter. Power optimizers are especially useful when the performance of the power generating components in a distributed system will vary widely, such as due to differences in equipment, shading of light or wind, or being installed facing different directions or widely separated locations. Power optimizers for solar applications can be similar to micro inverters in that both systems attempt to isolate individual panels in order to improve overall system performance. A smart module is a power optimizer integrated into a solar module.

The power optimizer market is segmented into Connectivity, Application and End Use.

The growing installations of renewable energy source for power generation across the globe are boosting the demand for MPPT systems. The key market players are focusing on the integration of various functions in a single product including advanced power line communication, monitoring, and safety shutdown, which will stimulate the market. In addition, increasing investment in green buildings, which require stable and reliable electrical infrastructure are fueling the power optimizer market growth.

Standalone solar systems play an important role in expansion of energy access in various regions such as South Asia and African countries. The private investors have embraced the standalone products as sustainable solutions for electricity access as these systems offer low management and maintenance costs for the deployment of solar panels, which likely boost power optimizer market. Increasing awareness regarding the use of low carbon intensive technologies to mitigate GHG emission will drive the market. Furthermore, the presence of government incentives and reduction in taxes in developing countries promote the use of solar have positive impact on the development of the market.

The power optimizer market is segmented on the basis of connectivity, application, end use and region.

On the basis of connectivity, the global power optimizer market is segmented into standalone and on-grid. On the basis of application, it is segmented into residential, commercial, and utility. On the basis of end use, the global market is bifurcated into module level MPPT, advanced power line communication, monitoring components, safety shutdown components, and others.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest power optimizer market share, followed by Europe and North America.

The major companies profiled in this report include SolarEdge Technologies, Inc., Enphase Energy, Tigo Energy, Sunpower Corporation, Delta Energy Systems, Solantro, Altenergy Power System, Inc., Kaco New Energy, Inc., Alencon Systems, LLC, I-energy Co., Ltd. Rapid urbanization and industrialization has fuelled the demand for power which led to increase in the investment in the solar based renewable power plants. This led to the development for the power optimizer market. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in the development of the innovative products from manufacturers have helped to attain key developments in the global power optimizer market trends.

Asia-Pacific occupies the largest power optimizer market size and consists of countries such as China, India, Japan, South Korea, Australia and Rest of Asia-Pacific. The China is the world’s largest consumer of electricity from solar power generation, having produced over 306.56 gigawatts in 2021. According to Rystad Energy, the installed capacity of renewable energy in this region will jump from 517 GW in 2020 to 815 GW by 2025. Solar energy leads the growth with a regional capacity twice about 215 GW to 382 GW in the same period. Technological advances and lower costs of capital have propelled renewables into the mainstream energy market. Furthermore, the boom of green investments in Asia and the ambitious policies in order to dominate the global renewable energy in terms of capacity, technology development, and energy demand. The above mentioned initiatives are major factor driving the growth of the market in this region during the forecast period.

The on-grid segment dominates the global power optimizer market. On-grid solar power systems generate power using a solar power system and are directly connected to the utility power grid. While sending excess power generated by the solar power system to the utility grid and consumers get compensated for the extra power fed back. In addition, the presence of advantages such as easy to install, very cost-effective and residential users & business owners can earn passive income for the surplus energy generated by the system. The presence of above mentioned factors will provide ample opportunities for the development of the market.

The utility segment dominates the global power optimizer market. Utility scale solar is a reliable source for stable clean electricity for decades. Developing utility scale solar power is one of the fastest ways to reduce carbon emissions and put the world on a path to clean energy future. Utility scale solar facilities are used to generate solar power to feed into the grid, supplying a utility with energy. Furthermore, the presence of benefits such as stabilizes electric prices over a long period of time, and can be paired with battery storage. The presence of above mentioned advantages will drive the power optimizer market forecast growth.

The module level MPPT segment dominates the global power optimizer market. MPPT is necessary for any solar power systems, as it can extract maximum power from PV module; it forces PV module to operate at voltage close to maximum power point to draw maximum available power. The module level MPPT prevent power loss even under panel mismatch or partial shading as it uses a highly optimized algorithm to track the maximum power point of each module individually. In addition, it offers possibilities for future applications in Building-Integrated Photovoltaic; solar windows, solar walls, and rooftop solar arrays. Furthermore this algorithm allows the solar power system to react more effectively to changes in irradiance and temperature which is a big benefit on cloudy days. The above mentioned are major factors which provide growth conditions for the development of the market. 

COVID-19 analysis:

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for solar related equipment in most of the countries across the world led to decline in the demand of the power optimizer market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.

After the global vaccination the government of various countries has taken initiatives to increase the investment in the renewable energy related industries especially solar and wind power systems. The increase in the investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market in the forecast period.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power optimizer market analysis from 2021 to 2031 to identify the prevailing power optimizer market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the power optimizer market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global power optimizer market trends, key players, market segments, application areas, and market growth strategies.

 Power Optimizer Market Report Highlights