Global Micro Inverter Market is expected to reach $2.7 billion by 2022, growing at a CAGR of 27.3% from 2016-2022. In 2014, North America dominated the market and contributed about 45% share of the overall market revenue, followed by Europe, according to a new report published by Allied Market Research.The presence of key market players in the U.S. and rising micro inverter installation activities, primarily in residential sector, have fueled the market growth.
Swift rise in demand for greater efficiency of solar energy systems and increased application of micro inverters in residential sector, as it is more cost-effective and space efficient, as compared to central and string inverters drives the market growth. However, high initial investment and tough maintenance could restrict the market growth. Moreover, it is anticipated that the rise in electricity demand coupled with increase in government spending & tariffs on photovoltaic technology would spur the global market growth.
The residential segment accounted for about 77% of the overall micro inverter market in 2014. Highest installation of micro inverters in residential photovoltaic systems led this segment to dominate the overall micro inverter market. However, commercial end user segment would grow significantly and is expected to register a CAGR of 30.3% during the forecast period. This is due to the increase in installation of micro inverters in commercial PV systems worldwide as many renowned companies are launching advanced technology products. Moreover, North America has contributed significantly in the residential sector.
Among various geographical regions, North America has contributed the maximum revenue share in 2014 and is expected to maintain its leading position throughout the forecast period. This could be attributed to varied factors including increase in the electricity demand due to rising population, and increased government initiatives. Moreover, improvement in renewable energy expenditure has boosted the installation of residential micro inverters in Asian countries, particularly in China, Japan, and India.
MLPE technologies such as micro inverters are swiftly gaining acceptance and market share as their costs have come down. In spite of the global dominance of string inverters, over half of all residential solar systems installed in the U.S. currently using micro inverters. In addition, increased power output of micro inverters, cost-effectiveness and enhanced safety features would fuel the micro inverter market growth in both residential and commercial sector globally. Japan, representing a significant residential market potential, is expected to provide lucrative growth opportunities for top global micro inverter manufacturers in Asia-Pacific market, states Rakesh Singh, Manager, Research, Semiconductor & Electronics at AMR.
However, Asia-Pacific is projected to be the fastest growing region throughout the analysis period. Since, Japan has the highest demand for residential sector power plant PV installation due to government incentives and limited supply of micro inverters in Japan. Moreover, enhancement in solar plant installation capacity and increase in expenditures in the emerging markets (such as China and India) to satisfy the exponentially growing electricity needs in these countries have strengthened the market growth. Technological advancements for cost-effective inverter technologies in these nations offer a lucrative opportunity for the micro inverter market growth.
Micro Inverter Market Key findings of the study:
- In 2014, single phase micro inverter type led the overall micro inverter market revenue, but it is projected to grow at a CAGR of 26.2% during the forecast period
- Residential segment is expected to exhibit rapid growth, owing to the rising government tariffs and incentives
- Presently, North America leads the world micro inverter market and it is expected to continue this trend throughout the forecast period owing to the swift rise in electricity demand from countries such as U.S., Canada, and Mexico
- Japan leads the overall Asia-Pacific micro inverter market with about one-third of the market shares in the region
The key players in the micro inverter market are dedicated to expand their business operations in the emerging countries with acquisition and product launch as a preferred strategy. The major players profiled in this report include Enphase Energy, Inc., ABB Group, SunPower Corporation, SMA Solar Technology AG, Delta Energy Systems GmbH, SolarEdge Technologies, Inc., ReneSola, Siemens AG, P&P Energy Technology Co., Ltd., and Involar.