Solar Microinverter Market: Current Analysis and Forecast (2019-2025)

Report Description

Global solar micro inverter market was valued at US$ 977.5 Million in 2018 and is anticipated to reach US$ 5,604.6 Million by 2025 displaying explosive CAGR of 28.4% over the forecast period 2019-2025. Energy supply from renewable sources forms an essential part of energy distribution, particularly when there are issues pertaining to sustainable environment. In this regard, microinverters are of great help. Traditional solar systems comprise a single inverter and in case of any failure of inverter, there remains no backup of energy transfer. Therefore, microinverters are an alternative energy source. A solar micro-inverter, or simply microinverter, is a plug-and-play device used in photovoltaics, that converts direct current generated by a single solar module to alternating current. Unlike conventional string/central inverters, a microinverter works on Module Level Power Electronics i.e. power conversion takes place at individual module level. This mitigates the negative effect of module mismatch and improves the overall efficiency of the system. Microinverters also enable module-level monitoring, easier installation, enhanced design flexibility and better safety than conventional inverters. The solar microinverter market is driven by constant R&D activities and significant reduction in the costs of microinverters. The solar micro inverter market also receives a great boost due to its compact size and versatility. Further, increasing requirement of consumers, based on modularity, safety, and maximum energy harvest will continue to drive the market at a considerable pace in coming years.

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Working Model of Integrated Micro Inverter

Owing to increasing demand, a lot of innovation is taking place in the solar micro-inverter industry. For example, Tesla has launched a solar roof. This solar roof consists of the power wall battery, turning sunlight into electricity. The solar roof is made of tempered glass tiles and these tiles are stronger than non-solar tiles and regular plate glass. The micro inverter addresses many of the shortcomings of central inverters. Microinverters minimize the issue of one module in shade affecting the entire array.  A homeowner whose roof may get some shade throughout the day has a good reason to consider micro inverters. Due to the varying use of micro inverters across the world, global players are concentrating on regions where awareness about using renewable energy resources is higher. Robust adoption of PV storage systems in the U.S. will continue to fuel demand for solar micro inverters in North America.

Photovoltaic Micro Inverter Shipments and Year on Year Growth, Global 2013-2017, (MW, %)

“Single Phase solar micro inverter is expected to dominate the market during the forecast period.”

Based on the inverter type, the solar microinverter market is segmented into single-phase and three-phase micro inverters. Single-phase micro inverters have showcased surging demand among residential households as they require single-phase power supply to run household appliances such as lighting & heating devices and few electric motors. The segment accounted for 68.1% share in 2018.

“Integrated solar microinverter would be the most preferred microinverter in major markets”

Based on connectivity, the solar microinverter market is divided into standalone and integrated. Integrated occupied the lead share in solar micro inverter market specifically due to their cost-effectiveness and ease of installation

“Direct sales channel occupied the major market in the solar microinverter market”

Based on the distribution channel, the market is bifurcated into a direct and indirect sales channel. Direct sales channels dominated the market in 2018, with 82.2% share and are expected to maintain its dominance throughout the forecast period, on account of surging number of organized retailers such as supermarkets, hypermarkets, convenience stores, and discount stores in different countries proving to be extremely beneficial for the vendors.

“Residential End Users were the major adopter of solar microinverter technology”

In terms of end-users, global solar micro inverters market has been categorized into residential and commercial end-users. The residential sector accounted for majority share in 2018 and is expected to witness a healthy growth rate during the forecast period. The expected market dominance of the residential sector can be majorly attributed to increasing adoption of energy conservation measures for controlling the increased energy expenditure in residential applications. Over the coming years, commercial sector is also anticipated to account for a significant portion of the global solar inverters market.

“North America accounts for the major market share in terms of revenue in the solar microinverter market”

For better understanding and analysis of the overall adoption of the solar microinverters, detailed analysis was conducted for different region/country including North America (US, Canada), Europe (Germany, Italy, UK, Belgium, Netherlands, France and Rest of Europe), Asia Pacific (China, Japan, India, Australia and Rest of APAC) and Rest of the World. Among all these regions, North America constitutes to be the most matured region. Europe and Asia Pacific are expected to witness considerable growth over the analysed period owing to increasing demand for energy efficiency and growing awareness among the households, paired with growing government participation in generating renewable energy source

Competitive Landscape – Top 10 Market Players

Some of the dominant players operating in the solar micro inverter industry have adopted a number of competitive strategies such as merger and acquisition, partnership and business expansion among others to expand their reach and market share. The key players contributing to the growth of the global solar micro inverters market include SMA, Darfon Electronics, ABB, APSytems, Chilicon Power, iEnergy, Enphase, NEP, SunPower, Enphase and Sparq Systems among others.

Reasons to buy:

• The study includes market sizing and forecasting analysis validated until 2025. The analysis presented in the report is a combination of deep-dive secondary research and input from Key Opinion Leader of the industry
• The report presents a quick review of overall industry performance at one glance
• The report covers in-depth analysis of prominent industry peers with primary focus on key business financials, product portfolio, expansion strategies and recent developments
• Detailed examination on drivers, restraints, key trends and opportunities prevailing in the industry
• Examination of industry attractiveness with the help of Porter’s Five Forces analysis
• The study comprehensively covers the market across different segments and sub-segments
• The study also covers the comprehensive country wise analysis in the specific region
• Region/Country Covered: North America (US, Canada), Europe (Germany, Italy, UK, Belgium, Netherlands, France and Rest of Europe), Asia Pacific (China, Japan, India, Australia and Rest of APAC) and Rest of the World

Customization Options:

The Solar Microinverter market report can be customized to the country level or any other market segment. Besides this, UMI understands that you may have your own business need, hence we also provide fully customized solutions to our clients.

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Research Methodology

Research Methodology for Solar Micro Inverter Market

Analyzing historical market, estimation of the current market and forecasting the future market for solar microinverter technology were the three major steps undertaken to create and analyze the adoption trend of solar microinverter in major regions/countries worldwide. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted with industry experts across value chain of the solar micro inverter market. Post all the assumptions, market sizing and validation of market numbers through primary interviews, bottom-up approach was employed to forecast the complete market size of solar microinverter at regional/country level. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary research was conducted to obtain the historical market size of the solar micro inverter through company internal sources such as annual report & financial statements, performance presentations, press releases, inventory records, sales figures etc., and external sources including trade journals, news & articles, government publications, economic data, competitor publications, sector reports, regulatory bodies publications, safety standard organizations, third-party database and other credible publications. For economic data collection, sources such as Trading Economics and Trade Map, World Bank, IMF among others were used.

Step 2: Market Segmentation:

After obtaining the historical market size of the solar microinverter technology, detailed secondary analysis was conducted to gather historical market size and share of different segments & sub-segments of the sector. Major segments included in the report are inverter type, connectivity, distribution channel and end-users. Further analysis was also done for different regions/countries to analyze the overall adoption of the technology.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, detailed factor analysis was conducted to estimate the current market size of the solar micro inverter market. Factor analysis was conducted using dependent and independent variables such as purchasing power, consumer behavior, adoption level of solar panels, cost of solar microinverters etc. The demand and supply-side scenario were also thoroughly studied through analyzing top partnerships, top merger and acquisition, top business expansion, top product launches and emergence of start-ups in the solar microinverter industry.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at current market size, key players in the solar microinverter market and their market shares. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were validated through primary interviews through key opinion leaders in the market.

Estimation & Forecasting: For market estimation and forecast, weight was assigned to different factors including drivers & trends, restraints, and opportunities the industry witnesses. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up approach was applied to arrive at the market forecast pertaining to 2025 for different segments and sub-segments in major regions/countries globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and penetration rate of solar microinverter technology in major region/country
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the solar microinverter industry with key focus on product portfolio, technologies offered as well as their market share. Also, the growth strategies adopted by these players to compete in the ever-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) in major regions/countries. Primary research findings were summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment pertaining to the solar micro inverter market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of components and applications of the solar microinverter.

Main objective of the Solar Micro Inverter Market Study

The current & future market trends of solar microinverter technology are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market not only at regional but also at the country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of solar microinverter technology in terms of value (US$). Also analyze the current and forecast market size of different segments and sub-segments of the technology
• Segments in the study include microinverter type, connectivity, distribution channel and end-users
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Define and analysis of the government regulations for solar microinverter at the global scale
• Detailed analysis of used case study of the solar microinverter technology
• Analyze the current and forecast market size of solar microinverter for major regions/countries globally. Major regions studied in the report include North America, Europe, Asia-Pacific and the Rest of the world. Further country-level analysis is also conducted in the report

Define and analyze the competitive landscape of the solar micro inverter and the growth strategies adopted by the market players to sustain in the ever-growing market in major regions/countries globally