Insights on the Micro Inverter Market – key drivers, restraints and opportunities
Future Market Insights published a report, titled, "Micro Inverter Market by phase, connectivity, application & region: global opportunity analysis and industry forecast, 2022-2032".
According to the report, the global micro inverter industry generated $1.59 billion in 2021, and is estimated to generate $4.36 billion by 2032, witnessing a CAGR of 9.6% from 2022 to 2032.
The Phase segment to maintain its leadership status during the forecast period
Based on type, the phase segment held the highest market share in 2020, contributing to nearly three-fourths of the global micro inverter market, and is projected to maintain its leadership status during the forecast period. This is due to high penetration in the residential sector for its features such as simplicity in design and flexibility. However, the three-phase segment is estimated to witness the largest CAGR of 23.8% from 2021 to 2030, owing to increase in need for photovoltaic systems and installation at large load capacity industries or commercial buildings.
The residential segment to maintain its lead position throughout the forecast period
Based on end user, the residential segment contributed the highest market share in 2020, accounting for more than four-fifths of the global micro inverter market and is expected to maintain its lead position throughout the forecast period. This is attributed to rise in adoption of micro inverters in solar PV systems with surge in energy efficiency concerns and the launch of government initiatives. However, the commercial segment is expected to manifest the fastest CAGR of 27.1% from 2021 to 2030, owing to rise in adoption to reduce the cost per output watt and increase the profitability.
Drivers, restraints, and opportunities
Technical advantages over conventional solar inverters, design flexibility, and capabilities such as producing optimum power from solar panels drive the growth of the global micro inverter market. However, high cost of installation and maintenance restrains the market growth. On the contrary, increase in the number of solar photovoltaic (PV) installations for different applications and rise in need for sustainable & clean energy to reduce greenhouse gas emissions present new opportunities in the coming years.
Production facilities in the electronics and semiconductors sector were stopped completely or partially due to lockdown implementation, lack of availability of workforce, and shortage of raw materials. This factor impacted the production volumes of micro inverters negatively.
The demand from end users such as residential and commercial reduced significantly due to stoppage of new installation, deployment, and maintenance activities during the lockdown. However, the demand grew steadily post-lockdown.
Market players reassessed their strategies to ensure continuity and adopted quick response strategies for stabilising the supply chain to avail raw material and distribute products seamlessly.