Micro-Inverter Market by Component (Hardware, Software, and Services), Type (Single Phase and Three Phase), Communication Technology, Sales Channel, Application (Residential, Commercial, and PV Power Plant), and Geography - Global Forecast to 2023

The global micro-inverter market was valued at USD 2.18 billion in 2017 and is projected to reach USD 5.88 billion by 2023, at a CAGR of 19.3% during the forecast period. The base year used for this study is 2017, and the forecast period considered is from 2018 to 2023.

Market Dynamics

Drivers

• Benefits over conventional solar inverter technologies
• Upsurge in renewable energy investment
• Demand for micro-inverters due to remote monitoring capabilities
• Rise in residential solar rooftop installations

Restraints

• Higher initial and maintenance cost of micro-inverters

Opportunities

• Increase in solar PV installations
• Technological innovations with improved capabilities

Challenges

• High competition from conventional inverter technologies

Rise in residential solar rooftop installations to drive global micro-inverter demand by 2022

The residential segment is among the major applications and early adopters of micro-inverters. The micro-inverter market witnesses the highest demand from this sector. Residential solar rooftop installation has witnessed significant growth over the years across the world. Rising energy cost, coupled with supportive government policies, has led to the adoption of energy conservation measures to control the increased energy expenditure. Residential systems with solar and energy storage help end users during grid power outages and achieve energy independence, as well as avoid rising energy costs. Also, the construction industry addresses the increasing power consumption in a building by constructing zero energy buildings, wherein the building consumes only the equal amount of energy that it generates over a period. For countries such as Australia, which is the only fully developed solar market, is almost completely dominated by residential rooftop systems, with rooftop solar installations over 1.6 million homes; whereas in India, which is a rapidly growing solar market, the residential solar rooftop solar industry has surpassed the 1 GW mark, with 513 MW of capacity addition in 2016. This further drives the demand for micro-inverter systems in the residential sector.

The Objectives of the Study are as follows:

• To describe and forecast the micro-inverter market, in terms of value, by type, component, communication technology, sales channel, application
• To forecast the global micro-inverter market in terms of installations (GW)
• To describe and forecast the micro-inverter market, in terms of value, by region North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), along with their respective countries
• To provide detailed information regarding major factors influencing growth (drivers, restraints, opportunities, and challenges)
• To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
• To study the complete value chain of micro-inverters
• To analyze opportunities in the market for stakeholders by identifying high-growth segments of the micro-inverter ecosystem
• To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing competitive landscape for market leaders
• To analyze strategic approaches such as product launches, acquisitions, collaborations, contracts, agreements, expansions and partnerships in the micro-inverter market

The research methodology used to estimate and forecast the micro-inverter market begins with obtaining data on key vendor revenues through secondary research. Some secondary sources used in this research include information from journals and databases such as IEEE journals, solar journals and magazines, Factiva, Hoovers, and OneSource. Moreover, vendor offerings have been taken into consideration to determine the market segmentation. The bottom-up procedure has been employed to arrive at the overall size of the micro-inverter market from the revenue of the key players in the market. After arriving at the overall market size, the total market has been split into several segments and subsegments, which have been verified through primary research by conducting extensive interviews with the officials holding key positions in the industry such as CEOs, VPs, directors, and executives. The market breakdown and data triangulation procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primaries has been depicted in the following figure:

To know about the assumptions considered for the study, download the pdf brochure

The micro-inverter ecosystem comprises component providers, manufactures, system integrators and distributors; end users; and post-sales services. Enphase Energy (US), Altenergy Power System (US), Chilicon Power (US), SunPower (China), Siemens (Germany), Envertech (China), ReneSola (US), Darfon Electronics (China), and AEconversion (Germany) are among the players involved in the development of micro-inverter systems; these players provide inverter systems and solutions to end users according to their unique requirements in residential, commercial, and PV power plant end-user applications.

Target Audience:

• Micro-inverter manufacturers
• Original equipment manufacturers (OEMs)
• Research organizations and consulting companies
• Micro-inverter-related associations, organizations, forums, and alliances
• Distributors and traders
• Government bodies such as regulating authorities and policymakers
• Venture capitalists, private equity firms, and startup companies

“The study answers several questions for the target audience, primarily which market segments to focus on in the next 2 to 5 years for prioritizing their efforts and investments.”

Report Scope:

In this report, the micro-inverter market has been segmented into the following categories:

Micro-Inverter Market, by Component

• Hardware
• Software
• Services

Micro-Inverter Market, by Type

• Single Phase
• Three Phase

Micro-Inverter Market, by Communication Technology

• Wired
• Wireless

Micro-Inverter Market, by Sales Channel

• Direct
• Indirect

Micro-Inverter Market, by Application

• Residential
• Commercial
• PV Power Plant

Geographic Analysis

• North America (US, Canada, and Mexico)
• Europe (UK, Germany, France, Netherlands, and Rest of Europe)
• Asia Pacific (China, Japan, India, Australia, and Rest of APAC)
• Rest of the World (South America, Middle East, and Africa)

Critical Questions:

• Which are the substitute products and how big is the threat from them?
• The micro-inverter industry holds a lower adoption rate in the PV power plant application; when will this scenario change?
• Most suppliers adopt agreements, partnerships, contracts, and collaborations as key growth strategies as seen from the recent developments; where will it take the industry in the mid to long term?

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the specific requirements of the company. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to 5)

Table of Contents

1 Introduction (Page No. - 16)
    1.1 Study Objectives
    1.2 Definition
    1.3 Scope of the Study
           1.3.1 Geographic Scope
           1.3.2 Years Considered
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 20)
    2.1 Research Data
    2.2 Secondary and Primary Research
           2.2.1 Secondary Data
                    2.2.1.1 Secondary Sources
           2.2.2 Primary Data
                    2.2.2.1 Primary Sources
                    2.2.2.2 Key Industry Insights
                    2.2.2.3 Breakdown of Primaries
    2.3 Market Size Estimation
           2.3.1 Bottom-Up Approach
           2.3.2 Top-Down Approach
    2.4 Data Triangulation
    2.5 Research Assumptions

3 Executive Summary (Page No. - 31)

4 Premium Insights (Page No. - 37)
    4.1 Attractive Growth Opportunities in Micro-Inverter Market
    4.2 Micro-Inverter Market, By Type
    4.3 Micro-Inverter Market in North America, By Country and Application
    4.4 Micro-Inverter Market, By Application
    4.5 Micro-Inverter Market, By Country, 2018

5 Market Overview (Page No. - 40)
    5.1 Introduction
    5.2 Market Dynamics
    5.3 Drivers
                    5.3.1.1 Benefits Over Conventional Solar Inverter Technologies
                    5.3.1.2 Upsurge in Renewable Energy Investment
                    5.3.1.3 Demand for Micro-Inverters Due to Remote Monitoring Capabilities
                    5.3.1.4 Rise in Residential Solar Rooftop Installations
    5.4 Restraints
                    5.4.1.1 Higher Initial and Maintenance Cost of Micro-Inverters
    5.5 Opportunities
                    5.5.1.1 Increase in Solar PV Installations
                    5.5.1.2 Technological Innovations With Improved Capabilities
    5.6 Challenges
                    5.6.1.1 High Competition From Conventional Inverter Technologies
    5.7 Value Chain Analysis

6 Micro-Inverter Market, By Component (Page No. - 48)
    6.1 Introduction
    6.2 Hardware
    6.3 Software
    6.4 Services

7 Micro-Inverter Market, By Type (Page No. - 53)
    7.1 Introduction
    7.2 Single Phase
    7.3 Three Phase

8 Micro-Inverter Market, By Communication Technology (Page No. - 59)
    8.1 Introduction
    8.2 Wired
    8.3 Wireless

9 Micro-Inverter Market, By Sales Channel (Page No. - 65)
    9.1 Introduction
    9.2 Direct
    9.3 Indirect

10 Micro-Inverter Market, By Application (Page No. - 71)
     10.1 Introduction
     10.2 Residential
     10.3 Commercial
     10.4 PV Power Plant

11 Geographic Analysis (Page No. - 93)
     11.1 Introduction
     11.2 North America
             11.2.1 US
             11.2.2 Canada
             11.2.3 Mexico
     11.3 Europe
             11.3.1 Germany
             11.3.2 UK
             11.3.3 France
             11.3.4 Netherlands
             11.3.5 Rest of Europe
     11.4 APAC
             11.4.1 China
             11.4.2 Japan
             11.4.3 India
             11.4.4 Australia
             11.4.5 Rest of APAC
     11.5 RoW
             11.5.1 Middle East
             11.5.2 South America
             11.5.3 Africa

12 Competitive Landscape (Page No. - 125)
     12.1 Overview
     12.2 Ranking Analysis, 2017
     12.3 Competitive Situations and Trends
             12.3.1 Product Launches and Developments
             12.3.2 Acquisition, Collaborations, and Partnerships
             12.3.3 Contracts, Joint Ventures, and Expansions

13 Company Profiles (Page No. - 130)

14 Company Profiles (Page No. - 131)
     14.1 Introduction
             14.1.1 Enphase Energy
                       14.1.1.1 Overview
                       14.1.1.2 Products Offered
                       14.1.1.3 Recent Developments
                       14.1.1.4 SWOT Analysis
                       14.1.1.5 MnM View
             14.1.2 Darfon Electronics
                       14.1.2.1 Overview
                       14.1.2.2 Products Offered
                       14.1.2.3 Recent Developments
                       14.1.2.4 SWOT Analysis
                       14.1.2.5 MnM View
             14.1.3 SunPower
                       14.1.3.1 Overview
                       14.1.3.2 Products Offered
                       14.1.3.3 Recent Developments
                       14.1.3.4 MnM View
                       14.1.3.5 SWOT Analysis
             14.1.4 Altenergy Power System
                       14.1.4.1 Overview
                       14.1.4.2 Products Offered
                       14.1.4.3 Recent Developments
                       14.1.4.4 SWOT Analysis
                       14.1.4.5 MnM View
             14.1.5 ReneSola
                       14.1.5.1 Overview
                       14.1.5.2 Products Offered
                       14.1.5.3 Recent Developments
                       14.1.5.4 SWOT Analysis
                       14.1.5.5 MnM View
             14.1.6 SMA Solar Technology
                       14.1.6.1 Overview
                       14.1.6.2 Products Offered
                       14.1.6.3 Recent Developments
                       14.1.6.4 MnM View
             14.1.7 Chilicon Power
                       14.1.7.1 Overview
                       14.1.7.2 Products Offered
                       14.1.7.3 Recent Developments
                       14.1.7.4 MnM View
             14.1.8 AEconversion
                       14.1.8.1 Overview
                       14.1.8.2 Products Offered
                       14.1.8.3 MnM View
             14.1.9 Siemens
                       14.1.9.1 Overview
                       14.1.9.2 Products Offered
                       14.1.9.3 MnM View
     14.2 Other Companies
             14.2.1 Sparq Systems
                       14.2.1.1 Company Snapshot
             14.2.2 Omnik New Energy
                       14.2.2.1 Company Snapshot
             14.2.3 Sensata Technologies
                       14.2.3.1 Company Snapshot
             14.2.4 Saronic (EU) Power Tech
                       14.2.4.1 Company Snapshot
             14.2.5 Enluxsolar
                       14.2.5.1 Company Snapshot
             14.2.6 U R Energy
                       14.2.6.1 Company Snapshot
             14.2.7 Samil Power
                       14.2.7.1 Company Snapshot
             14.2.8 Involar
                       14.2.8.1 Company Snapshot

15 Appendix (Page No. - 162)
     15.1 Insights of Industry Experts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Introducing RT: Real-Time Market Intelligence
     15.5 Available Customizations
     15.6 Related Reports

List of Tables (62 Tables)

Table 1 Micro-Inverter Market, in Terms of Value and Volume, 2015–2023
Table 2 Micro-Inverter Market, By Component, 2015–2023 (USD Million)
Table 3 Micro-Inverter Market, By Type, 2015–2023 (USD Million)
Table 4 Single-Phase Micro-Inverter Market, By Application, 2015–2023 (USD Million)
Table 5 Three-Phase Micro-Inverter Market, By Application, 2015–2023 (USD Million)
Table 6 Micro-Inverter Market, By Communication Technology, 2015–2023 (USD Million)
Table 7 Micro-Inverter Market for Wired Communication Technology, By Application, 2015–2023 (USD Million)
Table 8 Micro-Inverter Market for Wireless Communication Technology, By Application, 2015–2023 (USD Million)
Table 9 Micro-Inverter Market, By Sales Channel, 2015–2023 (USD Million)
Table 10 Micro-Inverter Market for Direct Sales Channel, By Application, 2015–2023 (USD Million)
Table 11 Micro-Inverter Market for Indirect Sales Channel, By Application, 2015–2023 (USD Million)
Table 12 Micro-Inverter Market, By Application, 2015–2023 (USD Million)
Table 13 Micro-Inverter Market for Residential Applications, By Type, 2015–2023 (USD Million)
Table 14 Micro-Inverter Market for Residential Applications, By Communication Technology, 2015–2023 (USD Million)
Table 15 Micro-Inverter Market for Residential Applications, By Sales Channel, 2015–2023 (USD Million)
Table 16 Micro-Inverter Market for Residential Applications, By Region, 2015–2023 (USD Million)
Table 17 Micro-Inverter Market in North America for Residential Applications, By Country, 2015–2023 (USD Million)
Table 18 Micro-Inverter Market in Europe for Residential Applications, By Country, 2015–2023 (USD Million)
Table 19 Micro-Inverter Market in APAC for Residential Applications, By Country, 2015–2023 (USD Million)
Table 20 Micro-Inverter Market in RoW for Residential Applications, By Region, 2015–2023 (USD Million)
Table 21 Micro-Inverter Market for Commercial Applications, By Type, 2015–2023 (USD Million)
Table 22 Micro-Inverter Market for Commercial Applications, By Communication Technology, 2015–2023 (USD Million)
Table 23 Micro-Inverter Market for Commercial Applications, By Sales Channel, 2015–2023 (USD Million)
Table 24 Micro-Inverter Market for Commercial Applications, By Region, 2015–2023 (USD Million)
Table 25 Micro-Inverter Market in North America for Commercial Applications, By Country, 2015–2023 (USD Million)
Table 26 Micro-Inverter Market in Europe for Commercial Applications, By Country, 2015–2023 (USD Million)
Table 27 Micro-Inverter Market in APAC for Commercial Applications, By Country, 2015–2023 (USD Million)
Table 28 Micro-Inverter Market in RoW for Commercial Applications, By Region, 2015–2023 (USD Million)
Table 29 Micro-Inverter Market for PV Power Plant Applications, By Type, 2015–2023 (USD Million)
Table 30 Micro-Inverter Market for PV Power Plant Applications, By Communication Technology, 2015–2023 (USD Million)
Table 31 Micro-Inverter Market for PV Power Plant Applications, By Sales Channel, 2015–2023 (USD Million)
Table 32 Micro-Inverter Market for PV Power Plant Applications, By Region, 2015–2023 (USD Million)
Table 33 Micro-Inverter Market in North America for PV Power Plant Applications, By Country, 2015–2023 (USD Million)
Table 34 Micro-Inverter Market in Europe for PV Power Plant Applications , By Country, 2015–2023 (USD Million)
Table 35 Micro-Inverter Market in APAC for PV Power Plant Applications, By Country, 2015–2023 (USD Million)
Table 36 Micro-Inverter Market in RoW for PV Power Plant Applications, By Region, 2015–2023 (USD Million)
Table 37 Micro-Inverter Market, By Region, 2015–2023 (USD Million)
Table 38 Micro-Inverter Market in North America, By Country, 2015–2023 (USD Million)
Table 39 Micro-Inverter Market in North America, By Application, 2015–2023 (USD Million)
Table 40 Micro-Inverter Market in US, By Application, 2015–2023 (USD Million)
Table 41 Micro-Inverter Market in Canada, By Application, 2015–2023 (USD Million)
Table 42 Micro-Inverter Market in Mexico, By Application, 2015–2023 (USD Million)
Table 43 Micro-Inverter Market in Europe, By Country, 2015–2023 (USD Million)
Table 44 Micro-Inverter Market in Europe, By Application, 2015–2023 (USD Million)
Table 45 Micro-Inverter Market in Germany, By Application, 2015–2023 (USD Million)
Table 46 Micro-Inverter Market in UK, By Application, 2015–2023 (USD Million)
Table 47 Micro-Inverter Market in France, By Application, 2015–2023 (USD Million)
Table 48 Micro-Inverter Market in Netherlands, By Application, 2015–2023 (USD Million)
Table 49 Micro-Inverter Market in RoE, By Application, 2015–2023 (USD Million)
Table 50 Micro-Inverter Market in APAC, By Country, 2015–2023 (USD Million)
Table 51 Micro-Inverter Market in APAC, By Application, 2015–2023 (USD Million)
Table 52 Micro-Inverter Market in China, By Application, 2015–2023 (USD Million)
Table 53 Micro-Inverter Market in Japan, By Application, 2015–2023 (USD Million)
Table 54 Micro-Inverter Market in India, By Application, 2015–2023 (USD Million)
Table 55 Micro-Inverter Market in Australia, By Application, 2015–2023 (USD Million)
Table 56 Micro-Inverter Market in Rest of APAC, By Application, 2015–2023 (USD Million)
Table 57 Micro-Inverter Market in RoW, By Region, 2015–2023 (USD Million)
Table 58 Micro-Inverter Market in RoW, By Application, 2015–2023 (USD Million)
Table 59 Micro-Inverter Market in Middle East, By Application, 2015–2023 (USD Thousand)
Table 60 Micro-Inverter Market in South America, By Application, 2015–2023 (USD Million)
Table 61 Micro-Inverter Market in Africa, By Application, 2015–2023 (USD Million)
Table 62 Micro-Inverter Market: Ranking Analysis (2017)
 
 
List of Figures (57 Figures)
 
Figure 1 Research Design
Figure 2 Bottom-Up Approach
Figure 3 Top-Down Approach
Figure 4 Data Triangulation
Figure 5 Snapshot of Micro-Inverter Market: Single-Phase Micro-Inverters to Hold Larger Market Size in 2018
Figure 6 Wired Communication Technology to Dominate Micro-Inverter Market During Forecast Period in Terms of Size
Figure 7 Micro-Inverter Market for Residential Applications to Grow at Highest CAGR During Forecast Period
Figure 8 APAC to Hold Largest Share of Micro-Inverter Market in 2018
Figure 9 Rise in Residential Solar Rooftop Installations to create Attractive Growth Opportunities for Players in Micro-Inverter Market
Figure 10 Single-Phase Micro-Inverter Market to Grow at Highest CAGR During Forecast Period
Figure 11 US to Hold Largest Share of Micro-Inverter Market in North America By 2023
Figure 12 Residential Application to Dominate Micro-Inverter Market During 2018–2023
Figure 13 US Expected to Hold Largest Share of Micro-Inverter Market in 2018
Figure 14 Inherent Advantages Drive Micro-Inverter Market
Figure 15 Global Investment in Renewable Energy Sources, 2004–2017 (USD Billion)
Figure 16 Global Shipment of Solar Inverter, 2015
Figure 17 Micro-Inverter Market: Major Value Added By Manufacturers and Component Providers
Figure 18 Micro-Inverter Market, By Component
Figure 19 Services to Grow at Highest CAGR During Forecast Period
Figure 20 Micro-Inverter Market, By Type
Figure 21 Market for Single-Phase Micro-Inverters to Grow at Higher CAGR From 2018 to 2023
Figure 22 Market for Residential Application to Grow at Higher CAGR From 2018 to 2023
Figure 23 PV Power Plant to Dominate Three-Phase Micro-Inverter Market From 2018 to 2023
Figure 24 Micro-Inverter Market, By Communication Technology
Figure 25 Wireless Communication Technology to Grow at Higher CAGR From 2018 to 2023
Figure 26 Residential Application to Dominate Micro-Inverters Market for Wired Communication Technology During Forecast Period
Figure 27 Micro-Inverter Market, By Sales Channel
Figure 28 Indirect Sales Channel to Grow at Higher CAGR From 2018 to 2023
Figure 29 Residential Application to Dominate Micro-Inverter Market for Indirect Sales Channel From 2018 to 2023
Figure 30 Micro-Inverter Market, By Application
Figure 31 Residential Application to Dominate Micro-Inverter Market During Forecast Period
Figure 32 North America to Dominate Micro-Inverter Market for Residential Applications During Forecast Period
Figure 33 Micro-Inverter Market in India to Grow at Highest CAGR During Forecast Period
Figure 34 US to Hold Largest Size of Micro-Inverter Market for Commercial Applications During Forecast Period
Figure 35 Wired Communication Technology to Hold Larger Size of Micro-Inverter Market for PV Power Plant Applications During Forecast Period
Figure 36 Micro-Inverter Market for PV Power Plant Applications in Netherlands to Grow at Highest CAGR During Forecast Period
Figure 37 Geographic Snapshot: Micro-Inverter Market in India to Grow at Highest CAGR During Forecast Period
Figure 38 North America Held Largest Share of Micro-Inverter Market in 2017
Figure 39 North America: Snapshot of Micro-Inverter Market
Figure 40 Micro-Inverter Market in Mexico to Grow at Highest CAGR During Forecast Period
Figure 41 Residential Application to Dominate Micro-Inverter Market in Canada During Forecast Period
Figure 42 Europe: Snapshot of Micro-Inverter Market
Figure 43 Micro-Inverter Market in UK to Grow at Highest CAGR During Forecast Period
Figure 44 Commercial Application to Dominate Micro-Inverter Market in RoE By 2023
Figure 45 APAC: Snapshot of Micro-Inverter Market
Figure 46 Micro-Inverter Market in India to Grow at Highest CAGR During Forecast Period
Figure 47 Residential Application to Hold Largest Size of Micro-Inverter Market in Japan During the Forecast Period
Figure 48 South America to Dominate Micro-Inverter Market in RoW During Forecast Period
Figure 49 Product Launches and Developments Adopted as Key Growth Strategies From January 2015 to February 2018
Figure 50 Enphase Energy: Company Snapshot
Figure 51 Darfon Electronics: Company Snapshot
Figure 52 SunPower: Company Snapshot
Figure 53 ReneSola: Company Snapshot
Figure 54 SMA Solar Technology: Company Snapshot
Figure 55 Siemens AG : Company Snapshot
Figure 56 Marketsandmarkets Knowledge Store Snapshot
Figure 57 Marketsandmarkets Knowledge Store: Semiconductor & Electronics Industry Snapshot 

The overall micro-inverter market is estimated to grow from USD 2.44 billion in 2018 to USD 5.88 billion by 2023, at a CAGR of 19.3% from 2018 to 2023. The growth of this market is being propelled by the increasing demand for micro-inverter solutions in residential applications and growing awareness due to their inherent benefits, remote monitoring capabilities, and an upsurge in renewable energy investment, along with supportive government initiatives.

The report covers the micro-inverter market segmented by components, types, communication technologies, sales channels, applications, and geographic regions. The “single phase” segment is expected to hold the largest size of the micro-inverter market, based on type, by 2023. Single-phase technology enables the system to have a compact size, which is well suited for residential and commercial applications. In countries such as the US, Australia, and European countries, the residential segment operates on single-phase transmissions of electricity, which is also one of the major markets for micro-inverters.

The “wired” segment held a larger share of the overall micro-inverter market based on communication technology. Power-line communication (PLC) is one of the most commonly adopted communication technologies for transmission of module performance data between the solar panel and communication gateway device. Also, this technology is considerably more effective in home networks. Besides PLC, Ethernet is a commonly used communication technology. However, the market for wireless communication technology is expected to grow at a significant CAGR during the forecast period. Wired technology, particularly PLC, have a few drawbacks such as electrical noise in AC wiring that can cause the loss of the data during transmission. Thus, micro-inverter manufacturers have adopted wireless technology, such as Wi-Fi and ZigBee, over the years.

The micro-inverter market for resdiential applications is expected to grow at the highest CAGR during the forecast period. Residential solar rooftop PV installation has witnessed significant growth over the years across the world. The rising energy cost, coupled with supportive government policies worldwide, has led to increasing adoption of energy conservation measures for controlling the increased energy expenditure in residential applications. Countries such as the US, Australia, and the Netherlands, which are among the prominent markets for residential rooftop PV installations, have widely adopted micro-inverters over conventional inverters.

North America held the largest size of the micro-inverter market in 2017. The high number of micro-inverter installations in the region, mainly in the US and Canada, attributes to the dominating position of the region in the micro-inverter market. The US was the first country in terms of wide-scale adoption of micro-inverter technology, especially for residential applications. APAC is expected to grow at the highest CAGR during the forecast period. Currently, many countries such as China, Japan, India, and Australia are striving to boost their solar PV installation capacity through advanced solar PV systems that could, in turn, enhance electric stability. APAC has several operational micro-inverter installations for residential, commercial, and PV power plant applications.

Recently, though the micro-inverter has emerged as a potential technology that provides reliable and safe transmission of electricity from solar panels to end applications, it also encompasses a few drawbacks that hamper its market growth. Though micro-inverters have several advantages over conventional central and string inverter systems, one of the major factors restraining the market is the cost incurred during installation and maintenance. Micro-inverters are a premium product and are available at a premium price. A micro-inverter system basically includes one micro-inverter per module, communication gateway, costly AC trunk cables, and custom tools. Also, in the event of a problem, a technician needs to get on the roof and remove the entire solar panel to access the unit. These are among the factors restraining end users from adopting the technology.

Enphase Energy (US), Altenergy Power System (US), Chilicon Power (US), SunPower (China), Siemens (Germany), Envertech (China) ReneSola (US), Darfon Electronics (China), and AEconversion (Germany) are the major players operating in this market.

Leading micro-inverter manufacturers are developing sustainable and innovative solutions for existing and new applications to drive the industry forward

Residential

The residential application is expected to continue to dominate the micro-inverter market. Photovoltaic installations in the residential sector have been rapidly increasing and are projected to continue over the years.  Owing to its features such as great scalability and flexibility, as well as are easy to install as compared to conventional string or central inverter technology, these micro-inverters are well suited in residential solar rooftop PV installations. Moreover, the performance of these systems can be remotely monitored. These factors together propel the growth of rooftop solar panel installations across the world.

Commercial

Installing a solar PV system at a commercial level not only protects against ever-rising retail energy prices but can also provide financial incentives by selling power to the grid. Mostly college and school campuses, as well as commercial buildings, hotels, farm, and others, have rooftop and ground solar PV installations. Micro-inverter helps in increasing the amount of energy harvested from a photovoltaic array in commercial applications. In addition, the lower voltages of micro-inverters make them a safer choice for commercial applications.

PV Power Plant

PV power plants are relatively a newer application segment for micro-inverters. It accounts for a smaller share than residential and commercial applications. The number of solar panels installed in a PV plant is huge, and it may not be convenient and cost efficient to integrate micro-inverters for each panel. However, a few manufacturers, such as APsystems, have expanded their micro-inverter product portfolio and offer three-phase micro-inverters that can handle up to 3–4 modules per unit suitable for PV power plant applications.

Critical questions would be:

• Will the suppliers continue to explore new avenues for micro-inverters?
• What are the adjacencies that the companies can leverage or explore?
• Is there a threat from substitute products?