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.
Power optimizer are essentially DC-DC converters, taking DC power from a solar panel at different voltage and current is optimal through MPPT, then converting that to a different voltage and current that best suits the central or string inverter. Power optimizer has gained popularity in a wide scale of utility applications, which is expected to propel growth of the market. Power optimizers are increasingly used in residential, commercial & industrial, and utility sectors since past few years. Power optimizers are present for each solar panel to optimize the power.
Rise in building & construction activities in developing economies across the globe increases the need for continuous power supply that can be fulfilled with the help of solar power generation, which, in turn, is expected to fuel growth of the market during the forecast period. However, high cost associated with power optimizers in the solar system is anticipated to restrain growth of the power optimizer market during the forecast period. On the contrary, rise in R&D activities toward increasing efficiency of power optimizer with its unique advantages, and government initiative toward renewable energy across the globe are expected to create opportunities for key players operating in the power optimizer market during the forecast period.
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 share of the market, 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, and I-energy Co., Ltd. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in development of innovative products from manufacturers have helped to attain key developments in the global power optimizer market trends.
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.
An in-depth analysis of power optimizer market across the globe is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
Region-wise and country-wise market conditions are comprehensively analyzed in this report.
Power optimizer are essentially DC-DC converters, taking DC power from a solar panel at different voltage and current is optimal through MPPT, then converting that to a different voltage and current that best suits the central or string inverter. Power optimizer has gained popularity in a wide scale of utility applications, which is expected to propel growth of the market. Power optimizers are increasingly used in residential, commercial & industrial, and utility sectors since past few years. Power optimizers are present for each solar panel to optimize the power.
Rise in building & construction activities in developing economies across the globe increases the need for continuous power supply that can be fulfilled with the help of solar power generation, which, in turn, is expected to fuel growth of the market during the forecast period. However, high cost associated with power optimizers in the solar system is anticipated to restrain growth of the power optimizer market during the forecast period. On the contrary, rise in R&D activities toward increasing efficiency of power optimizer with its unique advantages, and government initiative toward renewable energy across the globe are expected to create opportunities for key players operating in the power optimizer market during the forecast period.
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 share of the market, 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, and I-energy Co., Ltd. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in development of innovative products from manufacturers have helped to attain key developments in the global power optimizer market trends.
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 detailed quantitative analysis of the current power optimizer market trends and estimations from 2021 to 2031, which assists to identify the prevailing opportunities.
An in-depth analysis of power optimizer market across the globe is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
- A comprehensive analysis of the factors that drive and restrain the growth of the global power optimizer market is provided.
Region-wise and country-wise market conditions are comprehensively analyzed in this report.
- The projections in this report are made by analyzing the current trends and future market potential from 2021 to 2031 in terms of value.
- An extensive analysis of various regions provides insights that are expected to allow companies to strategically plan their business moves.
- Key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the global power optimizer market.
Key Market Segments
By Connectivity
- On-Grid
- Standalone
By Application
- Residential
- Commercial
- Utility
By End Use
- Module Level MPPT
- Advanced Power Line Communication
- Monitoring Components
- Safety Shutdown Components
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- 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
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: POWER OPTIMIZER MARKET, BY CONNECTIVITY
CHAPTER 5: POWER OPTIMIZER MARKET, BY APPLICATION
CHAPTER 6: POWER OPTIMIZER MARKET, BY END USE
CHAPTER 7: POWER OPTIMIZER MARKET, BY REGION
CHAPTER 8: COMPANY LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Power Optimizer Market," the power optimizer market was valued at $2.6 billion in 2021, and power optimizer market size is estimated to reach $7.3 billion by 2031, growing at a CAGR of 10.81% from 2022 to 2031.Power optimizer is a device used to optimize energy generated from solar panels, i.e., direct current (DC) to direct current (DC) and sent to central or sting inverter for residential and other AC applications. Power optimizer modules are connected to each solar panel to optimize their performance at equal level. Power optimizer has various advantages such as reducing electricity bills, minimizing environmental pollution, and high efficiency than diesel generators.
Significant development of end-use industries such as oil & gas, telecom, mining, pharmaceutical, chemicals, and healthcare led to rise in demand for standalone solar installations for their respective manufacturing and operations, which, in turn, drives growth of the power optimizer market during the forecast period. In addition, increase in demand for power optimizers from developing economies such as India, China, and Japan fuel growth of the market, globally. However, high installation costs of power optimizer in solar panels are key factors that are expected to hamper growth of the global power optimizer industry in the upcoming years.
On the basis of connection type, the on-grid segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to rise in investments for direct supply of electricity rather than storing it in batteries. In addition, advantages of using on-grid solar inverters include easy feeding of energy, easy installation, cost-efficiency, and managing high electricity demand, which are anticipated to fuel growth of the market in the upcoming years.
On the basis of application, the utilities segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 10.37%. This is attributed to increase in investment in the utility scale solar power plants, solar parks, and other solar structures. In addition, increase in construction projects such as decentralized solar power plants, rural electrification projects, solar power plants on the water body & rooftops, and commercial buildings drive growth of the power optimizer market for the utilities segment across the globe.
On the basis of end user, the module level MPPT segment holds the largest market share, in terms of revenue, and is expected to grow at a CAGR of 10.52%. This is attributed to increase in demand for MPPT in the solar power industry as individuals or customers are aware of advantages of the module level MPPT on efficiency of solar power generation.
On the basis of region, the market is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered the dominant share in 2020, and is anticipated to maintain this dominance in the power optimizer market during the forecast period. This is attributed to presence of key players and huge consumer base in the region.
The power optimizer market is segmented on the basis of connectivity, application, end user, 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 user, 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 share of the market, 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, and I-energy Co., Ltd. Rapid urbanization and industrialization has led to rise in demand for power, which led to increase in investments in 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 development of innovative products from manufacturers have helped to attain key developments in the global power optimizer market trend
Key Findings of the Study
- As per power optimizer market trends, in 2021, the on-grid segment accounted for 65.2% of the power optimizer market share, and is anticipated to grow at a rate of 10.66%, in terms of revenue, increasing its share in the global power optimizer market.
- As per power optimizer market analysis,utility is the fastest-growing application segment as per global power optimizer market analysis, and is expected to grow at a CAGR of 10.37% from 2022 to 2031.
- Module level MPPT segment is expected to grow at the fastest rate, registering a CAGR of 10.52%, throughout the forecast period.
- In 2021, Asia-Pacific dominated the global power optimizer market size with more than 54.9% of the share, in terms of revenue.
IMPACT OF COVID-19 ON THE GLOBAL POWER OPTIMIZER MARKET
- Emergence of COVID-19 had a negative impact power optimizer market forecast growth during this period.
- This impact is mostly attributed to the significant disruptions in the raw material transportation, presence of low-labor, led to shutdown of many manufacturing industries led to decline of demand power hence decrease in the demand for power optimizer market during this period.
- The decrease in demand for many non-essential products and shut down of electrical, automotive, and other manufacturing related industries has created a negative impact on the development of power optimizer market
- The increasing demand for environment friendly manufacturing products and increase in awareness among the people towards the environment will hamper the growth of power optimizer market.
- Thus, the abovementioned factors are expected to have great impact on the development of power optimizer market growth in this forecast period.
Companies Mentioned
- 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
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 305 |
| Published | June 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 2.6 billion |
| Forecasted Market Value ( USD | $ 7.3 billion |
| Compound Annual Growth Rate | 10.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
