Micro Inverter Market Report 2025

This Micro Inverter market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The micro inverter market size has grown exponentially in recent years. It will grow from $3.45 billion in 2024 to $4.17 billion in 2025 at a compound annual growth rate (CAGR) of 21%. The growth in the historic period can be attributed to government incentives, solar energy expansion, efficiency improvements, module-level monitoring, grid stability.

The micro inverter market size is expected to see rapid growth in the next few years. It will grow to $8.44 billion in 2029 at a compound annual growth rate (CAGR) of 19.3%. The growth in the forecast period can be attributed to reduced installation costs, agricultural applications, floating solar, hybrid microgrids, energy transition. Major trends in the forecast period include smart grid integration, micro inverter innovation, rural electrification, electrification of transportation, energy storage integration.

The growth in residential solar rooftop installations is expected to drive the expansion of the micro inverter market. Microinverters are installed behind each solar panel to convert direct current into alternating current. Unlike conventional or string inverters, these microinverters operate independently and perform at their maximum potential. For example, in July 2023, a report from the International Energy Agency, a France-based intergovernmental organization, highlighted a significant increase in solar photovoltaic (PV) generation, which rose by 270 terawatt-hours (26%), reaching almost 1,300 terawatt-hours in 2022. Projections suggest that by 2027, the installed power capacity of solar PV will surpass that of coal, positioning it as the largest power capacity source globally. The cumulative capacity of solar PV is expected to nearly triple in the forecast period, with an increase of almost 1,500 gigawatts, exceeding natural gas by 2026 and coal by 2027. Therefore, the rise in residential solar rooftop installations and the growing interest in highly efficient power conversion technologies are anticipated to boost the microinverter market during the forecast period.

The growing demand for renewable energy sources is anticipated to drive the expansion of the microinverter market in the future. Renewable energy sources are resources that are naturally replenished and virtually limitless, offering a sustainable and environmentally friendly alternative to conventional fossil fuels. Microinverters are employed in renewable energy systems, such as solar panels and wind turbines, to convert direct current (DC) into usable alternating current (AC) electricity for homes and businesses. For example, in June 2023, the Energy Information Administration, a US-based government agency, reported that renewable energy consumption in the United States rose to 13.2 quads in 2022, up from 12.1 quads in 2021. Consequently, the increasing demand for renewable energy sources is driving the growth of the microinverter market.

Key companies in the microinverter sector are concentrating on developing innovative products, such as the IQ8 microinverters, to deliver reliable services to their customers. IQ8 microinverters serve as robust solutions for residential solar applications. For example, in October 2023, Enphase Energy Inc., a US-based energy technology firm, introduced IQ8 microinverters. These microinverters are engineered to optimize energy production and can handle a continuous direct current (DC) of 14 amperes, enabling them to support higher-powered solar modules through enhanced energy harvesting. The IQ8 microinverters come in two models, IQ8HC and IQ8P, with output powers of 384 watts (W) and 480 watts (W), respectively.

Leading companies in the microinverter market are concentrating on developing innovative products, such as the micro-inverter series, to ensure reliable services for their customers. A microinverter is a device utilized in solar power systems to convert the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity for residential and commercial use. For example, in July 2022, Zhejiang Beny Electric Co., Ltd., a China-based inverter manufacturer, launched its micro-inverter series. This product line includes the BYM550, BYM700, and BYM2800 models. The BYM550 is the smallest device in the series, compatible with solar module power ranges of 400 Watts (W) to 670 Watts (W). The BYM700 serves as a mid-sized inverter with a panel power range of 450 Watts (W) to 750 Watts (W). Meanwhile, the BYM2800 is the largest micro-inverter, also designed to work with solar modules within the power range of 450 Watts (W) to 750 Watts (W).

In February 2024, SPARQ Systems Inc., a microinverter company based in Canada, formed a partnership with JioThings Ltd to supply PV microinverters to the Indian conglomerate. JioThings is an India-based firm that offers IoT (Internet of Things) solutions for businesses. As part of the agreement, the two companies will collaborate to develop, manufacture, and distribute microinverters in India, while also integrating Sparq's microinverters into JioThings' global solutions. The partnership aims to leverage their respective strengths to enable large-scale production of microinverters at a competitive cost.

Major companies operating in the micro inverter market include Enphase Energy Inc., APsystems Co. Ltd., Canadian Solar Inc., Chilicon Power LLC, Darfon Electronics Corp., FIMER S.p.A., Loom Solar Pvt. Ltd., P&P Energy Technology Co. Ltd., ReneSola Ltd., Sensata Technologies Holding plc, SPARQ Systems Inc., ABB Ltd., AEconversion GmbH, CyboEnergy Inc., Delta Electronics Inc., Eaton Corporation plc, Fronius International GmbH, GoodWe Power Supply Technology Co. Ltd., HiQ Solar, Huawei Technologies Co. Ltd., KACO new energy GmbH, Kostal Solar Electric GmbH, Magnum Energy Solutions LLC, Omnik New Energy Co. Ltd., Pika Energy Inc., Power-One LLC, Redback Technologies Pty Ltd., SMA Solar Technology AG, SolarBridge Technologies Inc., SolarEdge Technologies Inc., Yaskawa America Inc., Sungrow Power Supply Co. Ltd., Sunmagic Solar and Electronics Pvt. Ltd., SunPower Corporation, Tabuchi Electric Co. Ltd.

North America was the largest region in the micro inverter market in 2024. Asia-Pacific is expected to be the fastest-growing region in the micro inverter market share during forecast period. The regions covered in the micro inverter market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the micro inverter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

A micro inverter is a component in solar energy systems that connects to an individual solar panel, converting the direct current (DC) produced by the panel into alternating current (AC). This AC power can be utilized to operate household appliances or fed back into the electrical grid for energy credits. This technology improves overall system efficiency by optimizing the performance of each solar panel individually.

Micro inverters come in two main types, single-phase and three-phase micro inverters. A single-phase inverter is responsible for converting single-phase electricity generated by photovoltaic (PV) modules into single-phase power, which can be connected to either single-phase equipment or the electrical grid. Microinverters provide a combination of hardware, software, and services. They are categorized based on their power rating, which includes below 250W, between 250W and 500W, and above 500W. These micro inverters find applications in residential, commercial, and PV power plant settings.

The micro inverter market research report is one of a series of new reports that provides micro inverter market statistics, including micro inverter industry global market size, regional shares, competitors with a micro inverter market share, detailed micro inverter market segments, market trends and opportunities, and any further data you may need to thrive in the micro inverter industry. This micro inverter market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The micro-inverter market consists of sales of direct current microinverters, direct conversion inverters, wall-insulated microinverters, full-phase microinverters, and shading microinverters. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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