Power Optimizers Market Report 2024

Where is the largest and fastest growing market for power optimizers? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more. The 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 power optimizers market size has grown rapidly in recent years. It will grow from $2.01 billion in 2023 to $2.23 billion in 2024 at a compound annual growth rate (CAGR) of 11%. The growth observed in the historic period can be linked to several factors, the increasing adoption of solar energy, government incentives and policies, efforts to reduce costs, heightened environmental awareness, and the maturation and expansion of the market.

The power optimizers market size is expected to see rapid growth in the next few years. It will grow to $3.4 billion in 2028 at a compound annual growth rate (CAGR) of 11.1%. The anticipated growth during the forecast period can be attributed to several factors, enhancements in solar PV system performance, the development of industry standards and certifications, educational efforts and increased consumer awareness, a competitive market environment, and ongoing innovation. Key trends expected to shape this period include advancements in maximum power point tracking (MPPT) technology, the global transition to renewable energy sources, continuous technological innovations, the expansion of electric vehicle charging infrastructure, and greater integration with smart grid technologies.

The growth of the power optimizers market is projected to accelerate due to the increasing shift towards renewable energy sources. Renewable energy encompasses resources such as sunlight, wind, rain, tides, and geothermal heat that are continually replenished. This growing demand for renewable energy is driven by rising global awareness of environmental sustainability and the need to cut carbon emissions. Power optimizers play a crucial role in this sector by enhancing the efficiency and performance of solar photovoltaic (PV) systems, maximizing the power output of individual solar panels, and thus improving overall energy production and cost-effectiveness. According to the International Energy Agency in January 2024, renewable energy capacity globally grew by 50% in 2023, reaching nearly 510 gigawatts. This trend underscores the driving force behind the expansion of the power optimizers market.

Leading companies in the power optimizers market are concentrating on creating advanced products, such as residential power optimizers, to strengthen their market position. These devices are used in home solar energy systems to boost the efficiency of individual solar panels. For example, in December 2021, SolarEdge Technologies Inc., an Israeli company specializing in smart energy solutions, introduced the Power Optimizer S-Series for residential PV systems. These optimizers are designed to improve energy harvest by addressing issues such as module mismatch and shading. They also feature advanced performance monitoring and remote troubleshooting, enhancing overall efficiency and reliability. The compact design and easy installation of the S-Series optimizers facilitate the integration of solar energy solutions for homeowners. They are compatible with SolarEdge residential inverters and are designed to detect abnormal PV connector behavior to mitigate fire risks and safety concerns.

In October 2021, SunPower Corp., a U.S.-based solar energy company, acquired Blue Raven Solar for $165 million. This acquisition is expected to enable SunPower to rapidly expand its reach in the solar market and better serve customers in less saturated regions, such as the Northwest and Mid-Atlantic areas. Blue Raven Solar is a U.S. company specializing in power optimizers.

Major companies operating in the power optimizers market are Huawei Technologies Co. Ltd., Panasonic Corporation, Schneider Electric SE, ABB Ltd., Delta Electronics Inc., Omron Corporation, AP Systems Co. Ltd., SolarEdge Technologies Inc., Maxim Integrated Products Inc., Enphase Energy Inc., SunPower Corporation, SMA Solar Technology AG, Ingeteam S.A., Fronius International GmbH, SolaX Power, KACO new energy GmbH, Tigo Energy Inc., Sparq Systems, Ampt LLC, Alencon Systems LLC, Ferroamp Elektronik AB, Infineon Technologies AG, Hoymiles Power Electronics Corp.

Asia-Pacific was the largest region in the power optimizers market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the power optimizers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the power optimizers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Power optimizers are devices designed to maximize energy output from solar panels in photovoltaic (PV) systems. They work at the module level, optimizing each panel’s performance independently to reduce mismatch losses and shading effects, thus boosting overall system efficiency. Additionally, power optimizers offer monitoring features that enhance system performance and reliability.

The main types of power optimizers are direct current (DC) and alternating current (AC) power optimizers. DC power optimizers enhance the DC voltage and current from each solar panel, addressing power losses and mismatch issues to improve system efficiency. They can be used in both on-grid and standalone systems across various applications, including utility, commercial, and residential settings. Key functions of power optimizers include module-level maximum power point tracking (MPPT), advanced power line communication, monitoring components, and safety shutdown features.

The power optimizers market research report is one of a series of new reports that provides power optimizers market statistics, including power optimizers industry global market size, regional shares, competitors with a power optimizers market share, detailed power optimizers market segments, market trends and opportunities, and any further data you may need to thrive in the power optimizers industry. This power optimizers 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 power optimizers market consists of sales of smart modules, monitoring, and control systems. 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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