Analysis of the current situation and prospects of the global and Chinese microinverter industry in 2023


 

Micro-inverters (module-level inverters) are a type of photovoltaic inverter that can independently control the power of each PV module, offering higher safety, power generation efficiency, and reliability. They are primarily used in smaller-scale generation scenarios such as residential and small commercial distributed settings. The core feature of micro-inverters is that each generally corresponds to only a few PV modules, allowing for precise adjustment and monitoring of each module's output power. They can achieve individual maximum power point tracking (MPPT) control for each module, then convert and feed the power into the AC grid after inversion.
I. Overview of the Micro-Inverter Industry
Industry Definition
A micro-inverter typically refers to a photovoltaic inverter in solar power systems with a power output of up to 1000 watts and module-level MPPT, officially known as a micro-photovoltaic grid-connected inverter. "Micro" is in contrast to traditional centralized inverters. Traditional PV inversion involves combining all the DC electricity generated by solar cells under sunlight and then converting it to AC through a single inverter for grid connection. In contrast, micro-inverters invert each module separately. Their advantage lies in providing independent MPPT control for each module, significantly improving overall efficiency and avoiding issues associated with centralized inverters, such as high DC voltage, poor performance in low light, and the bottleneck effect.
Industry Chain
The upstream of the micro-inverter industry chain includes suppliers of semiconductor devices, capacitors, inductors, and heat sinks. These components and materials are crucial for micro-inverter production. The midstream involves R&D, design, manufacturing, and testing of micro-inverters, requiring strict quality control and performance testing to ensure stability, efficiency, and reliability. The downstream includes manufacturers and installers of renewable energy systems like solar panels, wind turbines, and power batteries, who use micro-inverters to convert DC to AC for power supply needs.

 

 

II. Global and China Micro-Inverter Industry Development Status
1.Shipment Volume
Globally, micro-inverter shipments have been steadily increasing. In 2021, the global shipment volume exceeded 3.6 GW; by 2025, this figure is expected to approach 30 GW. Due to factors such as application scenarios and high cost per watt, the global penetration rate of micro-inverters in the distributed market remains around 2%-5%. As residential electricity prices soar globally, micro-inverters, being safer and more efficient, are expected to penetrate the residential photovoltaic sector more rapidly.
2.Demand Volume
In terms of demand, the global market for micro-inverters was about 2.3 GW in 2021, showing an increase of over 11% year-on-year. With the steady growth of distributed photovoltaic installations, the market demand is expected to reach over 12 GW by 2025.
3.Market Size
Currently, as the photovoltaic building market expands, micro-inverters have also seen development. With governments paying more attention to safety, the industry is shifting from string inverters to module-level control inverters. Micro-inverters are expected to become the mainstream direction for the next generation of inverters. Data from 2021 show that the global micro-inverter market size has already exceeded 4 billion USD, and it is projected to reach around 13 billion USD by 2027, with an annual compound growth rate of over 20%.
4.Regional Distribution
North America and Europe are the two largest markets for micro-inverters, accounting for 24% and 29% of the market share, respectively. They are followed by the Asia-Pacific, Middle East and Africa, and Latin America regions, with market shares of approximately 22%, 8%, and 7%, respectively. Asia, the Middle East, and Latin America face certain disadvantages in terms of cost, due to factors like weaker consumer purchasing power and less mature policies.
5.Application Scenarios
The global micro-inverter market is mainly divided into residential and commercial electricity usage. Specifically, the residential user market accounts for about 64%, and commercial electricity usage accounts for about 36%.

 

 

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