Solar microinverters are forecast to account for 31% of the module-level power electronics (MLPE) market in 2023, with power optimizers expected to account for the remaining 69%. Key market drivers include booming demand in European markets, especially in distributed generation (DG) solar, and continued demand in the United States for rapid shutdown complaint devices. The United States remains the largest market for both microinverters and power optimizers in 2023, however, strong growth in Europe in key markets such as Germany and Netherlands mean Europe will account for over half of MLPE shipments in 2023. Australia continues to be a key market in Asia with China (mainland) and Thailand emerging as growth markets.

A significant trend in the MLPE space has been the release and success of multi-module solutions, which has allowed MLPE to reduce costs and enter into larger commercial and industrial (C&I) systems. Competition in the power optimizer market has grown as Tigo Energy, Huawei Technologies and Sungrow Power Supply have expanded their geographical footprint and compete more aggressively with market leader SolarEdge Technologies. A host of new entrants such as Growatt New Energy, Shenzhen SOFARSOLAR, and GoodWe Technologies have entered the microinverter market looking to compete with market leader Enphase Energy, with balcony solar seen as a burgeoning market opportunity for new entrants.

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Liam Coman is a research analyst within the Clean Energy Technology research team at S&P Global and researches the global PV inverter, solar supply chain and energy storage inverter markets.

Posted on 17 January 2024

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.