Global Market for MLPEs to Top $1 Billion in 2019
September 8, 2015 | IHSEstimated reading time: 2 minutes
The global market for module-level power electronics (MLPEs), which includes photovoltaic (PV) microinverters and power optimizers, is forecast to grow at a compound annual growth rate (CAGR) of 19 percent per year to reach more than $1 billion in 2019. According IHS (IHS), the leading global source of critical information and insight, Enphase led the microinverter market in 2014, due to the company’s large residential market share in the United States and continued expansion into new markets in Europe and Asia-Pacific (APAC). SolarEdge dominated the power optimizer market last year, due to the company’s success adding partners in the United States, as well as its entry into new emerging markets globally.
Microinverters, which convert direct current (DC) electricity from a single solar module into alternating current (AC) used by all electrical devices, are more costly than conventional string or central inverter devices that convert power from multiple solar panels; however, they can harvest up to 25 percent more electricity. Power optimizers take a similar approach to microinverters by performing the maximum power point tracking (MPPT) at a module level, but a conventional inverter is still used for the DC-AC stage.
The average price for traditional PV inverters fell 16 percent in 2014, but revenues for MLPE suppliers continued to grow, despite declining prices caused by intense competition in the inverter market. The global market for MLPE is estimated to have grown 30 percent, year over year, to reach $430 million in 2014.
“The United States continues to be the biggest market for MLPE this year,” said Cormac Gilligan, senior analyst, solar supply chain, IHS Technology. “Due to booming residential and commercial markets, and heightened market awareness of the benefits of microinverters and power optimizers, suppliers increased MLPE shipments.”
According to the IHS PV Inverter Intelligence Service, MLPE suppliers are gaining market share in the United Kingdom, Netherlands, France, Australia and other key markets outside the United States. Over the next five years, global residential and small-commercial installations are expected to reach 75 gigawatts (GWac), with the United States accounting for 20 percent of total installations. “The growth opportunity for MLPE outside the United States is huge,” Gilligan said. “Provided microinverter and power optimizer suppliers can keep expanding into new geographical markets, and keep innovating to take advantage of energy storage and other new growth markets, there is plenty of room for both technologies in the market.”
LG, Jinko Solar, Sunpower and other major module suppliers have either partnered with MLPE suppliers or now produce their own microinverters. “Module suppliers recognize that adding a microinverter to create an AC module, or adding power optimizers to create a smart module in the factory, allows them to differentiate themselves from the competition and give their customers more options,” Gilligan said. “Sunpower’s 2014 acquisition of SolarBridge, a leading microconverter supplier, indicates that module suppliers will consider acquisition, rather than just partnership. As suppliers release next-generation models, and as prices fall, we can expect more vertical integration to occur.”
About IHS
IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
Suggested Items
KIC’s Miles Moreau to Present Profiling Basics and Best Practices at SMTA Wisconsin Chapter PCBA Profile Workshop
01/25/2024 | KICKIC, a renowned pioneer in thermal process and temperature measurement solutions for electronics manufacturing, announces that Miles Moreau, General Manager, will be a featured speaker at the SMTA Wisconsin Chapter In-Person PCBA Profile Workshop.
The Drive Toward UHDI and Substrates
09/20/2023 | I-Connect007 Editorial TeamPanasonic’s Darren Hitchcock spoke with the I-Connect007 Editorial Team on the complexities of moving toward ultra HDI manufacturing. As we learn in this conversation, the number of shifting constraints relative to traditional PCB fabrication is quite large and can sometimes conflict with each other.
Standard Of Excellence: The Products of the Future
09/19/2023 | Anaya Vardya -- Column: Standard of ExcellenceIn my last column, I discussed cutting-edge innovations in printed circuit board technology, focusing on innovative trends in ultra HDI, embedded passives and components, green PCBs, and advanced substrate materials. This month, I’m following up with the products these new PCB technologies are destined for. Why do we need all these new technologies?
Experience ViTrox's State-of-the-Art Offerings at SMTA Guadalajara 2023 Presented by Sales Channel Partner—SMTo Engineering
09/18/2023 | ViTroxViTrox, which aims to be the world’s most trusted technology company, is excited to announce that our trusted Sales Channel Partner (SCP) in Mexico, SMTo Engineering, S.A. de C.V., will be participating in SMTA Guadalajara Expo & Tech Forum. They will be exhibiting in Booth #911 from the 25th to the 26th of October 2023, at the Expo Guadalajara in Jalisco, Mexico.
Intel Unveils Industry-Leading Glass Substrates to Meet Demand for More Powerful Compute
09/18/2023 | IntelIntel announced one of the industry’s first glass substrates for next-generation advanced packaging, planned for the latter part of this decade.