The Global Power Optimizer Market size is expected to reach $5.2 billion by 2028, rising at a market growth of 10.4% CAGR during the forecast period.
A power optimizer is a DC to DC energy converter, which was created to increase the amount of energy solar PV systems can produce. The main task is to modify or optimize the panel's performance using maximum power point tracking (MPPT) or to match the string inverter's performance. Power optimizers are particularly helpful when the effectiveness of the power generating elements in a distributed system will vary significantly, for example, because of differences in equipment, shading from light or wind, being installed facing different directions, or being located in locations that are far apart.
Both systems seek to isolate specific panels in order to enhance the performance of the entire system, which is where power optimizers for photovoltaic collectors can be similar to micro inverters. A power optimizer built inside a solar module is known as a smart module. The power that most power generation or storage systems produce, the load that is placed on them, as well as the efficiency of the distribution, are all examined. For instance, a typical battery stores energy through chemical reactions on its plates and in its electrolytes.
This process takes time to complete, which restricts how quickly power can be effectively extracted from the cell. The 2-hour and 20 hours rates are typically listed on large batteries utilized for power storage as a result, with the 2 hours rate frequently being around 50% of the 20 hours rate. Similar problems arise with solar panels because of the rate at which the cell can transform solar photons into electrons, the surrounding environment's temperature, along with a number of other factors. The I-V curve, a complex nonlinear relationship between voltage, current, and the overall amount of power produced, applies in this situation.
Modern solar arrays utilize a method called maximum power point tracking (MPPT) to continuously modify the given load in order to keep the system operating at its highest efficiency point while monitoring the overall output of the array in order to optimize collection. Solar panels typically provide voltages of about 30 V. For effective AC conversion and feeding to the power grid, this value is too low. In order to fix this, panels are connected in series to raise the voltage to a level that is more suitable for the inverters being used, often 600 V.
The COVID-19 impact had a devastating effect on various activities all over the world including, businesses, financial institutions, industrial enterprises, and infrastructural firms. The market's growth has been constrained by the novel coronavirus, which has impacted several economies and triggered a lockdown in numerous nations. In several countries throughout the world, the closure of industrial producers caused a reduction in the demand for solar-related equipment, which in turn affected the power optimizer industry. The decline in power usage in industrial facilities around the world during the outbreak has had a detrimental effect on the market's growth.
Off-grid solar power systems have been essential in increasing energy availability in a number of countries and regions. Standalone solutions have gained support from private investors, end-users, and policymakers as an inexpensive and sustainable solution for electricity access. These systems provide minimal management and maintenance expenses for the installation of solar panels, which is likely to boost market demand for power optimizers. The market volume would be driven by rising consumer awareness of the adoption of low carbon-intensive technology to reduce GHG emissions.
Businesses involved in the Power Optimizer sector are becoming increasingly engaged with launching strategies like targeted marketing, CSR programs, etc. as a strategy to raise their global prominence. The fact that these businesses are now aiming to handle a certain business-related activity in a nation that offers advantageous legislation is a clearly discernible trend that is being witnessed across the spectrum. By doing this, it enables enterprises and businesses to save expenses while retaining industry experts for each crucial stage of their respective organizations. By cutting trade taxes and duties, governments in developing nations are introducing measures to entice international investors to the corresponding industrial sectors and create more jobs.
The market for power optimizers is quite new. There is a lack of manufacturers in the market to fulfill the customer demands, other inverter brands cannot be used to link with their power optimizers. However, the installation expenses are also a little more than with a standard string inverter solar panel system because power optimizer equipment is installed on every solar panel. Even a 6kW system would cost significantly more than conventional equipment. This cost increase is quite small when compared to more expensive micro inverters, but it is nevertheless important to note in this context.
Based on the Connectivity, the Power Optimizer Market is On-Grid and Standalone. In 2021, the on-grid segment acquired the largest revenue share of the power optimizer market. On-grid solar power systems are directly integrated into the utility grid and use a solar power system to generate electricity. Customers are reimbursed for the extra power transmitted back to the utility grid when transmitting any excess power generated by the solar power system there.
On the basis of Application, the Power Optimizer Market is segmented into Residential, Commercial, and Utility. In 2021, the commercial segment garnered a substantial revenue share of the power optimizer market. The rise in demand for photovoltaic charge controllers from industrial uses for energy usage in data centers, hospitals, restaurants, communication base stations, corporate offices, and other locations is credited with this expansion
By the End-Use, the Power Optimizer Market is Module Level MPPT, Advanced Power Line Communication, Monitoring Components, Safety Shutdown Components, and Others. In 2021, the Advanced Power Line Communication segment procured a promising revenue share of the power optimizer market. This is owing to the fact that this technology uses the already-installed power distribution network to transmit data.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 2.6 Billion |
| Market size forecast in 2028 | USD 5.2 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 10.4% from 2022 to 2028 |
| Number of Pages | 202 |
| Number of Tables | 360 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Connectivity, Application, End Use, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the Power Optimizer Market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2021, Asia-Pacific witnessed the biggest revenue share of the power optimizer market. The largest power optimizer market is found in Asia-Pacific, which includes nations like Japan, China, India, South Korea, Australia, and the rest of Asia-Pacific. China, which generated approximately an amount of solar energy in recent years, is the world's greatest consumer of this energy. The deployed capacity of renewable power in this region will increase. Renewable energy sources have entered the mainstream of the energy industry due to technological advancements and falling capital costs.
Free Valuable Insights: Global Power Optimizer Market size to reach USD 5.2 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Delta Electronics, Inc., SunPower Corporation, KACO new energy GmbH, Alencon Systems, LLC, SolarEdge Technologies, Inc., Enphase Energy, Inc., Tigo Energy, Inc., Altenergy Power System, Inc., Solantro Semiconductor Corp., and Sparq Systems Inc.
By Connectivity
By Application
By End Use
By Geography
The global Power Optimizer Market size is expected to reach $5.2 billion by 2028.
Increasing Popularity And Adoption Of Solar Power are driving the market in coming years, however, High Cost Along With Other Complexities restraints the growth of the market.
Delta Electronics, Inc., SunPower Corporation, KACO new energy GmbH, Alencon Systems, LLC, SolarEdge Technologies, Inc., Enphase Energy, Inc., Tigo Energy, Inc., Altenergy Power System, Inc., Solantro Semiconductor Corp., and Sparq Systems Inc.
The expected CAGR of the Power Optimizer Market is 10.4% from 2022 to 2028.
The Utility segment acquired maximum revenue share in the Global Power Optimizer Market by Application in 2021 thereby, achieving a market value of $2.3 billion by 2028.
The Asia Pacific market dominated the Global Power Optimizer Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $1.9 billion by 2028.
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