The power optimizers market has seen considerable growth due to a variety of factors.
• The power optimizers market has seen rapid growth in recent years. It is expected to increase from $2.23 billion in 2024 to $2.49 billion in 2025, reflecting a compound annual growth rate (CAGR) of 11.3%.
The growth is attributed to the growing adoption of solar energy, government incentives and policies, cost reduction efforts, rising environmental awareness, and market maturation.
The power optimizers market is expected to maintain its strong growth trajectory in upcoming years.
• The power optimizers market is expected to grow to $3.77 billion by 2029 at a CAGR of 11.0%.
The growth is driven by improvements in solar PV system performance, industry standards, consumer awareness, competitive landscapes, and innovation. Key trends include advancements in MPPT technology, a global shift to renewable energy, continued innovation, EV charging infrastructure expansion, and smart grid technology integration.
The movement toward renewable energy is set to stimulate the progression of the power optimizers segment in the coming years. Renewable energies are derived from ceaselessly renewing natural resources like sunlight, wind, rain, tides, and geothermal activity. Due to rising consciousness about environmental preservation and the urgency to curtail carbon emissions, the demand for these renewable energy sources is increasing. Power optimizers play a significant role in this field by elevating the efficacy and functionality of solar photovoltaic (PV) systems. They manage to maximize power yield from individual solar modules, resulting in better energy production and economic efficiency. The International Energy Agency, an autonomous intergovernmental institution based in France, reported in January 2024 that the global addition of renewable energy capacity was raised by 50% in 2023, hitting almost 510 gigawatts (GW). Therefore, the trend toward renewable energies is sparking the surge of the power optimizers industry.
The power optimizers market covered in this report is segmented –
1) By Type: Direct Current Power Optimizers, Alternating Current Power Optimizers
2) By Connectivity: On-Grid, Standalone
3) By Application: Utility, Commercial, Residential
4) By End Use: Module Level Maximum Power Point Tracking (MPPT), Advanced Power Line Communication, Monitoring Components, Safety Shutdown Components, Other End Uses
Subsegments:
1) By Direct Current Power Optimizers: String DC Power Optimizers, Module-Level DC Power Optimizers, DC Optimizers With Maximum Power Point Tracking (MPPT), Centralized DC Power Optimizers, Hybrid DC Optimizers
2) By Alternating Current Power Optimizers: Module-Level AC Power Optimizers, Microinverter AC Power Optimizers, AC Optimizers With Grid Integration, Residential AC Power Optimizers, Commercial AC Power Optimizers
Leading corporations in the power optimizers sector are striving to create innovative solutions such as residential power optimizers, in order to outperform their rivals in the market. These residential power optimizers are electronic tools utilized in domestic solar energy setups to boost the output and efficacy of single solar panels. For instance, Sungrow Power Supply Co. Ltd., a renewable energy firm based in China, launched the Power Optimizer SP600S in May 2023 to address the existing issues in the solar energy industry by escalating the effectiveness and safety of PV systems. This state-of-the-art device optimizes each solar module individually, potentially augmenting the production capacity by nearly 30% and increasing rooftop installation capacity between 20% to 30%. Enhanced safety features such as a module-level shutdown to mitigate high DC voltage threats are included in the SP600S. Furthermore, it simplifies operational and upkeep tasks via real-time diagnostics provided through Sungrow’s monitoring app, decreasing maintenance-driven power decay by approximately 30%.
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 2024. 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.