The module-level power electronics industry is witnessing an intense growth phase, according to global research and consulting organization Frost & Sullivan. Demand is driven by increasing solar PV installations across the globe and modernization of grid infrastructure capable of accommodating module-level power electronics (MLPE) technology within the system.
“With movement towards renewable power and distributed power sources, the MLPE market is expected to sustain further significant growth in all regions of the globe,” said energy and environment research analyst Manoj Shankar. “To gain a competitive advantage and increase market share in a highly consolidated and fiercely competitive market, MLPE companies must innovate their products to reduce prices, seek geographic expansion and invest in partnerships or merger and acquisition strategies.”
Global Module Power Electronics (MLPE) Market, a report that is part of Frost & Sullivan’s Power Generation Growth Partnership Service (GPS) program, found that the market is expected to grow from $648.7 million in 2016 to $1.16 billion in 2021 at a compound annual growth rate (CAGR) of 12.4%.
Other developments include:
- Reduced MLPE costs will lead to a higher adoption in many developed and developing nations.
- The total MW-level MLPE installations are expected to increase from 3.3 GW in 2016 to 10.7 GW in 2021 at a CAGR of 26.2%.
- Enphase Energy and Solar Edge Technology are the two major players that dominate the market due to their early mover advantage.
- Prices of microinverters and DC optimizers are expected to be on par in the near future with traditional inverters, leading to higher adoption by consumers.
“Renewable energy targets and regulations are set to play a major role in the development of the MLPE market as countries move towards more efficient and sustainable power generation,” noted Shankar.
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
News item from Frost & Sullivan