The power optimizer market is slated to growth is slated to follow an exponential trajectory by 2028, with increasing environmental concerns, surging focus on reducing carbon emissions, and implementation of stringent emission regulations by multiple governments fueling the revenue growth.

The Solar Futures study by the U.S. Department of Energy's Solar Energy Technologies Office in 2021, represented a ???Decarbonization with Electrification??? (Decarb+E) scenario demonstrating large-scale benefits of electrification and the vast potential of solar. As per the study, solar is expected to amplify decarbonization of the U.S. energy system by 2050. With respect to the wider U.S. energy system, the proposed Decarb+E scenario lowers CO2 emissions by 62% in 2050.

Studies such as these are making strong cases for renewable capacity installation, creating lucrative opportunities for the optimizer industry.

The global power optimizer market is segmented into end-use, connectivity, application, and regions covered.

In terms of end-use, the market is categorized into advanced power line communication, module level MPPT, safety shutdown components, monitoring components, and others.

In 2021, advanced power line communication market recorded a volume of over 1,020 MW. Going forward, the segment is slated to experience notable growth.

Meanwhile, the safety shutdown components segment is estimated to gain a revenue share of more than $280 million by 2028. These components form a vital part of an industrial facility as they ensure safety in case of emergencies. Large dependence on safety shutdown systems across industrial applications is expected to fuel the demand for power optimizers across the market.

With respect to region, the power optimizer market in Middle East and Africa is projected to significantly grow in volume. The regional segment is slated to witness a CAGR of more than 14% throughout the forecast timeframe. Saudi Arabia's leading smart and clean infrastructure project initiatives in the MEA region are likely to boost the demand for power optimizers in the region.

Saudi Arabia recently announced projects that would expand its existing solar energy capacity by approximately 40 gigawatts by 2025. Currently, the country boasts of a total solar capacity of 455 MW.

The kingdom nation announced projects such as the NEOM smart city initiative, which would include a $5 billion hydrogen plant, as well as the Red Sea Project, which would have the capacity to generate more than 400 MW of solar energy. The project would also host the world's largest off-grid energy project. Due to the extensive rise in solar power initiatives and surge in solar panel installations, the country offers lucrative scope for power optimizer market.

The Latin American power optimizer industry is poised to witness revenue growth of above $70 million by the end of the forecast timeline. The region has enticed large investments and massive solar power projects in the recent times, representing potential growth in demand for power optimizers.

In 2021, Latin America rolled out its first concentrated solar power plant in Chile, backed by European Union (EU), KfW and KfW IPEX-Bank. The Cerro Dominador project is the region's first ever combined initiative, combining photovoltaic system with solar thermal, designed to supply over 380,000 homes with 100% clean renewable energy.

The project has helped LATAM make significant contributions towards the global fight against climate change and reduce the 870,000 tonnes of CO2 emissions annually.