Grid-forming Inverter Market is predicted to reach USD 1,277.35 Million at a CAGR of 8.70% during the forecast period 2023-2030

Market Research Future (MRFR) has published on the “Global Grid-forming Inverter Market”.

The Grid-forming Inverter market is estimated to register a CAGR of 8.70% during the forecast period of 2023 to 2030.

MRFR recognizes the following companies as the key players in the global Grid-forming Inverter market— Huawei Technologies Co., Ltd (China), SMA Solar Technology AG (Germany), Gamesa Electric (Spain) , Fimer Group (Italy), Delta Electronics, Inc (Taiwan), Solectria Solar (United States) , ABB (Switzerland), SolarEdge Technologies Inc (Israel), General Electric (United States), Sineng Electric Co Ltd (China).

Grid-forming Inverter Market Highlights

The global Grid-forming Inverter market is accounted for to register a CAGR of 8.70% during the forecast period and is estimated to reach USD 1,277.35Million by 2030.

The primary trend that is driving the global market for Grid-forming Inverter is Increasing investments in the renewable energy sector and rapid infrastructural development and growing demand for reliable energy sources are expected to drive the growth of the Grid-forming Inverter market over the forecast duration. In addition, Significant market growth potential of electric vehicle industry provide a lucrative opportunity to the manufacturers in the market.

The global grid-forming inverter market is driven by increasing investment in the renewable energy sector. With increasing awareness and government initiative there is a rapid move towards power generation through renewable energy such as wind and solar energy projects. With growing integration of renewable energy produced energy in the electrical grid the demand for grid-forming inverters is expected to grow because of their capacity to provide grid stability, regulate fluctuations, and promote the smooth integration of renewable energy into the power grid.

At the same time rapid infrastructural development and growing demand for reliable energy sources is expected to drive market demand for grid-forming inverters. This confluence of rapid infrastructure development and the need for reliable energy sources has far-reaching implications for economic growth, environmental sustainability, and social well-being, and is expected to drive demand for gris-forming inverters to provide effective power solutions and maintain grid stability. As traditional energy sources confront supply and environmental issues, grid-forming inverters have emerged as critical components in addressing this increasing demand while guaranteeing system stability and boosting renewable energy integration.

With rising consumer awareness and government measures to prioritise environmental issues, there is a drastic increase in demand for electric vehicles, resulting in an increased need for supporting charging infrastructure, which are significantly reliant on grid-forming inverters, promoting market growth for grid-forming inverters. The developing electric vehicle industry, improvement of charging infrastructure and increased consumer purchasing power are projected to propel grid-forming inverter market growth. 

All-electric vehicles, also referred to as battery electric vehicles (BEVs), are powered by an electric motor rather than an internal combustion engine. The electric motor is powered by a huge traction battery pack, which must be hooked into a wall outlet or charging equipment, often known as electric vehicle supply equipment (EVSE) for charging for the needed functionality. Since grid-forming inverters are critical components of integration of clean power in these infrastructures, the growing electric vehicle market is expected to expand opportunity for the market during the forecast period.

Segment Analysis

The global Grid-forming Inverter market has been segmented based on power rating, voltage, type, end user, and region.

Based on type, the global grid-forming inverter market has been segmented into micro inverters, string inverters and central inverters. In 2022, the micro inverters segment drove the global grid-forming inverter market by holding a substantial market share with a market value of USD 296.65 million. 

It is projected to register a CAGR of 8.86% during the projected timeframe. Micro inverters have gained significant traction due to their advanced functionality and benefits, especially in solar energy systems. Unlike traditional string inverters, micro inverters are installed on each individual solar panel, allowing for independent power conversion. This feature enables better energy harvesting by minimizing losses from shading, module mismatch, and other factors that can affect the overall efficiency of a solar array.

Based on the power rating, the global grid-forming inverter market has been segmented into below 50 kW, 50-100 kW, and above 100 kW. In 2022, the 50-100 kW segment drove the global grid-forming inverter market by holding a substantial market share with a market value of USD 370.31 million. 

It is projected to register a CAGR of 8.53% during the projected timeframe. Grid-forming inverters play a critical role in modern energy systems, especially in the context of renewable energy integration and microgrids. With a power rating ranging from 50 to 100 kW, these inverters are tailored to meet the demand of smaller-scale energy installations. By acting as the backbone of decentralized power generation, grid-forming inverters enable the seamless integration of intermittent energy sources like solar and wind into the grid.

Based on voltage, the global grid-forming inverter market has been segmented into 100-300 V, 300-500 V and above 500 V. In 2022, the 300-500 V segment drove the global grid-forming inverter market by holding a substantial market share with a market value of USD 309.94 million. It is projected to register a CAGR of 8.55% during the projected timeframe. The global demand for grid-forming inverters operating within the voltage range of 300 to 500 Volts has rapidly escalated, driven by the transformative shift towards renewable energy integration and the establishment of resilient microgrids. 

As countries worldwide strive to reduce their carbon footprint and enhance energy security, deploying renewable energy sources like solar and wind has gained momentum. These sources, however, inherently exhibit variable power generation patterns due to environmental conditions. To effectively harness their potential and ensure grid stability, grid-forming inverters are essential.

Based on end-user, the global grid-forming inverter market has been segmented into residential, commercial and others. In 2022, the commercial segment drove the global grid-forming inverter market by holding a substantial market share with a market value of USD 395.19 million. It is projected to register a CAGR of 8.59% during the projected timeframe. In the commercial sector, businesses are recognizing the economic and environmental benefits of integrating grid-forming inverters into their energy systems. 

These inverters offer enhanced grid stability and power quality, making them essential for industries that rely heavily on consistent power supply, such as data centers, manufacturing facilities, and healthcare institutions. The ability of grid-forming inverters to enable efficient energy management, along with their compatibility with renewable energy sources, positions them as a valuable asset for businesses aiming to achieve sustainability goals and reduce operational costs.

Regional Analysis

Based on region, the global Grid-forming inverter market has been segmented into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. The Asia-Pacific region is anticipated to drive the global grid-forming inverter market throughout the forecast period. The target region is anticipated to offer a total incremental opportunity of USD 470.19 million by the end of 2030.

The Asia-Pacific Grid-forming Inverter Market is witnessing significant developments driven by the growing deployment of energy storage systems, particularly battery storage solutions. The adoption of energy storage systems, including battery storage, is gaining momentum across Asia. These systems play a pivotal role in the efficient utilization of renewable energy resources. By storing surplus renewable energy during periods of high production and releasing it when demand surges, energy storage contributes to grid stability and fosters the seamless integration of renewable energy into the power grid. This capability becomes especially important in managing the intermittency of sources like solar and wind.

Key Findings of the Study

• The global Grid-forming Inverter market is expected to reach USD 1,277.35 Million by 2030, at a CAGR of 8.70% during the forecast period.


• Asia-Pacific held the largest market share of 37.12 % in 2022.


• Based on Type, the Micro Inverters segment was attributed to holding the largest market in 2022, with an approximate market share of 45.19%.


• Based on Power Rating, the 50-100 KW segment was attributed to holding the largest market in 2022, with an approximate market share of 52.08%.


• Based on Voltage, the 300-500 segment was attributed to holding the largest market in 2022, with an approximate market share of 47.21%.


• Based on End-User, the Commercial segment was attributed to holding the largest market in 2022, with an approximate market share of 60.20%.


• Huawei Technologies Co., Ltd (China), SMA Solar Technology AG (Germany), Gamesa Electric (Spain) , Fimer Group (Italy), Delta Electronics, Inc (Taiwan), Solectria Solar (United States) , ABB (Switzerland), SolarEdge Technologies Inc (Israel), General Electric (United States), Sineng Electric Co Ltd (China).