Grid-forming Inverter Market Size was valued at USD 712.17 Million in 2023. The Grid-forming Inverter Market industry is projected to grow from USD 772.92 Million in 2024 to USD 1,277.35 Million by 2030, exhibiting a compound annual growth rate (CAGR) of 10.73% during the forecast period (2024 - 2030).
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.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
With growing environmental concerns, there has been a change in emphasis toward renewable energy globally. Various countries' governments have raised their investments in supply of clean energy incentive programs for renewable energy development, which is projected to be a key driver for the global grid-forming inverters market in the years to come. Many nations have implemented extensive policy frameworks to assist renewable energy, resulting in fast technological scaling-up. Renewable energy sources play a significant role in guaranteeing sustainable energy with reduced emissions. Renewable energy technologies are already acknowledged to have the potential to considerably cover power demand while reducing emissions. Furthermore, technical advances have increased the efficiency and cost-effectiveness of renewable energy systems.
Solar photovoltaic (PV) panels, wind turbines, and energy storage devices have all witnessed significant advancements, resulting in better energy yields and lower prices per unit of energy generated. Solar panels and wind turbines are becoming less expensive, and economies of scale have made renewable energy more competitive with traditional fossil fuel-based electricity generation, leading to higher significance and adoption of renewable sources for power generation, which is expected to drive market for grid-forming inverters as they play an important role in renewable energy source integration in the electrical grid.
In recent years, various countries have created a sustainable energy supply strategy. Energy conservation has been pushed among residents to boost the use of solar, wind, biomass, waste, and hydroelectric energies. According to the Paris Climate Change Conference of the Parties (COP21), the long-term aim established by major economies that attended this conference is to make the power sector 100% emission-free by 2050. This boosts wind energy's position even further, as wind and solar energy will supply most of the renewable energy. The use of grid-forming inverters adds new levels of flexibility to energy systems. system-forming inverters increase renewable energy penetration while improving system flexibility and guaranteeing grid stability.
Grid-forming inverters pave the way for a more sustainable, resilient, and greener energy landscape. As technology progresses and the energy shift gathers traction, the importance of these inverters will expand, becoming the cornerstone of a worldwide renewable-powered future. Hence, rising investments in renewable energy projects is expected to propel market growth of grid-forming inverters over the forecast period due to increase electrical infrastructure integration.
Based on type, the Grid-forming Inverter Market has been segmented into micro inverters, string inverters and central inverters. In 2023, the micro inverters segment drove the Grid-forming Inverter Market by holding a substantial market share with a market value of USD 322.27 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.
Analyst Review: The grid-forming inverter market is experiencing rapid growth, driven by the increasing penetration of renewable energy sources and the need for grid stabilization. These inverters are crucial for integrating intermittent renewable energy sources like solar and wind into the power grid, providing voltage and frequency support.
Based on the power rating, the Grid-forming Inverter Market has been segmented into below 50 kW, 50-100 kW, and above 100 kW. In 2023, the 50-100 kW segment drove the 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 Grid-forming Inverter Market has been segmented into 100-300 V, 300-500 V and above 500 V. In 2023, the 300-500 V segment drove the 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 Grid-forming Inverter Market has been segmented into residential, commercial and others. In 2023, the commercial segment drove the 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.
Based on region, the 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 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.
Governments in the Asia-Pacific region are actively engaging in policy revisions and introductions to facilitate the integration of renewable energy into the grid. These policy frameworks address various aspects of renewable energy integration, including grid connection procedures, access to the grid for renewable energy projects, and mechanisms for trading renewable energy within the market. These policies are designed to create an enabling environment for renewable energy development and to streamline the process of connecting renewable energy projects to the grid, thus accelerating the transition towards cleaner energy sources.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Grid-forming Inverter Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Grid-forming Inverter Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Grid-forming Inverter industry to benefit clients and expand the Grid-forming Inverter market sector is to manufacture locally to reduce operating costs. The market for Grid-forming Inverter is recognized as being extremely competitive and fragmented. The market for Grid-forming Inverter offers considerable potential opportunities for domestic and unorganised companies. Some of the key players operating in the Grid-forming Inverter Market are Huawei Technologies Co., Ltd, SMA Solar Technology AG, Gamesa Electric, Fimer Group , Delta Electronics, Inc, Solectria Solar, ABB, SolarEdge Technologies Inc, General Electric and Sineng Electric Co Ltd. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
Huawei Technologies Co Ltd (Huawei), a subsidiary of Huawei Investment & Holding Co Ltd, is a provider of information and communication technology (ICT) infrastructure and smart devices. The company’s product portfolio includes laptops, tablets, routers, wearables, headphones, enterprise wireless products, enterprise optical transmission and access products, networking products, cloud and computing products. It also offers services and software for carrier networks, and smart services for enterprises. Huawei serves education, finance, healthcare, internet services providers, manufacturing, oil and gas, public safety, retail, smart city, smart grid, and transportation industry.
Huawei Technologies Co. Ltd. (China) a leading global technology company, has been actively involved in the development and deployment of grid-forming inverters for renewable energy integration and grid modernization. Huawei's grid-forming inverter business offers advanced solutions that enable the stable integration of renewable energy sources into electricity grids and provide grid support services. The company has business presence across the Americas, Africa, Europe, and Asia-Pacific. Huawei is headquartered in Shenzhen, Guangdong, China.
General Electric Co (GE) : is an industrial conglomerate. It provides a range of industrial, infrastructure and financial products and services. The company offers a wide range of products and services from aircraft engines and systems, healthcare systems and pharmaceutical diagnostics, power generation, and oil and gas production equipment to medical imaging, financing and industrial products. It also offers a comprehensive range of financial services to its customers. The company serves water, oil and gas, power, energy management, aviation, healthcare, digital, transportation, appliances and lighting industries, among others. It has operations in North America, Europe, Asia, the Middle East, and Africa and other regions; and has manufacturing facilities across the world. GE is headquartered in Boston, Massachusetts, the US..
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 712.17 Million |
| Market Size 2024 | USD 772.92 Million |
| Market Size 2030 | USD 1,277.35 Million |
| Compound Annual Growth Rate (CAGR) | 10.73% (2024-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2030 |
| Historical Data | 2019 to 2022 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Boiler type, Rated Capacity, End User, Temperature, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, south America, middle east & Africa |
| Countries Covered | US, Canada, Germany, UK, France, Spain, Italy, Russia, China, Japan, India, South Korea, Brazil, Mexico, Argentina, South Africa, GCC countries |
| Key Companies Profiled | 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) |
| Key Market Opportunities | ·        Significant market growth potential of electric vehicle industry |
| Key Market Dynamics | ·        Increasing investments in renewable energy sector |
Frequently Asked Questions (FAQ) :
Grid-forming Inverter Market Size US$ 656.52 Mn in 2023.
Growth rate of the Grid-forming Inverter Market 8.70% by 2030.
Asia-Pacific Region held the largest market share in the Grid-forming Inverter Market.
key players in the Grid-forming Inverter Market are: Thermo Fisher Scientific (United States), VWR International, LLC (United States), Daikin Industries, Ltd (Japan), JULABO GmbH (Germany), Peter Huber Kältemaschinenbau AG (Germany), SP Scientific (United States), Polyscience (United States), Northern Brewer (United States), Analis (Belgium) and Lister GmbH (Germany)
Micro Inverters Type led the Grid-forming Inverter Market.
50-100 KW Power Rating had the largest market share in the Grid-forming Inverter Market.
300-500 V Voltage Power Rating had the largest market share in the Grid-forming Inverter Market
Commercial End-User had the largest market share in the Grid-forming Inverter Market.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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