The Grid-forming Inverter Market was valued at USD 656.52 million in 2022. The Grid-forming Inverter Market industry is projected to grow from USD 712.17 million in 2023 to USD 1,277.3 million by 2030, exhibiting a compound annual growth rate (CAGR) of 8.70% during the forecast period (2023 - 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.
May-22 Spain’s Gamesa Electric has launched a new central inverter solution with an output of 4,700 kVA. It said that the Proteus PV inverter is an upgrade over the existing Gamesa Electric 3X series.
6-Jul-23 Spanish manufacturer Gamesa says its new hybrid version of its Proteus inverter can be combined with big batteries. It can work in grid-following and grid-forming mode. the company introduced the hybrid inverter Proteus PCS-E. It is described as the most powerful equipment on the market, capable of managing large energy storage systems. The product offers scalability and can achieve 5.6 MVA of battery discharge power at 40 C and a voltage of 1,300 V, with an efficiency rating of 99%.
Rapid infrastructural development and growing demand for reliable energy sources to drive the Grid-forming Inverter market
Rapid industrialization and economic growth throughout the world have resulted in major improvements in living conditions. Energy usage has increased significantly due to increased convenience and urbanization. Energy consumption has risen dramatically throughout the years because of expanding population, economic progress, and technological advancement. According to the US Energy Information Administration (EIA), global energy consumption will increase by roughly 50% between 2018 and 2050. The majority of energy consumption increase comes from nations that are not members of the Organization for Economic Cooperation and Development (OECD), and it is concentrated in regions with significant economic growth, mainly in Asia. The fast economic expansion of Asian nations, particularly China and India, will account for a large portion of the rise in energy consumption. Furthermore, with rapid infrastructural development and economic growth there is a growing demand for continuous electricity supply to power and provide for the growing demand globally.
With increasing infrastructure initiatives such as the construction of smart cities throughout the world, demand for grid-forming inverters is likely to skyrocket. Grid-forming inverters have emerged as critical instruments for solving the energy difficulties faced by smart city development. These inverters enable energy load control, the incorporation of distributed energy resources, and the enhancement of microgrid resilience. With rising smart city initiatives in countries such as the UAE, Singapore, Shanghai, Taiwan, India, Mainland China and others, demand for grid-forming inverters is likely to rise fast. For instance, the Indian government launched the Smart Cities Mission to enhance quality of life and stimulate economic growth, whereas the Dubai Plan 2021 aspires to make Dubai a smart and sustainable city. The Smart City project in Dubai follows a strategy that aims for the transformation of about 1000 government activities, with an emphasis on six core sectors: transportation, infrastructure, communications, economic services, urban planning, and power. Such investments in smart city development are predicted to drive market demand for grid-forming inverters over standard inverters due to their capacity to provide grid stability and dependable integration of alternative energy sources into the grid. Hence, during the forecast period with rapid infrastructural development and demand for uninterrupted power supply the global grid-forming inverters market in expected to prosper notably.
Oct, 2020: Fimer has installed its PVS980-58 2 MVA central inverters to power what is at the moment the country s largest single-site solar power plant at REWA.
Oct-22: FIMER provides its high-technology solar inverters to a recently commissioned 1MW hybrid BESS system coupled with 1MW Solar for the Indian Army in Leh Ladakh. PVS980-58 central inverters are ideal for large PV power plants. The high DC input voltage, high efficiency, proven components, compact and modular design and a host of life cycle services ensure FIMER PVS980-58 central inverters provide a rapid return on investment.
Based on type, the Grid-forming Inverter Market has been segmented into micro inverters, string inverters and central inverters. In 2022, the micro inverters segment drove the 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 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 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.
Jan-21 The Italian inverter maker launched two devices were designed to deal with increasing PV module currents. The inverters have a power output ranging from 10 to 33 kW and are claimed to reach an input voltage of 1100 V (DC).
Based on voltage, the 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 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.
Jan-21 FIMER introduced its new PVS-10/33-TL three-phase string inverter solutions for commercial and industrial applications. FIMER’s new PVS-10/12.5/15-TL and PVS-20/30/33-TL platforms launched in Italy, France, Germany, Thailand, India and Australia in January 2021
Based on end-user, the Grid-forming Inverter Market has been segmented into residential, commercial and others. In 2022, 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
Jan-22 Yaskawa Solectria Solar announced launched SOLECTRIA XGI 1500-250 lineup of grid-support utility interactive inverters that features higher power and industry-leading DC oversizing ratios from 2.0 – 2.86. The flagship model, with its rating of 250 kW and 600 Vac 3-phase output, is joined by models with 480 Vac 3-phase output, and select models with user-adjustable reactivepower overhead. Multi-inverter racks, factory assembled and tested, provide 1 – 2 MW power building blocks for large projects. In addition the SOLECTRIA XGI 1500-250 inverters have undergone advanced cybersecurity analysis to ensure they are the most secure and reliable solar inverters in the industry.
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.
Sep-22 Yaskawa Solectria Solar has partnered with US-based First Solar, Inc., the global leader in thin film solar technology and America’s largest solar manufacturer, to develop a new version of the SOLECTRIA XGI 1500-250 utility-scale string inverter. The enhancements optimize the XGI 1500-250 for First Solar’s advanced thin film photovoltaic (PV) modules which represent the next generation, providing a competitive, high performance, lower-carbon alternative to conventional c-Si PV panels.
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.
Aug-23 Sineng Electric Europe revealed its strategic partnership with Arkensus Energy Ltd. Co., a reputable energy company based in Turkey. Working in synergy, the two companies are poised to carry out in-depth cooperation to advance utility-scale and commercial projects in Turkey and its neighboring regions.
May-23 Huawei launched its brand new FusionSolar strategy and all-scenario Smart PV+Energy Storage System (ESS) solutions at the 16th SNEC PV Power Expo in Shanghai. These offerings demonstrate Huawei’s commitment to driving global transformation towards carbon neutrality. The company aims to develop smart grid-forming converters that integrate PV+ESS+Grid+Management System to make PV a major energy source. Huawei's partnership with China Resources Power in Qinghai, China, led to the world's first application of smart grid-forming converters, setting a global benchmark and laying the foundation for future industry standards. Moreover, Huawei helped ACWA Power and Power Construction Corporation of China build the world's largest PV+ESS microgrid project in Saudi Arabia, which supplies clean electricity to a city of about 1 million residents.
Feb-20 GE Research, the central technology development arm for the General Electric Company (NYSE: GE), has been awarded $4.2 million in funding from the U.S. Department of Energy Solar Energy Technologies Office (SETO) to help develop and deploy advanced grid-forming photovoltaic (PV) inverter control technologies that can reliably support higher amounts of solar power on the grid. This work keeps pace with the nation’s changing electric grid system, which is getting more energy from distributed and renewable sources.
Sep, 2022: SMA India, the subsidiary of SMA Solar Technology AG (SMA), a leading global provider of photovoltaic and storage systems, announced its participation in Renewable Energy India Expo 2022 (REI) in Greater Noida, New Delhi. At the expo, SMA India showcased a number of recent innovations, including the Sunny Central Storage 3950 UP battery inverter, SMA DC-DC Converter, and the SMA Power Plant Manager, which enable companies to realize attractive battery storage business models while meeting grid stability requirements.
May-23 - Sineng Electric, the global leading inverter solution supplier, signed a contract with Larsen & Toubro (L&T), an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. The contract aims to supply Sineng’s 1500V 6.25MW Turnkey Stations to power the 700MW Ar Rass solar photovoltaic independent power plant (IPP), which is one of the largest PV projects that has been tendered as part of Saudi Arabia's National Renewable Energy Program (NREP). The project is being developed by a consortium led by ACWA Power, which has signed a 25-year Power Purchase Agreement with the Saudi Power Procurement Company (SPPC).
Jun-2023: The 320MW solar power plant in Rajasthan, India, equipped with 1657 units of Sineng's string inverters SP-250K-INH, is running stably with performance outstripping initial expectations. As part of Bhadla Solar Park, one of the world's largest solar farms, the project generates about 2,200,000 kWh of electricity per day and is anticipated to generate 803,000,000 KWh of electricity annually, equivalent to eliminating approximately 800,591 tons of carbon dioxide emissions each year.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 656.52 million |
| Market Size 2023 | USD 712.17 million |
| Market Size 2030 | USD 1,277.3 million |
| Compound Annual Growth Rate (CAGR) | 8.70% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Power Rating, Voltage, End User and region |
| Geographies Covered | North America, Europe, Asia Pacific, Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| 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 Rapid infrastructural development and growing demand for reliable energy sources |
Frequently Asked Questions (FAQ) :
Grid-forming Inverter Market is valued US$ 656.52 Mn in 2022.
Growth rate of the Grid-forming Inverter Market is 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 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.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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