PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1781206
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1781206
Global Grid-forming Inverter Market to Reach US$1.1 Billion by 2030
The global market for Grid-forming Inverter estimated at US$718.4 Million in the year 2024, is expected to reach US$1.1 Billion by 2030, growing at a CAGR of 8.1% over the analysis period 2024-2030. Micro Inverter Type, one of the segments analyzed in the report, is expected to record a 9.2% CAGR and reach US$796.6 Million by the end of the analysis period. Growth in the String Inverter Type segment is estimated at 5.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$195.7 Million While China is Forecast to Grow at 12.8% CAGR
The Grid-forming Inverter market in the U.S. is estimated at US$195.7 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$248.7 Million by the year 2030 trailing a CAGR of 12.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.0% and 7.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR.
Global Grid-Forming Inverter Market - Key Trends & Drivers Summarized
The grid-forming inverter market is rapidly evolving as the energy transition accelerates, emphasizing renewable integration, grid stability, and decentralized power generation. Unlike traditional grid-following inverters, grid-forming inverters have the unique capability to autonomously establish and regulate grid voltage and frequency, making them a crucial component in modern power systems. These advanced inverters are particularly beneficial for microgrids, islanded power systems, and high-renewable penetration grids, ensuring stable operation without relying on conventional synchronous generators.
A significant trend shaping the market is the increasing adoption of grid-forming inverters in hybrid renewable energy systems. With the rise of solar PV, wind farms, and battery storage, conventional power grids require smarter inverters that can provide inertia, frequency control, and seamless grid synchronization. Grid-forming inverters enable greater renewable energy penetration by mimicking the stabilizing functions of traditional fossil-fuel-based generators, reducing reliance on centralized power plants. Furthermore, regulatory initiatives and grid modernization programs worldwide are accelerating investments in advanced inverter technologies to support resilient and flexible power networks.
How Are Grid-Forming Inverters Enhancing Grid Stability and Resilience?
Grid-forming inverters are playing a pivotal role in enhancing grid stability, particularly in power networks with high shares of variable renewable energy (VRE). Unlike conventional inverters that follow the grid’s frequency, grid-forming inverters establish their own voltage and frequency reference, enabling stable operation even in weak or islanded grids. This capability is essential for remote and off-grid applications, ensuring uninterrupted power supply in areas where traditional infrastructure is limited.
In addition to their role in microgrids, grid-forming inverters are becoming instrumental in large-scale renewable energy integration. As power grids shift toward decentralized energy models, utilities and grid operators are leveraging grid-forming technology to improve inertia response, enhance power quality, and prevent cascading failures during grid disturbances. The ability of these inverters to operate autonomously during grid outages further strengthens grid resilience, making them a crucial component in disaster-prone regions and energy security initiatives.
What Are the Latest Innovations & Technology Advancements in Grid-Forming Inverters?
The grid-forming inverter market is witnessing rapid technological advancements, with manufacturers focusing on improving control algorithms, real-time synchronization, and multi-inverter coordination. One of the key innovations is the development of advanced droop control and virtual inertia capabilities, which allow grid-forming inverters to replicate the stabilizing effects of synchronous generators. These features enable smoother grid interactions, reducing the risk of frequency instability and voltage fluctuations.
Another significant breakthrough is the integration of artificial intelligence (AI) and machine learning in inverter control systems. AI-powered grid-forming inverters can dynamically adjust their response based on real-time grid conditions, optimizing energy distribution and minimizing system stress. Additionally, research in wide-bandgap semiconductor materials, such as silicon carbide (SiC) and gallium nitride (GaN), is enhancing inverter efficiency, reducing power losses, and enabling faster switching speeds. These advancements are critical for improving inverter durability, reducing system costs, and facilitating higher adoption in both utility-scale and distributed energy projects.
What Is Driving the Growth of the Grid-Forming Inverter Market?
The growth in the grid-forming inverter market is driven by several factors, including the global expansion of renewable energy capacity, increasing focus on grid reliability, and advancements in inverter control technology. A major driver is the shift toward decentralized energy systems, where grid-forming inverters enable the seamless operation of microgrids, hybrid renewable energy systems, and battery storage networks. As countries aim to achieve higher renewable energy penetration, the demand for inverters capable of providing autonomous grid support is rising.
Another key growth driver is the growing number of government-backed initiatives and regulatory frameworks supporting smart inverter deployment. Policies such as the U.S. Department of Energy’s grid resilience programs, the European Union’s renewable energy directives, and India’s national solar and microgrid expansion plans are creating opportunities for grid-forming inverter manufacturers. Additionally, advancements in digital grid solutions and energy management systems are accelerating the integration of these inverters into modern power networks. With continued research in power electronics, software-defined grid management, and AI-driven automation, the grid-forming inverter market is poised for sustained expansion, redefining the future of power distribution and energy resilience.
SCOPE OF STUDY:
The report analyzes the Grid-forming Inverter market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Type (Micro Inverter Type, String Inverter Type, Central Inverter Type); Power Rating (Below 50 kW Power Rating, 50 kW - 100 kW Power Rating, Above 100 kW Power Rating); Application (Solar PV Plants Application, Wind Power Plants Application, Energy Storage Systems Application, Electric Vehicles Application)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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