PUBLISHER: The Business Research Company | PRODUCT CODE: 1769971
PUBLISHER: The Business Research Company | PRODUCT CODE: 1769971
A grid-forming inverter (GFI) is a power inverter that actively establishes and regulates voltage and frequency within an electrical grid. It plays a crucial role in microgrids and systems with high renewable energy penetration. This inverter can operate independently or in conjunction with other power sources to maintain grid stability and ensure reliable and steady operation in decentralized, renewable-integrated power networks.
The primary types of grid-forming inverters include microinverters, string inverters, central inverters, and others. A microinverter converts direct current (DC) from a single solar panel into alternating current (AC), optimizing output, improving reliability, and allowing individual panel monitoring. Connectivity options include standalone and grid-connected configurations, with power ratings categorized as below 50 kilowatts (kW), 50-100 kilowatts (kW), and above 100 kilowatts (kW). These inverters are applied in various settings such as solar photovoltaic (PV) plants, wind power plants, energy storage systems, electric vehicles, and others, serving end users in residential, commercial, and other sectors.
The grid forming inverter market research report is one of a series of new reports from The Business Research Company that provides grid forming inverter market statistics, including the grid forming inverter industry global market size, regional shares, competitors with the grid forming inverter market share, detailed grid forming inverter market segments, market trends, opportunities, and any further data you may need to thrive in the grid forming inverter industry. This grid forming inverter market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The grid-forming inverter market size has grown strongly in recent years. It will grow from $0.69 billion in 2024 to $0.75 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth observed during the historic period can be credited to the increase in renewable energy integration, the expanding deployment of solar PV systems, early government incentives supporting smart grids, the rise in microgrid installations, and improvements in inverter control technologies.
The grid-forming inverter market size is expected to see strong growth in the next few years. It will grow to $1.06 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period can be linked to a surge in energy storage adoption, a move towards decentralized power generation, the need for grid stability in scenarios with high renewable penetration, stricter grid codes and regulations, and the growth of EV charging infrastructure. Key trends expected in the forecast period include advanced synthetic inertia features, integration with battery energy storage systems, AI-driven grid stability optimization, modular and scalable inverter designs, and improved interoperability with digital grid platforms.
The increasing adoption of renewable energy is anticipated to boost the growth of the grid-forming inverter market in the future. Renewable energy originates from naturally replenishing sources such as sunlight, wind, water, and geothermal heat. This rise in integration results from governments and industries embracing cleaner energy to reduce carbon emissions and combat climate change. Grid-forming inverters support grid stability by mimicking the functions of conventional generators, facilitating smoother incorporation of renewable energy. They manage voltage and frequency, ensuring stable and dependable power despite fluctuations from solar or wind sources. For example, in February 2025, the International Energy Agency (IEA), an autonomous intergovernmental organization based in France, reported that solar photovoltaic (PV) power generation increased by 320 TWh in 2023, marking a 25% rise compared to 2022. Thus, the growing integration of renewable energy is a key driver for the expansion of the grid-forming inverter market.
Leading companies in the grid-forming inverter market are concentrating on developing advanced products like central grid inverters to enable greater integration of renewable energy in power systems. A central grid inverter is a high-capacity device that converts DC from multiple solar sources into AC for the grid, ensuring efficient power management. It also stabilizes the grid by controlling voltage and frequency at a central point within large-scale renewable energy systems. For instance, in April 2025, Hitachi Industrial Equipment Systems Co., Ltd., a Japan-based industrial equipment provider, introduced its next-generation Grid Forming Inverter (GFM) system. This advanced technology is designed to support stable and resilient power grids by emulating the stabilizing inertia effects traditionally provided by large power plants, which becomes increasingly important as renewable sources like solar and wind replace conventional generators. The GFM system enables the creation and stabilization of self-sustaining microgrids, improves grid resilience, and allows continuous operation during power fluctuations or blackouts, thereby contributing to carbon reduction and disaster preparedness.
In January 2025, ABB, a Switzerland-based automation company, acquired the power electronics division of Gamesa Electric for an undisclosed amount. This acquisition aims to bolster ABB's position in the fast-growing renewable power conversion market by expanding its portfolio with Gamesa Electric's wind converters, battery energy storage systems, and solar inverters, as well as enhancing its engineering capabilities, increasing its serviceable installed base, and supporting its profitable growth strategy in the renewable energy sector. Gamesa Electric is a Spain-based manufacturer specializing in grid-forming central inverters.
Major players in the grid forming inverter market are Huawei Technologies Co. Ltd., Siemens AG, ABB Ltd., Toshiba Corporation, Infineon Technologies AG, Delta Electronics Inc., Sungrow Power Supply Co. Ltd., Enphase Energy Inc., SMA Solar Technology AG, GoodWe, Sineng Electric, SolaX Power, Hitachi Energy Ltd, TMEIC Corporation, Growatt New Energy Co. Ltd., FIMER Group, Yaskawa Solectria Solar, Su-Kam Power Systems Ltd., NingBo Deye Inverter Technology Co. Ltd, Medha, Bharat Heavy Electricals Limited (BHEL).
Asia-Pacific was the largest region in the grid-forming inverter market in 2024. The regions covered in grid-forming inverter report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the grid-forming inverter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The grid-forming inverter market consists of sales of modular inverters, hybrid inverters, battery-based inverters, and solid-state transformer (SST)-based inverters. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Grid Forming Inverter Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on grid forming inverter market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for grid forming inverter ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The grid forming inverter market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.