The global market for Grid-forming Inverter was estimated at US$718.4 Million in 2024 and is projected to reach US$1.1 Billion by 2030, growing at a CAGR of 8.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Grid-forming Inverter market.
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.
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.
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.
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.
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.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
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.
Report Scope
The report analyzes the Grid-forming Inverter market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.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.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Micro Inverter Type segment, which is expected to reach US$796.6 Million by 2030 with a CAGR of a 9.2%. The String Inverter Type segment is also set to grow at 5.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $195.7 Million in 2024, and China, forecasted to grow at an impressive 12.8% CAGR to reach $248.7 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Grid-forming Inverter Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Grid-forming Inverter Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Grid-forming Inverter Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as ABB Ltd., AGL Energy, CE+T Power, Dynapower Company LLC, Enphase Energy, Inc. and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 39 Featured):
- ABB Ltd.
- AGL Energy
- CE+T Power
- Dynapower Company LLC
- Enphase Energy, Inc.
- EPC Power Corp.
- Gamesa Electric
- General Electric (GE)
- GPTech
- Hitachi Energy Ltd.
- Huawei Technologies Co., Ltd.
- KACO new energy GmbH
- Portland General Electric
- Schneider Electric SE
- Siemens Energy AG
- SMA Solar Technology AG
- Solectria - A Yaskawa Company
- Sungrow Power Supply Co., Ltd.
- Tesla Inc.
- Toshiba Corporation
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ABB Ltd.
- AGL Energy
- CE+T Power
- Dynapower Company LLC
- Enphase Energy, Inc.
- EPC Power Corp.
- Gamesa Electric
- General Electric (GE)
- GPTech
- Hitachi Energy Ltd.
- Huawei Technologies Co., Ltd.
- KACO new energy GmbH
- Portland General Electric
- Schneider Electric SE
- Siemens Energy AG
- SMA Solar Technology AG
- Solectria – A Yaskawa Company
- Sungrow Power Supply Co., Ltd.
- Tesla Inc.
- Toshiba Corporation
