Global Grid-Forming Inverter Market Insights Forecasts to 2033

• The Global Grid-Forming Inverter Market Size was Valued at USD 724.26 Million in 2023
• The Market Size is Growing at a CAGR of 8.78% from 2023 to 2033
• The Worldwide Grid-Forming Inverter Market Size is Expected to Reach USD 1680.35 Million by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Grid-Forming Inverter Market Size is Anticipated to Exceed USD 1680.35 Million by 2033, Growing at a CAGR of 8.78% from 2023 to 2033. The increasing need for secure sources of energy is expected to drive the grid-forming inverter market over the forecast period.

GRID-FORMING INVERTER MARKET REPORT OVERVIEW

Grid-forming refers to an inverter-based source of power, such as wind, solar power, or batteries, that can give voltage and frequency assistance to the grid, particularly during disruptions or outages. Grid-forming inverters can work autonomously or in conjunction with other sources to assist restore the grid. This is an important technology for incorporating additional energy from renewable sources into the grid while maintaining its stability and reliability.

Rising investments in renewable energy, rapid infrastructure development, and rising demand for reliable energy sources are likely to fuel the growth of the grid-forming inverter market throughout the forecast period. Furthermore, the significant market growth potential of the electric vehicle industry is a lucrative opportunity for manufacturers in the market.

Fast industrialization and economic progress around the world have led to significant improvements in living standards. Energy consumption has increased substantially throughout the years due to population growth, economic improvement, and technological advancement.

It is a new and promising technology that is being studied and developed by a variety of institutes and organizations. It has the potential for use in microgrids, islanded grids, and large-scale grids. However, there are several hurdles and barriers to wider adoption, such as technological standards, regulatory framework, modeling methodologies, and system integration.

Some of the widely used grid-forming inverter such as rockwell automation’s power flex 755T is a low-voltage AC drive that can support voltage and frequency, as well as fault ride-through and black start in microgrids and distributed energy resources. Also, SMA solar technology's sunny island It can provide dependable power to important loads, control energy flows, and communicate with other inverters and devices.

Report Coverage

This research report categorizes the market for the grid-forming inverter market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the grid-forming inverter market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the grid-forming inverter market.

DRIVING FACTORS:

Increasing infrastructure development and an increasing need for reliable energy sources are expected to propel the grid-forming inverter market

The rapid industrialization and economic progress around the world have led to significant improvements in living standards. Energy consumption has increased substantially throughout the years due to population growth, economic improvement, and technological advancement. With the growing infrastructure initiatives such as the creation of smart cities throughout the world, demand for grid-forming inverters is expected to increase.

Developing need for autonomous energy generation and grid stability is driving growth in the grid-forming inverter industry

Energy storage is becoming increasingly important for balancing the ups and downs of renewable energy output. Grid-forming inverters play an important part in this. They allow energy to flow to and from the grid, storing extra power when it is available and releasing it when demand is high. This collaboration improves grid flexibility, helps control peak energy consumption, and keeps everything running smoothly. The Grid-forming Inverter Market is rapidly expanding, driven by the trend toward decentralized energy. More rooftop solar installations, community projects, and microgrids result in decreased reliance on large power plants. Grid-forming inverters make this possible, allowing these smaller energy sources to continue operating even when the main grid goes down. This shift toward decentralization corresponds to the growing need for local control over energy, and improved resilience in communities.

RESTRAINING FACTORS

Transitioning to a grid with more inverter-based resources poses significant hurdles and might hamper industry growth

The upcoming power systems must operate using a combination of classic, massive synchronous generators' physical features and control responses, as well as those of numerous and diversified inverter-based resources. There is a lack of experience operating hybrid power systems using inverter-based resources at the size of North American interconnections, posing issues.

Market Segmentation

The global grid-forming inverter market share is classified into type, power rating, and application

Which segment is expected to hold the largest share of the global grid-forming inverter market during the forecast period?

String inverters dominate the market due they are extremely efficient and highly effective technology

Based on type, the global grid-forming inverter market is classified into micro inverters, string inverters, and central inverters. String inverters dominate the market since they are among the most advanced inverter kinds and highly efficient technologies. String inverters are popular due to their scalability, cost-effectiveness, and simplicity of installation. They are often used in photovoltaic (PV) solar systems, which connect several solar panels in series (or strings), providing flexibility in system design and installation. Furthermore, string inverters are very efficient and reliable, making them ideal for a wide range of grid-forming applications, including residential, commercial, and utility-scale solar arrays. Furthermore, developments in string inverter technology have resulted in enhanced performance, grid integration capabilities, and compliance with emerging grid standards, reinforcing their market dominance.

Why 300-500 voltage is generally preferred to increase the global demand of the grid-forming inverter market?

The significant move toward solar and wind power integration and the development of resilient microgrids has resulted in a major increase in global demand for grid-forming inverters

Based on power rating, the global grid-forming inverter market is classified into 100-300 V, 300-500 V, and above 500 V. The dramatic move toward renewable energy integration and the construction of resilient microgrids has fueled a significant increase in global demand for grid-forming inverters operating in the voltage range of 300 to 500 V. As governments throughout the world work to minimize their carbon footprints and improve energy security, the deployment of renewable energy sources such as solar and wind has gained traction. These sources, however, have varying power generation patterns due to environmental circumstances. Grid-forming inverters are vital for maximizing their potential and ensuring grid stability.

How does grid-forming inverter is widely applied in solar PV plants?

Solar PV technology has established itself as a leader in this transition due to its broad access and flexibility

Based on application, the global grid-forming inverter market is classified into solar PV plants, wind power plants, and energy storage systems. Since the high renewable energy penetration and development. The market is divided into three end-user segments: solar PV plants, wind power plants, and energy storage systems. Solar PV plants dominate the market, driven by environmental concerns and the need to move to cleaner energy sources. Solar PV technology has emerged as a front-runner in this shift due to its widespread availability, scalability, and low cost. Continuous breakthroughs in solar PV technology, including increases in efficiency and durability, have made solar PV plants increasingly competitive against conventional energy.

Regional Segment Analysis of the Global Grid-Forming Inverter Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Which region is expected to hold the largest share of the grid-forming inverter market over the forecast period?

Asia-Pacific region is holding the highest share of the global grid-forming inverter market during the forecast period

The Asia-Pacific Grid-forming Inverter Market is experiencing considerable growth as energy storage systems, particularly battery storage options, become more widely deployed. The use of energy storage technology, especially battery storage, is gaining traction throughout Asia. These systems are critical for making the best use of renewable energy resources. Energy storage promotes grid stability and the smooth integration of renewable energy into the electricity system by storing excess renewable energy during periods of high production and releasing it when demand increases. Ministries in Asia-Pacific are actively revising and introducing policies to enable the integration of renewable energy into the grid. These policy frameworks address a variety of aspects of renewable energy integration, such as grid connection procedures, grid access for renewable energy projects, and market-based renewable energy trading systems.

Why Europe is growing at the fastest CAGR in the global grid-forming inverter market?

Grid-forming inverters are gaining popularity in Europe, thanks to the region's increased emphasis on renewable energy absorption and grid modernization. system-forming inverters are becoming more important components of Europe's changing energy landscape, facilitating the incorporation of renewable energy sources and ensuring system stability and resilience.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global grid-forming inverter market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Schneider Electric SE
• General Electric Company
• Delta Electronics, Inc.
• Sungrow Power Supply Co., Ltd.
• Fimer Group
• KACO New Energy GmbH
• GoodWe
• Huawei Technologies Co., Ltd
• SolarEdge Technologies, Inc.
• Enphase Energy, Inc.
• Mitsubishi Electric
• Infineon Technologies
• Vikram SolarGrowatt
• Others

Key Market Developments

• In July 2024, the Pacific Northwest National Laboratory (PNNL) and its partners developed new models that enable power system experts to assess how a new technology, the grid-forming inverter, might function on the grid to increase grid stability. This study was carried out as part of the Universal Interoperability for Grid-Forming Inverters Consortium (UNIFI), a $25 million initiative initiated in 2021 by the DOE's Solar Energy Technologies Office (SETO) and Wind Energy Technologies Office (WETO)

• In July 2023, the Gamesa introduced a new central inverter with grid-forming capabilities. According to Gamesa, the latest hybrid version of the Proteus inverter is compatible with large-scale battery systems and can operate in both grid-following and grid-forming modes. This product is scalable and can generate up to 5.6 MVA of battery discharge power at 40°C and 1,300 V, with an amazing 99% efficiency rating.

• In March 2023, KACO New Energy GmbH, Infineon Technologies AG, and the Fraunhofer Institute for Solar Energy Systems ISE worked on the Stabil project to investigate the various stress factors that will affect a grid-forming PV inverter in the future power grid. The goal is to incorporate these findings into an improved and more durable hardware design for the next grid-forming PV inverter development.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global grid-forming inverter market based on the below-mentioned segments: 

Global Grid-Forming Inverter Market, By Type

• Micro Inverters
• String Inverters
• Central Inverters

Global Grid-Forming Inverter Market, By Power Rating

• 100-300 V
• 300-500 V
• 500 V

Global Grid-Forming Inverter Market, By Application

• Solar PV Plants
• Wind Power Plants
• Energy Storage Systems

Global Grid-Forming Inverter Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa