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Grid Following Inverters Market

The market for Grid Following Inverters was estimated at $6.1 billion in 2025; it is anticipated to increase to $9.1 billion by 2030, with projections indicating growth to around $13.6 billion by 2035.

Report ID:DS2408005
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
E&P Technology
Grid Following Inverters
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Report Summary
Market Data
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Table of Contents

Global Grid Following Inverters Market Outlook

Revenue, 2025

$6.1B

Forecast, 2035

$13.6B

CAGR, 2026 - 2035

8.3%

The Grid Following Inverters industry revenue is expected to be around $6.1 billion in 2026 and expected to showcase growth with 8.3% CAGR between 2026 and 2035. This strong outlook for the Grid Following Inverters market reflects their pivotal role in enabling large‑scale renewable energy integration, particularly as Utility and Commercial end-users together account for 78.8% of industry demand driven by advanced grid-tied and utility-scale solar inverters. Supported by stringent grid codes, decarbonization policies, and the rapid deployment of distributed energy resources and photovoltaic systems, these solar inverters are increasingly specified for their ability to enhance grid stability, reactive power control, and overall power quality. Within this landscape, Single Phase product types remain strategically important, having generated $3.71 billion in revenue in 2025, as they serve high-volume residential and small commercial solar installations that complement utility-scale deployments and reinforce the broader ecosystem of smart grid and microgrid solutions.

Grid Following Inverters are grid-synchronized power electronic devices that convert DC power from photovoltaic systems and other distributed energy resources into AC power precisely matched to grid voltage, frequency, and phase, ensuring reliable and compliant interconnection. In most solar applications, they function as advanced PV inverter solutions designed for stable grid operation. Key features include high conversion efficiency, advanced grid support functions such as voltage and frequency regulation, low harmonic distortion, remote monitoring, and digital control architectures that optimize performance across utility-scale solar assets and commercial solar installations. Major applications span utility substations, commercial rooftops, community solar, and renewable-plus-storage projects, where Grid Following Inverters and PV inverter platforms operate as core components of distributed generation portfolios and microgrid solutions. Recent trends driving demand include stricter interconnection standards, expansion of smart grid infrastructure, deeper integration of energy storage and hybrid inverter designs, and data-driven controls that enhance power quality, asset reliability, and lifecycle performance across global renewable energy networks.

Grid Following Inverters market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Grid Following Inverters Market Outlook

Market Key Insights

  • The Grid Following Inverters market is projected to grow from $6.1 billion in 2025 to $13.6 billion in 2035. This represents a CAGR of 8.3%, reflecting rising demand across Solar Energy Conversions, Electric Vehicle Charging Stations, and Industrial Power Backup Systems.

  • Schneider Electric, Siemens AG, and Hitachi Hi‑Rel Power Electronics are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Grid Following Inverters market and are expected to observe the growth CAGR of 6.1% to 8.7% between 2025 and 2030.

  • Emerging markets including Brazil, South Africa and Indonesia are expected to observe highest growth with CAGR ranging between 8.0% to 10.4%.

  • Transition like The Rise of Renewable Energy is expected to add $706 million to the Grid Following Inverters market growth by 2030.

  • The Grid Following Inverters market is set to add $7.5 billion between 2025 and 2035, with manufacturer targeting Commercial & Utility Application projected to gain a larger market share.

  • With

    expanding renewable energy infrastructure, and

    Technological Advancements in Power Electronics, Grid Following Inverters market to expand 122% between 2025 and 2035.

grid following inverters market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Grid Following Inverters - Country Share Analysis

Opportunities in the Grid Following Inverters

Across Latin America, hybrid projects combining wind and utility-scale solar farms are also accelerating renewable energy integration and driving demand for three-phase Grid Following Inverters in utility-scale plants. Global three-phase revenues are forecast to grow from $2.13 billion in 2025 to $3.46 billion by 2030, the fastest 10.2% CAGR among product types. Solutions interoperable with grid forming inverters, offering enhanced fault ride-through and grid-code compliance, will be best positioned to win tenders in Chile, Brazil, and Mexico.

Growth Opportunities in Asia-Pacific and North America

In Asia-Pacific, Grid Following Inverters are driven by rapid renewable integration, aggressive grid expansion, and evolving grid codes, with the Utility segment holding the highest relevance due to large-scale utility-scale solar and onshore wind deployments requiring stable grid-tied inverters and advanced inverter controls for voltage and frequency regulation. Top opportunities include high-capacity Grid Following Inverters optimized for harsh climates, modular platforms for flexible grid code updates, and digitalized PV inverters bundled with remote monitoring for large solar parks and hybrid plants. Competition is intense between multinational power electronics brands and cost-competitive regional manufacturers, pushing differentiation toward higher efficiency, superior fault ride-through, and seamless integration with smart grid technologies and centralized dispatch. Strategic focus should prioritize co-development with utilities and transmission operators, localized production or assembly to meet cost and policy demands, and solutions tailored for grid modernization and microgrid integration in remote or islanded grids.
In North America, Grid Following Inverters adoption is increasingly shaped by decarbonization mandates, grid resilience concerns, and advanced interconnection standards, with the Commercial segment emerging as the most influential end-user as commercial rooftop solar, community solar, and C&I storage projects scale across logistics, retail, and data center applications. Top opportunities lie in premium grid-connected solar inverters that exceed interconnection requirements, enable sophisticated reactive power control, and integrate seamlessly with energy management systems for demand-charge reduction and peak shaving in commercial buildings. Competition centers on established inverter suppliers and power electronics specialists who compete on long-term reliability, bankability, cybersecure communications, and service coverage rather than price alone, reinforcing the need for differentiated firmware, robust monitoring platforms, and strong channel partnerships with EPCs and commercial installers. Strategic priorities should include positioning Grid Following Inverters as the core of intelligent commercial energy systems, offering configurable platforms for microgrid integration and backup support, and tailoring product lines to meet sector-specific needs such as higher uptime for critical facilities and scalable solutions for multi-site portfolios.

Market Dynamics and Supply Chain

01

Driver: Rapid Utility-Scale Solar Deployment And Tightening Grid Interconnection Requirements Worldwide

The grid following inverters market is also strongly driven by the rapid deployment of utility-scale solar projects and increasingly stringent grid interconnection requirements. Expanding solar capacity across emerging and developed markets is also increasing demand for high-efficiency inverters capable of synchronizing precisely with grid voltage and frequency. Separately, regulators and transmission operators are also enforcing advanced compliance standards that require voltage regulation, frequency ride-through, and low harmonic distortion. These requirements are also accelerating replacement of legacy PV inverter systems with modern grid following inverters. Together, large-scale solar expansion and regulatory tightening are also pushing manufacturers to deliver digitally controlled, standards-compliant solutions that ensure stable grid integration, improved power quality, and reliable performance across diverse grid conditions, directly supporting sustained market growth.
The integration of smart grid technologies with advanced digital control systems is also a key driver shaping the grid following inverters market. Utilities and project developers are also increasingly adopting inverters with embedded monitoring, communication, and data analytics capabilities to support real-time grid management. These digitally enabled grid following inverters improve voltage stability, enable remote diagnostics, and support predictive maintenance across distributed energy assets. As smart substations, automated distribution networks, and grid digitalization expand, demand is also rising for inverter platforms that seamlessly interact with utility control systems. This trend enhances system reliability, reduces operational downtime, and strengthens the role of grid following inverters within modern, data-driven power networks.
02

Restraint: High Upfront Costs And Complex Compliance Requirements Slowing Adoption Rates

High upfront costs of advanced grid following inverters and complex regulatory compliance requirements are restraining broader market adoption. These inverters often require premium power electronics, advanced control systems, and certification to meet stringent grid codes, driving capital expenditures for project developers. For example, smaller solar developers may delay inverter upgrades due to high procurement costs and extended approval cycles for interconnection standards in multiple jurisdictions, reducing short-term demand. This dynamic compresses near-term revenue growth for manufacturers and shifts investment toward simpler or legacy inverter systems where compliance pressure is lower.
03

Opportunity: Advanced commercial microgrids for United States data centers using Grid Following Inverters and Residential rooftop solar adoption in Indian cities for Grid Following Inverters

In the United States, large data centers are deploying commercial microgrids that integrate on-site generation, distributed energy resources, and Grid Following Inverters for reliable operation. This favors multi-phase architectures, whose revenues may rise from $0.29 billion in 2025 to $0.45 billion by 2030, reflecting an 8.86% CAGR. Suppliers combining multi-phase and three-phase platforms with advanced controls, seamless interaction with the smart grid, and cybersecurity features can form strategic partnerships with data center operators and engineering, procurement, and construction firms.
India’s rapidly expanding rooftop photovoltaic systems market is creating strong demand for residential Grid Following Inverters, especially single-phase grid-tied solar inverters serving middle-income households in Tier-2 and Tier-3 cities. Global single-phase revenues are projected to rise from $3.71 billion in 2025 to $5.23 billion by 2030, supported by 7.1% CAGR, with India a key driver. Vendors offering flexible connectivity to future battery energy storage systems and remote monitoring will capture significant untapped urban and peri-urban installation volumes.
04

Challenge: Limited Grid Infrastructure And Technical Integration Challenges In Developing Regions

Limited grid infrastructure and technical integration challenges in developing regions are inhibiting market expansion for grid following inverters. Many emerging markets still operate weak or unstable grids with variable voltage and frequency, requiring costly upgrades before advanced inverters can be deployed effectively. In such areas, utilities prioritize basic grid stabilization projects over investments in sophisticated power electronics, slowing demand. For instance, rural electrification initiatives may favor conventional generators or simpler inverter technologies over grid following models, delaying widespread adoption and impacting revenue growth for advanced inverter suppliers.

Supply Chain Landscape

1

Power Components

Siemens AGHitachi Hi-Rel Power Electronics
2

Grid Following Inverters

Sungrow Power Supply Co. Ltd.Sineng Electric Co. Ltd
3

System Integration

Schneider ElectricSiemens AG
4

End Users

Utility-Scale Solar PV PlantsCommercial & Industrial Microgrids
Grid Following Inverters - Supply Chain

Use Cases of Grid Following Inverters in Solar Energy Conversions & Industrial Power Backup Systems

Solar Energy Conversions : Grid following inverters are widely used in solar energy conversion systems to convert DC electricity generated by photovoltaic panels into grid synchronized AC power. In this application, string inverters and central grid following inverters are most commonly deployed, depending on system size. Utility scale solar plants typically rely on high capacity central inverters, while commercial and rooftop installations favor string inverters for flexibility and scalability. These inverters precisely follow grid voltage and frequency, ensuring smooth power injection and regulatory compliance. Their high efficiency, advanced monitoring capabilities, and grid support functions help maximize energy yield, improve power quality, and enable reliable integration of large solar capacities into existing power grids.
Electric Vehicle Charging Stations : In electric vehicle charging stations, grid following inverters are used to manage the conversion and synchronization of power between the grid, charging equipment, and on site renewable sources. Compact three phase grid following inverters are commonly applied in fast charging hubs and commercial charging networks. They ensure stable AC power supply aligned with grid parameters, preventing disturbances during high load charging cycles. These inverters also support bidirectional power flow in advanced charging setups, enabling integration with solar canopies and energy storage systems. Their precise control, high efficiency, and compatibility with smart grid infrastructure support reliable charging operations and help operators manage peak demand effectively.
Industrial Power Backup Systems : Grid following inverters play an important role in industrial power backup systems where uninterrupted and high quality power is essential. In this segment, robust grid following inverters integrated with battery energy storage systems are most widely used. These inverters operate by synchronizing backup power output with the grid during normal conditions and supporting seamless transition when grid disturbances occur. They are commonly deployed in manufacturing plants, data centers, and critical infrastructure facilities. Their ability to regulate voltage, maintain frequency stability, and minimize harmonics ensures protection of sensitive equipment while improving overall system reliability and operational continuity during power fluctuations.

Recent Developments

Recent developments in the grid following inverters market show strong momentum as utilities and solar developers adopt advanced PV inverter systems with enhanced grid support functions. Suppliers are integrating digital control, remote monitoring, and reactive power regulation to meet tightening interconnection standards and smart grid requirements. A key market trend is the rise of hybrid inverters that combine storage and PV integration for renewable-plus-storage projects, enabling reliable grid synchronization and improved power quality. This shift supports broader distributed generation and electric vehicle charging infrastructure expansion.

June 2025 : Sungrow showcased its next-generation modular inverter platform with scalable 800 kW to 9.6 MW blocks, AI-driven fault detection, and enhanced grid-forming and grid-following capabilities to support utility-scale solar and hybrid PV-storage integration.
June 2025 : Sineng Electric introduced new 4.8 MW and 9.6 MW MV turnkey station inverters and high-capacity string inverters designed for large solar farms, improving grid synchronization and reducing total cost of ownership for renewable power assets.
July 2024 : Sungrow entered a strategic supply agreement to deliver 850 MW of PV inverters across multiple solar projects, strengthening its position in India’s expanding solar market and boosting grid-connected inverter deployments.

Impact of Industry Transitions on the Grid Following Inverters Market

As a core segment of the E&P Technology industry, the Grid Following Inverters market develops in line with broader industry shifts. Over recent years, transitions such as The Rise of Renewable Energy and The Influence of Electric Vehicles have redefined priorities across the E&P Technology sector, influencing how the Grid Following Inverters market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

The Rise of Renewable Energy

As renewable energy deployment accelerates, Grid Following Inverters are becoming a critical enabler of large‑scale solar and wind integration, translating variable DC output into grid-synchronized AC that supports utility reliability and grid stability. This structural shift in energy production, reinforced by global carbon neutrality targets and rapid expansion of distributed generation, is projected to add approximately $706 million to the grid-following inverters market by 2030. Manufacturers that optimize power electronics for advanced grid support functions, smart grid interoperability, and high-efficiency renewable energy integration are best positioned to capture this incremental value. The resulting demand surge will not only expand the addressable market for solar and wind power inverters but also accelerate innovation in grid-tied inverter architectures and control strategies worldwide.
02

The Influence of Electric Vehicles

The growing influence of electric vehicles is driving a notable transition in the grid following inverters market as power systems adapt to bidirectional energy flows. Rising adoption of electric vehicles is increasing demand for grid-connected charging infrastructure that can manage power exchange efficiently and safely. Grid following inverters enable vehicle-to-grid functionality by synchronizing electricity fed back from EV batteries with grid voltage and frequency. For example, commercial charging hubs and fleet depots are deploying inverter-based systems to support peak load management and grid balancing. This transition is also impacting utility operations and energy storage markets, as EVs increasingly function as distributed energy assets, supporting grid stability and accelerating the shift toward flexible, low-carbon power networks.