Global Grid Forming Inverter Market Outlook
Revenue, 2023
$754M
Forecast, 2033
$1.61B
CAGR, 2024 - 2033
7.9%
The Grid Forming Inverter industry revenue is expected to be around $877.4 million in 2024 and expected to showcase growth with 7.9% CAGR between 2024 and 2033. Grid forming inverters are crucial for maintaining and managing energy flow in power systems. These play a vital role in integrating renewable energy sources and microgrids into the grid network dynamics. In 2023 the grid former market was worth around USD 753 million with estimations to reach USD 1.3 billion by 2030 furthermore potentially hitting USD 1.9 billion by 2035 expanding at an annual growth rate of approximately 7.9% CAGR. This progress is fueled by the growing requirement for solutions ensuring grid stability in response to the increasing adoption of renewable energy sources, across various sectors
Grid formers are different, from the inverters because they can act like synchronous generators and help stabilize the grid by providing virtual inertia when needed most in places with lots of renewable energy sources.
Market Key Insights
- The Grid Forming Inverter market is projected to grow from $753.6 million in 2023 to $1.61 billion in 2033. This represents a CAGR of 7.9%, reflecting rising demand across Renewable Integration, Utility-Scale Systems and Microgrids.
- SMA Solar Technology, Schneider Electric, ABB are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Grid Forming Inverter market and are expected to observe the growth CAGR of 5.1% to 7.6% between 2023 and 2030.
- Emerging markets including India, South Korea and Brazil are expected to observe highest growth with CAGR ranging between 9.1% to 10.9%.
- Transition like Shift Towards Hybrid Inverter Solutions is expected to add $52 million to the Grid Forming Inverter market growth by 2030.
- The Grid Forming Inverter market is set to add $858 million between 2023 and 2033, with manufacturer targeting Microgrids & Utility-Scale Systems Application projected to gain a larger market share.
- With Increasing renewable energy penetration, and Growing demand for microgrid solutions, Grid Forming Inverter market to expand 114% between 2023 and 2033.
Opportunities in the Grid Forming Inverter
Hybrid inverters that blend grid formulation and grid tracking abilities bring versatility. Create fresh possibilities in various applications.
Growth Opportunities in North America and Asia-Pacific
North America stands as a frontrunner in the adoption of grid forming inverters due to the increasing demand for renewable energy and governmental backing for such initiatives. Companies such as Enphase Energy and Tesla are notable players in this area
In the Asia Pacific region with a focus in China and Japan, there is progress in grid forming inverter technology as the need for stable grids grows with increased integration of renewable energy sources. SMA Solar Technology and Huawei are players in this field in the region.
Market Dynamics and Supply Chain
01
Driver: Increasing Renewable Energy Penetration, and Advances in Inverter Technology
The increasing use of renewable energy is also accompanied by the vital contribution of grid formering inverters, in upholding the stability and dependability of the grid. Advancements in technology and improved grid formulation features are also enhancing the efficiency and adaptability of these inverters for various uses.
Grid forming inverters play a role in microgrid setups by ensuring a steady electricity supply in distant and off grid locations.
02
Restraint: High Costs of Advanced Inverters, and High Costs of Advanced Inverters
Enhanced features on grid formers can drive up costs and hinder their uptake in Price sensitive markets.
Enhanced features on grid formers can drive up costs and hinder their uptake in Price sensitive markets.
03
Opportunity: Integration with Energy Storage Systems and Emerging Markets Investment in Renewable Infrastructure
The integration of grid inverters with energy storage options offers improved grid reliability and opens up opportunities for growth in residential and commercial areas.
Emerging countries are putting money into renewable energy initiatives and this is boosting the need for grid formers, in upcoming infrastructure developments.
04
Challenge: Complexity in Grid Synchronization
To incorporate grid forming inverters into grid infrastructure, expertise in technology and sophisticated control systems are necessary.
Supply Chain Landscape
1
Raw Material Supplier
ON SemiconductorInfineon Technologies
2
Component Manufacturer
Vishay IntertechnologySTMicroelectronics[Supply components such as MOSFETs, capacitors, and inductors]
3
Inverter Manufacturer
SMA Solar TechnologyABB[Manufactures complete grid-forming inverters tailored to various applications, from microgrids to utility-scale]
4
End-User
Renewable energyPower utilitiesCommercial facilities[Tesla, EDF, First Solar]
1
Raw Material Supplier
ON SemiconductorInfineon Technologies
2
Component Manufacturer
Vishay IntertechnologySTMicroelectronics[Supply components such as MOSFETs, capacitors, and inductors]
3
Inverter Manufacturer
SMA Solar TechnologyABB[Manufactures complete grid-forming inverters tailored to various applications, from microgrids to utility-scale]
4
End-User
Renewable energyPower utilitiesCommercial facilities[Tesla, EDF, First Solar]
Use Cases of Grid Forming Inverter in Renewable Integration & Utility-Scale Systems
Renewable Integration : Grid forming inverters help incorporate wind power into the grid seamlessly for renewable energy support. Companies, like SMA Solar Technology and Schneider Electric are leading the way in renewable integration solutions.
Microgrids : In microgrid scenarios, inverters that establish the grids structure, handle power distribution; and improve stability by playing a key role in off grid and hybrid systems. Leading companies such, as ABB and Hitachi Energy excel in this field.
Utility-Scale Systems : Large scale power systems depend on grid formers to uphold grid stability and dependability in situations with renewable resources. Siemens and General Electric offer solutions, for maintaining grid stability in large scale utility settings.
Backup Power : Grid formers utilized inverter technology in energy systems to provide dependable electricity in instances of grid failures. Enphase Energy and SolarEdge focus specifically on offering inverter solutions for power applications.
Recent Developments
New advancements in grid formers highlight their functions and integration, with energy storage systems. SMA Solar Technologys latest hybrid inverter is designed for supporting renewable energy sources and ABBs microgrid inverter contributes towards electrifying rural areas. Schneider Electrics offerings focus on strengthening durability.
October 2024 : A new hybrid grid forming inverter, for scale renewable projects was unveiled by SMA Solar Technology.
July 2024 : ABB introduced a grid forming inverter tailored for microgrids to enhance access, to electricity in rural areas.
April 2024 : Schneider Electric broadened its range of inverters to incorporate storage integrated options tailored for specific uses.
Impact of Industry Transitions on the Grid Forming Inverter Market
As a core segment of the E&P Technology industry,
the Grid Forming Inverter market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Hybrid Inverter Solutions and Increased Focus on Energy Storage-Integrated Inverters have redefined priorities
across the E&P Technology sector,
influencing how the Grid Forming Inverter market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Hybrid Inverter Solutions
Hybrid inverters that combine grid formig and grid tracking functions are gaining popularity for their versatility, in incorporating energy sources.
02
Increased Focus on Energy Storage-Integrated Inverters
Integrating energy storage, alongside grid forming inverters improves resilience by ensuring a power supply even in the event of grid disturbances.