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Grid Forming Inverter Market

The market for Grid Forming Inverter was estimated at $784 million in 2025; it is anticipated to increase to $1.17 billion by 2030, with projections indicating growth to around $1.76 billion by 2035.

Report ID:DS2408001
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
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Energy & Power
E&P Technology
Grid Forming Inverter
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Market Data
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Global Grid Forming Inverter Market Outlook

Revenue, 2025

$784M

Forecast, 2035

$1.76B

CAGR, 2026 - 2035

8.4%

The Grid Forming Inverter industry revenue is expected to be around $783.6 million in 2026 and expected to showcase growth with 8.4% CAGR between 2026 and 2035. This trajectory underscores the rising strategic importance of Grid Forming Inverter solutions in modern power systems, as utilities, independent power producers, and large commercial and industrial users prioritize grid stability, renewable integration, and compliance with evolving grid codes. Growing penetration of inverter-based resources in transmission and distribution networks is making grid forming technology indispensable for supporting frequency control, voltage regulation, and power quality in weak or low-inertia grids. Solar PV plants and energy storage systems together account for about 90.0% of demand, with Central Inverter configurations alone generating around $409.04 million in revenue in 2025, highlighting their role as the dominant architecture for utility-scale deployments. Policy-driven decarbonization targets, expanding interconnection queues, and the need for black start capability and advanced ancillary services are further reinforcing the ongoing relevance of Grid Forming Inverter platforms across key regional markets.

Grid Forming Inverter technology refers to advanced power electronics that can independently establish and regulate grid voltage and frequency, operating as a virtual synchronous generator to provide synthetic inertia, fault ride-through, and robust dynamic response. These inverters are optimized for large utility-scale solar PV plants, battery energy storage systems, hybrid renewable plants, and islanded or grid-connected microgrids, where they enhance microgrid stability, improve power quality, and support seamless transitions between on-grid and off-grid modes. Recent market trends include the rapid shift from traditional grid-following to grid forming architectures, greater adoption of high-capacity central inverter platforms, deeper integration with digital control and monitoring systems, and growing use in virtual power plant and flexible resource portfolios, all of which are accelerating demand for Grid Forming Inverter solutions in future-ready, low-carbon power networks.

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

Market Key Insights

  • The Grid Forming Inverter market is projected to grow from $783.6 million in 2025 to $1.76 billion in 2035. This represents a CAGR of 8.4%, reflecting rising demand across Solar PV Plants, Wind Power Plants, and Energy Storage Systems.

  • Huawei Technologies, General Electric, and SMA Solar Technology 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 6.1% to 8.8% between 2025 and 2030.

  • Emerging markets including India, South Korea and Brazil are expected to observe highest growth with CAGR ranging between 8.1% to 10.5%.

  • Transition like Shift Towards Hybrid Inverter Solutions is expected to add $101 million to the Grid Forming Inverter market growth by 2030.

  • The Grid Forming Inverter market is set to add $972 million between 2025 and 2035, with manufacturer targeting Wind Power Plants & Energy Storage 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 124% between 2025 and 2035.

grid forming inverter market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Grid Forming Inverter - Country Share Analysis

Opportunities in the Grid Forming Inverter

Industrial campuses and healthcare facilities in North America are also accelerating investment in resilient microgrids, creating strong demand for Grid Forming Inverter solutions paired with battery energy storage systems. High-reliability string inverter architectures with grid-forming control enable islanded operation, peak shaving, and enhanced microgrid stability for mission-critical loads. String inverter revenues are projected to grow from $284.45 million in 2025 to $431.67 million by 2030, with grid-forming inverters for commercial and industrial microgrids emerging as the most attractive long-term profit pool.

Growth Opportunities in North America and Asia-Pacific

In North America, Energy Storage Systems represent the most critical application segment for Grid Forming Inverter deployment, driven by large-scale battery projects co-located with solar and wind assets that require advanced grid forming control, synthetic inertia, and black start capability to stabilize weak and retiring thermal grids. Top opportunities concentrate in utility-scale storage-backed hybrid power plants and microgrids, where grid forming converter platforms can be positioned as premium, compliance-ready solutions delivering ancillary services, frequency regulation, and islanding support under evolving grid codes. Competition is intensifying between established inverter OEMs, battery integrators, and EPC players bundling turnkey storage solutions, creating a need for differentiated offerings around DC-coupled storage architectures, virtual synchronous generator functions, robust cybersecurity, and digital performance analytics. Key regional drivers include regulatory pressure for reliability, increasing penetration of inverter-based resources, resilience investments for critical infrastructure, and state-level mandates that favor advanced grid supportive inverter technologies with proven field performance and bankability.
In Asia-Pacific, Solar PV Plants hold the highest relevance for Grid Forming Inverter adoption, anchored by rapidly expanding utility-scale solar pipelines and grid-constrained regions where high renewable integration requires strong voltage and frequency support from grid forming control strategies. Top opportunities lie in large solar parks, PV-plus-storage clusters, and island or remote grids where microgrid inverter capabilities and synthetic inertia can unlock higher renewable hosting capacity and defer network reinforcement. Competition is dominated by regional high-volume manufacturers and fast-scaling local brands, making differentiation around reliability in harsh climates, flexible grid code compliance across multiple countries, and seamless integration with Energy Storage Systems and hybrid power plants essential. Core drivers include national renewable capacity targets, grid modernization programs, expansion of interconnection corridors, and policy incentives that increasingly favor advanced grid forming converter solutions capable of delivering ancillary services and stabilizing low-inertia systems at competitive cost.

Market Dynamics and Supply Chain

01

Driver: Rising Renewable Penetration and Expansion of Weak, Inverter Dominated Power Grids

The grid forming inverter market is also being driven by two parallel growth factors- rising renewable penetration and expansion of weak or inverter dominated grids. Rapid growth of solar and wind capacity is also reducing the share of synchronous generators, creating demand for inverters that can also independently establish voltage and frequency. Utilities increasingly require grid forming capabilities to maintain stability, inertia, and fault response in high renewable environments. At the same time, grid expansion into remote, islanded, and microgrid based regions is also accelerating, especially in emerging economies. These grids lack strong short circuit capacity, making conventional grid following inverters unsuitable. Grid forming inverters address this gap by enabling black start, islanded operation, and seamless reconnection. Together, these trends are also pushing utilities, developers, and transmission operators to specify grid forming functionality as a technical requirement rather than an optional feature. This shift is also particularly visible in new grid codes worldwide and interconnection standards.
also advances in control algorithms and power electronics are also a major driver for grid forming inverter adoption. Modern inverters now use virtual synchronous machine, droop control, and fast fault current injection techniques to emulate the behavior of conventional generators. These innovations allow inverters to provide synthetic inertia, voltage support, and frequency regulation without mechanical components. Improved semiconductor materials and digital controllers also enable faster response times and higher efficiency. As grid operators tighten performance requirements, especially for frequency containment and fault ride through, these advanced capabilities become critical. The ability of grid forming inverters to deliver stable operation under dynamic conditions positions them as a preferred solution for future power systems. This trend is also reinforced by simulation tools, digital twins, and standardized certification testing frameworks adopted globally by utilities and regulators.
02

Restraint: High Initial Capital Costs and Complex Technical Integration Hinder Adoption

One of the strongest restraints on grid forming inverter market expansion is the high initial capital cost combined with complex technical integration requirements. Grid forming inverters typically cost significantly more than traditional grid following units due to advanced control systems, sophisticated power electronics, and specialized software algorithms. This cost premium can deter project developers and utilities that operate under tight budget constraints or in price-sensitive markets, slowing procurement and deployment decisions. Additionally, integrating these inverters with existing grid infrastructure often demands extensive engineering expertise, advanced simulation tools, and longer commissioning timelines. Legacy grids may require substantial upgrades to accommodate voltage and frequency control complexity, which can delay projects or inflate overall system costs, thereby affecting demand and slowing market revenue growth.
03

Opportunity: Residential Solar-Plus-Storage Prosumers in Advanced Rooftop Markets Worldwide and Utility-Scale Renewable Plants Stabilizing Weak Grids in Emerging Asia

Residential prosumers in advanced rooftop solar markets such as Germany, Australia, and Japan increasingly seek self-consumption, blackout protection, and dynamic grid support from their systems. This shifts demand toward smart Grid Forming Inverter designs, especially module-level micro inverter products optimized for solar-plus-storage. Global micro inverter revenues are expected to rise from $90.11 million in 2025 to $134.88 million by 2030, as homeowners prioritize grid-forming inverters that maximize household resilience, simplify interconnection approvals, and future-proof assets for evolving grid codes and standards.
Emerging utility-scale solar and wind plants in Asia require Grid Forming Inverter technology to stabilize weak transmission networks and reduce curtailment. Compared with legacy grid following inverter setups, advanced central inverter platforms can operate as a virtual synchronous generator, supporting voltage and frequency without conventional turbines. Global central inverter revenues are forecast to increase from $409.04 million in 2025 to $606.30 million by 2030, and the fastest growth will come from grid-forming inverters deployed in large hybrid renewable energy integration projects.
04

Challenge: Lack of Standardized Norms and Interoperability Issues Create Market Barriers

A major constraint on the grid forming inverter market is the absence of harmonized global standards and interoperability protocols, which creates uncertainty for manufacturers, integrators, and end-users. Different regions have disparate grid codes, technical specifications, and certification requirements, forcing developers to customize solutions for specific markets rather than leveraging scalable, standardized platforms. This fragmentation increases R&D costs and elongates product certification cycles, delaying commercial introductions. The lack of uniform norms also complicates system integration where equipment from multiple vendors must interoperate seamlessly, raising perceived project risk and discouraging investment. As a result, utilities may defer adoption until clearer regulatory frameworks emerge, directly limiting market demand and revenue potential.

Supply Chain Landscape

1

Power Electronics

Infineon TechnologiesTexas InstrumentsON Semiconductor
2

Grid Forming Inverter

Huawei TechnologiesSMA Solar TechnologySungrow Power Supply
3

System Integration

General ElectricFIMERABB
4

End-User Applications

Renewable energy integration projectsMicrogrid and energy storage systems
Grid Forming Inverter - Supply Chain

Use Cases of Grid Forming Inverter in Solar PV Plants & Energy Storage Systems

Solar PV Plants : In solar PV plants, grid forming inverters are increasingly used to enable stable and autonomous grid operation, especially in utility scale and hybrid solar projects. These plants mostly use voltage source grid forming inverters with advanced control algorithms such as virtual synchronous generator control. They help solar farms provide grid support functions like voltage regulation, frequency stability, and black start capability. Unlike conventional grid following inverters, grid forming units can establish grid voltage and frequency on their own, making them suitable for weak grids and high renewable penetration areas. Their fast response improves power quality and supports smoother renewable integration.
Wind Power Plants : Wind power plants adopt grid forming inverters mainly in offshore wind farms and modern onshore installations connected to weak grids. In this application, full converter based grid forming inverters are commonly used with permanent magnet synchronous generators. These inverters allow wind plants to behave more like conventional power stations by contributing inertia and fault ride through capability. Their key advantage lies in maintaining grid stability during sudden load changes or disturbances. By actively controlling frequency and voltage, grid forming inverters enable higher wind energy penetration while reducing dependency on conventional synchronous generators.
Energy Storage Systems : Energy storage systems represent one of the fastest growing applications for grid forming inverters. Battery energy storage projects mostly use bidirectional grid forming inverters to both inject and absorb power from the grid. These systems are essential for frequency regulation, peak shaving, and grid resilience. Grid forming inverters allow storage systems to act as anchor assets, establishing grid reference during outages or islanded operation. Their ability to deliver fast response power and synthetic inertia makes them critical for renewable dominated grids, supporting smooth transitions between grid connected and standalone modes.

Recent Developments

Recent developments in grid forming inverter technology emphasize energy resilience, synthetic inertia, and microgrid integration. Leading suppliers are enhancing control algorithms and bidirectional inverter capabilities to support renewable energy penetration and battery storage systems. A key market trend is the shift toward storage-integrated grid forming solutions that improve frequency regulation and black start capability in weak grids. This trend is accelerating demand from utilities, microgrid developers, and commercial sectors focused on power quality, grid stability, and decarbonization goals.

June 2025 : Huawei Digital Power entered a major strategic partnership with Singapore-based Peak Energy at SNEC 2025 by signing a memorandum of understanding to accelerate implementation of 700 MWp commercial and industrial solar projects across the Asia-Pacific region. Under the agreement, Huawei will supply its Smart PV and energy storage solutions to support project execution and enhance operational reliability, strengthening its market footprint and catering to increasing demand for integrated PV-plus-grid forming technologies.
September 2024 : Sungrow Power Supply Co., Ltd. signed a 400 MW annual framework agreement with Goldbeck Solar, under which Sungrow will supply its inverter solutions for large-scale PV projects across Europe in 2024–2025. This long-term supply deal expands Sungrow’s presence in European utility-scale solar markets and supports broader adoption of advanced inverter technologies.
July 2024 : Sungrow secured a significant 850 MW supply contract with renewable arm Hero Future Energies for delivery of 1500 V inverter solutions from its Bengaluru facility to multiple Indian solar projects. This strategic agreement reinforces Sungrow’s leadership in emerging markets and supports rapid deployment of inverter technology, including grid forming-ready systems, in large renewable energy installations.

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

The accelerating shift toward hybrid inverter solutions, which seamlessly combine grid forming and grid tracking capabilities, is redefining the competitive landscape of the Grid Forming Inverter market. By enabling more flexible integration of solar generation, energy storage systems, and other distributed energy resources, these hybrid inverters enhance grid resilience and microgrid stability while lowering balance-of-system complexity for project developers. This functionality is particularly critical for renewable energy integration in weak or islanded grids, where conventional inverters are insufficient. As utilities and EPC players standardize on hybrid inverter architectures for new and retrofit projects, this transition is projected to contribute an incremental $101 million to Grid Forming Inverter market growth by 2030, making it a pivotal driver of both installed capacity and value-added revenue streams.
02

Increased Focus on Energy Storage-Integrated Inverters

Increased focus on energy storage integrated inverters is reshaping the grid forming inverter landscape as power systems shift toward resilience and flexibility. By combining grid forming inverters with battery energy storage systems, utilities can maintain voltage and frequency stability during outages, grid faults, or islanded operation. For example, large scale battery projects paired with solar and wind plants now act as grid anchors, replacing conventional peaker plants and reducing reliance on fossil fuel backup. This transition is also influencing transmission operators and microgrid developers, who increasingly specify storage integrated grid forming solutions in new projects. In associated industries such as renewable generation, data centers, and EV charging infrastructure, these systems improve reliability, enable black start capability, and support uninterrupted operations, driving broader adoption and long term market demand.