Global Grid Forming Inverter Market Outlook
Revenue, 2023
Forecast, 2033
CAGR, 2023 - 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.
- The market leaders in this sector include SMA Solar Technology together with Schneider Electric and ABB which determine the competitive dynamics of this industry.
- 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%.
- The Grid Forming Inverter market will receive $121.2 million worth of growth through 2030 because of the transition toward hybrid inverter solutions.
- 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 Outlook
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
Asia-Pacific Outlook
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
Driver: Increasing Renewable Energy Penetration, and Advances in Inverter Technology
Grid forming inverters play a role in microgrid setups by ensuring a steady electricity supply in distant and off grid locations.
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.
Opportunity: Integration with Energy Storage Systems and Emerging Markets Investment in Renewable Infrastructure
Emerging countries are putting money into renewable energy initiatives and this is boosting the need for grid formers, in upcoming infrastructure developments.
Challenge: Complexity in Grid Synchronization
Supply Chain Landscape
ON Semiconductor
Infineon Technologies
Vishay Intertechnology
STMicroelectronics
[Supply components such as MOSFETs, capacitors, and inductors]
SMA Solar Technology
ABB
[Manufactures complete grid-forming inverters tailored to various applications, from microgrids to utility-scale]
Renewable energy
Power utilities
Commercial facilities
[Tesla, EDF, First Solar]
ON Semiconductor
Infineon Technologies
Vishay Intertechnology
STMicroelectronics
[Supply components such as MOSFETs, capacitors, and inductors]
SMA Solar Technology
ABB
[Manufactures complete grid-forming inverters tailored to various applications, from microgrids to utility-scale]
Renewable energy
Power utilities
Commercial facilities
[Tesla, EDF, First Solar]
Applications of Grid Forming Inverter in Renewable Integration, Utility-Scale Systems & Microgrids
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.
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.
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.
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
A new hybrid grid forming inverter, for scale renewable projects was unveiled by SMA Solar Technology.
ABB introduced a grid forming inverter tailored for microgrids to enhance access, to electricity in rural areas.
Schneider Electric broadened its range of inverters to incorporate storage integrated options tailored for specific uses.