Grid-forming Inverter Market – Global Industry Size, Share, Trends, Opportunity, and Forecast. Segmented By Output Power Rating (Below 50 kW, 50-100 kW, Above 100 kW), By End-User (Residential, Commercial, PV Plants, Automobile, Others), By Type (Micro-Inverters, Hybrid-Inverters, Central-Inverters, Others), By Region, By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 788.16 Million
CAGR (2026-2031)	9.05%
Fastest Growing Segment	Central Inverters
Largest Market	Asia Pacific
Market Size (2031)	USD 1325.47 Million

Market Overview

The Global Grid-forming Inverter Market will grow from USD 788.16 Million in 2025 to USD 1325.47 Million by 2031 at a 9.05% CAGR. Grid-forming inverters are advanced power electronic devices that autonomously establish voltage and frequency references to maintain electrical network stability, distinguishing them from conventional grid-following units that require an external signal to synchronize. The market is primarily supported by the accelerating integration of variable renewable energy sources and the concurrent retirement of synchronous fossil-fuel generation, which creates a critical operational demand for synthetic inertia and system strength. Furthermore, the rapid expansion of the battery energy storage sector serves as a fundamental driver, as these assets are increasingly equipped with grid-forming control algorithms to provide essential reliability services. According to the Global Power System Transformation Consortium, in 2024, technical analysis highlighted that rapidly decarbonizing power systems are targeting upwards of 80% operational reliance on inverter-based resources by 2030, establishing a direct imperative for the deployment of grid-forming capabilities.

Despite the strong impetus for adoption, the market faces a significant challenge regarding the lack of harmonized grid codes and interconnection standards across different regions. This regulatory fragmentation creates uncertainty for developers and manufacturers, as the absence of consistent technical specifications complicates the certification process and delays the commercial rollout of projects. Consequently, the industry must navigate a complex landscape of evolving compliance testing frameworks, which can impede the speed of market expansion and increase development costs for next-generation inverter technologies.

Key Market Drivers

Rapid Growth in Battery Energy Storage System Deployments
Rapid growth in Battery Energy Storage System (BESS) deployments acts as a primary catalyst for the market, as these assets are increasingly serving as the delivery vehicle for advanced inverter capabilities. Unlike conventional synchronous generators, modern battery projects are being specified with grid-forming control algorithms to provide essential reliability services such as black start, synthetic inertia, and system strength. This operational shift is exemplified by major infrastructure developments; according to Arevon Energy, in August 2025, the company announced the full commercial operation of its Eland Solar-plus-Storage Project, which features a 300 MW battery energy storage system designed to enhance grid resilience in California. Such projects illustrate the transition of storage assets from simple capacity providers to active network stabilizers, directly fueling the demand for next-generation inverter hardware.

Rising Demand for Grid Stability and Synthetic Inertia Services
The rising demand for grid stability and synthetic inertia services further accelerates adoption, driven by the critical need to replace the mechanical inertia lost from retiring fossil-fuel generation. As renewable penetration increases, system operators are mandating that inverter-based resources actively contribute to voltage and frequency control to prevent network instability. This trend is evident in markets with high renewable density; according to Renew Economy, November 2025, in an industry analysis, battery storage systems in South Australia reached a record 40% share of supply during peak periods, effectively displacing gas generators for security services. To support this massive infrastructural pivot, manufacturers are scaling their delivery of power electronics; according to Hitachi Energy, in December 2024, the company secured contracts totaling over €2 billion to supply converter stations, underscoring the significant capital investment directed toward grid-stabilizing technologies.

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Key Market Challenges

The lack of harmonized grid codes and interconnection standards creates a substantial barrier to the growth of the Global Grid-forming Inverter Market. Manufacturers face a fragmented regulatory landscape where technical specifications and compliance requirements vary significantly across different jurisdictions. This inconsistency compels developers to customize hardware and control software for specific regional markets rather than utilizing standardized global platforms, which directly increases research and development costs. Consequently, the certification process becomes lengthy and capital-intensive, slowing the commercial availability of next-generation inverter models capable of providing necessary system stability services.

These regulatory discrepancies frequently result in severe bottlenecks during the project interconnection phase, as grid operators struggle to validate compliance for diverse inverter technologies. This friction in the approval process delays the deployment of renewable assets that rely on grid-forming capabilities. According to the International Energy Agency, in 2024, approximately 3,000 gigawatts of renewable energy projects were stalled in grid connection queues globally, with technical compliance assessments identified as a major contributing factor to this backlog. This administrative and technical gridlock limits the immediate addressable market for grid-forming inverters, forcing manufacturers to operate within a constrained deployment environment despite the broader demand for grid modernization.

Key Market Trends

The Transition to Wide Bandgap Silicon Carbide Power Electronics is fundamentally reshaping inverter architecture by enabling higher switching frequencies and superior thermal management, which are critical for the fast response times required in grid-forming applications. Manufacturers are increasingly replacing traditional silicon-based insulated-gate bipolar transistors with silicon carbide components to reduce energy losses and support higher voltage classes, thereby improving the overall power density of the system. This hardware evolution allows inverters to maintain stability in weaker grids while minimizing the physical footprint of the associated cooling infrastructure. According to Power Electronics News, April 2024, in the 'Infineon 2024 Forum: Driving Change With WBG Technologies' article, it was reported that second-generation silicon carbide MOSFETs achieve 5% to 20% lower power losses under typical loads compared to previous generations, directly enhancing the efficiency of next-generation power systems.

Expansion of Deployment in Autonomous Islanded Microgrids represents a parallel trend where grid-forming inverters serve as the primary voltage source for isolated networks, enabling 100% renewable energy penetration without reliance on synchronous fossil-fuel generators. This application is particularly relevant for large-scale remote tourism and industrial developments that demand high reliability and zero-carbon operations, pushing the technology beyond simple backup roles into the core of infrastructure planning. According to Sungrow, May 2024, in the 'Sungrow Signs the 760MWh Off-Grid Energy Storage Project to Propel Saudi Arabia's 2030 Vision' press release, the company secured a contract to supply 160 MW/760 MWh of energy storage systems for the Amaala destination, which is designed to operate entirely off-grid. Such projects demonstrate the capability of advanced inverter controls to manage complex load dynamics in standalone environments, validating the technology for broader decentralized adoption.

Segmental Insights

The Central Inverters segment is currently establishing itself as the fastest-growing category within the Global Grid-forming Inverter Market. This acceleration is principally driven by the global expansion of utility-scale renewable energy infrastructure, such as massive solar and wind farms, where high-capacity inverters provide necessary economies of scale. These systems are critical for maintaining grid stability, offering robust voltage and frequency control that smaller units cannot efficiently replicate at high power volumes. As power networks increasingly prioritize resilience, central inverters have become the standard solution for utility operators seeking reliable, large-scale renewable integration.

Regional Insights

Asia Pacific holds the leading position in the grid-forming inverter market due to substantial government investments in renewable energy transitions across major economies like China and India. The region faces unique challenges regarding grid stability, prompting the adoption of technologies that provide virtual inertia. Notably, regulatory initiatives by bodies such as the Australian Energy Market Operator drive market growth by mandating support for system strength in areas with high solar penetration. Additionally, the extensive deployment of microgrids for rural electrification strengthens the demand for stable power conversion solutions, securing the region's dominance.

Recent Developments

• In August 2025, Sungrow debuted its next-generation renewable energy products, the 1+X 2.0 Modular Inverter and PowerTitan 3.0 Energy Storage System, in the Middle East and Africa region. Both systems were equipped with advanced grid-forming technologies, highlighting a key advancement in the Global Grid-forming Inverter Market for supporting weak grids in harsh environmental conditions. The launch focused on delivering high-efficiency operation and robust grid support capabilities, which are essential for ensuring the reliability of utility-scale power plants. These solutions were specifically designed to withstand extreme temperatures while maintaining consistent power output and system stability.
• In December 2024, GE Vernova secured a strategic contract with 50Hertz Transmission GmbH to deploy grid-stabilizing technology across Germany's transmission network. The collaboration involved the delivery of the FACTSFLEX GFM solution, a Static Synchronous Compensator featuring Grid Forming Control. This project demonstrated the growing adoption of commercial solutions in the Global Grid-forming Inverter Market to maintain system stability amidst increasing intermittent wind and solar generation. The technology was designed to automatically adapt to grid voltage fluctuations and provide essential reactive power support, thereby strengthening the resilience of the electrical infrastructure against operational disturbances.
• In August 2024, Hitachi Energy introduced Grid-enSure, a comprehensive portfolio of integrated solutions, at the CIGRE Paris Session. This strategic launch directly targeted the Global Grid-forming Inverter Market by offering advanced control functionalities, such as grid-forming, synthetic inertia, and fast-frequency response. The portfolio was engineered to enhance grid flexibility and stability, facilitating the integration of large-scale renewable energy projects and addressing critical connection bottlenecks. By enabling a holistic approach to power system operation, the company aimed to provide the necessary technological infrastructure to support a secure and sustainable energy transition worldwide.
• In June 2024, Huawei Digital Power launched the Cell-to-Grid Smart String & Grid-Forming ESS Platform during a major industry exhibition in Shanghai. This development was a significant milestone in the Global Grid-forming Inverter Market, as the new platform integrated advanced grid-forming capabilities to address the instability challenges associated with high renewable energy penetration. By utilizing controllable power electronics to resolve battery inconsistencies, the solution was designed to improve grid resilience and increase renewable energy output. The release emphasized the company's commitment to stabilizing modern power systems through innovative inverter-based resources that actively support voltage and frequency regulation.

Key Market Players

• ABB Ltd.
• Schneider Electric
• SMA Solar Technology
• SolarEdge Technologies
• Huawei Technologies
• Mitsubishi Electric
• Infineon Technologies
• Delta Electronics
• Vikram SolarGrowatt

By Output Power Rating	By End-User	By Type	By Region
Below 50 kW 50-100 kW Above 100 kW	Residential Commercial PV Plants Automobile Others	Micro-Inverters Hybrid-Inverters Central-Inverters Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Grid-forming Inverter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Grid-forming Inverter Market, By Output Power Rating:

• Below 50 kW
• 50-100 kW
• Above 100 kW

• Grid-forming Inverter Market, By End-User:

• Residential
• Commercial
• PV Plants
• Automobile
• Others

• Grid-forming Inverter Market, By Type:

• Micro-Inverters
• Hybrid-Inverters
• Central-Inverters
• Others

• Grid-forming Inverter Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE