Global Grid-Forming Inverters Market Assessment, By Operating Mode [Droop Control, Hierarchical Control, Virtual Synchronous], By Power Rating [Below 50 KW, 50-100 KW, Above 100 KW], By Application [Microgrids, Large Scale Grids, Renewable Energy Integration, Energy Storage Systems], By Region, Opportunities and Forecast, 2018-2032F

Global grid-forming inverters market is projected to witness a CAGR of 7.98% during the forecast period 2025-2032, growing from USD 791.24 million in 2024 to USD 1,462.36 million in 2032. The global grid-forming inverter market has experienced significant growth in recent years due to the rapid growth of distributed energy resources (DERs). Further, the increasing need for resilient power systems solutions is expected to maintain a strong pace of expansion in the coming years. Moreover, the increasing integration of renewable energy sources in the power grids amplified the demand for advanced grid-forming inverters, which are crucial in maintaining grid stability and reliability. The grid-forming inverters assist in overcoming the challenges related to the intermittent nature of renewable energy sources. The grid-forming inverters are able to establish and regulate voltage and frequency parameters independently and function as virtual synchronous generators which drive its demand in the market.

Report Attribute	Details
Base Year of the Analysis	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 7.98% between 2025 and 2032
Revenue Forecast in 2032	USD 1,462.36 million

Grid-forming inverters have numerous advantages, including improved grid stability, and smooth transition between grid-connected and islanded modes making technology a perfect fit for microgrids and off-grid applications. Grid-forming inverters enhance power quality by reducing voltage fluctuations and harmonics, providing a more stable electricity supply. Moreover, regulatory policies and grid codes are changing to require advanced inverter capabilities, further driving its adoption in the market. In addition, the growth of investment in microgrids and large-scale renewable power plants driving the demand for grid-forming inverters over the next few years.

For instance, in January 2025, The United States Department of Agriculture (USDA) announced to invest over USD 6 billion through several of its programs for the development of renewable energy in rural area of the United States. The ongoing programmes are Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) with investments in rural communities across 30 U.S. states which will benefit from clean and affordable energy including solar PV and energy storage. With the rising investment in the solar industry will increase the demand for grid-forming inverters in the market.

Rising Demand for Grid Stability Solutions Accelerating the Market Growth

Globally, utility sectors are highly prioritizing and commencing strategies for the adoption of renewable energy sources into the electrical grid. Most developing countries are seeking to add more renewable energy sources into the grid which calls for a flexible and stable solution for the maintenance of the grid stability. Integrating different renewable energy sources into large-scale grids can result in some challenges because renewable energy is intermittent. Grid-forming inverters assist in solving problems by offering necessary voltage and frequency regulation and allow stabilization of the grid oscillations driving its demand within the market.

In addition, the drive towards decentralized energy systems and microgrids increases the demand for flexible grid stability solutions that would be independent of the grid structures. Grid-forming inverters are specifically well-placed to enable the renewable transition that enables microgrids to ensure stability and reliability during disruptions or outages. Grid-forming inverters have a significant function in the development of a sustainable and stable energy future hence to its growth during the forecast period. Moreover, increasing investments in smart grid technology and energy storage solutions will fuel the demand for grid-forming inverters over the next few years. Countries are investing in the grid stability solutions which drive the demand for grid-forming inverters in the market.

For instance, in August 2024, the United States Department of Energy (DOE) decided to invest around USD 2.2 billion in the nation’s grid for eight projects across 18 states. The investment will maintain the grid stability and protect against growing threats of extreme weather events to meet load growth stemming from an increase in manufacturing and commercial sectors. The rising demand for stable power supply solutions drives the demand for grid-forming inverters in the market.

Rising investment in Distributed Battery Storage Solutions Creates Market Opportunity

The investment in distributed battery storage solutions is due to the growing need for reliable, flexible, and resilient power systems. Grid-forming inverters assist in enhancing grid stability and flexibility of distributed battery storage solutions which drives its deployment in the market. The advanced grid-forming inverters are capable of managing grid interactions and able to stabilize the distributed battery storage systems without relying on external signals thus creating demand in the market. As battery storage deployments grow in the market will create the opportunity for grid-forming inverters to function as standalone power sources thus enhancing energy independence in the power plants. The governments are looking to invest in battery energy storage plants for storing renewable energy which contributes to rising demand for grid-forming inverters in the market.

For instance, in December 2024, the United States Department of Energy’s (DOE) and Loan Programs Office (LPO) committed to funding around USD 584.5 Million to Convergent Energy and Power Inc. to build solar and battery energy storage systems (BESS) in Puerto Rico. This development highlights the government is helping companies build battery energy storage systems which drive the demand for grid-forming inverters in the coming years.

Additionally, the increasing penetration of renewable energy in distributed battery storage solution systems fuels the need for grid-forming inverter solutions in the market. Distributed battery storage systems (BESS) with grid stability solutions can counteract power fluctuations by storing excess energy produced during peak production hours and releasing power during high demand peaks. Grid-forming inverters play a crucial role in handling the bidirectional flow of electricity, making it possible for energy storage to integrate seamlessly with renewable energy sources which fuel its demand within the market. Regulatory policies and incentives foster the adoption of energy storage which is driving the market growth of grid-forming inverters in the coming few years.

Droop Control to Dominate the Market Share

The droop control segment experienced a high adoption rate in the forecast period which makes the segment dominate the market. The adoption of the droop control segment is high in the market due to its simplicity, reliability, and proven effectiveness in managing renewable-integrated systems in the grid systems. Droop control enables inverters are able to adjust the output power autonomously based on local grid conditions which contribute to its rising demand in the market. Moreover, the adoption of microgrids and systems with distributed energy resources (DERs) driving the demand for efficient grid-forming inverter solutions in the market.

Furthermore, droop control is a well-established method with extensive field validation in multi-inverter setups. Droop control allows seamless integration with existing grid infrastructure which drives its demand in the market.

Asia-Pacific Leads the Grid-Forming Inverter Market

Asia-Pacific has dominated the grid-forming inverters market and is expected to continue during the forecast period. Rising strong focus on renewable energy integration and rapid economic growth drives the demand for grid-forming inverters in the region. Countries such as China, India, and Japan are experiencing significant increases in energy consumption due to its rapid industrialization and significant investments in infrastructure projects. Managing the high electricity demand necessitates innovative solutions for managing and distributing power efficiently, making grid-forming inverters essential for stabilizing grids that incorporate variable renewable energy sources like solar and wind.

As of March 2025, India’s installed renewable capacity reached to 220.10 GW, which comprises of both solar and wind energy. Furthermore, in the upcoming year with the demand from commercial and industrial sectors, India is going to increase their installed solar capacity. This development will increase the demand of grid-forming inverters in the market.  In the coming years, the country is going to invest heavily to increase the solar installed capacity as the demand for energy in commercial and industrial sectors is rising at a higher rate. This development increases the demand for grid-forming inverters for integration in the market.

Moreover, the region is witnessing substantial investments in energy storage systems, which are critical for optimizing renewable energy usage. Facilitate smoother integration of energy storage systems into the grid boost the deployment of grid-forming inverters in the market. Additionally, supportive government policies promoting renewable energy adoption further enhance the market for grid-forming inverters.

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Future Market Scenario (2025 – 2032F)

• Massive investments in power infrastructure projects across the region are driving the demand for grid-forming inverters in coming years.
• Governments are focusing on modernizing existing grid infrastructure which fostering the demand for grid-forming inverters in the forecast period.
• The adoption of smart technologies and the internet of things (IoT) is driving the demand for grid-forming inverters in the coming years. 

Report Scope

“Global Grid-Forming Inverters Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global grid-forming inverters market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Operating Mode, Power Rating, Application
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	Siemens Energy Global GmbH & Co. KG, SMA Solar Technology AG, Hitachi Energy Ltd, ABB Ltd, Schneider Electric SE, GE Vernova Inc., Fimer S.p.A., Huawei Technologies Co., Ltd., EPC Power Corp., Enphase Energy, Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global grid-forming inverters market has been segmented into the following categories: 

• By Operating Mode
  • Droop Control
  • Hierarchical Control
  • Virtual Synchronous
• By Power Rating
  • Below 50 KW
  • 50-100 KW
  • Above 100 KW
• By Application
  • Microgrids
  • Large Scale Grids
  • Renewable Energy Integration
  • Energy Storage Systems
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Continuous innovation characterizes the landscape of grid-forming inverters globally, as the companies compete in terms of energy efficiency, product life, and unique features. The market outlook remains positive, owing to increased demand for the integration of renewable energy and automation in the industrial sector. Grid-forming inverters stake holders are concerned with supply chain resilience, energy efficiency, and environmental practices, which will define the industry's future. Product launches, agreements, business expansions, collaborations, and developing technologies are projected to increase competition in the fast-paced market.

For instance, in July 2023, Siemens Energy Global GmbH & Co. KG decided to release the new hybrid version of its Proteus grid-forming central inverter which could be combined with large batteries. This development helped the company to increase revenue and product portfolio.

Key Players Operating in Global Grid-Forming Inverters Market are:

• Siemens Energy Global GmbH & Co. KG
• SMA Solar Technology AG
• Hitachi Energy Ltd
• ABB Ltd
• Schneider Electric SE
• GE Vernova Inc.
• Fimer S.p.A.
• Huawei Technologies Co., Ltd.
• EPC Power Corp.
• Enphase Energy, Inc.

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