Grid-forming Inverter Market by Power Rating (Below 50 KW, 50-100 KW, Above 100 KW), Voltage ( 100-300 V, 300-500 V, Above 500 V), Type (Micro Inverters, String Inverters, Central Inverters), Application & Region - Global Forecast to 2028
The global grid-forming inverter market is estimated to grow from USD 1,042 million by 2028 from an estimated of USD 680 million in 2023; it is expected to record a CAGR of 8.9% during the forecast period. The grid-forming inverters play a vital role in effectively managing the large influx of renewable energy and ensuring grid stability.
"Above 100 KW: The second largest- growing segment of the grid-forming inverter market"
Based on by power rating of grid-forming inverter , the above 100 KW segment is estimated to be the second largest-growing market from 2023 to 2028. Above 100 kW grid-forming inverters provide grid stability and resilience by offering grid support services, such as frequency regulation, voltage control, and reactive power compensation. These services are especially critical in regions with high renewable energy integration.
"String Inverters: The second largest segment by standard in grid-forming inverter market"
The string inverters segment, by type, is projected to hold the second largest market size during the forecast period. String inverters are generally more cost-effective than central inverters for smaller-scale solar PV installations. They offer a good balance between performance and affordability, making them an attractive choice for residential and small commercial projects. The installation and maintenance of string grid-forming inverters are relatively straightforward, and they typically have lower maintenance requirements compared to more complex central grid-forming inverters.
"Wind Power Plants: The second largest segment by application in grid-forming inverter market"
The wind power plants segment, by application is projected to hold the second largest market size during the forecast period. Grid-forming inverters are increasingly being utilized in wind power plants to support grid stability and enhance the integration of wind energy into the electricity grid. These specialized inverters play a crucial role in creating and maintaining a stable grid environment, allowing wind power plants to operate in grid-forming mode rather than relying solely on the stability of the existing grid.
"North America: The second fastest-growing region in grid-forming inverter market"
North America is estimated to hold the second fastest market share in the grid-forming inverter market. The increasing focus on grid resilience and preparedness for natural disasters is leading to a greater interest in microgrid solutions that incorporate grid-forming inverters. The interest in microgrids is rising in North America, particularly for critical facilities, military bases, and remote communities. Grid-forming inverters are vital components of microgrids, allowing them to operate autonomously or in coordination with the main grid.
Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1- 35%, Tier 2- 45%, and Tier 3- 20%
By Designation: C-Level- 35%, Director Levels- 25%, and Others- 40%
By Region: North America- 40%, Asia Pacific- 30%, Europe- 20%, the Middle East & Africa- 5%, and South America- 5%
Note: Others include product engineers, product specialists, and engineering leads.
Note: The tiers of the companies are defined on the basis of their total revenues as of 2021. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million
The grid-forming inverter market is dominated by a few major players that have a wide regional presence. The leading players in the grid-forming inverter market are Huawei Technologies Co. Ltd. (China), General Electric (US), SMA Solar Technology (Germany), Games Electric (Spain) and FIMER Group (Italy).
Research Coverage:
The report defines, describes, and forecasts the global grid-forming market, by power rating, voltage, type, application, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the grid-forming inverter market.
Key Benefits of Buying the Report
Renewable energy sources, such as solar and wind, are intermittent, meaning they do not always produce power at the same rate. This can cause problems for the grid, leading to voltage fluctuations and frequency instability. Grid-forming inverters can help mitigate these problems by actively controlling the grid voltage and frequency. Grid-forming inverters are typically more expensive than grid-following inverters because of the extra complexity. The additional cost of grid-forming inverters is justified by the benefits they offer, such as improved stability and reliability of the grid and reduced cost of renewable energy integration.
Product Development/ Innovation: Advanced control algorithms are being used to improve the dynamic response of grid-forming inverters. This means that they can respond more quickly to changes in the grid voltage and frequency, which can help improve the stability of the grid. Improved communication protocols are being developed to allow grid-forming inverters to communicate more effectively with each other and the grid.
Market Development: The growing adoption of electric vehicles (EVs) is increasing demand for smart charging solutions and grid integration technologies, where grid-forming inverters can play a role. rid-forming inverters can be combined with energy storage systems to enable efficient energy management and enhance grid stability. The growth of energy storage projects further drives the demand for these inverters.
Market Diversification: This strategy aims to explore new opportunities, reduce reliance on a single market segment, and spread business risks across multiple sectors. Expanding grid-forming inverter applications to residential and commercial microgrids can provide localized energy solutions and improve energy resiliency. As utilities and grid operators invest in smart grid technologies and grid modernization initiatives, grid-forming inverters can play a crucial role in enhancing grid stability and flexibility.
Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Huawei Technologies Co. Ltd. (China), General Electric (US), SMA Solar Technology (Germany), Games Electric (Spain) and FIMER Group (Italy)
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 INCLUSIONS AND EXCLUSIONS
TABLE 1 GRID-FORMING INVERTER MARKET, BY POWER RATING: INCLUSIONS AND EXCLUSIONS
TABLE 2 GRID-FORMING INVERTER MARKET, BY VOLTAGE: INCLUSIONS AND EXCLUSIONS
TABLE 3 GRID-FORMING INVERTER MARKET, BY TYPE: INCLUSIONS AND EXCLUSIONS
TABLE 4 GRID-FORMING INVERTER MARKET, BY APPLICATION: INCLUSIONS AND EXCLUSIONS
FIGURE 10 BELOW 50 KW SEGMENT TO DOMINATE GRID-FORMING INVERTER MARKET, BY POWER RATING, IN 2028
FIGURE 11 300-500 V TO BE FASTEST-GROWING SEGMENT IN GRID-FORMING INVERTER MARKET, BY VOLTAGE, DURING 2023-2028
FIGURE 12 CENTRAL INVERTERS TO EXHIBIT HIGHEST CAGR IN GRID-FORMING INVERTER MARKET, BY TYPE, DURING FORECAST PERIOD
FIGURE 13 SOLAR PV PLANTS TO HOLD LARGEST SHARE OF GRID-FORMING INVERTER MARKET, BY APPLICATION, IN 2028
FIGURE 14 ASIA PACIFIC ACCOUNTED FOR LARGEST SHARE OF GRID-FORMING INVERTER MARKET IN 2022
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN GRID-FORMING INVERTER MARKET
FIGURE 15 INCREASING INSTALLATION OF RENEWABLE ENERGY PROJECTS AND INTEGRATION OF CLEAN POWER INTO GRIDS TO CREATE OPPORTUNITIES FOR PLAYERS IN GRID-FORMING INVERTER MARKET
4.2 GRID-FORMING INVERTER MARKET IN ASIA PACIFIC, BY APPLICATION AND COUNTRY
FIGURE 16 SOLAR PV PLANTS AND CHINA TO HOLD LARGEST SHARES OF GRID-FORMING INVERTER MARKET IN ASIA PACIFIC IN 2033
4.3 GRID-FORMING INVERTER MARKET, BY POWER RATING
FIGURE 17 BELOW 50 KW SEGMENT TO DOMINATE GRID-FORMING INVERTER MARKET IN 2033
4.4 GRID-FORMING INVERTER MARKET, BY VOLTAGE
FIGURE 18 ABOVE 500 V SEGMENT TO HOLD LARGEST SHARE OF GRID-FORMING INVERTER MARKET IN 2033
4.5 GRID-FORMING INVERTER MARKET, BY TYPE
FIGURE 19 CENTRAL INVERTERS TO LEAD GRID-FORMING INVERTER MARKET IN 2033
4.6 GRID-FORMING INVERTER MARKET, BY APPLICATION
FIGURE 20 SOLAR PV PLANTS TO LEAD GRID-FORMING INVERTER MARKET IN 2033
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
FIGURE 21 GRID-FORMING INVERTER MARKET: DRIVERS, RESTRAINTS, OPPORTUNITIES, AND CHALLENGES
5.2.1 DRIVERS
5.2.1.1 Rising investments in renewable energy sector
FIGURE 22 GLOBAL INVESTMENTS IN RENEWABLE ENERGY SECTOR
5.2.1.2 Growing demand for distributed solar energy resources supported by government-LED incentives
FIGURE 23 GLOBAL SOLAR PV ELECTRICITY GENERATION
5.2.2 RESTRAINTS
5.2.2.1 More expensive than traditional grid-following inverters
5.2.2.2 Grid-forming inverters are not compatible with all existing grid infrastructure
5.2.3 OPPORTUNITIES
5.2.3.1 Rising demand for electric vehicles
FIGURE 24 ANNUAL CLEAN ENERGY INVESTMENTS IN ELECTRIC VEHICLES
5.2.3.2 Growing investments in smart grid development
5.2.3.3 Growing adoption of high-power density inverters
5.2.4 CHALLENGES
5.2.4.1 Incompatibility of control algorithms used by grid-forming inverters with grid operating systems
5.2.4.2 Grid codes and regulations to pose challenge for grid-forming inverter deployment
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
5.3.1 REVENUE SHIFT AND NEW REVENUE POCKETS FOR GRID-FORMING INVERTER MANUFACTURERS
FIGURE 25 REVENUE SHIFT AND NEW REVENUE POCKETS FOR PLAYERS IN GRID-FORMING INVERTER MARKET
5.4 TECHNOLOGY ANALYSIS
5.4.1 ADVANCED CONTROL ALGORITHMS
5.4.2 IMPROVED COMMUNICATION PROTOCOLS
5.4.3 NEW HARDWARE ARCHITECTURES
5.4.4 MACHINE LEARNING
5.5 KEY CONFERENCES AND EVENTS, 2022-2023
TABLE 6 GRID-FORMING INVERTER MARKET: DETAILED LIST OF CONFERENCES AND EVENTS
5.6 MARKET MAP
FIGURE 26 GRID-FORMING INVERTER MARKET MAP
5.7 VALUE CHAIN ANALYSIS
FIGURE 27 GRID-FORMING INVERTER MARKET VALUE CHAIN
5.7.1 RESEARCH AND DEVELOPMENT
5.7.2 COMPONENT PROVIDERS
5.7.3 MANUFACTURERS/ASSEMBLERS
5.7.4 SYSTEM INTEGRATORS AND DISTRIBUTORS
5.7.5 END USERS
5.7.6 POST-SALES SERVICES
5.8 INNOVATIONS AND PATENT REGISTRATIONS
TABLE 7 GRID-FORMING INVERTER MARKET: PATENTS AND INNOVATIONS
5.9 AVERAGE SELLING PRICE TREND
FIGURE 28 AVERAGE SELLING PRICE OF GRID-FORMING INVERTERS OF DIFFERENT OUTPUT POWER RATINGS
*Details on Business Overview, Products Offered, Recent Developments, MnM View, Right to win, Strategic choices made, Weaknesses and competitive threats might not be captured in case of unlisted companies.