Grid-Forming Inverter (GFMI) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Grid-Forming Inverter (GFMI) Market size was estimated at USD 670 million in 2025 and is projected to reach USD 1209 million in 2030 at a CAGR of 8.8% during the forecast period 2023-2030.

Inverters are devices that act as a bridge between the power grid and energy sources like solar panels, wind turbines, and energy storage devices. Grid-forming inverters are a type of inverter that can control voltage and frequency, which makes them more efficient and better at managing power than grid-following inverters. Grid-forming inverters can also operate independently, without relying on the rest of the power grid. This reduces complexity and dependence on external factors.

Grid-forming inverters are a type of inverter that provides the interface between the grid and energy sources like solar panels, wind turbines, and energy storage devices. These inverters are voltage and frequency controlled, which means they have better control and efficiency compared to grid-following inverters. Grid-forming inverters can operate from a standalone position, which decreases complexity and dependence on the rest of the grid. As wind and solar energy account for increasing shares of the overall electricity supply, it is becoming impractical to depend on the rest of the grid to manage disturbances. Grid-forming inverters are an emerging technology that allows solar and other inverter-based energy resources to restart independently without any external aid. This means that in the event of a power outage or disturbance, the grid-forming inverter can restart the energy source without needing external assistance, which can improve reliability and reduce downtime.

The COVID-19 virus outbreak has been declared a public health emergency by the World Health Organization, and it has resulted in massive deaths across the world. The pandemic has had unfavorable global effects, and it has heavily damaged various sectors such as exports and imports, global manufacturing, tourism, and financial sectors. The grid forming inverters market is also expected to be impacted by the pandemic in 2020. The pandemic has disrupted the supply chain and manufacturing processes, which may lead to delays in the installation of grid forming inverters. The pandemic has also resulted in a decrease in demand for grid forming inverters due to the economic slowdown and reduced investments in renewable energy projects.

Delvens Industry Expert's Standpoint

The demand for renewable energy is increasing rapidly due to the growing global awareness of environmental issues and the need for clean and green energy sources. Grid-forming inverters are becoming increasingly popular worldwide due to their ability to quickly convert DC power into AC power while remaining connected to the grid system and operating independently in an environmentally friendly manner. The number of solar power plants connected to the grid through on-grid solar inverters is increasing, which is driving the growth of the inverter market globally. Inverters are used for commercial, industrial, and residential purposes, which is driving market growth and creating a significant demand for reliable and safe power source inverters. Developed countries in Europe and North America are already using grid-forming inverters on a daily basis for a wide range of applications, and the same trend is expected to occur in the Asia-Pacific region as well.

Market Portfolio

Key Findings

• On the basis of power infrastructure, the growth of the inverter market is being driven by two major factors: continuous infrastructure development in both developing and developed economies, and the rising demand for uninterrupted electricity supply. Many countries are focusing on developing smart cities, which require reliable and efficient energy sources. For example, the UAE is currently working on the Smart Dubai project, which aims to transform Dubai into a leading global smart city. The construction activity associated with these smart city projects will lead to an increase in demand for inverters, as they are an essential component of the energy infrastructure needed to power these cities.

• On the basis of end user, the term greenhouse effect refers to the phenomenon of the Earth's atmosphere trapping heat from the sun, leading to global warming and climate change. The increased awareness about the greenhouse effect and other environmental issues has led to a growing focus on renewable energy sources, such as solar and wind power. Grid forming inverters are a key component of renewable energy systems, as they convert the DC power generated by solar panels or wind turbines into AC power that can be used by homes and businesses.

• On the basis of Type, A grid-forming inverter is a type of inverter that can operate independently without the need for coordination controls. This means that it can balance the load instantly without any external assistance, which makes it highly efficient. In fact, the grid-forming inverter can achieve almost 100% penetration, which means that it can supply power to the grid without any interruptions or fluctuations. This high efficiency and penetration rate are due to the standalone operating function of the inverter, which reduces the complexity of the entire system.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe accounted highest share of the grid forming inverter market.

Regional Analysis

North America to Dominate the Market

• Europe is estimated to account for the largest market share during the forecast period. The grid forming inverters have been gaining traction in Europe, driven by the region’s increasing focus on renewable energy.
   
• Grid forming inverters are becoming essential components of Europe’s evolving energy landscape, supporting the integration of renewable energy sources and enabling grid stability and resilience.

Competitive Landscape

• Huawei Technologies Co.
• General Electric
• Power Electronics
• SMA Solar Technology
• Games Electric
• FIMER
• Growatt New Energy
• TBEA Xingjang Sunoasis
• Fronius International
• Goodwe
• Schneider Electric
• SolarEdge Technologies
• Sungrow power supply
• Delta Electronics
• Enphase Energy
• Altenergy power system
• Sensata Technologies
• Delphi technologies

Recent Developments

• In March 2022, Huawei Technology has signed a strategic cooperation agreement with Meienergy Technology Co. Ltd. For providing smart PV and energy storage system for the 1 GW utility PV plant and 500 MWh energy storage system in Ghana which is NA developed by Meienergy.
   
• In Feb 2022, FIMER made a partnership with vega Solar to supply 14 PVS-100 inverters, three-phase string solution in Albania. The PVS-100 is FIMER’s cloud connected 3 Phase string inverter solution for cost efficient decentralized photovoltaic systems for both ground mounted and rooftop applications.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Grid-forming Inverter (GFMI) Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope