Grid-forming Inverter Market Forecasts to 2030 – Global Analysis By Type (Micro Inverter, Central Inverter, String Inverter, Hybrid-Inverters and Other Types), Output Power Rating, Voltage, Application, End User and By Geography
According to Stratistics MRC, the Global Grid-forming Inverter Market is accounted for $680.0 million in 2023 and is expected to reach 1,402.9 million by 2030 growing at a CAGR of 10.9% during the forecast period. In order to incorporate renewable energy sources like solar, wind, and hydroelectric power into the electrical system, grid-forming inverters are necessary. They make it possible for these sporadic energy sources to synchronize with the grid and increase system stability. The voltage and frequency of the grid, which are essential elements for guaranteeing the stability and dependability of the power system, may be actively controlled and regulated by these inverters. They support grid stabilization in the event of power generation variations or disruptions.
According to the International Energy Agency Worldwide renewable electricity capacity is predicted to expand by more than 60% from 2020 to over 4,800 (GW) by 2026, equaling the total global power capacity of fossil fuels and nuclear power combined.
Market Dynamics:Driver:Growing investment in the sector of renewable energy
One major factor propelling the grid-forming inverter market is the increase in investments in the renewable energy industry. The globe is investing a lot more in renewable power production technologies like solar, wind, and hydropower as it moves toward a more sustainable energy future. Numerous considerations, such as the need to battle climate change, lower greenhouse gas emissions, and improve energy security, are driving these investments. In order to incorporate renewable energy sources into the electrical system, grid-forming inverters are essential. This makes it possible for renewable energy sources to function in islanded or microgrid setups and contribute to system stability.
Restraint:Stringent grid codes and regulations
Grid codes are a set of rules that control how the grid functions. Usually, they outline the standards for the power quality that must be produced in addition to the inverters' communication protocols. Country-to-country variations exist in grid codes, which can be complicated and hard to follow. Grid-forming inverter deployment is encouraged financially in some nations additionally to helping to defray the cost of installing grid-forming inverters, which hamper the growth of the market.
Opportunity:Demand for energy storage integration
Grid-forming inverters are becoming more and more necessary as the focus on integrating energy storage to control renewable energy fluctuation and improve grid performance grows. These inverters are essential for regulating and monitoring how energy storage devices, the grid, and renewable energy sources interact. Energy storage systems and renewable energy sources, such solar and wind power, may be seamlessly integrated thanks to grid-forming inverters. Moreover, they maximize energy storage units' performance inside the grid by making it easier for them to be charged and discharged under control which creates propelling opportunities for the market growth.
Threat:Technological challenges
The rate of invention and advancement in grid-forming inverter technology can be slowed down by technological obstacles. The release of new, more sophisticated inverters onto the market might be slowed delayed by difficulties in overcoming these obstacles. Moreover, the Inadequate technological solutions might result in grid-forming inverters that are less effective, perform worse, or have less capabilities. This may affect how well they control the voltage, frequency, and stability of the grid as a whole thus impeding the growth of the market.
Covid-19 Impact
Global supply chains were disrupted by the epidemic, which had an impact on the production and availability of parts needed for grid-forming inverters. The supply of inverters was impacted by production slowdowns, delays in obtaining raw materials, and logistical difficulties. However, the epidemic brought attention to the significance of energy resiliency and renewable energy sources, despite brief outages. Investments in renewable energy projects including those with grid-forming inverters became more and more popular as governments shifted their attention to sustainability and economic recovery.
The micro inverter segment is expected to be the largest during the forecast period
The micro inverter segment is estimated to have a lucrative growth; due to the panel-level monitoring features offered by microinverters, it is possible to precisely track each solar panel's performance. This granularity facilitates the prompt detection of problems or inefficiencies in individual panels, hence enhancing the overall efficiency and maintenance of the system. By lowering high DC voltages at the panel level and boosting safety during installation, maintenance, and emergency situations, microinverters increase system safety. Their decentralized architecture further strengthens the system's redundancy thus boosting the growth of the market.
The wind power plants segment is expected to have the highest CAGR during the forecast period
The wind power plants segment is anticipated to witness the highest CAGR growth during the forecast period, because wind turbines with grid-forming inverters may regulate and control the electrical output's voltage and frequency. Additionally, maintaining grid stability and dependability requires making sure that the generated electricity meets the grid's requirements. Variations in wind speed can lead to variations in wind power generation thereby by modifying the output power to fit the grids demand and preserve grid stability even during changes in wind energy production, grid-forming inverters assist in managing these variances.
Region with largest share:
Asia Pacific is projected to hold the largest market share during the forecast period due to the demand for grid-forming inverters is being driven by supportive government policies, incentives, and programs that emphasize grid stability and the deployment of renewable energy in nations around the Asia Pacific region. In order to effectively fulfil the expanding energy requirements, innovative grid technologies such as grid-forming inverters are becoming more necessary in Asia Pacific countries because to their rapid economic expansion and rising energy consumption. Moreover, advances in grid-forming inverter technology are being made possible by investments in modernizing and updating grid infrastructure, especially in emerging nations.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to distributed renewable energy sources which will replace centralized power generation as part of Europe's push toward decentralized energy systems. Grid-forming inverters promote the stability of decentralized power networks, which makes this transition easier. Europe's growing emphasis on grid modernization and the integration of renewable energy sources has led to a surge in the use of grid-forming inverters. Grid-forming inverters, which facilitate the integration of renewable energy sources and enable grid stability and resilience, are becoming crucial parts of Europe's changing energy environment.
Key players in the marketSome of the key players profiled in the Grid-forming Inverter Market include Power Electronics, TBEA Xingjiang Sunoasis, Growatt New Energy, Huawei Technologies Co. Ltd., General Electric, SMA Solar Technology, Schneider Electric, SolarEdge Technologies, Delta Electronics, Altenergy Power System, Sensata Technologies, Delphi Technologies, KACO New Energy, TMEIC, Fronius International, Goodwe, Enphase Energy, Games Electric, SunPower Corporation and Canadian Solar In
Key Developments:In November 2023, GE Vernova to collaborate with Duke Energy on nation’s first 100% green hydrogen-fueled peaking power plant the new hydrogen system will provide peak power to Duke’s customers at times of increased electricity demand.
In October 2023, Huawei Launches the Next-Generation OTN DC-Centric Kepler Platform; As a result, consumers and enterprises are raising their experience expectations. Against this backdrop, new applications are emerging and higher requirements are being impose
In September 2023, GE Vernova and EnergyHub announce partnership to enhance DER management and grid optimization. Partnership redefines how electric utilities manage DERs, expanding visibility and enabling better orchestration of these devices
Types Covered:
• Micro Inverter
• Central Inverter
• String Inverter
• Hybrid-Inverters
• Other Types
Output Power Ratings Covered:
• Below 50 kW
• 50-100 kW
• Above 100 kW
Voltages Covered:
• 100–300 V
• 300–500 V
• Above 500 V
Applications Covered:
• Wind Power Plants
• Solar PV Plants
• Energy Storage Systems
• Electric Vehicles
• Other Applications
End Users Covered:
• Commercial
• Residential
• Automobile
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements