Top Trends Transforming the Grid Forming Inverter Market Landscape in 2025: Development In Next-Generation Grid-Forming Inverters Enhance Renewable Integration And Grid Stability

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What Will the Grid Forming Inverter Industry Market Size Be by 2025?
In recent periods, the grid forming inverter market has seen a significant surge in size and is predicted to increase from $0.69 billion in 2024 to $0.75 billion in 2025 with a CAGR of 9.2%. The driving forces behind this impressive growth during the historical period include the expansion of renewable energy integration, rising deployment of solar PV systems, initial government encouragement for smart grids, increased microgrid installations, and advancements in inverter control technologies.

What's the Long-Term Growth Forecast for the Grid Forming Inverter Market Size Through 2029?
The market size of the grid forming inverter is anticipated to experience substantial growth in the upcoming years. It is predicted to reach $1.06 billion in 2029, with a compound annual growth rate (CAGR) of 8.9%. The growth during the forecast period is likely due to the increased adoption of energy storage, a move towards decentralized power generation, the need for grid stability in high-renewable situations, stringent grid codes and regulations, and the proliferation of EV charging infrastructure. Key trends expected during this forecast period include improved synthetic inertia capabilities, the merging with battery energy storage systems, AI-driven grid stability optimization, modular and adaptable inverter designs, and improvements in compatibility with digital grid platforms.

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What Are the Key Growth Drivers Fueling the Grid Forming Inverter Market Expansion?
The upswing in renewable energy integration is set to spur the development of the grid-forming inverter market. Sources like sunlight, wind, water, and geothermal heat, which are naturally replenishing, generate renewable energy. The rise in renewable energy integration attests to a greater adoption of greener energy sources in a collective effort by governments and industries to quell carbon emissions and contend with climate change. By mimicking conventional generator functions, grid-forming inverters enable the smoother mixing of renewable energy, supporting grid stability. These inverters control voltage and frequency to ensure a steady and reliable power supply, even amidst variations from solar or wind sources. For instance, the France-based International Energy Agency (IEA) reported a notable increase of 320 TWh in solar photovoltaic (PV) power generation in February 2025, which represents a 25% increase compared to 2022. Therefore, the growth of the grid-forming inverter market is being pushed by the increasing integration of renewable energy.

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What Are the Key Trends Driving Grid Forming Inverter Market Growth?
Prominent corporations in the grid-forming inverter market are concentrating on the advancement and production of cutting-edge solutions like the central grid inverters, with an aim to facilitate greater incorporation of renewable energy into power systems. The central grid inverter is a high-capacity apparatus capable of transforming DC from several solar energy sources into AC for the grid, thereby promoting efficacious power management. Besides, it also stabilizes the grid by controlling voltage and frequency at a main point within large-scale renewable energy infrastructures. As an example, in April 2025, Hitachi Industrial Equipment Systems Co., Ltd., an industrial equipment providing company based in Japan, introduced its latest Grid Forming Inverter (GFM) system. This sophisticated inverter technology is engineered to bolster robust and stable power grids by mimicking stabilizing inertia effects traditionally offered by large power plants. This is gradually becoming more critical as renewable energy sources like solar and wind take the place of conventional power generators. The GFM system facilitates the establishment and stabilization of independent microgrids, improves grid resilience, and ensures uninterrupted operations even in the face of power fluctuations or blackouts, thereby contributing to attempts at carbon reduction and disaster readiness.

How Is the Grid Forming Inverter Market Segmented?
The grid forming inverter market covered in this report is segmented -

1) By Type: Micro Inverter, String Inverter, Central Inverter, Other Types
2) By Connectivity: Standalone, Grid-Connected
3) By Power Rating: Below 50 Kilowatt (KW), 50-100 Kilowatt (KW), Above 100 Kilowatt (KW)
4) By Application: Solar Photovoltaic (PV) Plants, Wind Power Plants, Energy Storage System, Electric Vehicles, Other Applications
5) By End-User: Residential, Commercial, Other End-Users

Subsegments:
1) By Micro Inverter: Residential Micro Inverters, Commercial Micro Inverters, Hybrid Micro Inverters, Off-Grid Micro Inverters
2) By String Inverter: Single-Phase String Inverters, Three-Phase String Inverters, Hybrid String Inverters, Transformerless String Inverters
3) By Central Inverter: Utility-Scale Central Inverters, Commercial Central Inverters, High Power Central Inverters, Medium Power Central Inverters
4) By Other Types: Hybrid Inverters, Battery Integrated Inverters, Modular Inverters, Bidirectional Inverters

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Which Companies Are Leading the Charge in Grid Forming Inverter Market Innovation?
Major companies operating in the grid forming inverter market are Huawei Technologies Co. Ltd., Siemens AG, ABB Ltd., Toshiba Corporation, Infineon Technologies AG, Delta Electronics Inc., Sungrow Power Supply Co. Ltd., Enphase Energy Inc., SMA Solar Technology AG, GoodWe, Sineng Electric, SolaX Power, Hitachi Energy Ltd, TMEIC Corporation, Growatt New Energy Co. Ltd., FIMER Group, Yaskawa Solectria Solar, Su-Kam Power Systems Ltd., NingBo Deye Inverter Technology Co. Ltd, Medha, Bharat Heavy Electricals Limited (BHEL)

Which Regions Are Leading the Global Grid Forming Inverter Market in Revenue?
Asia-Pacific was the largest region in the grid-forming inverter market in 2024. The regions covered in the grid forming inverter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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