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.
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.
North America to Dominate the Market
