Grid-Forming Inverter Market Size is valued at USD 676.01 Mn in 2023 and is predicted to reach USD 1,284.40 Mn by the year 2031 at an 8.48% CAGR during the forecast period for 2024–2031.
Key Industry Insights & Findings from the Report:
- Grid-forming inverters play a crucial role in enabling the transition towards a more decentralized and resilient power grid architecture.
- The market is witnessing increasing investment in research and development activities aimed at overcoming technical challenges and optimizing grid-forming inverter performance.
- Regulatory frameworks and incentive programs are expected to play a key role in driving market adoption and deployment of grid-forming inverter technologies globally.
- North America is poised to experience the highest Compound Annual Growth Rate (CAGR) during the forecast period in the grid-forming inverter market.
A grid-forming inverter is a key component in electrical grids and renewable energy systems. It controls voltage and frequency, ensuring grid stability and reliable power distribution. It's essential for integrating renewables, managing energy storage, and responding to grid disturbances, making it a crucial element in modern power systems. Using grid-forming inverters, electric vehicles can contribute to the power system by balancing loads, regulating frequencies, and meeting peak demand.
The market for grid-forming inverters is projected to expand most rapidly in the central inverter subsegment. In order to effectively incorporate the sizable power output from large-scale renewable energy projects like utility-scale solar farms and wind farms into the electricity system, high-capacity central grid-forming inverters are required. Furthermore, the grid voltage and frequency are all that are required of grid-forming inverters. Therefore, simpler control algorithms and hardware can be used.
However, market growth is hampered by the strict regulatory criteria for safety and the lack of norms and etiquette. In order to ensure safe and reliable functioning, a set of regulations known as "grid codes" have been established. Usually, they outline the standards that must be met regarding the electrical output and inverter communication protocols. Due to the added complexity inherent in actively controlling the grid voltage and frequency, grid-forming inverters are more complex than grid-forming inverters. Because of this, we need sophisticated controllers.
The COVID-19 epidemic has repercussions on economies, businesses, and factories around the world. Customers' consumption and demand patterns are changing as a result of the pandemic, which has had a major impact on the grid-forming inverter market during the epidemic by restricting imports and exports. Because of this, businesses all across the world were able to flourish.
Competitive Landscape
Some Major Key Players in the Grid-Forming Inverter Market:
- Huawei Technologies Co., Ltd.
- Sungrow
- Solar Technology Ag
- Power Electronics S.L.
- Fimer Group
- Solaredge Technologies
- Fronius International Gmbh
- Goodwe
- Enphase Energy
- Schneider Electric
- General Electric
- Delta Electronics, Inc.
- Kaco New Energy
- Tmeic
- Gamesa Electric
- Delphi Technologies
- Sensata Technologies, Inc.
- Altenergy Power System, Inc.
- Growatt: New Energy
- Tbea Xinjiang Sunoasis
- Others
Market Segmentation:
The grid-forming inverter market is segmented based on power rating, voltage, type, and application. Based on power rating, the market is segmented into below 50 KW, 50–100 KW, and above 100 KW. By voltage, the market is segmented into 100–300 V, 300–500 V, and above 500 V. By type, the market is segmented into micro inverters, string inverters, and central inverters. The application segment comprises solar PV plants, wind power plants, energy storage systems, and electric vehicles.
Based on the voltage, the 500 V grid-forming inverter market segment is a Major contributor to the grid-forming inverter market.
The 500 V grid-forming inverter market is expected to hold a major global market share in 2024. 500 V includes enormous solar arrays and wind turbines. These inverters can integrate the generated electricity into the grid efficiently and handle huge power capacities. Due to the rising popularity of large-scale renewable energy projects and the consequent demand for high-capacity inverters, the market for above-500 V grid-forming inverters was expanding rapidly.
50-100 KW Segment to Witness Growth At A Rapid Rate
The 50-100 KW segment is projected to grow rapidly in the global grid-forming inverter market. 50-100 KW inverters are crucial to safely and effectively incorporating renewable energy sources into the grid. In the commercial and industrial sectors, grid-forming inverters in the 50–100 kW range provide an optimal balance between capacity and cost, especially in countries like the US, Germany, the UK, China, and India.
In the region, the European grid-forming inverter market holds a Significant revenue share
The European grid-forming inverter market is expected to record the maximum market share in revenue in the near future. It can be attributed to the fact that grid stability and renewable energy integration are improved through energy storage, which allows for the discharging of stored renewable energy during times of high demand. Policies and regulations are being introduced and updated by governments to make it easier to integrate renewable energy sources into the grid. In addition, Asia Pacific is estimated to grow rapidly in the global grid-forming inverter market. Support for renewable energy integration, grid modernization, and grid stability and resilience are all receiving more attention as the world moves toward a more sustainable energy future.
Recent Developments:
- In May 2023, Huawei introduced its latest FusionSolar strategy and comprehensive Smart PV+Energy Storage System (ESS) solutions at Shanghai's 16th SNEC PV Power Expo. These services exemplify Huawei's dedication to advancing worldwide efforts towards achieving carbon neutrality.
- In November 2022, Schneider Electric unveiled an expanding portfolio for stakeholders in the energy and grid industries seeking clean and secure energy. Schneider Electric unveiled an expanding portfolio for grid and energy industry stakeholders seeking secure, environmentally friendly energy. Presenting their most recent projects and innovative energy technologies, the company's new energy technologies offered sustainable and practical solutions to Europe's immediate and long-term energy uncertainty.
Grid-Forming Inverter Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 676.01 Mn |
|
Revenue Forecast In 2031 |
USD 1,284.40 Mn |
|
Growth Rate CAGR |
CAGR of 8.48 % from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Mn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
Voltage, Power rating, Type, and application |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ; France; Italy; Spain; South Korea; South East |
|
Competitive Landscape |
Huawei Technologies Co., Ltd., Sungrow, Solar Technology Ag, Power Electronics S.L., Fimer Group, Solaredge Technologies, Fronius International Gmbh, Goodwe, Enphase Energy, Schneider Electric, General Electric, Delta Electronics, Inc., Kaco New Energy, Tmeic, Gamesa Electric, Delphi Technologies, Sensata Technologies, Inc., Altenergy Power System Inc., Growatt New Energy, Tbea Xinjiang Sunoasis |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular geographically competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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