The North America Grid-forming Inverter market was valued at USD 320 million in 2025 and is expected to reach USD 970 million by 2035, growing at a CAGR of 10.9% from 2024 to 2035. This growth is fueled by the transition to renewable energy sources and the rapid modernization of electricity grids across the region.
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Market Growth Drivers
Increasing Integration of Renewable Energy: As North America dramatically expands its solar and wind energy portfolios, grid-forming inverters play a critical role in maintaining grid stability and reliability. Companies like Siemens Energy are deploying advanced grid-forming inverters to address the increasing ratio of inverter-based renewable generation, allowing seamless synchronization and better voltage regulation, especially in areas with high DER (Distributed Energy Resources) penetration.
Government Policies and Incentives: Robust policy support and financial incentives provided by the U.S. Department of Energy, coupled with state mandates for renewable integration, have resulted in accelerated investments in grid modernization. Entities such as General Electric (GE) have capitalized on these policies by offering grid-forming inverter solutions that comply with strict grid codes and support black start capabilities, catering to utilities’ evolving technical requirements.
Market Trends
Adoption of Virtual Power Plants (VPPs): The trend toward creating distributed energy networks and VPPs is furthering the demand for smart, grid-forming inverters capable of real-time grid support functionalities. Tesla's involvement in residential and commercial projects, leveraging their proprietary inverters to facilitate distributed energy aggregation and management, exemplifies this trend.
Hybrid Energy Systems Implementation: There is a notable uptrend in the deployment of hybrid systems that combine solar, wind, and energy storage. ABB and SMA Solar Technology are innovating solutions that integrate grid-forming inverters for versatile grid services such as frequency regulation and dynamic islanding, rapidly increasing the resilience of North America’s energy infrastructure.
Market Opportunities
Expansion of Microgrid Projects: Rapid urbanization and rural electrification initiatives in the U.S. and Canada are driving the growth of microgrid projects, presenting a sizable opportunity for grid-forming inverter manufacturers like Schneider Electric to offer robust, scalable solutions for diverse applications.
Electrification of Transportation: The push for flexible EV charging infrastructure and vehicle-to-grid technology is opening new avenues for companies like Enphase Energy, whose grid-forming inverters can help integrate EVs as dynamic grid assets.
North America Grid-forming Inverter Market Revenue (USD Million), 2020-2035
The revenue chart shows a strong, sustained growth in the North America Grid-forming Inverter market, starting from USD 120 million in 2020 and climbing steadily to reach USD 320 million by 2025. This growth accelerates further in the following decade, reaching an estimated USD 970 million by 2035. The robust CAGR of 10.9% reflects increasing renewable energy projects, surging grid modernization efforts, and the adoption of storage-backed hybrid systems. Year-on-year increases are especially significant post-2025, as grid-forming technology becomes standard in both utility and commercial sectors.
North America Grid-forming Inverter Market by Region, 2025
The 2025 pie chart highlights the U.S. as the leading region, accounting for 67% of the North America grid-forming inverter market share. Canada follows with 24%, contributing to significant deployments particularly in renewable and storage-backed power projects. Mexico holds a smaller, but growing share at 6%, reflecting emerging investments. Central America and the Caribbean, though early in adoption, account for 2% and 1% respectively, with growth expected as grid modernization expands across the broader region.
Recent Developments in North America Grid-forming Inverter Market
In February 2024, Siemens Energy launched its next-generation grid-forming inverter platform in the U.S., specifically designed to address the challenges of high renewable penetration. The platform includes advanced autonomous grid stabilization features and supports hybrid integration, receiving positive feedback from key U.S. utilities piloting the technology in high-renewable regions.
In April 2024, Tesla initiated commercial operations of a virtual power plant in California, deploying grid-forming inverters across hundreds of residential sites. This project is the first of its scale in the region and marks a significant advancement in leveraging aggregated DERs (Distributed Energy Resources) for real-time grid support and demand response.
In June 2024, ABB announced a strategic alliance with a major Canadian utility to upgrade multiple microgrids using its advanced grid-forming inverters. This partnership aims to enhance grid flexibility, enable smooth integration of renewables and storage, and improve reliability in remote and urban areas of Canada.
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