US Grid Forming Inverters for Microgrids Market

Grid-Forming Inverters for Microgrids by Type Insights

Based on type, the US grid-forming inverters for microgrids market is segmented into micro inverter, string inverter, and central inverter. Resin, Acrylic, Epoxy, Poly Vinyl Acetate, Alkyd, Others. The String Inverter segment dominated the US market in 2024, while the Micro Inverter segment is projected to be the fastest–growing segment during the forecast period. String inverters are among the most commonly used inverters for residential and commercial solar power systems. They function by connecting multiple solar panels in a series, forming a "string," which feeds direct current (DC) electricity into a single inverter that converts it into alternating current (AC). String inverters are cost-effective, reliable, and easier to install compared to micro inverters. 

However, they operate on the principle that the weakest-performing panel in the string affects the output of all connected panels. This means that shading, dirt, or damage to a single panel can impact the overall efficiency of the entire system. Despite this limitation, advancements such as power optimizers have been developed to mitigate these issues, making string inverters an attractive option for installations where panels receive uniform sunlight exposure. Their affordability and ease of maintenance make them a preferred choice for medium-sized commercial and residential solar projects.

FIGURE 2: US GRID-FORMING INVERTERS FOR MICROGRIDS MARKET SHARE BY TYPE 2024 AND 2035 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Grid-Forming Inverters for Microgrids by Voltage Insights

Based on Voltage, the US grid-forming inverters for microgrids market is segmented into 100–300 V, 300–500 V, and Above 500 V. The Above 500 V segment dominated the US market in 2024, while the Above 500 V segment is projected to be the fastest–growing segment during the forecast period. Inverters operating above 500 V are primarily used in large-scale energy applications, such as utility-scale solar farms, industrial power backup systems, and grid stabilization projects. 

These high-voltage inverters are designed to handle massive amounts of energy, making them suitable for large industrial plants, commercial facilities, and power generation stations. Their ability to efficiently convert and transmit power over long distances makes them essential for integrating renewable energy sources into national grids.

Grid-Forming Inverters for Microgrids by Power Rating Insights

Based on power rating, the US grid-forming inverters for microgrids market is segmented into Below 50 KW, 50–100 KW, and above 100 KW. The Above 100 KW segment dominated the US market in 2024, while the Above 100 KW segment is projected to be the fastest–growing segment during the forecast period. Inverters with a power rating above 100 kW are designed for large-scale industrial, utility, and grid-connected solar power plants. These high-capacity inverters play a crucial role in managing energy transmission and ensuring grid stability. 

They are commonly used in solar farms, industrial power plants, data centers, and energy storage systems, where large amounts of electricity need to be efficiently converted and distributed. The increasing focus on utility-scale renewable energy projects has driven substantial demand for above 100 kW inverters. Governments and private sector players are investing heavily in solar energy generation to meet carbon reduction goals and enhance energy security. These inverters are critical for maintaining high efficiency in large solar farms and ensuring uninterrupted power supply for industrial applications that require constant energy input.

Grid-Forming Inverters for Microgrids by Application Insights

Based on applications, the US grid-forming inverters for microgrids market is segmented into remote & off-grid microgrids, grid-connected microgrids, community & resiliency microgrids, hybrid microgrids, and others. The Grid-Connected Microgrids segment dominated the US market in 2024, while the Hybrid Microgrids segment is projected to be the fastest–growing segment during the forecast period. Grid-connected microgrids are designed to work in parallel with the main power grid, enhancing energy efficiency, reliability, and sustainability. These microgrids integrate distributed energy resources (DERs) such as solar panels, wind turbines, and battery storage while maintaining a connection to the utility grid for backup power. 

They are commonly used in commercial, industrial, and institutional settings, as well as in urban residential developments seeking to optimize energy consumption and reduce dependency on conventional power sources. A major benefit of grid-connected microgrids is their ability to support demand response programs, peak shaving, and grid stabilization. These inverters enable seamless switching between grid-supplied power and locally generated renewable energy, optimizing energy costs and enhancing grid reliability. Additionally, with the rising adoption of smart grids and virtual power plants (VPPs), grid-connected microgrid inverters are playing a crucial role in balancing electricity demand and supply.

Grid-Forming Inverters for Microgrids by Technology Insights

Based on technology, the US grid-forming inverters for microgrids market is segmented into AC to DC converters, DC to AC converters, and others. The DC to AC Converters segment dominated the US market in 2024, while the DC to AC Converters segment is projected to be the fastest–growing segment during the forecast period. DC to AC converters, commonly referred to as inverters, are fundamental in microgrid power systems, enabling the conversion of direct current (DC) electricity from renewable sources, batteries, and fuel cells into alternating current (AC), which is required for most electrical grids and appliances. These converters are critical for solar photovoltaic (PV) systems, wind turbines, off-grid power solutions, and hybrid energy systems. 

The DC to AC converter segment is experiencing rapid advancements with the integration of smart inverters, grid-forming technologies, and artificial intelligence (AI)-based energy management systems. Modern microgrid inverters are designed to enhance grid stability, enable islanding capabilities, and support bidirectional energy flow, allowing microgrids to function both independently and in connection with the main utility grid. String inverters, central inverters, and microinverters are key types of DC to AC converters, each catering to specific microgrid applications based on power demand, scalability, and efficiency requirements.

Grid-Forming Inverters for Microgrids by End-User Insights

Based on end user, the US grid-forming inverters for microgrids market is segmented into utilities, residential & commercial, military & defense, and others. The Utilities segment dominated the US market in 2024, while the Military & Defense segment is projected to be the fastest–growing segment during the forecast period. The utilities sector is one of the primary adopters of microgrid technology, leveraging it for grid modernization, renewable energy integration, and resilience enhancement. Utilities use microgrids to stabilize power distribution networks, support remote and islanded communities, and enhance grid reliability during outages. 

These systems are particularly beneficial in regions prone to natural disasters, aging grid infrastructure challenges, or high penetration of renewable energy sources. A key driver for utility-scale microgrid adoption is the transition toward decentralized energy generation. Traditional centralized power grids are increasingly being supplemented with distributed energy resources (DERs) such as solar, wind, and battery storage, which microgrids help integrate seamlessly. In addition, regulatory policies, carbon reduction mandates, and incentives for renewable energy adoption are pushing utilities to deploy smart microgrid solutions to improve energy efficiency and minimize transmission losses.

Grid-Forming Inverters for Microgrids