US Grid-Forming Inverters for Microgrids Market Research Report Information by Type (Micro Inverter, String Inverter, Central Inverter), by Voltage (100–300 V, 300–500 V, Above 500 V), by Power Rating (Below 50 KW, 50–100 KW, Above 100 KW), by Application (Remote & Off-Grid Microgrids, Grid-Connected Microgrids, Community & Resiliency Microgrids, Hybrid Microgrids, Others), by Technology (AC to DC Converters, DC to AC Converters (Isolated DC/DC Converters, Non-Isolated DC/DC Converters, Bidirectional DC/DC Converters) Others), by End-User

US Grid-Forming Inverters for Microgrids Market Overview

The US Grid-Forming Inverters for Microgrids Market was valued at USD 148.71 Million in 2024. The Grid-Forming Inverters for Microgrids Market industry is projected to grow from USD 160.08 Million in 2025 to USD 290.85 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 7.89% during the forecast period (2025-2035)

The rising deployment of microgrids, need for grid resilience & stability and corporate and military investments in microgrids are driving the growth of the Grid-Forming Inverters for Microgrids Market.

As per the Analyst at MRFR, the U.S. grid-forming inverters for microgrids market is experiencing significant growth, driven by the increasing adoption of renewable energy sources and the need for enhanced grid resilience. As the country transitions toward a more decentralized energy infrastructure, microgrids have gained traction in applications such as remote communities, military bases, and commercial facilities seeking energy independence. 

Grid-forming inverters play a crucial role in stabilizing these microgrids by enabling seamless integration of renewable energy sources like solar and wind while maintaining voltage and frequency stability. Additionally, government initiatives and funding programs supporting microgrid deployment, coupled with advancements in inverter technology, are further fueling market expansion. The growing emphasis on energy security and the rising frequency of extreme weather events have also highlighted the importance of resilient power solutions, accelerating demand for grid-forming inverters.

FIGURE 1: US GRID-FORMING INVERTERS FOR MICROGRIDS MARKET VALUE (2019-2035) USD MILLION

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

US Grid-Forming Inverters for Microgrids Market Opportunity

Emerging Role of DC Microgrids & Bidirectional DC/DC Converters

The increasing integration of renewable energy sources, energy storage systems, and electric vehicle (EV) charging infrastructure is accelerating the shift toward DC microgrids, which offer improved efficiency, reliability, and cost savings over traditional AC-based systems. Unlike conventional AC grids, DC microgrids eliminate unnecessary power conversions, minimizing energy losses and improving overall system performance. Their ability to seamlessly integrate distributed energy resources (DERs) and optimize local power management has made them a critical solution for decentralized power generation and consumption. As industries and municipalities seek to enhance energy resilience and sustainability, the demand for grid-forming inverters capable of operating in DC microgrids is expanding rapidly. 

A key enabling technology within this ecosystem is bidirectional DC/DC converters, which facilitate efficient energy transfer between different DC voltage levels, energy storage systems, and power sources. These converters are essential for balancing supply and demand in microgrids, enabling power flow in both directions to support energy storage integration and vehicle-to-grid (V2G) applications. Their role in ensuring voltage regulation, load balancing, and energy optimization makes them a crucial component for the next generation of power systems. As electrification trends continue to grow, industries such as EV charging, data centers, and industrial automation are increasingly adopting bidirectional converters to enhance grid flexibility and efficiency.

US Grid-Forming Inverters for Microgrids Market Segment Insights

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 Regional Insights

Based on country, the US Grid-Forming Inverters for Microgrids Market is segmented into Northeast US, Southeast US, Midwest US, Southwest US, West US. The West US segment dominated the US market in 2024, while the West US segment is projected to be the fastest–growing segment during the forecast period. The Western U.S. is a leading part of the country for microgrid deployment, driven by its extensive renewable energy capacity, vulnerability to wildfires, and increasing need for energy resilience. 

California, Oregon, and Washington are at the forefront, integrating grid-forming inverters to support decentralized energy systems, stabilize voltage and frequency, and ensure grid reliability during disruptions. The demand for microgrids is growing, particularly for critical infrastructure, remote communities, and industrial facilities requiring stable, off-grid power solutions. For instance, in December 2024, the California Energy Commission (CEC) approved over USD 100 million in funding for microgrid projects that enhance community resilience in wildfire-prone areas. These projects focus on deploying solar-plus-storage systems with advanced grid-forming inverters, allowing seamless islanding and reconnection to the grid.

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

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

US Grid-Forming Inverters for Microgrids Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Grid-Forming Inverters for Microgrids Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Abb, Schneider Electric Se, Siemens Ag, General Electric (Ge), Eaton Corporation, Tesla Inc, Hitachi Energy Ltd, Sma Solar Technology Ag, Enphase Energy, Inc, SOLAREDGE Technologies, Inc are among others. The US Grid-Forming Inverters for Microgrids Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the US Grid-Forming Inverters for Microgrids Market include

• Abb, Schneider Electric Se
• Siemens Ag, General Electric (Ge)
• Eaton Corporation
• Tesla Inc
• Hitachi Energy Ltd
• Sma Solar Technology Ag
• Enphase Energy, Inc
• SOLAREDGE Technologies, Inc

US Grid-Forming Inverters for Microgrids Market Industry Developments

April 2024: Siemens expanded its Xcelerator portfolio with Electrification X, a suite of solutions aimed at digitalizing and modernizing energy infrastructure. This initiative enhances microgrid flexibility, directly impacting the adoption of grid-forming inverters for improved energy management.

May 2024: ABB introduced an innovative motor and inverter package for electric buses, featuring the AMXE250 motor and HES580 inverter. This package, highlighted at Busworld Turkey 2024, is notable for incorporating the first 3-level inverter in the electric bus market, achieving up to a 75% reduction in motor harmonic losses compared to traditional 2-level inverters. The AMXE250 motor offers high torque density and quieter operation, enhancing passenger comfort.

April 2024: Schneider Electric introduced an all-in-one battery energy storage system (BESS) designed for microgrids. The solution combines energy storage, power conversion, and intelligent controls, providing a compact and scalable option for energy management. Efficient energy storage plays a critical role in stabilizing microgrids, ensuring reliable power supply, and enhancing grid-forming inverter applications in the U.S. market.

September 2024: GE Vernova launched a 2000V inverter designed for utility-scale solar projects, enhancing energy efficiency and grid stability. This innovation supports the integration of renewable energy into microgrids, strengthening the role of grid-forming inverters in the U.S. market by improving voltage regulation and power conversion efficiency.

US Grid-Forming Inverters for Microgrids Market Segmentation

Grid-Forming Inverters for Microgrids by Type Outlook

• Micro Inverter
• String Inverter
• Central Inverter

Grid-Forming Inverters for Microgrids by Voltage Outlook

• 100–300 V
• 300–500 V
• Above 500 V

Grid-Forming Inverters for Microgrids by Power Rating Outlook

• Below 50 KW
• 50–100 KW
• Above 100 KW

Grid-Forming Inverters for Microgrids by Application Outlook

• Remote & Off-Grid Microgrids
• Grid-Connected Microgrids
• Community & Resiliency Microgrids
• Hybrid Microgrids
• Others

Grid-Forming Inverters for Microgrids by Technology Outlook

• AC to DC Converters
• DC to AC Converters
  • Isolated DC/DC Converters
  • Non-Isolated DC/DC Converters
  • Bidirectional DC/DC Converters
• Others

Grid-Forming Inverters for Microgrids by End-User Outlook

• Utilities
• Residential & Commercial
• Military & Defense
• Others

Grid-Forming Inverters for Microgrids Regional Outlook

• US
  • Northeast US
  • Southeast US
  • Midwest US
  • Southwest US
  • West US

Report Attribute/Metric	Details
Market Size 2024	USD 148.71 Million
Market Size 2025	USD 160.08 Million
Market Size 2035	USD 290.85 Million
Compound Annual Growth Rate (CAGR)	7.89% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Type, Voltage, Power Rating, Application, Technology, End-User
Geographies Covered	US
Countries Covered	US
Key Companies Profiled	Abb, Schneider Electric Se, Siemens Ag, General Electric (Ge), Eaton Corporation, Tesla Inc, Hitachi Energy Ltd, Sma Solar Technology Ag, Enphase Energy, Inc, SOLAREDGE Technologies, Inc
Key Market Opportunities	·         Emerging Role of DC Microgrids & Bidirectional DC/DC Converters ·         Growth in Smart Grids & Digitalization
Key Market Dynamics	·         Rising deployment of microgrids ·         Need for grid resilience & stability