Status : Published Published On : Jan, 2024 Report Code : VRSME9104 Industry : Semiconductor & Electronics Available Format : Page : 300
2025
2030

Global Microgrid Market – Analysis and Forecast (2025-2030)

Industry Insight by Offering (Hardware, Software, and Services), by Type (AC Microgrids, DC Microgrids, and Hybrid), by Connectivity (Grid Connected and Off-Grid Connected), by Storage Device (Lithium-Ion, Lead Acid, Flow Batteries, and Flywheel), by Power (Combined Heat & Power (CHP), Solar Photovoltaic, Natural Gas, Fuel Cell, and Diesel), by End Use (Utilities, Commercial & Industrial, Institutes & Campuses, Military, Remote, Government, and Healthcare), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The Microgrid Market is expected to experience substantial growth over the forecast period of 2025-2030, with a projected CAGR of 11.6%. Starting at USD 24.2 billion in 2023, the market is anticipated to reach USD 46.2 billion by 2030. Microgrids are smaller versions of power grids that transport electricity from source to consumer. They help to lower overall costs and provide grid backup in the event of an outage. Microgrids are more efficient than traditional electrical grids and can be integrated with a variety of renewable energy sources such as solar, wind, small hydro, geothermal, waste-to-energy, and combined heat and power (CHP) systems. Batteries, distributed generators, and solar panels can also be used to power them. Microgrids are also a reliable source of electricity because they operate continuously during power outages. Thus, the rising demand for reliable and secured power supply in industrial and commercial sectors globally along with initiatives by the government to reduce carbon footprint will propel the growth of the global microgrid market.

Microgrid Market

The COVID-19 outbreak has impacted the businesses of several microgrid hardware manufacturing companies, distributors, and suppliers owing to delays in shipments, and delays in projects and installation of microgrids, reduced domestic demand, thereby impacting the growth of the global microgrid market.

Market Segmentation

Insight by Offering

The global microgrid market is divided by offering into hardware, software, and services, where the hardware segment is expected to grow more due to higher microgrid projects, lower energy storage costs, low cost of renewable sources of energy, and favorable government initiatives to reduce greenhouse gas by using clean energy.

Insight by Type

The global microgrid market is also divided by type into AC, DC, and hybrid microgrid segments where the AC microgrid segment is expected to grow more due to less loss in transmission, lower heat generation, higher voltage levels, higher deployment, and large renewable energy farms connected to AC transmission lines.

Insight by Connectivity

Connectivity also divides the global microgrid market into grid-connected and off-grid-connected segments. Out of these two segments, the former is expected to grow more during the forecast period due to the growing adoption of utility-based grid networks, harnessing renewable sources of energy on a large scale, and advantages offered such as higher resilience, power quality, and lower environmental impact.

Insight by Storage Device

According to the storage devices, the global microgrid market is divided into lithium-ion, lead acid, flow batteries, and flywheels segments. Out of these segments, the lithium-ion segment will grow at a higher CAGR due to sustainable technology deployment, technological advancements, higher R&D activities, and a growing preference for battery-powered systems.

Insight by Power

The global microgrid market is split by power into combined heat & power, solar photovoltaic, natural gas, fuel cell, and diesel categories. Out of these, the combined heat & power segment will dominate the market due to the growing adoption of sustainable power generation sources like solar and wind, the advantages offered, lower emission levels, higher efficiency, and lower cost. The fuel cell segment is also expected to grow at a higher CAGR due to enhanced energy storage abilities, zero-emission nature, and ability to function at high temperatures.

Insight by End Use

Based on end use, the global microgrid market is split into utilities, commercial & industrial, institutes & campuses, military, remote, government, and healthcare segments. Out of these segments, the commercial & industrial segment is expected to grow at a higher CAGR during the forecast period due to the need for uninterrupted electrical supply for industrial operations, which will boost productivity, lower downtime, and chances of equipment damage. Growing government initiatives to reduce greenhouse gas emissions and promote the use of renewable energy also propels market growth.

Global Microgrid Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  24.2 Billion

Revenue Forecast in 2030

U.S.D.  46.2 Billion

Growth Rate

11.6%

Segments Covered in the Report

By Offering, By Type, By Connectivity, By Storage Device, By Power,

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Industry Dynamics

Industry Trends

There is a growing investment in solar energy projects worldwide as well as in AEC (Architecture, Engineering, and Construction) machinery. In addition, there has also been a growing adoption of Industry 4.0 practices among industries.

Growth Drivers

The most significant growth driver of the global microgrid market is the growing emphasis on decarbonization by governments as well as the end users. It is also attributed to the rising demand for uninterrupted power supply, government initiatives to endorse the development of microgrids, growth in the number of cyberattacks on energy infrastructure, higher adoption of microgrids in rural electrification projects, and rapid urbanization and development of smart cities. Furthermore, rise in demand for grid modernization, IoT, distributed energy production sources integration, and implementation of different smart grid technologies.

Challenges

High cost, lack of proper regulatory policy, and technical design issues hinder market growth. Typically, it needs to maintain a reciprocal relationship between the microgrid and the main grid when these are connected. Vulnerability of the grids to instabilities in electricity supply also hinders extensive adoption and growth of the market because oversupply may result in power loss in the microgrid due to the tripping of the generator, and undersupply of electricity may result in malfunctioning of the equipment.

Opportunities

Developments in microgrid controllers, smart microgrids, and renewable energy storage systems offer the market's growth opportunities. Also, innovations in microgrid hardware and software, a growing focus on technology and data management integration, higher investments in feasibility studies, and a growing demand for reliable electrical equipment for the aerospace and military sectors offer promising growth opportunities.

Geographic Overview

North America leads the market as it is the early adopter of these systems. It is also expected to continue to do so due to higher investments in R&D activities.

The Asia-Pacific market is expected to grow at a higher CAGR due to rapid electrification in rural and semi-rural areas, supportive government regulations and tempting incentives to promote the usage of renewable energy, easy availability of raw materials, and growing adoption of standalone sources.

Competitive Insight

The market for microgrids is moderated and consolidated. The increased strategic partnerships, contractual agreements, and inorganic ventures will allow the industry players to have a competitive edge in the market.

ABB is a trusted partner in the evolving global energy ecosystem and acts as a pioneer in energy management and optimization. ABB has become a pioneer in Microgrid technology by successfully powering research stations from Antarctica, Alaska, and Flores Island to distant mines and villages in Australia's deserts utilizing integrated energy sources. ABB's Microgrid Solutions group specializes in providing modular and scalable technology packages that provide power, improve power quality, and integrate renewable energy into fossil-fuel Microgrids. The PowerStore grid-stabilizing generator and the MGC600TM controller platform are the cornerstones of the Microgrid PlusTM System. Microgrid solutions from ABB are best suited for systems with peak demand between 300 kW and 50 MW.

Microgrid Energy Systems from Eaton assist businesses in achieving electrical energy savings, resiliency, and independence from a utility. Users obtain a dependable, scalable, and efficient solution to unexpected power outages while also improving cybersecurity by combining generation sources on a common grid structure. Eaton collaborates with customers to provide turnkey services for the full system's concept, design, pricing, implementation, and maintenance. System optimization software, automation, and product services, LV load control, smart inverter suite, supporting electrics, smart MV grid-tie connection, and utility automation products are all part of Eaton's Microgrid Energy System concept.

In October 2021, Eaton, a power management company, and Enel X, the Enel Group's advanced energy services business line, announced that they will collaborate on a second microgrid project in Puerto Rico. The projects will lower demand for regional energy infrastructure, allow Eaton to use more renewable energy in production, and improve Eaton's energy resilience.

Impact Solar, a Thai energy provider, has partnered with Hitachi ABB Power Grids to deliver an energy storage system for the country's largest private-owned microgrid, which will be operational in May 2021. The battery energy storage and control system from Hitachi ABB Power Grids will be used at the Saha Industrial Park microgrid in Sriracha, which is now under construction. The 214MW microgrid's power generation resources will include gas turbines, rooftop solar, and floating solar systems, as well as a battery storage system to fulfill demand when generation is low.

Some of the major players in the global microgrids market include ABB, Hitachi Energy Ltd., General Electric, Eaton, Siemens, Schneider Electric, Honeywell International Inc., HOMER Energy (Acquired by UL LLC), S&C Electric Company, and General Microgrids.

The Microgrid Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • By Offering 
    • Hardware
    • Software
    • Services
  • By Type 
    • AC Microgrids
    • DC Microgrids
    • Hybrid
  • By Connectivity 
    • Grid Connected
    • Off-Grid Connected
  • By Storage Device 
    • Lithium-Ion
    • Lead Acid
    • Flow Batteries
    • Flywheel
  • By Power 
    • Combined Heat & Power (CHP)
    • Solar Photovoltaic
    • Natural Gas
    • Fuel Cell
    • Diesel
  • By End Use 
    • Utilities
    • Commercial & Industrial
    • Institutes & Campuses
    • Military
    • Remote
    • Government
    • Healthcare

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

 

Microgrid Market Size and Market Analysis

Source: VynZ Reserach

Frequently Asked Questions

The global microgrid market is anticipated to grow from USD 24.2 billion in 2023 to USD 46.2 billion by 2030, registering a CAGR of 11.6% during the forecast period 2025-2030.
The AC microgrid is anticipated to have a high CAGR during 2023-2030 as it offers less transmission loss, reduced heat generation, and efficient high-end voltage levels across the network.
power source for major grids in order to meet end customers' rising electricity demands. The increased need for proper electrification in the emerging economies, rising dissemination of distributed energy resources (DER’s) owing to robust commercial and industrial development, sectors like military & research needs a secure network along with 24*7 power supply which can be offered by microgrids owing to its functioning under Island mode and independent of external power and transmissions, thus foster the industry landscape.
North America contributes to the largest share in the global microgrid market owing to the rise in spending on R&D activities and early adopters of microgrid solutions in the region.
Some of the major players in the global microgrid market include ABB, Hitachi Energy Ltd., General Electric, Eaton, Siemens, Schneider Electric, Honeywell International Inc., HOMER Energy (Acquired by UL LLC), S&C Electric Company, and General Microgrids.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

CONNECT WITH OUR SALES TEAM

Key Takeaways