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Microgrid Market

Global Microgrid Market Analysis, Share, Trends, Forecast: By Energy Source: Natural Gas, Combined Heat and Power, Solar Photovoltaic (PV), Diesel, Fuel Cell, Others; By Application: Remote Systems, Institution and Campus, Utility/Community, Defence, Others; Regional Analysis; Market Dynamics; Competitive Landscape; 2024-2032

Global Microgrid Market Outlook

The global microgrid market size reached approximately USD 28.98 billion in 2023. The market is projected to grow at a CAGR of 10.4% between 2024 and 2032, reaching a value of around USD 70.74 billion by 2032.

 

Key Takeaways

  • Microgrids are crucial for maintaining a reliable supply of power in diverse industries.
  • Growing integration of renewable power sources to achieve sustainability goals is a key factor shaping the market trends.
  • Fuel cells are used in microgrids that prioritise low emissions and sustainability, especially in urban or environmentally sensitive areas.

 

A microgrid refers to a separate energy network composed of interconnected charges and distributed energy supplies that can operate alongside or independently of the main power grid. Microgrids are commonly known to be smaller versions of power grids, which provide electricity to customers from producers, help reduce overall costs in the case of an emergency and provide redundancy for the grid. They are more powerful, together with a range of other renewable sources like solar, wind, small hydroelectric power, geoelectric, waste energy systems, and heat and power combined (HPCP) systems than conventional electrical grids. Microgrids are a reliable energy source because they continue to work during power outages.

 

Global Microgrid Market

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The increasing demand for microgrid systems which allow customers and developers to achieve environmental goals by using renewable energy as a source of electricity is one of the crucial factors driving the microgrid market growth. Governments of many countries are also taking steps to set up bioelectric power, solar, and wind farms. Others have legislation, such as the Clean Power Plan (CPP), which seeks to reduce carbon dioxide emissions, enforced by countries such as the United States. A variety of technological advancements have also been made to increase the performance of battery inverters to ensure an uninterrupted power supply via microgrids. In addition, better battery technology with higher power inputs and outputs has also been developed for a longer time.

 

These days, the reliance on new communication technology like wireless cloud computing is growing, making electricity networks vulnerable to cyber-attacks and hackers. For this purpose, a stable network with 24/7 power is required in certain industries, such as military and research laboratories, which are given by microgrids, as they can be run in 'island mode' independently from all external power and data transfer. This is expected to support the growth of the microgrid market globally.

 

The ability to deliver improved performance against low transmission losses is another factor boosting the demand as microgrids produce local power and decrease reliance on long-haul lines and therefore reduce transmission losses.

 

Key Trends and Developments

Integration of renewable energy sources; growing advancements in energy storage solutions; rapid digitalisation and adoption of smart technologies; and regulatory and policy support are the major trends impacting the microgrid market expansion

 

Date Company/Group Details
Sep 2023 Correlate Energy Corp. Correlate Energy Corp., an innovative company specialising in distributed energy, unveiled a major microgrid project poised to revolutionise the energy framework in the region surrounding the Los Angeles metropolitan area.
Dec 2023 Reon Energy Reon Energy, based in Pakistan, secured a contract to construct a microgrid that will include a 13.5MW solar power facility and a 5.59MWh battery storage system for Arabian Yemen Cement.
Feb 2024 FEMA FEMA is set to finance projects aimed at achieving net-zero energy consumption, including those involving solar microgrids, specifically in regions affected by disasters.
Feb 2024 A Toshiba and Aquatera led consortium (including other members like Eco Wave Power, Hitachi Energy, and teams and researchers from various universities) A group led by Toshiba and Aquatera secured $1.9 million in funding from the UK government to develop a pilot microgrid project, which will utilise wave energy to power a remote island in Thailand.

 

 

Trends Impact
Increased integration of renewable energy sources Microgrids are incorporating renewable energy sources like solar, wind, and hydroelectric power due to the global push for sustainability.
Growing advancements in energy storage solutions The development and integration of advanced energy storage technologies, such as lithium-ion batteries and flow batteries, are crucial for stabilising renewable energy supply within microgrids.
Rapid digitalisation and adoption of smart technologies in the microgrid market The integration of digital technologies, including the Internet of Things (IoT), artificial intelligence (AI), and blockchain, into microgrid systems is on the rise.
Regulatory and policy support by the government Governments and regulatory bodies worldwide are implementing policies and incentives to promote the adoption of microgrids and renewable energy.

 

Microgrid Market Trends

The increasing incorporation of renewable energy sources like solar, wind, and hydroelectric power into microgrids is a response to a global push for sustainability. Renewable energy sources produce electricity with minimal to no greenhouse gas emissions, significantly reducing the environmental impact compared to fossil fuel-based power generation. By using locally available renewable resources, microgrids enhance energy independence and security and contribute to microgrid market development. This is particularly valuable for remote or isolated communities with limited access to the central grid or regions that rely heavily on imported fuels.

 

In February 2024, Toshiba and Aquatera announced that they are developing a pilot microgrid project, leading a consortium. The consortium has secured USD 1.9 million investment from the UK government, showcasing a significant commitment to support renewable energy projects and international cooperation in sustainable development. The project aims to design and implement a microgrid system on a remote island in Thailand which will integrate wave energy as its primary source, highlighting an innovative approach to utilising renewable resources.

 

Microgrid Market by Application

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Market Segmentation

“Microgrid Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

 

Market Breakup Categories
Energy Source Natural Gas, Combined Heat and Power, Solar Photovoltaic (PV), Diesel, Fuel Cell, Others
Application Remote Systems, Institution and Campus, Utility/Community, Defence, Others
Region North America, Europe, Asia Pacific, Latin America, Middle East and Africa

 

Solar photovoltaic accounts for a significant microgrid market share due to the rising demand for renewable energy sources

Solar photovoltaic (PV) holds a significant share of the microgrid market due to its decreasing cost, scalability, and global push for renewable energy sources. It is favoured for its relatively easy installation in both rural and urban settings and its low operating costs. Solar PV's popularity is also driven by its environmental benefits, contributing to its high market share.

 

Diesel generators are commonly used in microgrids as backup power sources as they can quickly start up. They are common especially in remote or off-grid locations due to their reliability and the high energy density of diesel fuel as they are often used for backup or emergency power in microgrids.

 

Meanwhile, natural gas is also expected to grow at a sizeable rate, especially for Combined Heat and Power (CHP) systems. Natural gas can provide baseline power to a microgrid and adjust output to follow daily and seasonal load variations. Natural gas CHP systems are efficient, as they can provide both electricity and heat from a single fuel source. This efficiency, combined with the relatively lower emissions of natural gas compared to coal and diesel, makes it a popular choice for microgrids, particularly in urban or industrial settings.

 

The utility/community segment maintains its dominance in the market due to the rising demand for sustainable energy sources in these sectors

The microgrid market is supported by its growing applications in the utility/community segment as microgrids can integrate renewable energy sources, provide grid services, and enhance resilience against grid outages. The push for decarbonisation and energy independence in urban and suburban areas further boosts the adoption of utility/community microgrids.

 

Institutional and campus microgrids are typically the second-largest segment. These microgrids serve universities, hospitals, corporate campuses, and other large institutions. They are favoured for their ability to provide reliable, efficient, and green energy solutions that can operate independently from the main grid.

 

Competitive Landscape

The market players are collaborating to develop large scale energy projects, involving microgrids, to meet the rising global demand for energy and further their sustainability efforts

 

Company Headquarters Operations
ABB Ltd Zurich, Switzerland Electrification, process automation, motion, robotics & discrete automation
General Electric Massachusetts, USA Power generation, renewable energy, aviation, healthcare technology
Eaton Corporation Dublin, Ireland Power quality, distribution and control, industrial and mobile equipment
Siemens Munich, Germany Digital industrial verticals, smart infrastructure, mobility, energy

 

The market comprises a diverse set of players that work across various segments, offering solutions that range from hardware (like solar PV panels, batteries, and control systems) to software (for energy management and grid analytics) and services (including design, construction, operation, and maintenance).

 

Microgrid Market by Region

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Microgrid Market Analysis by Region

The dominant region for the market is North America, accounting for a quarter of the market share. Development in the region is triggered by the growing use of microgrids in defence as well as remote systems to improve cyber-attack protection. North America, particularly the United States, has experienced several high-profile extreme weather events and natural disasters that have highlighted the vulnerability of the traditional electricity grid. Microgrids offer a way to maintain power during grid failures and are thus seen as a crucial component of disaster preparedness and response.

 

The Asia Pacific microgrid market is also expected to grow readily as many countries in the region are undergoing rapid urbanisation and industrialisation, leading to increased demand for reliable and efficient energy sources. Microgrids offer a solution to meet this growing demand, especially in urban areas where energy reliability is critical for economic activities.

 

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Energy Source
  • Application
  • Region
Breakup by Energy Source
  • Natural Gas
  • Combined Heat and Power
  • Solar Photovoltaic (PV)
  • Diesel
  • Fuel Cell
  • Others
Breakup by Application
  • Remote Systems
  • Institution and Campus
  • Utility/Community
  • Defence
  • Others
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • ABB Ltd
  • General Electric
  • Eaton Corporation
  • Siemens
  • Others
Report Price and Purchase Option Explore our purchase options that are best suited to your resources and industry needs.
Delivery Format Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option.

 

Microgrid Market Report Snapshots

Microgrid Market Size

Microgrid Market Trends

Microgrid Market Regional Analysis

Microgrid Companies

 

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1    Preface
2    Report Coverage – Key Segmentation and Scope
3    Report Description

    3.1    Market Definition and Outlook
    3.2    Properties and Applications
    3.3    Market Analysis
    3.4    Key Players
4    Key Assumptions
5    Executive Summary

    5.1    Overview
    5.2    Key Drivers
    5.3    Key Developments
    5.4    Competitive Structure
    5.5    Key Industrial Trends
6    Snapshot
    6.1    Global
    6.2    Regional
7    Opportunities and Challenges in the Market
8    Global Microgrid Market Analysis

    8.1    Key Industry Highlights
    8.2    Global Microgrid Historical Market (2018-2023) 
    8.3    Global Microgrid Market Forecast (2024-2032)
    8.4    Global Microgrid Market by Energy Source
        8.4.1    Natural Gas 
            8.4.1.1    Historical Trend (2018-2023)
            8.4.1.2    Forecast Trend (2024-2032)
        8.4.2    Combined Heat and Power 
            8.4.2.1    Historical Trend (2018-2023)
            8.4.2.2    Forecast Trend (2024-2032)
        8.4.3    Solar Photovoltaic (PV)
            8.4.3.1    Historical Trend (2018-2023)
            8.4.3.2    Forecast Trend (2024-2032)
        8.4.4    Diesel 
            8.4.4.1    Historical Trend (2018-2023)
            8.4.4.2    Forecast Trend (2024-2032)
        8.4.5    Fuel Cell 
            8.4.5.1    Historical Trend (2018-2023)
            8.4.5.2    Forecast Trend (2024-2032)
        8.4.6    Others 
    8.5    Global Microgrid Market by Application
        8.5.1    Remote Systems    
            8.5.1.1    Historical Trend (2018-2023)
            8.5.1.2    Forecast Trend (2024-2032)
        8.5.2    Institution and Campus  
            8.5.2.1    Historical Trend (2018-2023)
            8.5.2.2    Forecast Trend (2024-2032)
        8.5.3    Utility/Community  
            8.5.3.1    Historical Trend (2018-2023)
            8.5.3.2    Forecast Trend (2024-2032)
        8.5.4    Defence  
            8.5.4.1    Historical Trend (2018-2023)
            8.5.4.2    Forecast Trend (2024-2032)
        8.5.5    Others
    8.6    Global Microgrid Market by Region
        8.6.1    North America
            8.6.1.1    Historical Trend (2018-2023)
            8.6.1.2    Forecast Trend (2024-2032)
        8.6.2    Europe
            8.6.2.1    Historical Trend (2018-2023)
            8.6.2.2    Forecast Trend (2024-2032)
        8.6.3    Asia Pacific
            8.6.3.1    Historical Trend (2018-2023)
            8.6.3.2    Forecast Trend (2024-2032)
        8.6.4    Latin America
            8.6.4.1    Historical Trend (2018-2023)
            8.6.4.2    Forecast Trend (2024-2032)
        8.6.5    Middle East and Africa
            8.6.5.1    Historical Trend (2018-2023)
            8.6.5.2    Forecast Trend (2024-2032)
9    North America Microgrid Market Analysis
    9.1    United States of America
        9.1.1    Historical Trend (2018-2023)
        9.1.2    Forecast Trend (2024-2032)
    9.2    Canada
        9.2.1    Historical Trend (2018-2023)
        9.2.2    Forecast Trend (2024-2032)
10    Europe Microgrid Market Analysis
    10.1    United Kingdom
        10.1.1    Historical Trend (2018-2023)
        10.1.2    Forecast Trend (2024-2032)
    10.2    Germany
        10.2.1    Historical Trend (2018-2023)
        10.2.2    Forecast Trend (2024-2032)
    10.3    France
        10.3.1    Historical Trend (2018-2023)
        10.3.2    Forecast Trend (2024-2032)
    10.4    Italy
        10.4.1    Historical Trend (2018-2023)
        10.4.2    Forecast Trend (2024-2032)
    10.5    Others
11    Asia Pacific Microgrid Market Analysis
    11.1    China
        11.1.1    Historical Trend (2018-2023)
        11.1.2    Forecast Trend (2024-2032)
    11.2    Japan
        11.2.1    Historical Trend (2018-2023)
        11.2.2    Forecast Trend (2024-2032)
    11.3    India
        11.3.1    Historical Trend (2018-2023)
        11.3.2    Forecast Trend (2024-2032)
    11.4    ASEAN
        11.4.1    Historical Trend (2018-2023)
        11.4.2    Forecast Trend (2024-2032)
    11.5    Australia
        11.5.1    Historical Trend (2018-2023)
        11.5.2    Forecast Trend (2024-2032)
    11.6    Others
12    Latin America Microgrid Market Analysis
    12.1    Brazil
        12.1.1    Historical Trend (2018-2023)
        12.1.2    Forecast Trend (2024-2032)
    12.2    Argentina
        12.2.1    Historical Trend (2018-2023)
        12.2.2    Forecast Trend (2024-2032)
    12.3    Mexico
        12.3.1    Historical Trend (2018-2023)
        12.3.2    Forecast Trend (2024-2032)
    12.4    Others
13    Middle East and Africa Microgrid Market Analysis
    13.1    Saudi Arabia
        13.1.1    Historical Trend (2018-2023)
        13.1.2    Forecast Trend (2024-2032)
    13.2    United Arab Emirates
        13.2.1    Historical Trend (2018-2023)
        13.2.2    Forecast Trend (2024-2032)
    13.3    Nigeria
        13.3.1    Historical Trend (2018-2023)
        13.3.2    Forecast Trend (2024-2032)
    13.4    South Africa
        13.4.1    Historical Trend (2018-2023)
        13.4.2    Forecast Trend (2024-2032)
    13.5    Others
14    Market Dynamics
    14.1    SWOT Analysis
        14.1.1    Strengths
        14.1.2    Weaknesses
        14.1.3    Opportunities
        14.1.4    Threats
    14.2    Porter’s Five Forces Analysis
        14.2.1    Supplier’s Power
        14.2.2    Buyer’s Power
        14.2.3    Threat of New Entrants
        14.2.4    Degree of Rivalry
        14.2.5    Threat of Substitutes
    14.3    Key Indicators for Demand
    14.4    Key Indicators for Price
15    Value Chain Analysis
16    Competitive Landscape

    16.1    Market Structure
    16.2    Company Profiles
        16.2.1    ABB Ltd
            16.2.1.1    Company Overview
            16.2.1.2    Product Portfolio
            16.2.1.3    Demographic Reach and Achievements
            16.2.1.4    Certifications
        16.2.2    The General Electric Company
            16.2.2.1    Company Overview
            16.2.2.2    Product Portfolio
            16.2.2.3    Demographic Reach and Achievements
            16.2.2.4    Certifications
        16.2.3    Eaton Corporation plc
            16.2.3.1    Company Overview
            16.2.3.2    Product Portfolio
            16.2.3.3    Demographic Reach and Achievements
            16.2.3.4    Certifications
        16.2.4    Siemens
            16.2.4.1    Company Overview
            16.2.4.2    Product Portfolio
            16.2.4.3    Demographic Reach and Achievements
            16.2.4.4    Certifications
        16.2.5    Others
17    Key Trends and Developments in the Market


List of Key Figures and Tables

1.    Global Microgrid Market: Key Industry Highlights, 2018 and 2032
2.    Global Microgrid Historical Market: Breakup by Energy Source (USD Billion), 2018-2023
3.    Global Microgrid Market Forecast: Breakup by Energy Source (USD Billion), 2024-2032
4.    Global Microgrid Historical Market: Breakup by Application (USD Billion), 2018-2023
5.    Global Microgrid Market Forecast: Breakup by Application (USD Billion), 2024-2032
6.    Global Microgrid Historical Market: Breakup by Region (USD Billion), 2018-2023
7.    Global Microgrid Market Forecast: Breakup by Region (USD Billion), 2024-2032
8.    North America Microgrid Historical Market: Breakup by Country (USD Billion), 2018-2023
9.    North America Microgrid Historical Market: Breakup by Country (USD Billion), 2024-2032
10.    Europe Microgrid Market Forecast: Breakup by Country (USD Billion), 2018-2023
11.    Europe Microgrid Market Forecast: Breakup by Country (USD Billion), 2024-2032
12.    Asia Pacific Microgrid Historical Market: Breakup by Country (USD Billion), 2018-2023
13.    Asia Pacific Microgrid Historical Market: Breakup by Country (USD Billion), 2024-2032
14.    Latin America Microgrid Historical Market: Breakup by Country (USD Billion), 2018-2023
15.    Latin America Microgrid Historical Market: Breakup by Country (USD Billion), 2024-2032
16.    Middle East and Africa Microgrid Market Forecast: Breakup by Country (USD Billion), 2018-2023
17.    Middle East and Africa Microgrid Market Forecast: Breakup by Country (USD Billion), 2024-2032
18.    Global Microgrid Market Structure

Key Questions Answered in the Report

In 2023, the global microgrid market attained a value of nearly USD 28.98 billion. 

The market is projected to grow at a CAGR of 10.4% between 2024 and 2032.

The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach about USD 70.74 billion by 2032. 

The major drivers of the market are rising environmental concerns, the growing adoption of renewable energy sources, and favourable government initiatives aimed at increasing investments in the defence sector.

The key trends guiding the growth of the market include the growing technological advancements and increasing shift towards wireless cloud computing.

The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.

Natural gas, combined heat and power, solar photovoltaic (PV), diesel, and fuel cell, among others, serve as the major energy sources of microgrids.

The major applications of microgrids include remote systems, institution and campus, utility/community, and defence.

The major players in the market are ABB Ltd, General Electric, Eaton Corporation, and Siemens, among others.

Analyst Review

The global microgrid market attained a value of USD 28.98 billion in 2023, driven by growing demand for renewable energy sources and stringent government regulations. Aided by technological advancements, the market is expected to witness a further growth in the forecast period of 2024-2032, growing at a CAGR of 10.4%. The microgrid market is projected to reach USD 70.74 billion by 2032. 

 

EMR’s meticulous research methodology delves deep into the market, covering the macro and micro aspects of the industry. Based on its energy sources, the microgrid market can be segmented into natural gas, combined heat and power, solar photovoltaic (PV), diesel, and fuel cells, among others. On the basis of applications, the industry is divided into remote systems, institution and campus, utility/community, and defence, among others. The major regional markets for microgrid are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa, with North America accounting for the largest share of the market. The key players in the above market include ABB Ltd, The General Electric Company, Eaton Corporation plc, and Siemens, among others.

 

EMR’s research methodology uses a combination of cutting-edge analytical tools and the expertise of their highly accomplished team, thus, providing their customers with market insights that are accurate, actionable, and help them remain ahead of their competition.  

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