Global Microgrid Market Size 2024, Forecast To 2033

11 Mar, 2024

The microgrid market has undergone exponential growth, surging from $14.36 billion in 2023 to $17.34 billion in 2024, indicating a compound annual growth rate (CAGR) of 20.7%. This expansion in the historical period is credited to robust economic growth in emerging markets, an increased demand for clean energy sources, and the growing adoption of microgrids for rural electrification. Envisioning sustained growth, the market is projected to reach $34.52 billion in 2028, with a CAGR of 18.8%. The anticipated growth is linked to increasing electricity demand, proactive initiatives, and a rising global population. Key trends in this period include the incorporation of artificial intelligence, the development and adoption of green hydrogen microgrids, creation of smart, plug-and-play microgrid inverters, increased adoption of solar and battery-powered microgrid communities, and strategic partnerships and collaborations.

Global Microgrid Market Key Driver

The expanding adoption of microgrids for rural electrification is anticipated to drive the growth of the microgrid market. Microgrids offer advantages such as cost-effectiveness, environmental sustainability, and regional equity in comparison to centralized infrastructure for rural electrification. Notably, the Indian government's partnership with Tata Power to install solar-powered microgrids and water pumps in rural areas aligns with efforts to provide clean, sustainable energy to rural households and businesses. The plan to establish 10,000 microgrids underlines the growing demand for microgrids in rural electrification, positioning the microgrid market for substantial growth. The market sizes for 2023, 2024, and 2028 are expected to reflect the increasing adoption of microgrids in rural electrification initiatives.

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Global Microgrid Market Segments

The microgrid market covered in this report is segmented –
1) By Type: AC Microgrid, DC Microgrid, Hybrid
2) By Connectivity: Grid Connected, Off-Grid Connected
3) By Component: Hardware, Software, Services
4) By Application: Remote Systems, Institutional Buildings, Community And Utility Distribution
5) By End-User: Commercial And Industrial, Institutes And Campuses, Defense And Military
By Geography:The regions covered in the microgrid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada. North America was the largest region in the microgrid market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microgrid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Major Microgrid Industry Players

General Electric Company, Schneider Electric SE, ABB Group, Siemens AG, Toshiba Corporation, Exelon Corporation, Eaton Corporation PLC, Engie SA, Hitachi Ltd, S&C Electric Company, DESI Power, Gram Power, Mera Gao Power, Omnigrid Micropower Company, State Grid Corporation of China (SGCC), China Southern Power Grid, CleanSpark, Sungrow Power Supply Co. Ltd., Shenzhen Cubenergy Co. Ltd., Shanghai Dowell Technology Co. Ltd., Shanghai Ghrepower Green Energy Co. Ltd., Shenzhen Sinexcel Electric Co. Ltd., Bboxx, Enervalis, Younicos, Supreme Power Solutions Co. Ltd. (SPS), Phono Solar Technology Co. Ltd., Rolls-Royce Power Systems AG, Capstone Turbine Corporation, Elum Energy, CebeEnergy GmbH, AMS, Caterpillar, enSYNC Corporation, Lockheed Martin Corporation, Power Analytics Corporation, LO3 Energy, HOMER Energy LLC, PowerSecure Inc., Primus Power, SolarX, Sola Group, Powin Inc, Moura, Voltalia, Reuniwatt, Neoenergia, Iberdrola, HIMOINSA, Total Eren, Nidec Industrial Solutions, Edelar S.A, ALEC Energy, Mohamed Abdulrahman Al Bahar LLC, Husk Power Systems, Engie Energy Access.

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Microgrid Market Overview

The microgrid refers to a local energy grid with control capability, that can disconnect from the traditional grid and operate autonomously. A microgrid is a self-contained energy system that serves a specific geographic area, such as a college campus, hospital, business center, or neighborhood. Microgrids can strengthen grid resilience and help mitigate grid disturbances by operating while the main grid is down, as well as serve as a grid resource for faster system response and recovery.

Microgrid Global Market Report 2023 provides data on the global microgrid market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The microgrid market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.