What is the Historic and Current Scenario of the Microgrid Market?
The microgrid market has seen considerable growth due to a variety of factors.
• The expansion of the microgrid market has been swift over the past few years. The sector, which was valued at $17.08 billion in 2024, is projected to rise to $20.48 billion in 2025, displaying a compound annual growth rate (CAGR) of 19.9%.
This significant growth during the historical period is closely linked to sturdy financial advancements in developing markets, rising demand for environmentally friendly energy solutions, as well as the increased integration of microgrids for electrification in rural areas.
What Can Be Expected from the Microgrid Market in the Coming Years?
The microgrid market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the microgrid market is projected to increase at a brisk pace over the next few years, reaching $39.53 billion by 2029 with a 17.9% compound annual growth rate (CAGR).
This growth during the forecasted duration can be credited to the rising requirement for electricity, new initiatives, and population growth. A few major tendencies during this period encompass the incorporation of artificial intelligence (AI), the emergence and adaptation of green hydrogen microgrids, the invention of intelligent, plug-and-play microgrid inverters, the adoption of solar and battery-fueled microgrid communities, and strategic alliances and collaborations.
Which Drivers Are Accelerating Growth In The Microgrid Market?
The microgrid market's growth is anticipated to be driven by the increasing deployment of microgrids for rural electrification. Efforts towards rural electrification are intensifying, with plans to deliver consistent, round-the-clock energy and integrate rural communities, inclusive of micro, small, and medium-sized businesses. When used for rural electrification, microgrids offer numerous advantages over traditional infrastructure, such as cost-effectiveness, eco-friendliness, and equitable distribution of resources between city and country regions. As per SolarpowerEurope, a company based in Belgium producing solar energy equipment, there was a 40% rise in the installation of solar energy generation equipment in 2023 compared to 2022. Additionally, the installed capacity of the PV solar fleet has seen a growth from 207 GW in 2022 to 263 GW in 2023. Consequently, the escalating use of microgrids for rural electrification is set to stimulate the microgrid market.
How Is the Microgrid Market segmented?
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
Subsegments:
1) By AC Microgrid: Utility-Connected AC Microgrid, Islanded AC Microgrid, Community AC Microgrid
2) By DC Microgrid: Standalone DC Microgrid, DC Microgrid For Renewable Integration, DC Microgrid For Data Centers
3) By Hybrid Microgrid: AC Or DC Hybrid Microgrid, Renewable Energy Integrated Hybrid Microgrid, Conventional And Renewable Hybrid Microgrid
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What New Trends Are Influencing the Microgrid Market?
The trend towards the creation and use of green hydrogen microgrids is increasingly prevalent in the microgrid market. Green hydrogen is produced through the separation of water into hydrogen and oxygen with the help of an electrolyzer that uses renewable energy from sources like wind and solar. Concentrating on creating environmentally friendly products like green hydrogen microgrids, companies involved in microgrid development are committed to lessening environmental pollution through reduced carbon emissions. For example, in April 2024, India's first Green Hydrogen Microgrid was launched by Advait Infratech, a power transmission company based in India. The microgrid system, capable of manufacturing 50 kg of top-quality hydrogen every day during daylight using renewable energy resources efficiently, includes a 300 kW electrolyzer. The hydrogen generated is stored in a 24m³ storage tank and pressurized at 30 bar to ensure that a dependable energy supply is available whenever it is required. This initiative is a part of Advait's wider pledge to environmental sustainability and diminishing carbon footprints using innovative hydrogen energy systems.
Who Are the Key Players in the Microgrid Market?
Major companies operating in the microgrid market include:
• 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.
What Is The Most Dominant Region In The Microgrid Market?
North America was the largest region in the microgrid market in 2024. 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.
