Asia Pacific Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Grid Type (AC Microgrid, DC Microgrid, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application & Forecast, 2024 – 2032

Asia Pacific Microgrid Market Size

Asia Pacific Microgrid Market was valued at USD 6 billion in 2023 and is forecasted to grow at a CAGR of 27.4% from 2024 to 2032. Growing demand for reliable and sustainable energy solutions along with rapid urbanization, industrialization, and electrification across the region will complement the business sceberio. Climate concerns, energy access issues, and grid resilience challenges drive investments in microgrid infrastructure, aiming to cut carbon emissions, improve energy efficiency, and enhance grid stability.
 

Various developed & developing economies in the current regulatory and industrial regime have amended their microgrid-specific policies, tariff rates, and other regulatory mechanisms. Although the microgrid market has been witnessing expansion across various aspects of the industrial substructure; varying costs, business viability, overall market immaturity, lack of access to capital, and similar issues have continuously been impeding the technological growth.
 

Asia Pacific Microgrid Market Trends

Asia Pacific microgrid industry reflect a shift towards decentralized and resilient energy systems to meet growing energy needs while addressing environmental concerns and improving energy access. Increasing adoption of renewable energy sources and application of microgrids for rural electrification demonstrate market's commitment to addressing climate concerns and improving energy access. Additionally, advancements in energy storage technologies, smart grid solutions, and digitalization are enabling greater flexibility, efficiency, and control in microgrid operations.
 

Asia Pacific Microgrid Market Analysis

Based on connectivity, the grid connected microgrid segment dominate the market and is expected to cross over USD 39.2 billion by 2032. By balancing local energy generation and demand with the support of the main power grid, these systems offer access to continuous electricity and ancillary services. Moreover, resilience of grid-connected microgrids against disruptions, coupled with supportive government policies, further bolsters their significant market share in the region.
 

Based on Grid type, the AC microgrid will grow at a rate of over 27% through 2032. The product capability to combined with easy integration of various distributed energy resources, lower power conversion losses, and scalability, makes AC microgrids a preferred choice in the region. Established standards and regulations further support their adoption, ensuring safety and reliability.
 

The China microgrid market is projected to surpass USD 25.3 billion by 2032 is diverse and expansive, with several countries actively investing in microgrid development. The advancing economic scenario on account of rapid commercialization and investments across the industrial and utility-based electrification systems has also instituted a favourable business scenario. Over the coming years, the shifting trend from centralized grid systems to decentralized grid network along with government measures for the expansion of utility infrastructure across remote and island areas will nourish the industry growth.
 

Asia Pacific Microgrid Market Share

ABB, Schneider Electric, Eaton, Hitachi Energy Ltd, & Honeywell International Inc. holds significant share of the Asia Pacific microgrid industry due to their strong track record, technological innovation, strategic partnerships, diverse product portfolio, and commitment to sustainability. The company's comprehensive range of microgrid solutions caters to the region's diverse energy needs and aligns with its clean energy goals, establishing these companies as a prominent player in this rapidly growing market.
 

Asia Pacific Microgrid Market Companies

Some of the major key players operating across the Asia Pacific microgrid industry are:

• ABB
• Advanced Microgrid Systems (AMS)
• Caterpillar
• Eaton
• General Electric
• General Microgrids
• Hitachi Energy Ltd.
• Homer Energy LLC
• Honeywell International, Inc.
• Lockheed Martin Corporation
• Siemens
• Schneider Electric
• S&C Electric Company
• Tesla
• Toshiba Corporation
   

Asia Pacific Microgrid Industry News

• In March 2024, Schneider Electric and Mainspring recently announced a partnership to offer a groundbreaking fuel-flexible microgrid solution for commercial and industrial customers in the Asia Pacific region. This innovative solution allows customers to dynamically switch among multiple fuel options, including low- and zero-carbon fuels, ensuring accessible electricity, and helping them meet their decarbonization goals.
   
• In September 2022, Japan's Ministry of Economy, Trade, and Industry (METI) initiated the "Resilience Enhancement Project" to promote the deployment of renewable energy-based microgrids for disaster-prone areas. This initiative aims to improve energy resilience and disaster preparedness.
   

This Asia Pacific microgrid market research report includes an in–depth coverage of the industry with estimates & forecast in terms of units and revenue in MW and USD Million from 2019 to 2032, for the following segments:

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Market, By Connectivity

• Grid Connected
• Off Grid

Market, By Grid Type

• AC Microgrid
• DC Microgrid
• Hybrid

Market, By Power Source

• Diesel Generators
• Natural Gas
• Solar PV
• CHP
• Others

Market, By Storage Device

• Lithium-ion
• Lead Acid
• Flow Battery
• Flywheel
• Others

Market, By Application

• Healthcare
• Educational Institutes
• Military
• Utility
• Industrial/Commercial
• Remote
• Others

The above information has been provided for the following countries:

• China
• Japan
• South Korea
• India
• Australia
• Malaysia
• Indonesia