Microgrid Market Size - By Grid Type (AC Microgrid, DC Microgrid, Hybrid), By Connectivity (Grid Connected, Off Grid), By Power Source, By Storage Device, By Application, 2025 – 2034

Microgrid Market Size

The global microgrid market was valued at USD 22.9 billion in 2024 and is set to register at a CAGR of 19.2% from 2025 to 2034, due to the rising demand for energy resilience, renewable adoption, and stricter environmental policies. Expanding investments by governments and organizations in greener energy initiatives to lower carbon emissions and achieve sustainability goals will further boost product demand.
 

Rising natural disasters frequency in various parts of the globe resulting in power grid failures create a higher demand for resilient energy systems to ensure continuous power supply during emergencies, particularly for critical infrastructure facilities, thereby boosting product adoption. Growing advancements in smart grid technology, energy management software and energy storage system aimed at improving microgrid scalability and efficiency will enhance the business landscape. Furthermore, increasing incorporation of AI and IoT technologies to make predictive maintenance, real-time monitoring, and energy optimization in microgrid systems much easier will enhance industry growth.
 

Microgrid Market Trends

• Rising demand for uninterrupted power supply in off grid/remote areas will propel product penetration. For instance, in February 2021, PT ABB Power Grids Indonesia deployed Indonesia’s first microgrid at ITM’s Indominco Mandiri (IMM) mine in Bontang, East Kalimantan. The system integrates 3 MWp solar PV, a 2 MW / 2 MWh BESS, and advanced controls, generating 230 MWh annually and cutting 192 tons of CO₂ emissions.
   
• Increasing inputs of green hydrogen into microgrids as well as its increasing popularity will serve to stimulate industry growth, particularly in areas with high renewable energy resources. Their long-duration energy storage makes them ideal for industrial and remote applications.
   
• Growing deployment of renewable energy sources into microgrids as part of carbon reduction strategies will enhance product penetration. The reducing costs of solar PV and its increased efficiency will spur higher market uptake.
   

Microgrid Market Analysis

• The microgrid industry was valued at USD 14.7 billion, USD 18 billion and USD 22.9 billion in 2022, 2023 and 2024 respectively. The industry is segmented in grid connected and off grid based on connectivity.
   
• The grid connected segment is anticipated to reach more than USD 97.6 billion by 2034. Increasing demand for connectivity with high load management and peak shaving capabilities, which can reduce energy costs by minimizing dependence on expensive peak-time electricity, will improve product adoption.
   
• The increased use of renewable energy sources, combined with supportive government policies that encourage microgrid deployment through easy permitting, financial incentives, and supportive grid connection standards, will further promote growth in the market.
   
• Furthermore, rising key players investments in developing new connectivity in remote areas will improve product adoption. In September 2024, In Lakshadweep, Honeywell has unveiled India's inaugural on-grid solar microgrid equipped with battery storage. The project boasts a solar power capacity of 1.7MWp and energy storage of 1.4MWh. As per the MNRE, the project is projected to yield savings of USD 28.8 million over its operational lifetime, curtail diesel consumption by 19.8 million liters, and mitigate carbon emissions by 58,000 tonnes.
   
• The off-grid segment is expected to grow at a CAGR of over 20% through 2034, due to rising energy demands in remote and underserved regions. Furthermore, the increasing need for reasonably priced and environmentally friendly solutions in isolated and off-grid areas will promote the product penetration. The product provides a reliable power source for critical services, including education, healthcare, and communication in remote areas.
   
• Growing companies’ interest in expanding off-grid power requirements and escalating adoption of advanced systems to overcome the growing uninterrupted energy demand will foster industry growth. Additionally, owing to the rapid transition from centralized to decentralized energy systems, the industry landscape is expected to improve, further reducing transmission losses, enhancing energy distribution efficiency, and controlling local energy generation and consumption.  
   

• Based on grid type the microgrid market is segmented into AC microgrid, DC microgrid and hybrid. The hybrid segment is set to grow at a CAGR of over 19.5% through 2034. Growing adoption of solutions that offer significant economic benefits by reducing energy costs and enhancing financial resilience will improve product demand.
   
• Increased demand for energy-independent solutions in areas with unstable power networks in remote areas where grid extension is not financially feasible will propel segmental growth. Additionally, these solutions seen incremental adoption in various commercial sector fostering product growth.
   
• The DC microgrid market is expected to reach more than USD 47.4 billion by 2034. The increased shift towards renewable energy sources and the need for off-grid island mode capable solutions will enhance the adoption of DC microgrids.
   
• For instance, in April 2022, Solarworx introduced its 60V DC microgrid technology in North Cameroon. This system builds on existing Solar Home Systems, allowing households and SMEs to share excess solar power and battery storage within the community. With connection costs reduced to about USD 150 per household, far less than AC mini-grid or public utility fees—the technology offers an cost-effective solution for energy access.
   
• AC microgrid is expected to cross more than USD 72.7 billion by 2034. This increase in market share is attributed to the increased demand for dependable power supply solutions, particularly in regions, prone to grid outages.
   
• Additionally, technological advancements in energy storage, power electronics and grid management systems, combined with supporting government policies and incentives to foster decentralized energy systems, will accelerate investments, thus improving the business environment.
   

• As of 2024, North America held more than 25.1% of the market share, which is expected to improve further by 2034. The U.S. microgrid market was valued at USD 3.4 billion, 4 billion, and 4.7 billion in 2022, 2023 and 2024 respectively.
   
• The government's growing support, such as federal and state-level incentives, will encourage microgrid deployment. Ongoing programs, such as the U.S. DOE Microgrid Initiative, aim to provide funding and technical support coupled with California and New York active microgrid promotion to enhance energy resilience and sustainability, will create product opportunities.
   
• Increasing frequency and severity of natural disasters, exposing the shortcomings of conventional centralized power networks, will drive the need for alternative solutions. Between 1980 and 2024, there were 403 weather-related/climate disasters in the U.S., each of which resulted in losses surpassing USD1 billion, according to NCEI. These increasing figures will generate demand for the product as a dependable energy source in certain geographic regions.
   
• The market share for the Asia Pacific microgrid market is expected to reach a whopping 34% in 2024. Earthquakes and typhoons disrupting the main grid has become increasingly more frequent which adds to the need for microgrids for improving energy resilience and reliability.
   
• The UN Economic and Social Commission for Asia Pacific reports indicates that for only the year of 2022, over 7,500 people died due to more than 140 disasters that struck the region. Growing natural disasters will increase product penetration to meet energy demands in areas that are severely hampered.
   
• Europe is expected to grow at a CAGR of 12.5% in line with its rising ambitious climate targets, including the European Green Deal. This program seeks to mitigate carbon emissions and boost the share of renewable energy in the overall composition, facilitating the use of microgrids as a key technology for local renewable sources integration.
   

Microgrid Market Share

Top five players, including ABB, General Electric, Schneider Electric, S&C Electric Company, and Toshiba Corporation, account for nearly 40% of share the microgrid industry. These businesses are focusing on creating specialized microgrid solutions to satisfy certain end user needs across various sectors. The tailored designs improve the adoption rates among these diverse consumer groups.
 

In the microgrid market, Schneider Electric holds a major share due to its significant investments in R&D to improve microgrid technologies, with a key focus on enhancing energy storage systems, smart grid technologies and the integration of various renewable energy sources. Furthermore, Siemens has released the SIESTORAGE energy storage systems, which provide flexible options for integrating renewable energy, as well as ensuring efficient operation of hybrid microgrids.
 

Eminent players are targeting acquisitions as a key strategy to grow in the microgrid market. For instance, in January 2025, EQT Investments acquired Scale Microgrids, valued between USD 300 million and USD 500 million. Its investment vehicle, EQT Transition Infrastructure, was used to make the purchase, which is its first acquisition in the North American market.
 

Microgrid Market Companies

Schneider Electric, a leader in the microgrid industry, has revealed a notable rise in its 2024 third-quarter sales, with organic growth hitting 8% year-over-year to reach a record USD 9.7 billion. At the Alliance for Rural Electrification Energy Access Investment Forum 2024, Schneider Electric released Villaya Flex, a microgrid solution. It was created specifically for communities, addressing today's energy concerns and easing the transition to decarbonized, independent electricity.
 

Eaton, a growing company in the market, recorded sales of USD 23.2 billion by 2023, up 12% from 2022 and solely due to growth in organic sales. In 2024, the company clinched an engineering award for its microgrid project, which is powering sustainable and resilient manufacturing in Puerto Rico.
 

Leading companies such as Hitachi and Exelon Corporation are spearheading the efforts to address the energy problem in rural or remote areas. Hitachi Power has delivered a containerized microgrid system to Alinta Energy’s Newman Power Station. This upgrade aims to optimize and automate operations, boost energy efficiency, cut down on fossil fuel use, and ensure a steady power supply for mining operations in Pilbara.
 

Eminent players operating in the microgrid industry are:

• Advanced Microgrid Systems
• ABB
• Caterpillar
• Delta Electronics
• Exelon Corporation
• Eaton
• General Electric
• General Microgrids
• Heila Technologies
• Honeywell International
• Hitachi Energy
• Lockheed Martin Corporation
• Schneider Electric
• S&C Electric Company
• Siemens
• Toshiba Corporation
   

Microgrid Industry News

• In February 2025, headquartered in California, BoxPower, Inc. offers solar powered storage microgrid solutions to enhance energy access in remote locations. Using modern technology combined with intelligent software, Box Power accelerates solar microgrid installation and optimizes its performance.
   
• In September 2024, Honeywell Automation India Limited delivered and commissioned a microgrid Battery Energy Storage System for the Lakshadweep Islands project, under the Solar Energy Corporation of India. This project is the first on-grid solar project in India to use BESS technology to control the distribution of renewable energy, making it a noteworthy milestone.
   
• In April 2024, With the partnership of Enel, Eaton implemented Puerto Rico’s most extensive clean energy microgrid at its plant of circuit breakers located in Arecibo. With a 1.1 MW battery storage solution and a 5 MW solar power system, the project enhances its energy resilience. By integrating these systems with existing onsite generators, the facility not only independently generates and stores renewable energy but also minimizes its environmental footprint and supports the local community's infrastructure.
   

This microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2034, for the following segments:

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Market, By Grid Type

• AC Microgrid
• DC Microgrid
• Hybrid

Market, By Connectivity

• Grid Connected
• Off Grid

Market, By Power Source

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

Market, By Storage Device

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

Market, By Application

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

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
  • Spain
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile