North America Microgrid Market Size - By Grid Type, By Connectivity, By Power Source, By Storage Device, By Application, Growth Forecast, 2025 - 2034

North America Microgrid Market Size

The North America microgrid market was valued at USD 5.7 billion in 2024. The market is expected to grow from USD 6.8 billion in 2025 to USD 13.3 billion in 2034, at a CAGR of 7.7%
 

• Growing technological advancements in renewable energy generation, energy storage systems (ESS), and microgrid controllers aiming to improve the efficiency, reliability, and integration capabilities of energy solutions will foster the business statistics. Government initiatives, including state-level mandates, procurement programs and incentives that promote investments in resilient and sustainable energy infrastructure, are driving North America microgrid market growth.
   
• A microgrid is a localized energy system that combines multiple energy sources, including wind turbines, solar panels, and batteries, with traditional grid infrastructure. It can operate independently or connect to the main power grid. This self-contained network generates, distributes, and manages electricity, providing reliability and flexibility while optimizing energy usage for a specific geographical area or community.
   
• The region, particularly U.S.’s rising focus on grid resilience and reliability, in response to extreme weather events including wildfires in California, and hurricanes along the Gulf Coast, exposes vulnerabilities in centralized power systems. As per NCEI from 1980 to 2024, the U.S. faced 403 weather and climate disasters, each incurring damages or costs of USD 1 billion or more. This promotes utilities, municipalities and critical infrastructure operators to seek localized and autonomous energy solutions, driving microgrid adoption on account of its ability to island from the main grid and operate independently during outages.
   
• The North America microgrid market was valued at USD 3.2 billion in 2021 and grew at a CAGR of approximately 21.5% through 2024. Strong federal and state level support, including U.S. Department of Energy’s grid modernization initiative and funding aiming to accelerate microgrid project deployment, will complement the business statistics. Additionally, tax credits for clean energy components and resilience grants for critical infrastructure such as hospitals, military bases and schools are creating fertile ground for microgrid investments.
   
• Canada has shown tremendous focus on decarbonization and energy sovereignty, accelerated investments in renewable integrated microgrids, particularly in northern regions. Ongoing project development supporting renewable power as a source will foster the industry trend. For instance, in December 2024, Gull Bay announced the demonstration of its First Nation Diesel Offset Micro Grid Project. This initiative seeks to reduce diesel fuel consumption and environmental impact by maximizing renewable energy generation, reaching up to 100% at times.
   

North America Microgrid Market Trends

• Aging infrastructure across several states in the U.S. and provinces in Canada has become a major concern. The majority of the grids are decades old and vulnerable to disruptions, creating investments in infrastructure redevelopment. In 2023, the federal government spent USD 45 billion, while states invested USD 82 billion in infrastructure upgrades. Over the next decade, the Infrastructure Investment and Jobs Act will allocate USD1.25 trillion to improve U.S. infrastructure. These upgrades will enhance microgrid adoption, as a path for decentralized generation and minimize long-distance transmission losses.
   
• Electrification of transportation and heating has increased since the last decade and is anticipated to have tremendous consumption by 2030. With the proliferation of EV, fleet depots and EV charging infrastructure, localized energy management becomes essential to avoid grid stress. This propels microgrids' demand integrated with solar, battery storage and smart load control, which enable efficient EV charging ecosystems, especially in commercial hubs and smart cities.
   
• Rising government funding to key players for product deployment and ensuring power during harsh environmental conditions will complement the business trend. For instance, in October, Xcel Energy announced it had secured a USD 100 million grant from the U.S. Department of Energy to strengthen wildfire prevention measures and improve grid resilience during extreme weather conditions.
   
• The adoption of energy-independent and secure solutions in remote and island communities, where grid connectivity is costly or unreliable, is driving product demand. The increasing demand for electric vehicles is expected to support market growth through rapid EV charging stations, management of electricity demand from charging fleets, and optimization of charging schedules to reduce grid impacts.
   

North America Microgrid Market Analysis

Based on power source, the industry is segmented into natural gas, diesel generators, solar PV, CHP and others. CHP segment dominated the North America microgrid market, accounting for 40.3% share in 2024 and is expected to grow at a CAGR of 7.7% through 2034 on account of its reduced fuel consumption, high energy efficiency, and lower operating costs.
 

• CHPs, known for their resilience and reliability, offer localized power generation and thermal energy supply. This capability allows them to function independently or in tandem with renewable energy sources and energy storage systems, especially during grid outages or disruptions, resulting in a noticeable uptick in their adoption. Furthermore, the industry's growth is fueled by a rising preference for power sources that emit fewer greenhouse gases and have a lesser environmental impact than traditional solutions.
   
• The solar PV in North America microgrid market is expected to grow at a CAGR of 7.9% through 2034 due to declining panel costs, favorable tax incentives and increasing demand for energy resilience amid extreme weather events. Growing efforts in recognizing the companies' investments in power source adoption for grid-related projects additionally drives the business outlook. For instance, in May 2024, G&W Electric won the "2024 Midwest Clean Energy Project Award" from the MCA at its annual conference. The award recognizes its microgrid project featuring 2MW rooftop solar, a 2MW Flow BESS, a 1.3 MVA flywheel, and 2MW diesel generation, enhancing grid resilience while cutting CO2 emissions and costs.
   
• Natural gas is expected to be valued at around USD 3.4 billion by 2034, driven by its affordability, reliability and ability to provide consistent baseload and dispatchable power. Additionally, widespread availability of natural gas infrastructure and favorable fuel pricing enhance its appeal. Rising environmental regulations focusing on cleaner alternatives to diesel and coal, along with the emissions advantages of natural gas, support its integration, leading to foster the industry prospects.
   
• The top three segments, CHP, natural gas and diesel generators account for over 78% of the total market value in 2024, out of which diesel generators are expected to grow by more than USD 1.5 billion by 2034. High convenience of power sources with proven, mature technology with a well-established supply chain, and low initial capital costs, escalates diesel generators adoption. Increasing environmental concerns encourage key players such as PowerSecure to shift towards cleaner diesel alternatives, including biodiesel with 100% renewable raw materials. This environmental advantage allows diesel generators to comply with stricter air quality regulations without requiring major equipment overhauls.
   

Based on grid type, the North America microgrid market is segmented into AC microgrid, DC microgrid and hybrid. The AC segment dominates the market with 49.5% share in 2024 and is expected to grow at a CAGR of 7.5% from 2025 to 2034.
 

• Rising demand for grids offering seamless integration with the main grid, enabling easier energy exchange, grid-tied operations and regulatory compliance, is set to augment AC segment adoption. Additionally, their mature technology base supports a broad range of commercial and industrial loads without requiring conversion. Consumers' growing preference towards microgrids with lower component costs, well-established standards and access to a wide range of grid-forming and grid following inverters further complements AC grids' penetration.
   
• The DC segment is set to grow at a CAGR of 7.8% till 2034 on account of increasing use of DC native technologies such as solar PV, battery storage, EV charging systems and LED lighting. Additionally, growing demand for low-voltage and high efficiency power, particularly in off-grid and commercial sectors, makes DC microgrids a streamlined, energy-optimized alternative to traditional AC systems, leading to industry growth.
   
• Increasing demand for grids offering simpler control architectures and faster response times makes DC systems an ideal choice for mission-critical applications and data centers. For instance, in June 2023, Kirtland Air Force Base (KAFB) took a significant step forward in its energy resilience initiatives by launching a new DC microgrid project. Concurrent Technologies Corporation secured a USD 4.8 million contract from the U.S. Air Force Research Laboratory to spearhead the development and implementation of these DC microgrid technologies at KAFB.
   
• The top 2 grid segments represent 87% market share in 2024, out of which, the hybrid microgrid market is expected to grow by more than USD 1.6 billion by 2034 due to increasing requirements for enhanced grid flexibility and reliability. Companies are increasingly combining AC and DC systems, allowing seamless integration of diverse energy sources such as solar, wind and battery storage, optimizing energy flow and reducing conversion losses, escalating hybrid grid penetration.
   

• The U.S. dominated the microgrid market in North America with around 82.7% share in 2024 and is expected to generate revenue of over USD 10.3 billion by 2034. Investments in innovations, spanning renewable energy generation, energy storage systems, smart grid technologies, and microgrid controllers, are reshaping the industry landscape. These investments aim to bolster the efficiency, reliability, and integration capabilities of these solutions.
   
• Federal incentives, including investment tax credits, grants, and loan programs, bolster investments in microgrid projects. These initiatives not only boost energy reliability and integrate renewable sources but also align with grid modernization objectives, thereby enhancing the overall business landscape.
   
• Additionally, early demonstrations highlight the advantages of microgrids. In light of this, a trade group reports, “The U.S. Department of Energy (DOE) envisions that by 2035, microgrids will play a pivotal role in the revamped grid, with 30%-50% of electricity generation sourced from distributed resources, leading to propel the business prospects.
   
• Expanding aging grid infrastructure, coupled with increasing frequency and severity of natural disasters and cyber threats, boosts the vulnerability of centralized power systems, thereby propelling industry growth. Additionally, rising installations of solutions can enhance property values, attract investments, and stimulate local economic development, creating jobs in the renewable energy sector and supporting economic resilience in communities will fuel the product demand.
   
• The top 2 countries account for 94% market share out of with Canada expected to value of over USD 2 billion by 2034. The presence of over 200,000 residents in 292 remote or island communities in the country has imposed crippling costs and emissions, sometimes multiple factors higher than grid-connected regions. This escalates microgrids' popularity, especially hybrid systems combining renewable and storage, dramatically lowering diesel dependency, reducing greenhouse gases and enhance energy resilience in even the most isolated locales.
   
• Mexico is at an initial stage of microgrid adoption, although expected to grow at the fastest CAGR of 10.3% till 2034 due to unreliable grid infrastructure, aging transmission assets and sweltering heat waves across 20 of 32 states. The country's vast solar and wind potential is expected to catalyze a hybrid microgrid combining PV, wind and battery storage, leading to business expansion. Additionally, ongoing regulatory initiatives such as PRODESEN, the Energy Transition Law and clean energy auctions are shaping a favorable policy landscape for the product adoption.
   

North America Microgrid Market Share

• Top five players, including GE Vernova, Siemens Energy, Eaton, PowerSecure and Schneider Electric, account for nearly 33.1% of the microgrid market. Businesses are developing advanced microgrid solutions, integrating renewable energy sources, energy storage systems, smart grid technologies, and sophisticated control systems to cater to diverse needs in residential, commercial, and industrial sectors.
   
• New companies are setting up regional offices, distribution channels, and service centers to cater to local energy demands. They also tailor their products to align with local regulations, grid standards, and customer preferences, boosting both market penetration and customer satisfaction.
   
• In the North America microgrid market, Schneider Electric holds a significant share, offering turnkey solutions integrating energy automation, solar, storage, and advanced controls. The company enables resilience, sustainability, and cost savings across military bases, campuses and commercial facilities through its EcoStruxure microgrid platform and energy as a service partnership with utilities and developers.
   
• GE Vernova is a prominent player in the North America microgrid landscape, offering advanced distributed energy solutions through its GridNode platform. This platform enables real-time control of distributed energy resources, grid optimization, seamless islanding and participation in energy markets. The company provides end-to-end microgrid design, control and analytics for utilities, campuses and communities.
   

North America Microgrid Market Companies

• Schneider Electric, a frontrunner in the microgrid arena, announced a significant uptick in its Q3 2024 sales, boasting an organic growth of 8% year-over-year, culminating in a record USD 9.7 billion. During the 2024 Energy Access Investment Forum, hosted by the Alliance for Rural Electrification, Schneider Electric unveiled 'Villaya Flex', a microgrid solution tailored for communities. This innovation aims to tackle contemporary energy challenges and facilitate a shift towards decarbonized, self-sufficient electricity.
   
• Siemens reported a 3% rise in revenue, reaching USD 89.1 billion for fiscal 2024. The company is a leading microgrid integrator in North America, offering advanced solutions via its Princeton R&D hub and Russelectric subsidiary. Its microgrid systems integrate solar, storage and generators with SICAM controls and MindSphere analytics, enabling fast islanding, black start and CO2 reduction for critical infrastructure, campuses and utilities.
   
• Blue Planet Energy delivers safe, scalable solar plus storage microgrids using its Blue Ion LX and HI lithium iron phosphate systems. Notable deployments include a grid-independent warehouse in Santa Cruz and a diesel offset microgrid in Shungnak. Additionally, Ameresco is another growing company that delivers large-scale microgrid solutions for critical infrastructure using solar PV, CHO, battery storage and advanced control systems.
   

Eminent players operating in the North America microgrid market are:

• ABB
• Advanced Microgrid Systems
• Ameresco
• Bloom Energy
• Blue Planet Energy
• Black & Veatch
• Caterpillar
• Eaton
• Enchanted Rock
• General Microgrids
• General Electric
• Honeywell
• Helia Technologies
• Hitachi Energy Ltd
• PowerSecure
• S&C Electric Company
• Schneider Electric
• Siemens AG
• Tesla
• Toshiba Corporation
   

North America Microgrid Market News

• In October 2024, Ameresco, Inc., in partnership with the U.S. Navy and Hawaiian Electric Company, announced the Pu`uloa Microgrid project, designed to strengthen energy resilience for Joint Base Pearl Harbor Hickam and Oahu. The project is part of the Grid Resilience and Innovation Partnerships Program, established under the Bipartisan Infrastructure Law and managed by the U.S. Department of Energy’s Grid Deployment Office. The microgrid will integrate advanced smart grid technology, microgrid control systems, and upgraded electrical infrastructure to improve grid reliability. With a planned 99 MW renewable dispatchable generation capacity, the project is under development at JBPHH.
   
• In March 2023, ABB has forged a strategic alliance with Direct Energy Partners (DEP), a startup dedicated to promoting the adoption of DC microgrids via digital technology. As a key component of this collaboration, ABB's venture capital arm, ABB Technology Ventures (ATV), is set to make a minority investment in DEP. This partnership is designed to bolster ABB's technological leadership in anticipation of future market expansion.
   
• In September 2022, At a high school in Saskatoon, Siemens Canada, in collaboration with the Saskatoon Industry Education Council, unveiled the Smartflower Microgrid. This innovative microgrid not only powers the school's classrooms but also delivers real-time insights into electricity production and energy absorption. Additionally, it serves as a resource hub, offering curriculum materials on green technology, data analytics, solar energy, and grid management.
   

This North America 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:

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 countries:

• U.S.
• Canada
• Mexico