Global Microgrid Market Size study & Forecast, by Power Source (Natural Gas, CHP, Fuel Cell), by Product (Remote, Grid Connected, Hybrid), by Application (Education, Government, Commercial) and Regional Forecasts 2025-2035

Description

Market Definition and Overview

The Global Microgrid Market is valued at approximately USD 90.03 billion in 2024 and is anticipated to expand at a striking CAGR of 17.01% during the forecast period 2025-2035. A microgrid represents a localized energy system that can operate in conjunction with, or independently from, the main power grid, enabling resilient, flexible, and efficient electricity distribution. By integrating renewable sources, distributed generation, and advanced energy storage, microgrids are reshaping how communities, businesses, and institutions secure reliable energy access. The surge in demand for clean energy, coupled with the vulnerabilities of aging grid infrastructure, has amplified the adoption of microgrid solutions globally. Rising concerns over climate change, the growing push toward decentralization of power systems, and favorable government initiatives are further accelerating this transition.

The increasing frequency of natural disasters and power outages has compelled governments and private institutions to prioritize energy security, pushing microgrid deployment into mainstream energy planning. According to industry estimates, the number of global microgrid projects has nearly doubled over the last five years, reflecting a heightened awareness of the importance of grid resiliency. Emerging economies are leveraging microgrids to bridge energy access gaps, while developed nations are adopting them to optimize renewable integration and support decarbonization agendas. However, despite this momentum, high capital expenditure requirements and complex regulatory frameworks remain hurdles that could restrain the market's rapid adoption.

The detailed segments and sub-segments included in the report are:

By Power Source:

Natural Gas
CHP (Combined Heat & Power)
Fuel Cell

By Product:

Remote
Grid Connected
Hybrid

By Application:

Education
Government
Commercial

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
Middle East & Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East & Africa
Grid Connected Microgrids are Expected to Dominate the Market
Grid-connected microgrids are expected to command the largest share of the global market throughout the forecast period, driven by the rising need for stability and renewable integration in national grids. This segment benefits from the ability to balance electricity supply and demand seamlessly, enhancing efficiency while cutting energy costs. Industries, urban centers, and government facilities are increasingly deploying grid-connected systems to strengthen energy resilience without entirely disconnecting from the central grid. The integration of advanced analytics, digital control systems, and IoT-enabled monitoring further augments the scalability and reliability of this segment. While remote and hybrid systems continue to gain relevance, particularly in underserved regions, grid-connected microgrids remain the undisputed leader in market penetration.
Natural Gas-Based Microgrids Lead in Revenue Contribution
Among power sources, natural gas-based microgrids currently account for the largest share of revenue. Their dominance can be attributed to cost efficiency, lower emissions compared to coal, and the abundance of natural gas resources in key markets. Natural gas-powered combined heat and power (CHP) systems provide both electricity and thermal energy, making them highly attractive for commercial and institutional applications. Meanwhile, fuel cell-based microgrids are emerging as a high-growth subsegment, propelled by advancements in hydrogen technologies and decarbonization initiatives. Although renewable-based hybrids are gaining popularity for sustainability reasons, natural gas remains the workhorse of the market, delivering consistent performance and acting as a transitional power source on the path to greener energy systems.
Regional Insights
The microgrid market displays strong geographical variation, with North America taking the lead in 2024 due to its mature infrastructure, substantial investments in renewable integration, and government-backed resilience programs. The U.S., in particular, has been at the forefront of deploying microgrids across military bases, healthcare facilities, and critical commercial hubs. Europe follows closely, supported by its aggressive decarbonization targets and substantial funding for clean energy innovation under the EU Green Deal. Asia Pacific, however, is expected to register the fastest growth during 2025-2035. Countries like India, China, and Japan are investing heavily in microgrids to enhance energy access, reduce grid dependency, and address growing electricity demand. Latin America and the Middle East & Africa are also emerging as dynamic markets, propelled by the dual imperatives of improving electrification in remote areas and advancing renewable integration strategies.

Major market players included in this report are:

General Electric Company
Siemens AG
Schneider Electric SE
ABB Ltd.
Eaton Corporation Plc
Honeywell International Inc.
Hitachi Energy Ltd.
Caterpillar Inc.
Tesla, Inc.
Cummins Inc.
Mitsubishi Electric Corporation
Engie SA
Wartsila Corporation
Bloom Energy Corporation
Yokogawa Electric Corporation

Global Microgrid Market Report Scope:

Historical Data - 2023, 2024
Base Year for Estimation - 2024
Forecast period - 2025-2035
Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:

Market Estimates & Forecast for 10 years from 2025 to 2035.
Annualized revenues and regional-level analysis for each market segment.
Detailed analysis of the geographical landscape with country-level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of the competitive structure of the market.
Demand side and supply side analysis of the market.

Chapter 1. Global Microgrid Market Report Scope & Methodology

1.1. Research Objective
1.2. Research Methodology
- 1.2.1. Forecast Model
- 1.2.2. Desk Research
- 1.2.3. Top Down and Bottom-Up Approach
1.3. Research Attributes
1.4. Scope of the Study
- 1.4.1. Market Definition
- 1.4.2. Market Segmentation
1.5. Research Assumption
- 1.5.1. Inclusion & Exclusion
- 1.5.2. Limitations
- 1.5.3. Years Considered for the Study

Chapter 2. Executive Summary

2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. key Findings

Chapter 3. Global Microgrid Market Forces Analysis

3.1. Market Forces Shaping The Global Microgrid Market (2024-2035)
3.2. Drivers
- 3.2.1. decentralization of power systems
- 3.2.2. favorable government initiatives
3.3. Restraints
- 3.3.1. high capital expenditure requirements
3.4. Opportunities
- 3.4.1. Emerging economies are leveraging microgrids to bridge energy access gaps

Chapter 4. Global Microgrid Industry Analysis

4.1. Porter's 5 Forces Model
- 4.1.1. Bargaining Power of Buyer
- 4.1.2. Bargaining Power of Supplier
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
4.2. Porter's 5 Force Forecast Model (2024-2035)
4.3. PESTEL Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.3.5. Environmental
- 4.3.6. Legal
4.4. Top Investment Opportunities
4.5. Top Winning Strategies (2025)
4.6. Market Share Analysis (2024-2025)
4.7. Global Pricing Analysis And Trends 2025
4.8. Analyst Recommendation & Conclusion

Chapter 5. Global Microgrid Market Size & Forecasts by Power Source 2025-2035

5.1. Market Overview
5.2. Global Microgrid Market Performance - Potential Analysis (2025)
5.3. Natural Gas
- 5.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.3.2. Market size analysis, by region, 2025-2035
5.4. CHP (Combined Heat & Power)
- 5.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.4.2. Market size analysis, by region, 2025-2035
5.5. Fuel Cell
- 5.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.5.2. Market size analysis, by region, 2025-2035

Chapter 6. Global Microgrid Market Size & Forecasts by Product 2025-2035

6.1. Market Overview
6.2. Global Microgrid Market Performance - Potential Analysis (2025)
6.3. Remote
- 6.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.3.2. Market size analysis, by region, 2025-2035
6.4. Grid Connected
- 6.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.4.2. Market size analysis, by region, 2025-2035
6.5. Hybrid
- 6.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.5.2. Market size analysis, by region, 2025-2035

Chapter 7. Global Microgrid Market Size & Forecasts by Application 2025-2035

7.1. Market Overview
7.2. Global Microgrid Market Performance - Potential Analysis (2025)
7.3. Education
- 7.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.3.2. Market size analysis, by region, 2025-2035
7.4. Government
- 7.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.4.2. Market size analysis, by region, 2025-2035
7.5. Commercial
- 7.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.5.2. Market size analysis, by region, 2025-2035

Chapter 8. Global Microgrid Market Size & Forecasts by Region 2025-2035

8.1. Growth Microgrid Market, Regional Market Snapshot
8.2. Top Leading & Emerging Countries
8.3. North America Microgrid Market
- 8.3.1. U.S. Microgrid Market
  - 8.3.1.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.3.1.2. Product breakdown size & forecasts, 2025-2035
  - 8.3.1.3. Application breakdown size & forecasts, 2025-2035
- 8.3.2. Canada Microgrid Market
  - 8.3.2.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.3.2.2. Product breakdown size & forecasts, 2025-2035
  - 8.3.2.3. Application breakdown size & forecasts, 2025-2035
8.4. Europe Microgrid Market
- 8.4.1. UK Microgrid Market
  - 8.4.1.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.1.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.1.3. Application breakdown size & forecasts, 2025-2035
- 8.4.2. Germany Microgrid Market
  - 8.4.2.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.2.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.2.3. Application breakdown size & forecasts, 2025-2035
- 8.4.3. France Microgrid Market
  - 8.4.3.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.3.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.3.3. Application breakdown size & forecasts, 2025-2035
- 8.4.4. Spain Microgrid Market
  - 8.4.4.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.4.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.4.3. Application breakdown size & forecasts, 2025-2035
- 8.4.5. Italy Microgrid Market
  - 8.4.5.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.5.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.5.3. Application breakdown size & forecasts, 2025-2035
- 8.4.6. Rest of Europe Microgrid Market
  - 8.4.6.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.4.6.2. Product breakdown size & forecasts, 2025-2035
  - 8.4.6.3. Application breakdown size & forecasts, 2025-2035
8.5. Asia Pacific Microgrid Market
- 8.5.1. China Microgrid Market
  - 8.5.1.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.1.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.1.3. Application breakdown size & forecasts, 2025-2035
- 8.5.2. India Microgrid Market
  - 8.5.2.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.2.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.2.3. Application breakdown size & forecasts, 2025-2035
- 8.5.3. Japan Microgrid Market
  - 8.5.3.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.3.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.3.3. Application breakdown size & forecasts, 2025-2035
- 8.5.4. Australia Microgrid Market
  - 8.5.4.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.4.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.4.3. Application breakdown size & forecasts, 2025-2035
- 8.5.5. South Korea Microgrid Market
  - 8.5.5.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.5.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.5.3. Application breakdown size & forecasts, 2025-2035
- 8.5.6. Rest of APAC Microgrid Market
  - 8.5.6.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.5.6.2. Product breakdown size & forecasts, 2025-2035
  - 8.5.6.3. Application breakdown size & forecasts, 2025-2035
8.6. Latin America Microgrid Market
- 8.6.1. Brazil Microgrid Market
  - 8.6.1.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.6.1.2. Product breakdown size & forecasts, 2025-2035
  - 8.6.1.3. Application breakdown size & forecasts, 2025-2035
- 8.6.2. Mexico Microgrid Market
  - 8.6.2.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.6.2.2. Product breakdown size & forecasts, 2025-2035
  - 8.6.2.3. Application breakdown size & forecasts, 2025-2035
8.7. Middle East and Africa Microgrid Market
- 8.7.1. UAE Microgrid Market
  - 8.7.1.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.7.1.2. Product breakdown size & forecasts, 2025-2035
  - 8.7.1.3. Application breakdown size & forecasts, 2025-2035
- 8.7.2. Saudi Arabia (KSA) Microgrid Market
  - 8.7.2.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.7.2.2. Product breakdown size & forecasts, 2025-2035
  - 8.7.2.3. Application breakdown size & forecasts, 2025-2035
- 8.7.3. South Africa Microgrid Market
  - 8.7.3.1. Power Source breakdown size & forecasts, 2025-2035
  - 8.7.3.2. Product breakdown size & forecasts, 2025-2035
  - 8.7.3.3. Application breakdown size & forecasts, 2025-2035

Chapter 9. Competitive Intelligence

9.1. Top Market Strategies
9.2. AubinGroup
- 9.2.1. Company Overview
- 9.2.2. Key Executives
- 9.2.3. Company Snapshot
- 9.2.4. Financial Performance (Subject to Data Availability)
- 9.2.5. Product/Services Port
- 9.2.6. Recent Development
- 9.2.7. Market Strategies
- 9.2.8. SWOT Analysis
9.3. Baker Hughes Incorporated
9.4. Halliburton
9.5. BASF SE
9.6. Chevron Phillips Chemical Company
9.7. Croda International PLC
9.8. Impact Fluid Solutions
9.9. M&DIndustries of L.A. Inc.
9.10. Schlumberger Limited.
9.11. Trican Well Service Ltd.