Microgrid Market - Forecasts from 2025 to 2030

The microgrid market is expected to grow from USD 23.530 billion in 2025 to USD 49.039 billion in 2030, at a CAGR of 15.82%.

The microgrid market is experiencing significant growth, driven by the need for energy resilience, renewable energy integration, and decentralized power systems. Microgrids, standalone electrical systems capable of operating independently or in tandem with the main grid, integrate diverse energy sources like solar, wind, and biomass with advanced control systems and storage to ensure reliable power. This report examines key trends, drivers, and regional dynamics shaping the market from 2025 onward, highlighting its role in addressing modern energy challenges.

Key Trends

Energy Resilience and Decentralization

The increasing frequency of natural disasters and cyberattacks underscores the need for resilient power systems. Microgrids provide localized generation and distribution, enabling critical infrastructure like hospitals, military installations, and data centers to maintain operations during grid outages. Their ability to "island" from the main grid minimizes transmission losses and reliance on aging infrastructure, positioning microgrids as a vital solution for energy security in an era of growing grid vulnerabilities.

Integration of Renewable Energy

Global decarbonization goals are driving the integration of renewable sources like solar, wind, and biomass into microgrids. These systems leverage sophisticated controls and storage to manage intermittent renewable generation, reducing fossil fuel dependency and greenhouse gas emissions. Microgrids' scalability makes them ideal for remote and underdeveloped regions, supporting the global transition to cleaner energy systems and aligning with sustainability objectives.

Market Drivers

Demand for Renewable Energy

The rising demand for renewable energy is a primary driver of the microgrid market. Government investments and decarbonization goals are accelerating the adoption of solar, wind, and other sustainable sources. The International Energy Agency projects renewable energy generation to reach 17,000 TWh by 2030, with microgrids playing a critical role in integrating these sources efficiently, particularly in regions prioritizing carbon reduction.

Energy Resilience and Reliability

Microgrids address vulnerabilities in traditional grids, which are susceptible to disruptions from natural disasters and cyberattacks. Their ability to operate autonomously or alongside the main grid ensures uninterrupted power for critical facilities like hospitals and commercial campuses. Projects like Siemens AG's sustainable microgrid at Algonquin College in Ontario, Canada, and the Blue Lake Rancheria microgrid exemplify their reliability for critical infrastructure and remote areas.

Economic and Energy Efficiency

Microgrids enhance economic efficiency through advanced software that optimizes power usage based on demand and utility prices. This drives demand in commercial, industrial, and institutional settings, where cost savings and energy efficiency are priorities. Additionally, microgrids' low carbon emissions align with corporate sustainability goals, further boosting market growth.

Regional Analysis

North America

The U.S. leads the microgrid market, driven by frequent extreme weather events and the push for decarbonization. The Inflation Reduction Act, supporting 334 clean energy projects by November 2024, and the U.S. Department of Energy's goal of 100% clean electricity by 2035 have spurred microgrid development. Solar energy, projected to grow from 163 billion kWh in 2023 to 286 billion kWh in 2025, underscores the need for microgrids to manage renewable variability and ensure grid stability.

Other Regions

While North America dominates, other regions like India are emerging, as seen in Honeywell's May 2024 commissioning of a microgrid Battery Energy and Storage System for the Solar Energy Corporation of India's Lakshadweep Islands project, highlighting global market potential.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.

Microgrid Market Segmentation:

By Application

• Institutional Sites
• Commercial Facilities
• Remote Off-Grid Communities
• Other Applications

By Grid

• On-Grid
• Off-Grid

By Ownership

• Private
• Public

By Region

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others