Microgrid Global Market Report 2026

The growth in the historic period can be attributed to the increased demand for secure and reliable power supply, the integration of renewable energy sources, the rise in government initiatives for microgrid deployment, and advancements in microgrid control technologies.

The growth in the forecast period can be attributed to the increasing focus on reducing carbon footprint, growing adoption of renewable energy sources, and the rising demand for reliable and resilient power supply. Major trends in the forecast period include the integration of advanced energy storage technologies, the implementation of blockchain technology for microgrid operations, and the development of smart microgrids for improved control and efficiency.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electrical components, power electronics, and renewable energy equipment have raised microgrid project costs and slowed procurement cycles across commercial, industrial, and community deployments. Regions importing switchgear, inverters, and control systems, including Asia Pacific, Europe, and Africa, face extended lead times and reduced installation speed. However, tariffs are also encouraging domestic manufacturing, localized sourcing of grid hardware, and innovation in cost-effective microgrid technologies that reduce reliance on imported components.

The microgrid market research report is one of a series of new reports from The Business Research Company that provides microgrid market statistics, including microgrid industry global market size, regional shares, competitors with a microgrid market share, detailed microgrid market segments, market trends and opportunities, and any further data you may need to thrive in the microgrid industry. This microgrid market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The microgrid market size has grown rapidly in recent years. It will grow from $20.2 billion in 2025 to $23.75 billion in 2026 at a compound annual growth rate (CAGR) of 17.6%. The growth in the historic period can be attributed to increasing adoption of distributed energy resources, rise in remote area electrification projects, growth in grid resilience requirements, early deployment of renewable integration systems, expansion of industrial and campus microgrid pilots.

The microgrid market size is expected to see rapid growth in the next few years. It will grow to $44.35 billion in 2030 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to growing demand for backup power reliability, rising investment in smart grid modernization, expansion of electrification initiatives, increasing deployment of AI optimized energy management, growth in commercial and community microgrid adoption. Major trends in the forecast period include expansion of sustainable and renewable energy integrated microgrids, growing deployment of iot connected microgrid monitoring systems, increased adoption of intelligent manufacturing powered microgrid components, rising integration of AI driven microgrid optimization, growth in electrification supporting microgrid development.

The increasing adoption of microgrids for rural electrification is anticipated to drive the growth of the microgrid market in the coming years. Efforts are underway to provide 24/7 energy access and connect rural communities, including micro, small, and medium-sized enterprises (MSMEs). Microgrids offer several advantages over centralized infrastructure for rural electrification, including cost efficiency, environmental sustainability, and promoting regional equity between urban and rural areas. For example, in 2023, SolarpowerEurope, a Belgium-based provider of solar energy manufacturing equipment, reported a 40% increase in the installation of solar energy-generating equipment compared to 2022. Additionally, the installation capacity of photovoltaic (PV) solar fleets grew from 207 GW in 2022 to 263 GW in 2023. Consequently, the rising adoption of microgrids for rural electrification is expected to significantly boost the microgrid market.

The development and implementation of green hydrogen microgrids is a significant trend gaining traction in the microgrid market. Green hydrogen is produced by using renewable energy sources like wind and solar to split water into hydrogen and oxygen in an electrolyzer. Companies focused on microgrid development are increasingly creating eco-friendly solutions, including green hydrogen microgrids, to minimize environmental carbon footprints. For example, in April 2024, Advait Infratech, a power transmission company based in India, launched the country's first Green Hydrogen Microgrid. This microgrid system features a 300 kW electrolyzer capable of generating 50 kg of high-purity hydrogen daily during daylight hours, effectively utilizing renewable energy sources. The hydrogen produced is stored in a 24m3 tank, pressurized at 30 bar, ensuring a dependable supply for energy generation when necessary. This initiative is part of Advait's wider commitment to environmental sustainability and reducing carbon footprints through innovative hydrogen-based energy systems.

In January 2025, EQT Transition Infrastructure, a Sweden-based investment firm, acquired Scale Microgrids for an undisclosed amount. This acquisition allows EQT to accelerate growth in distributed energy infrastructure by adding a vertically integrated microgrid developer and owner with a substantial project pipeline in North America. Scale Microgrids is a US-based company specializing in the development of microgrids and distributed energy resources.

Major companies operating in the microgrid market are General Electric Company, Schneider Electric SE, ABB Group, Siemens AG, Toshiba Corporation, Eaton Corporation PLC, Engie SA, Hitachi Ltd, S&C Electric Company, CleanSpark Inc., Sungrow Power Supply Co. Ltd., Shenzhen Cubenergy Co. Ltd., ShanghAI Dowell Technology Co. Ltd., ShanghAI Ghrepower Green Energy Co. Ltd., Shenzhen Sinexcel Electric Co. Ltd., Enervalis NV, Younicos GmbH, Supreme Power Solutions Co. Ltd., Phono Solar Technology Co. Ltd., Rolls-Royce Power Systems AG, Capstone Turbine Corporation, Elum Energy, CebeEnergy GmbH, AMS (Advanced Microgrid Solutions), Caterpillar Inc., enSYNC Corporation, Lockheed Martin Corporation, Power Analytics Corporation, LO3 Energy Inc., HOMER Energy LLC, PowerSecure Inc., Primus Power Corporation, Powin Inc., Voltalia SA, Reuniwatt SAS, Neoenergia SA, Iberdrola SA, HIMOINSA SL, Total Eren SA, Nidec Industrial Solutions, ALEC Energy, Mohamed Abdulrahman Al Bahar LLC, Husk Power Systems, Engie Energy Access

North America was the largest region in the microgrid market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microgrid market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the microgrid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The microgrid market consists of revenues earned by entities by providing services such as self-contained electrical network, electric monitoring and control services, clean energy solution. The market value includes the value of related goods sold by the service provider or included within the service offering. The microgrid market also includes sales of switchgears, inverters, generator, storage devices which are used in providing microgrid services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Microgrid Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses microgrid market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for microgrid ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The microgrid market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: AC Microgrid; DC Microgrid; Hybrid
• 2) By Connectivity: Grid Connected; Off-Grid Connected
• 3) By Component: Hardware; Software; Services
• 4) By Application: Remote Systems; Institutional Buildings; Community And Utility Distribution
• 5) By End-User: Commercial And Industrial; Institutes And Campuses; Defense And Military
• Subsegments:
• 1) By AC Microgrid: Utility-Connected AC Microgrid; Islanded AC Microgrid; Community AC Microgrid
• 2) By DC Microgrid: Standalone DC Microgrid; DC Microgrid For Renewable Integration; DC Microgrid For Data Centers
• 3) By Hybrid Microgrid: AC Or DC Hybrid Microgrid; Renewable Energy Integrated Hybrid Microgrid; Conventional And Renewable Hybrid Microgrid
• Companies Mentioned: General Electric Company; Schneider Electric SE; ABB Group; Siemens AG; Toshiba Corporation; Eaton Corporation PLC; Engie SA; Hitachi Ltd; S&C Electric Company; CleanSpark Inc.; Sungrow Power Supply Co. Ltd.; Shenzhen Cubenergy Co. Ltd.; Shanghai Dowell Technology Co. Ltd.; Shanghai Ghrepower Green Energy Co. Ltd.; Shenzhen Sinexcel Electric Co. Ltd.; Enervalis NV; Younicos GmbH; Supreme Power Solutions Co. Ltd.; Phono Solar Technology Co. Ltd.; Rolls-Royce Power Systems AG; Capstone Turbine Corporation; Elum Energy; CebeEnergy GmbH; AMS (Advanced Microgrid Solutions); Caterpillar Inc.; enSYNC Corporation; Lockheed Martin Corporation; Power Analytics Corporation; LO3 Energy Inc.; HOMER Energy LLC; PowerSecure Inc.; Primus Power Corporation; Powin Inc.; Voltalia SA; Reuniwatt SAS; Neoenergia SA; Iberdrola SA; HIMOINSA SL; Total Eren SA; Nidec Industrial Solutions; ALEC Energy; Mohamed Abdulrahman Al Bahar LLC; Husk Power Systems; Engie Energy Access
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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