PUBLISHER: IMARC | PRODUCT CODE: 1642716
PUBLISHER: IMARC | PRODUCT CODE: 1642716
Microgrid Market Report by Energy Source (Natural Gas, Combined Heat and Power, Solar Photovoltaic (PV), Diesel, Fuel Cell, and Others), Application (Remote Systems, Institution and Campus, Utility/Community, Defence, and Others), and Region 2025-2033
The global microgrid market size reached USD 35.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 79.6 Billion by 2033, exhibiting a growth rate (CAGR) of 8.75% during 2025-2033. The rising energy demand in remote areas is increasing the need for independent power systems, which is stimulating the market.
A microgrid is a localized and small-scale energy system that generates, distributes, and manages electricity independently or in conjunction with the main power grid. It typically includes a combination of renewable energy sources, energy storage devices, and conventional generators. It can operate autonomously or disconnect from the main grid during power outages or emergencies and ensure a reliable and continuous power supply to a specific area or facility. As it is highly flexible and can be customized to meet unique energy needs, the demand for microgrid is increasing across the globe.
At present, the rising adoption of microgrids, as they promote energy efficiency, reduce reliance on fossil fuels, and enhance grid resilience, is bolstering the growth of the market. In line with this, increasing concerns about reducing greenhouse gas (GHG) emissions around the world are strengthening the growth of the market. Moreover, governing agencies of various countries are encouraging the adoption of microgrids by offering several incentives, which is contributing to the growth of the market. In addition, advancements in microgrid technology, such as improved control systems, energy storage solutions, and grid management software, are offering lucrative growth opportunities to industry investors. Furthermore, the rising demand for resilient infrastructure during natural disasters and cybersecurity threats is supporting the growth of the market. Apart from this, the increasing adoption of energy systems that have low transmission losses is impelling the growth of the market.
Microgrid Market Trends/Drivers:
Rising demand for enhanced energy security
The rising demand for enhanced energy security and reliability in various industries, communities, and critical facilities is bolstering the growth of the market. Traditional centralized power grids are vulnerable to disruptions from natural disasters, cyberattacks, and equipment failures, resulting in costly downtime and potential safety risks. On the other hand, microgrids offer a solution by providing a decentralized, self-sufficient energy system that can seamlessly disconnect from the main grid during outages. These grids use advanced control systems to detect grid disturbances and autonomously switch to island mode while ensuring an uninterrupted power supply. This capability is especially crucial for critical infrastructure like hospitals, data centers, and military bases, where continuous power is vital for survival.
Increasing need for cleaner and more sustainable energy sources
The increasing need for cleaner and more sustainable energy sources is contributing to the growth of the market. In addition, these grids are ideally suited to incorporate renewable energy generation, such as solar panels and wind turbines. They can effectively balance the intermittent nature of renewables with energy storage systems and ensure a stable power supply. Apart from this, this integration of renewables assists in reducing reliance on fossil fuels, lowering greenhouse gas (GHG) emissions, and aligns with the sustainability goals. Furthermore, the rising demand for microgrids due to the declining costs of solar and wind technologies is propelling the growth of the market.
Growing demand for cost-effective energy systems
The escalating demand for cost-effective energy systems to reduce the operational costs of a business is impelling the growth of the market. In line with this, microgrids allow organizations to generate power locally and efficiently, reducing the need to purchase expensive electricity from the grid. By optimizing the use of renewable energy sources, combined with energy storage and efficient demand management, these grids can significantly lower operational costs. Apart from this, for remote and off-grid applications, such as mining operations or rural communities, these grids provide an affordable and sustainable solution to access electricity and eliminate the need for expensive long-distance power transmission infrastructure, which is offering a positive market outlook.
Microgrid Industry Segmentation:
Breakup by Energy Source:
Natural Gas
Combined Heat and Power
Solar Photovoltaic (PV)
Diesel
Fuel Cell
Others
Combined heat and power represent the largest market segment
Breakup by Application:
Remote Systems
Institution and Campus
Utility/Community
Defence
Others
Remote systems account for the majority of the market share
Breakup by Region:
North America
Asia Pacific
Europe
Middle East and Africa
Latin America
North America exhibits a clear dominance, accounting for the largest microgrid market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America. According to the report, North America accounted for the largest market share.
North America held the biggest market share due to the presence of well-developed energy infrastructure. Apart from this, the rising awareness about maintaining sustainability is contributing to the growth of the market in the region. In line with this, increasing advancements in microgrid technology are propelling the growth of the market. Besides this, favorable government initiatives are supporting the growth of the market in the North America region.
Competitive Landscape:
Key players are improving the technologies of these grids by developing more efficient energy storage solutions, advanced control systems, and integrated renewable energy sources to enhance the performance and resilience of the product. Additionally, they are closely working with their clients to design and implement customized solutions tailored to specific energy needs and objectives. This involves assessing the unique requirements of each customer, such as industrial facilities, communities, or commercial properties, and designing these grids accordingly. Moreover, companies are developing grid-interactive microgrids that can both support local loads and provide grid services, such as frequency regulation and grid stabilization. They are also developing cost-effective and sustainable solutions that can operate independently and reliably in challenging environments.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
Lockheed Martin Corporation
ABB Ltd
General Electric Company (GE)
Eaton Corporation PLC
Siemens AG
Key Questions Answered in This Report
- 1. How big is the microgrid market?
- 2. What is the future of microgrid Market?
- 3. What are the key factors driving the global microgrid market?
- 4. What has been the impact of COVID-19 on the global microgrid market growth?
- 5. What is the breakup of the global microgrid market based on the energy source?
- 6. What is the breakup of the global microgrid market based on the application?
- 7. What are the key regions in the global microgrid market?
- 8. Who are the microgrid market players?
Table of Contents
1 Preface
2 Scope and Methodology
- 2.1 Objectives of the Study
- 2.2 Stakeholders
- 2.3 Data Sources
- 2.3.1 Primary Sources
- 2.3.2 Secondary Sources
- 2.4 Market Estimation
- 2.4.1 Bottom-Up Approach
- 2.4.2 Top-Down Approach
- 2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
- 4.1 Overview
- 4.2 Key Industry Trends
5 Global Microgrid Market
- 5.1 Market Overview
- 5.2 Market Performance
- 5.3 Impact of COVID-19
- 5.4 Market Breakup by Application
- 5.5 Market Breakup by Energy Source
- 5.6 Market Breakup by Region
- 5.7 Market Forecast
- 5.8 SWOT Analysis
- 5.8.1 Overview
- 5.8.2 Strengths
- 5.8.3 Weaknesses
- 5.8.4 Opportunities
- 5.8.5 Threats
- 5.9 Value Chain Analysis
- 5.9.1 Raw Material Suppliers
- 5.9.2 Sub-Components and Sub-Systems Manufacturers
- 5.9.3 Microgrid Manufacturers
- 5.9.4 Microgrid Control
- 5.9.5 Power Distribution
- 5.9.6 End-Use Industries
- 5.10 Porters Five Forces Analysis
- 5.10.1 Overview
- 5.10.2 Bargaining Power of Buyers
- 5.10.3 Bargaining Power of Suppliers
- 5.10.4 Degree of Competition
- 5.10.5 Threat of New Entrants
- 5.10.6 Threat of Substitutes
6 Market Breakup by Energy Source
- 6.1 Natural Gas
- 6.1.1 Market Trends
- 6.1.2 Market Forecast
- 6.2 Combined Heat and Power
- 6.2.1 Market Trends
- 6.2.2 Market Forecast
- 6.3 Solar Photovoltaic (PV)
- 6.3.1 Market Trends
- 6.3.2 Market Forecast
- 6.4 Diesel
- 6.4.1 Market Trends
- 6.4.2 Market Forecast
- 6.5 Fuel Cell
- 6.5.1 Market Trends
- 6.5.2 Market Forecast
- 6.6 Others
- 6.6.1 Market Trends
- 6.6.2 Market Forecast
7 Market Breakup by Application
- 7.1 Remote Systems
- 7.1.1 Market Trends
- 7.1.2 Market Forecast
- 7.2 Institution and Campus
- 7.2.1 Market Trends
- 7.2.2 Market Forecast
- 7.3 Utility/Community
- 7.3.1 Market Trends
- 7.3.2 Market Forecast
- 7.4 Defence
- 7.4.1 Market Trends
- 7.4.2 Market Forecast
- 7.5 Others
- 7.5.1 Market Trends
- 7.5.2 Market Forecast
8 Market Breakup by Region
- 8.1 North America
- 8.1.1 Market Trends
- 8.1.2 Market Forecast
- 8.2 Asia Pacific
- 8.2.1 Market Trends
- 8.2.2 Market Forecast
- 8.3 Europe
- 8.3.1 Market Trends
- 8.3.2 Market Forecast
- 8.4 Middle East and Africa
- 8.4.1 Market Trends
- 8.4.2 Market Forecast
- 8.5 Latin America
- 8.5.1 Market Trends
- 8.5.2 Market Forecast
9 Microgrid Manufacturing Process
- 9.1 Product Overview
- 9.2 Raw Material Requirements
- 9.3 Manufacturing Process
- 9.4 Key Success and Risk Factors
10 Competitive Landscape
- 10.1 Market Structure
- 10.2 Key Players
- 10.3 Profiles of Key Players
- 10.3.1 Lockheed Martin Corporation
- 10.3.1.1 Company Overview
- 10.3.1.2 Description
- 10.3.1.3 Product Portfolio
- 10.3.1.4 Financials
- 10.3.1.5 SWOT Analysis
- 10.3.2 ABB Ltd
- 10.3.2.1 Company Overview
- 10.3.2.2 Description
- 10.3.2.3 Product Portfolio
- 10.3.2.4 Financials
- 10.3.2.5 SWOT Analysis
- 10.3.3 General Electric Company (GE)
- 10.3.3.1 Company Overview
- 10.3.3.2 Description
- 10.3.3.3 Product Portfolio
- 10.3.3.4 Financials
- 10.3.3.5 SWOT Analysis
- 10.3.4 Eaton Corporation PLC
- 10.3.4.1 Company Overview
- 10.3.4.2 Description
- 10.3.4.3 Product Portfolio
- 10.3.4.4 Financials
- 10.3.4.5 SWOT Analysis
- 10.3.5 Siemens AG
- 10.3.5.1 Company Overview
- 10.3.5.2 Description
- 10.3.5.3 Product Portfolio
- 10.3.5.4 Financials
- 10.3.5.5 SWOT Analysis
- 10.3.1 Lockheed Martin Corporation
List of Figures
- Figure 1: Global: Microgrid Market: Major Drivers and Challenges
- Figure 2: Global: Microgrid Market: Sales Value (in Billion USD), 2019-2024
- Figure 3: Global: Microgrid Market: Breakup by Energy Source (in %), 2024
- Figure 4: Global: Microgrid Market: Breakup by Application (in %), 2024
- Figure 5: Global: Microgrid Market: Breakup by Region (in %), 2024
- Figure 6: Global: Microgrid Market Forecast: Sales Value (in Billion USD), 2025-2033
- Figure 7: Global: Microgrid Industry: SWOT Analysis
- Figure 8: Global: Microgrid Industry: Value Chain Analysis
- Figure 9: Global: Microgrid Industry: Porter's Five Forces Analysis
- Figure 10: Global: Microgrid (Natural Gas) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 11: Global: Microgrid (Natural Gas) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 12: Global: Microgrid (Combined Heat and Power) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 13: Global: Microgrid (Combined Heat and Power) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 14: Global: Microgrid (Solar Photovoltaic-PV) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 15: Global: Microgrid (Solar Photovoltaic-PV) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 16: Global: Microgrid (Diesel) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 17: Global: Microgrid (Diesel) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 18: Global: Microgrid (Fuel Cell) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 19: Global: Microgrid (Fuel Cell) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 20: Global: Microgrid (Other Energy Sources) Market: Sales Value (in Million USD), 2019 & 2024
- Figure 21: Global: Microgrid (Other Energy Sources) Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 22: Global: Microgrid Market (Applications in Remote Systems): Sales Value (in Million USD), 2019 & 2024
- Figure 23: Global: Microgrid Market Forecast (Applications in Remote Systems): Sales Value (in Million USD), 2025-2033
- Figure 24: Global: Microgrid Market (Applications in Institution and Campus): Sales Value (in Million USD), 2019 & 2024
- Figure 25: Global: Microgrid Market Forecast (Applications in Institution and Campus): Sales Value (in Million USD), 2025-2033
- Figure 26: Global: Microgrid Market (Applications in Utility/Community): Sales Value (in Million USD), 2019 & 2024
- Figure 27: Global: Microgrid Market Forecast (Applications in Utility/Community): Sales Value (in Million USD), 2025-2033
- Figure 28: Global: Microgrid Market (Applications in defence): Sales Value (in Million USD), 2019 & 2024
- Figure 29: Global: Microgrid Market Forecast (Applications in defence): Sales Value (in Million USD), 2025-2033
- Figure 30: Global: Microgrid Market (Other Applications): Sales Value (in Million USD), 2019 & 2024
- Figure 31: Global: Microgrid Market Forecast (Other Applications): Sales Value (in Million USD), 2025-2033
- Figure 32: North America: Microgrid Market: Sales Value (in Million USD), 2019 & 2024
- Figure 33: North America: Microgrid Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 34: Asia Pacific: Microgrid Market: Sales Value (in Million USD), 2019 & 2024
- Figure 35: Asia Pacific: Microgrid Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 36: Europe: Microgrid Market: Sales Value (in Million USD), 2019 & 2024
- Figure 37: Europe: Microgrid Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 38: Middle East and Africa: Microgrid Market: Sales Value (in Million USD), 2019 & 2024
- Figure 39: Middle East and Africa: Microgrid Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 40: Latin America: Microgrid Market: Sales Value (in Million USD), 2019 & 2024
- Figure 41: Latin America: Microgrid Market Forecast: Sales Value (in Million USD), 2025-2033
- Figure 42: Microgrid System: Interconnections Between Major Sub-Components and Sub-Systems of a Microgrid
List of Tables
- Table 1: Global: Microgrid Market: Key Industry Highlights, 2024 and 2033
- Table 2: Global: Microgrid Market Forecast: Breakup by Energy Source (in Million USD), 2025-2033
- Table 3: Global: Microgrid Market Forecast: Breakup by Application (in Million USD), 2025-2033
- Table 4: Global: Microgrid Market Forecast: Breakup by Region (in Million USD), 2025-2033
- Table 5: Microgrid: Sub-Components and Sub-Systems Requirements
- Table 6: Global: Microgrid Market: Competitive Structure
- Table 7: Global: Microgrid Market: Key Players
