PUBLISHER: The Business Research Company | PRODUCT CODE: 1672494
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672494
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.
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 $17.08 billion in 2024 to $20.48 billion in 2025 at a compound annual growth rate (CAGR) of 19.9%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increased demand for clean energy sources and growing adoption of microgrids for rural electrification.
The microgrid market size is expected to see rapid growth in the next few years. It will grow to $39.53 billion in 2029 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to increasing electricity demand, increasing initiatives and rising population. Major trends in the forecast period include use of artificial intelligence (AI), development and adoption of green hydrogen microgrids, development of smart, plug-and-play microgrid inverters, adoption of solar and battery-powered microgrid community, and partnerships and collaborations.
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 microgrid market is also expected to benefit from the escalating demand for electricity. Microgrids, functioning independently of the main electricity grid, address the surging electricity demand globally. ExxonMobil projects a yearly increase of 1.8% in electricity demand, reaching nearly half of the sector by 2050. Supporting this, India's power consumption recorded a robust growth of 13.6% in November 2022 compared to the previous year, as per data from the Indian government. This surge in electricity demand is poised to propel the microgrid market forward in the forecast period.
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.
The integration of artificial intelligence (AI) stands out as another prominent trend in the microgrid market. AI enhances the speed and precision of forecasting energy supply and demand changes within microgrids. Veritone Inc., a US-based AI company, has introduced an intelligent distributed energy resource management solution (iDERMS) leveraging AI to facilitate the transition to clean energy. This solution employs real-time energy forecasting, optimization, and control to unlock the full potential of Distributed Energy Resources (DERs), exemplifying the transformative role of AI in energy ecosystems.
In December 2022, Hover Energy, a USA-based developer of wind-powered microgrids, acquired Shine Development Partners, a renewable energy development company. This undisclosed acquisition enhances Hover Energy's capabilities and contributes to the global expansion of its patented wind-powered microgrid technology. Shine Development Partners, known for its expertise in medium- to large-scale solar PV and clean energy projects, aligns with Hover Energy's vision for sustainable and innovative microgrid solutions.
Major companies operating in the microgrid market include General Electric Company, Schneider Electric SE, ABB Group, Siemens AG, Toshiba Corporation, Exelon Corporation, Eaton Corporation PLC, Engie SA, Hitachi Ltd, S&C Electric Company, DESI Power, Gram Power, Mera Gao Power, Omnigrid Micropower Company, State Grid Corporation of China (SGCC), China Southern Power Grid, CleanSpark, 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., Bboxx, Enervalis, Younicos, Supreme Power Solutions Co. Ltd. (SPS), Phono Solar Technology Co. Ltd., Rolls-Royce Power Systems AG, Capstone Turbine Corporation, Elum Energy, CebeEnergy GmbH, AMS, Caterpillar, enSYNC Corporation, Lockheed Martin Corporation, Power Analytics Corporation, LO3 Energy, HOMER Energy LLC, PowerSecure Inc., Primus Power, SolarX, Sola Group, Powin Inc, Moura, Voltalia, Reuniwatt, Neoenergia, Iberdrola, HIMOINSA, Total Eren, Nidec Industrial Solutions, Edelar S.A, ALEC Energy, Mohamed Abdulrahman Al Bahar LLC, Husk Power Systems, Engie Energy Access.
North America was the largest region in the microgrid market in 2024. 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, 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, Russia, South Korea, UK, USA, Italy, Spain, Canada.
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 Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on 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.
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? 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, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.