Global Microgrid Market Growth (Status and Outlook) 2024-2030

According to Publisher’s latest study, the global Microgrid market size was valued at US$ 28130 million in 2023. With growing demand in downstream market, the Microgrid is forecast to a readjusted size of US$ 62830 million by 2030 with a CAGR of 12.2% during review period.

Market Overview

The research report highlights the growth potential of the global Microgrid market. Microgrid are expected to show stable growth in the future market. However, product differentiation, reducing costs, and supply chain optimization remain crucial for the widespread adoption of Microgrid. Market players need to invest in research and development, forge strategic partnerships, and align their offerings with evolving consumer preferences to capitalize on the immense opportunities presented by the Microgrid market.

A microgrid is a small power grid with defined boundaries that can operate both when connected to the larger electrical grid and as an ""island"" when there's an interruption on the main grid. It draws on distributed energy resources, like solar power, to serve customers within the microgrid footprint. These benefits extend to surrounding communities, with reliable energy allowing better access to food, supplies and public services.

Key Features:



Market Drivers: Growing Need for Reliable and Resilient Energy Systems: Microgrids, which can offer dependable and resilient power during emergencies, are becoming more and more popular due to the increasing frequency of natural disasters and grid outages.

Technological Advancements in Microgrids: The efficiency and usefulness of microgrids are being improved by technological innovations like smart grid integration, advanced energy management systems, and battery storage solutions.

Growing Adoption of Renewable Energy Sources: Microgrids that combine solar, wind, and other renewable energy sources are becoming more and more popular as a result of government incentives and environmental concerns.

Government Support and Regulatory Frameworks: The creation and implementation of microgrids are being aided by regulatory frameworks and supportive government policies that support clean energy and grid resilience.

Increasing Investments in Grid Modernization: The demand for sophisticated microgrid solutions is being driven by the continuous investments in grid modernization and the switch to smart grids.

Economic and Environmental Benefits: Microgrids are becoming more and more popular due to their substantial economic and environmental benefits, which include lower energy costs, improved energy efficiency, and fewer carbon emissions.

Challenges: High Initial Costs: Small and medium-sized businesses (SMEs) may find it difficult to expand their market share because to the high initial costs of microgrid implementation, which include equipment, installation, and maintenance.
Difficulties with Regulation and Policy: It can be difficult to navigate the complicated regulatory and policy environment for microgrid deployment, especially in areas where energy policies are ambiguous or changing.
Technological Cooperation and Integration:It can be difficult and resource-intensive to ensure the smooth integration and communication of different microgrid components, including as the generating, storage, and control systems.
Cybersecurity Risks: As microgrids depend more and more on linked and digital technology, worries about cybersecurity and the safety of vital energy infrastructure are raised.
Grid Stability and Management: Complex energy management and control systems are needed to maintain the stability and dependability of microgrids, especially in grid-connected scenarios.

Market Forecasts and Future Outlook: The growing demand for dependable and resilient energy systems, improvements in microgrid technology, and the expanding use of renewable energy sources are all predicted to propel the worldwide microgrid market's robust growth between 2024 and 2030. For growth to be sustained, issues like high startup costs and complicated regulations must be resolved. There are plenty of chances in this sector to innovate, grow into new markets, and create cutting-edge microgrid solutions that combine renewable energy sources.

Opportunities: Adoption of Advanced Energy Management Systems: Optimizing microgrid performance and efficiency through the use of AI and machine learning, among other advanced energy management systems, can give a competitive edge.

Growth Prospects: There is a great deal of room for expansion when entering emerging economies, where there is a rising demand for energy and a rise in renewable energy investments.

Emphasis on Integration of Renewable Energy: Building microgrids with a larger percentage of renewable energy sources—like solar and wind—can spur development and help achieve sustainability objectives.

Forming strategic partnerships and collaborations with technology suppliers, energy utilities, and research institutes helps accelerate innovation and improve market penetration.

Improved Customer Support and Services: Providing thorough customer support and services, such as upkeep, monitoring, and optimization, will increase client loyalty and satisfaction.

Creation of Modular and Scalable Microgrids: Creating microgrid solutions that are easily expandable or adjustable to meet shifting energy requirements would help them gain traction in the market.

Market Segmentation:

Microgrid market is split by Type and by Application. For the period 2019-2030, the growth among segments provides accurate calculations and forecasts for consumption value by Type, and by Application in terms of value. In terms of product, grid-tied is the largest segment, with a share about 78%. And in terms of application, the largest application is commercial or industrial microgrid.

1. Segmentation by type
• Grid-Tied
• Independent

2. Segmentation by application
• Commercial or Industrial Microgrid
• Community or Utility Microgrid
• Campus or Institutional Microgrid
• Military Microgrid
• Remote Microgrid

Regional Insight: North America: Due to large disposable incomes, substantial grid modernization investments, and the presence of important microgrid technology vendors, North America leads the market. With a strong need for microgrids in commercial, industrial, and military applications, the United States makes a significant contribution.

Europe: Europe is next, leading the way are nations like France, Germany, and the United Kingdom. The adoption of cutting-edge microgrid solutions is fueled by the region's emphasis on sustainability, integration of renewable energy, and regulatory compliance.

Asia-Pacific: Due to its rapid industrialization, growing urbanization, and growing need for a consistent supply of electricity, this region is predicted to grow at the fastest rate. India, China, and Japan are important markets with significant room for expansion.

Latin America: Economic growth, rising urbanization, and increased investments in energy infrastructure are driving the region's market's steady expansion. The two largest markets are Mexico and Brazil.

Middle East and Africa: Due to economic diversification, urbanization, and rising investments in renewable energy projects, the Middle East and Africa region offers growth prospects. Notable markets with substantial potential are South Africa and the United Arab Emirates.

North America is the largest market, with a share about 41%, followed by Asia-Pacific, having a total share about 40 percent.

1. Americas
• United States
• Canada
• Mexico
• Brazil

2. APAC
• China
• Japan
• Korea
• Southeast Asia
• India
• Australia

3. Europe
• Germany
• France
• UK
• Italy
• Russia

4. Middle East & Africa
• Egypt
• South Africa
• Israel
• Turkey
• GCC Countries

Competitive Landscape: Global microgrid key players include ABB, NEC, GE, Aquion Energy, Echelon, etc. Global top 5 players hold a share about 25%.
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
• ABB
• NEC
• GE
• Aquion Energy
• Echelon
• Raytheon
• SandC Electric Co
• Eaton Corporation
• Sunverge Energy
• Siemens
• Toshiba
• General Microgrids
• Lockheed Martin