The global microgrid market size was estimated at USD 76.88 billion in 2023 and is projected to reach USD 224.34 billion by 2030, growing at a CAGR of 17.1% from 2024 to 2030. This robust growth is primarily driven by rising electricity demand in developing countries, including Mexico, China, India, and Russia, fueled by expansion in both household consumption and industrial activity.

A microgrid is a localized electrical system capable of supplying power either in connection with or independently from the main electricity grid. The increasing shift from centralized, remote power stations to localized and distributed generation is being driven by the need for enhanced reliability, resiliency, and energy efficiency in urban areas, communities, campuses, and industrial zones. This transition is expected to have a substantial positive impact on market growth.

Microgrids play a critical role in enhancing local grid resiliency and improving the operation and stability of regional electrical networks. Additionally, the growing adoption of renewable energy sources for power generation is anticipated to increase the demand for microgrid systems in the near future. In particular, the rising importance of captive power generation systems in the manufacturing sector, which reduce dependency on regional electric grids, is expected to remain a significant growth driver. Moreover, increasing awareness and adoption of alternative renewable energy sources, including wind, solar, and hydrogen, are likely to further propel the expansion of the global microgrid market.

Key Market Trends & Insights:

• In 2023, North America led the global microgrid market, accounting for more than 35.0% of the overall revenue. The region’s leadership is attributed to advanced energy infrastructure, early adoption of microgrid technology, strong investment in renewable energy, and growing demand for resilient and reliable power solutions across industrial, commercial, and residential sectors.

• Asia Pacific is expected to experience a significant growth rate from 2023 to 2030, driven by rapid industrialization, increasing electrification in rural and urban areas, rising investments in renewable energy, and expanding adoption of distributed energy systems in countries such as China, India, and Japan.

• By product type, the grid-connected segment dominated the global market in 2023, accounting for more than 65.0% of the overall revenue share. The dominance of this segment reflects the growing preference for microgrids that operate in coordination with the main power grid, allowing for greater flexibility, enhanced reliability, and improved energy management in both urban and industrial applications.

• By power source, the combined heat & power (CHP) segment led the global market in 2023, contributing more than 37.0% of the overall revenue share. CHP systems are favored for their efficiency in generating both electricity and thermal energy, reducing energy losses, and lowering operational costs in industrial and commercial facilities.

• By application, the education segment dominated the microgrid market in 2023, accounting for more than 37.0% of overall revenue. Educational institutions increasingly rely on microgrids to ensure reliable power supply, support campus sustainability initiatives, integrate renewable energy, and maintain operational continuity, highlighting the critical role of microgrid systems in this sector.

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Market Size & Forecast:

• 2023 Market Size: USD 76.88 Billion

• 2030 Projected Market Size: USD 224.34 Billion

• CAGR (2024-2030): 17.1%

• North America: Largest market in 2023

Key Companies & Market Share Insights:

The global microgrid market is highly fragmented due to the presence of numerous large and small-scale manufacturers, which intensifies competition across the industry. Global players face strong competitive pressures not only from each other but also from regional companies, which often possess a deep understanding of local regulations, supply chains, and market dynamics.

To maintain and strengthen their market positions, prominent players are actively pursuing strategic initiatives, including mergers and acquisitions, expansion of manufacturing facilities, increased investments in research and development (R&D), and exploring opportunities for vertical integration across the value chain. These efforts are aimed at enhancing product offerings, improving operational efficiency, and capturing a larger share of the growing market.

For instance, in March 2022, GE Renewable Energy’s Grid Solutions, in collaboration with BOND Civil & Utility Construction, secured an Engineering, Procurement, and Construction (EPC) contract from Empire Wind. The contract involved the design and construction of an onshore digital substation for Empire Wind New York’s first offshore wind farm, showcasing how industry leaders are leveraging partnerships and innovative solutions to expand their presence in large-scale renewable energy projects.

Key Players

• ABB

• Siemens AG

• General Electric

• Eaton Corp.

• Exelon

• Honeywell International

• NRG International

• Anarbic

• Pareto

• Spirae

• Northern Power

• Viridity

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Conclusion:

The microgrid market is poised for strong expansion, driven by rising energy demand in developing regions, growing adoption of renewable power, and the need for resilient, localized grid infrastructures. Increasing investments in distributed generation, combined heat and power systems, and digitalization of electric networks are fueling this growth. Fragmented market conditions and strategic consolidation through partnerships and M&A among major and regional players are shaping the competitive landscape.