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 largely driven by the rising power demand in developing countries, including Mexico, China, India, and Russia, fueled by expansion in both household and industrial sectors.

A microgrid is a localized electrical system capable of supplying power either in parallel with or independently from the main electric grid. The global shift from reliance on remote central station power plants toward localized and distributed generation systems is enhancing reliability, resiliency, and energy availability in cities, communities, and campuses, which is expected to have a substantial impact on market expansion.

Microgrids are integral to electrical distribution services, offering enhanced local resiliency and improving the operational stability of regional electric grids. Additionally, the increasing utilization of renewable energy resources such as solar, wind, and hydrogen is expected to further drive the demand for microgrids. The growing importance of captive power generation systems in the manufacturing sector—aimed at reducing dependence on electricity supplied by regional grids—remains a key factor supporting market growth. Rising awareness of sustainable power generation through alternative renewable sources is projected to positively influence the market over the coming years.

Population growth and urbanization in emerging markets have led to increased government expenditure on infrastructure development, which, in turn, boosts overall power demand and supports the expansion of the microgrid industry. Initiatives such as the Galvin Energy Initiative by The Galvin Project Inc. are contributing to the development of new smart microgrid prototypes, opening opportunities in untapped markets. Furthermore, the emergence of the U.S. and Canada as significant shale gas production regions, enabled by the adoption of hydraulic fracturing technology, ensures the availability of reliable power sources to end users, further reinforcing market growth.

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 dominance can be attributed to its advanced infrastructure, widespread adoption of smart grid technologies, and strong investments in renewable energy and distributed generation systems.

• The Asia Pacific region is expected to experience a significant growth rate from 2023 to 2030, driven by rapid industrialization, urbanization, and increasing electricity demand in countries such as China, India, and Japan. Expanding government initiatives to promote renewable energy adoption and smart grid deployment are further expected to accelerate market growth in this region.

• 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 widespread adoption of grid-connected microgrids is fueled by the need for improved energy reliability, integration with renewable energy sources, and efficient load management in both urban and industrial applications.

• In terms of power source, the combined heat & power (CHP) segment led the global market in 2023, representing more than 37.0% of the overall revenue share. CHP systems are preferred due to their ability to simultaneously generate electricity and useful thermal energy, offering enhanced efficiency, reduced energy costs, and lower greenhouse gas emissions.

• Regarding application, the education segment dominated the market in 2023, accounting for more than 37.0% of the overall revenue. Microgrid deployment in educational institutions ensures reliable and sustainable energy supply, supports campus energy management, and serves as a platform for research and demonstration of renewable and distributed energy technologies.

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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. This fragmented structure results in intense competition among global players, as well as from regional companies that possess in-depth knowledge of local regulations, suppliers, and market dynamics.

To maintain competitive advantage, prominent market participants are actively pursuing strategies such as mergers and acquisitions, expansion of manufacturing facilities, and substantial investments in research and development. In addition, companies are increasingly exploring opportunities to vertically integrate across the value chain, aiming to enhance operational efficiency, reduce costs, and strengthen their market presence.

A notable example of strategic market activity occurred in March 2022, when GE Renewable Energy’s Grid Solutions, in partnership with BOND Civil & Utility Construction, was awarded an Engineering, Procurement, and Construction (EPC) contract by Empire Wind. The project involves designing and constructing an onshore digital substation for Empire Wind New York’s first offshore wind farm, highlighting the growing investment in advanced infrastructure and the adoption of cutting-edge digital solutions in the microgrid and renewable energy sector.

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 global microgrid market is expected to grow strongly through the forecast period, driven by increasing power demand—especially in developing regions—and a shift toward localized, reliable energy systems that can operate independently or alongside traditional grids. Growing adoption of renewable energy sources and advanced energy management technologies is enhancing market expansion. In addition, investment in infrastructure, government initiatives, and the need for improved grid resilience are key factors supporting widespread adoption globally. Overall, rising interest in energy security, sustainability, and efficiency is shaping a positive outlook for the microgrid industry.