Market Size of Microgrid Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 15.92 Billion |
| Market Size (2029) | USD 38.12 Billion |
| CAGR (2024 - 2029) | 19.08 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Microgrid Market Analysis
The Microgrid Market size is estimated at USD 15.92 billion in 2024, and is expected to reach USD 38.12 billion by 2029, growing at a CAGR of 19.08% during the forecast period (2024-2029).
In 2020, the market was negatively impacted due to the COVID-19 pandemic. In Q1 2020, key countries like the United States and India witnessed the lowest microgrid installations in the last four years. The microgrid market is expected to have a robust growth during the forecast period, primarily due to two main factors, i.e., the global demand for clean energy generation and a self-sufficient source of power generation in times of crisis or grid disconnection. However, the microgrid market is likely to be hindered by high capital cost and technical design problems as the developers have to ensure a symbiotic relationship between the main grid and the microgrid if the microgrid is connected to the grid.
- The off-grid systems are projected to dominate the microgrid market, particularly to address the issue of interconnection approvals from the utilities.
- The innovation-oriented endeavors and the funding feasibility studies in many countries are the biggest opportunities for the microgrid market. Apart from independent power generation, microgrids have evolved with high-speed control platforms and forecasting systems that make them more sophisticated. Several national and international forums are in contention on many variables, like cost and funding issues, to develop the market.
- The Asia-Pacific region is expected to dominate the market during the forecast period due to a high rate of electrification, mainly for rural or semi-urban areas.
Microgrid Industry Segmentation
The microgrid market report includes:
| Application | |
| Institutional Sites | |
| Commercial Facilities | |
| Remote Off-grid Communities | |
| Other Applications (Utility/Grid-connected Communities, Military, Etc.) |
| Type | |
| Customer Microgrid | |
| Remote Power Systems | |
| Other Types |
| Geography | |
| North-America | |
| Europe | |
| Asia-Pacific | |
| South-America | |
| Middle-East and Africa |
Microgrid Market Size Summary
The microgrid market is poised for significant expansion over the forecast period, driven by the increasing global demand for clean and self-sufficient energy solutions. This growth is particularly fueled by the need for resilient power generation systems that can operate independently during crises or grid disconnections. Despite challenges such as high capital costs and technical design complexities, the market is expected to thrive, with off-grid systems likely to dominate due to their ability to circumvent interconnection approval issues. Innovations in control platforms and forecasting systems are enhancing the sophistication of microgrids, presenting substantial opportunities for market development. The Asia-Pacific region is anticipated to lead the market, propelled by high electrification rates in rural and semi-urban areas.
The demand for off-grid power networks is gaining momentum across various sectors, including defense, commercial enterprises, data centers, and educational campuses. Notable projects, such as those in the United States and Canada, underscore the strategic focus on enhancing energy infrastructure resilience. In Asia, initiatives like the installation of microgrids in India by the Rockefeller Foundation highlight the potential for new revenue streams and increased access to electricity in remote areas. The integration of renewable energy sources into the power generation mix is a key driver in many Asian countries, further boosting microgrid installations. The market is moderately consolidated, with major players like Hitachi Energy, General Electric, Siemens, Eaton, and Schneider Electric playing pivotal roles in shaping its future.
Microgrid Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Targets, Policies, and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 Industry Attractiveness - Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitute Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Application
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2.1.1 Institutional Sites
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2.1.2 Commercial Facilities
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2.1.3 Remote Off-grid Communities
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2.1.4 Other Applications (Utility/Grid-connected Communities, Military, Etc.)
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2.2 Type
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2.2.1 Customer Microgrid
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2.2.2 Remote Power Systems
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2.2.3 Other Types
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2.3 Geography
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2.3.1 North-America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 South-America
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2.3.5 Middle-East and Africa
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Microgrid Market Size FAQs
How big is the Microgrid Market?
The Microgrid Market size is expected to reach USD 15.92 billion in 2024 and grow at a CAGR of 19.08% to reach USD 38.12 billion by 2029.
What is the current Microgrid Market size?
In 2024, the Microgrid Market size is expected to reach USD 15.92 billion.
