Microgrid Market Size, Share, Opportunities, And Trends By Application (Institutional Sites, Commercial Facilities, Remote Off-Grid Communities, Other Applications), By Grid (On-Grid, Off-Grid), By Ownership (Private, Public), And By Geography - Forecasts From 2025 To 2030

Microgrid Market Size:

The microgrid market is expected to grow from USD 23.530 billion in 2025 to USD 49.039 billion in 2030, at a CAGR of 15.82%.

Microgrid Market Key Highlights:

• Energy Resilience: Microgrids ensure reliable power during outages, critical for hospitals and data centers.
• Renewable Integration: Solar, wind, and biomass in microgrids support decarbonization and sustainability goals.
• Decentralized Systems: Localized power generation reduces transmission losses and enhances energy security.
• Economic Efficiency: Advanced software optimizes power usage, driving demand in commercial and industrial sectors.

Microgrids are stand-alone electrical systems that can generate, distribute, and manage electricity independently or in connection with the main power grid. Microgrids work by integrating energy storage, controllable and noncontrollable generation, and manageable loads, all coordinated by a smart control system. They can connect to the utility grid for regular operation but disconnect during disruptions to provide reliable power independently. It uses a variety of energy sources, including photovoltaic and wind-power plants as well as small hydro-power and biomass-power plants, making it ideal for supplying power to remote or poorly developed regions with no connection to a public network.

Though microgrids have existed for decades, but have gained significant traction in recent years due to major trends in the energy world. The growing trend towards digitalization and the shift from centralized unidirectional to distributed energy systems in the energy world are the key reasons driving the market.

The trend will continue further in the coming years that too at an accelerated rate. The world’s increasing reliance on electricity, driven by the digital economy, sprawling urban centers, and the Internet of Things, has placed unprecedented strain on aging power grids, heightening risks from cyberattacks and rising energy costs.

Top Trends Shaping the Microgrid Market:

• Energy Resilience and Decentralization
  • The rise in the rate of natural disasters, cyberattacks, and grid outages highlighted the importance of resilient power systems. Microgrids, in their nature, ensure decentralized and localized generation and distribution of power, allowing essential infrastructure like hospitals, military installations, and data centers to function autonomously from the main grid during outages. This capability of islanding from the main grid not only provides a steady supply of power in times of crisis but also minimizes the loss of transmission and reliance on old grid infrastructure. With increasing resilience becoming a high priority in energy planning, microgrids are perceived as a key solution for energy security.
• Integration of Renewable Energy Sources
  • Carbon reduction obligations and sustainability goals have resulted in the aggressive integration of renewable power sources into microgrid networks. Solar PV, wind power, and biomass are being used more and more as standalone generation sources in microgrids, lowering the use of fossil fuels and diminishing greenhouse gas emissions. These clean energy systems are suitable for microgrids since they can be installed on a small scale and in remote locations. Microgrids' capacity to regulate intermittent renewable generation via sophisticated controls and storage makes them critical elements in the world's transition toward cleaner energy systems.

Microgrid Market Growth Drivers

• Increasing Demand for Renewable Energy: The increasing demand for renewable energy drives the microgrid market by promoting the integration of solar, wind, and other sustainable sources. The growing decarbonization goals and increasing investment by the government are the key factors leading the microgrid market to grow. This is highlighted by the data from the IEA, which states that the share of renewable energy has grown from 23.6% in 2016 to 28% in 2020. By the end of 2030, it is expected to grow at a rapid rate, reaching 45.6%. It will climb to 17000 TWh by 2030.
• Increasing Demand for Energy Resilience and Reliability: The need for microgrids arises when the traditional power grid, though generally reliable, becomes vulnerable to natural disasters, cyberattacks, or other disruptions that can lead to costly and widespread blackouts. These challenges are driving an increasing demand for resilient and flexible energy systems across companies, commercial facilities, governments, and communities.

As microgrids can operate both independently and in connection with the main grid, they offer robust solutions for maintaining uninterrupted power and enhancing energy security. Thus, the increasing focus on energy resilience and reliability is the foremost driver of the microgrid market.

Microgrids offer economics and energy efficiency, driving the market by using sophisticated software to optimize power usage based on demand, utility prices, and other factors, particularly in campuses, commercial, and industrial areas. Algonquin College’s sustainable microgrid initiative in Ontario, Canada, by Siemens AG shows the demand from institutions for energy resilience driving the microgrid market. The reliability offered by microgrids in terms of uninterrupted 24/7 power drives their demand in critical infrastructures, military institutions, commercial and industrial areas, remote locations, and islands. For instance, the Blue Lake Rancheria microgrid installation on a 100-acre reservation drives energy reliability for that area. In addition, microgrids reduce carbon dioxide emissions, which aligns with the sustainability goals of the company, driving the microgrid market.

Microgrid Market Regional Analysis:

• North America: The United States microgrid market has experienced significant growth owing to the increasing demand for energy resilience, particularly due to frequent extreme weather events and natural disasters that disrupt centralized grids, prompting communities and businesses to adopt microgrids for reliable power during outages. The push for decarbonization and renewable energy adoption, supported by policies like the Inflation Reduction Act (IRA), which spurred 334 clean energy projects by November 2024, has significantly boosted microgrid development by incentivizing solar, wind, and storage integration.

The U.S. Department of Energy’s (DOE) ambitious goal of achieving 100% clean electricity by 2035 has significantly accelerated the development of the U.S. microgrid market, as it drives the need for advanced power grid infrastructure, including microgrids, to integrate renewable energy sources efficiently. This push, coupled with the National Renewable Energy Laboratory’s (NREL) extensive research, such as the Renewable Electricity Futures Study, Storage Futures Study, Los Angeles 100% Renewable Energy Study, and Electrification Futures Study, provides critical frameworks for deploying high-renewable power systems, directly contributing to microgrid market growth.

The DOE’s 100% clean electricity target has catalyzed investments in microgrids to support the integration of renewable energy, particularly solar, which is projected to grow by 75% from 163 billion kWh in 2023 to 286 billion kWh in 2025. Microgrids, with their ability to operate independently or in tandem with the main grid, are ideal for managing the variability of solar and wind power, ensuring grid stability and resilience.

Microgrid Market Key Developments:

• Company Expansion: In May 2024, Honeywell Automation India Limited successfully delivered and commissioned a microgrid Battery Energy and Storage System (BESS) in India, for the Solar Energy Corporation of India’s (SECI) Lakshadweep Islands project.

List of Top Microgrid Companies:

• Honeywell International Inc.
• Spirae, LLC
• PowerSecure, Inc.
• Schneider Electric SE
• ABB Ltd.

Microgrid Market Scope:

Report Metric	Details
Microgrid Market Size in 2025	US$23.530 billion
Microgrid Market Size in 2030	US$49.039 billion
Growth Rate	CAGR of 15.82%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Application Grid Ownership Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Microgrid Market	Eaton Corporation plc Siemens AG General Electric Company Hitachi, Ltd Exelon Corporation
Customization Scope	Free report customization with purchase

 

Microgrid Market Segmentation:

• By Application
  • Institutional Sites
  • Commercial Facilities
  • Remote Off-Grid Communities
  • Other Applications
• By Grid
  • On-Grid
  • Off-Grid
• By Ownership
  • Private
  • Public
• By Region
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL ADVANCEMENTS

5. MICROGRID MARKET BY APPLICATION

5.1. Introduction

5.2. Institutional Sites

5.3. Commercial Facilities

5.4. Remote Off-grid Communities

5.5. Other Applications

6. MICROGRID MARKET BY GRID

6.1. Introduction

6.2. On-Grid

6.3. Off-Grid

7. MICROGRID MARKET BY OWNERSHIP

7.1. Introduction

7.2. Private

7.3. Public

8. MICROGRID MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Application

8.2.2. By Grid

8.2.3. By Ownerhsip

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Application

8.3.2. By Grid

8.3.3. By Ownerhsip

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Application

8.4.2. By Grid

8.4.3. By Ownerhsip

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Application

8.5.2. By Grid

8.5.3. By Ownerhsip

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Application

8.6.2. By Grid

8.6.3. By Ownerhsip

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Taiwan

8.6.4.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Eaton Corporation plc

10.2. Siemens AG

10.3. General Electric Company

10.4. Hitachi, Ltd

10.5. Exelon Corporation

10.6. Honeywell International Inc.

10.7. Spirae, LLC

10.8. PowerSecure, Inc.

10.9. Schneider Electric SE

10.10. ABB Ltd.

10.11. Tesla Inc.

10.12. Emerson Electric Co.

11. APPENDIX

11.1. Currency

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology

11.6. Abbreviations 

Eaton Corporation plc

Siemens AG

General Electric Company

Hitachi, Ltd

Exelon Corporation

Honeywell International Inc.

Spirae, LLC

PowerSecure, Inc.

Schneider Electric SE

ABB Ltd.

Tesla Inc.

Emerson Electric Co.