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%.
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.
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.
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.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| 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 |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Microgrid Market |
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| Customization Scope | Free report customization with purchase |
Microgrid Market Segmentation: