AC Grid Connected Microgrid Market Size - By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application, Regional Outlook & Global Forecast, 2024 – 2032

AC Grid Connected Microgrid Market Size

AC Grid Connected Microgrid Market was valued USD 6.9 billion in 2023 and is anticipated to grow at a CAGR of 19.9% from 2024 to 2032. It is a localized energy system that generates, distributes, and regulates electricity, operating in coordination with the main utility grid. It primarily uses alternating current electricity, which is the standard for most power systems. This type of microgrid can function autonomously or in parallel with the grid, providing reliable power to its users.
 

Rising demand for energy resilience, especially in areas prone to natural disasters or grid outages is set to influence the product adoption. Increasing integration of renewable energy sources such as solar and wind into microgrids is a major driver for product adoption. These systems enable the efficient use of renewable energy by allowing it to be generated, stored, and distributed locally, thereby propelling business growth.
 

Growing shift towards decentralization and grid modernization to not only improve grid stability but also supports the integration of smart grid technologies, enhancing the overall efficiency and reliability of the energy system, thereby boosting the industry growth. Furthermore, rising support from various countries in terms of incentives, grants, and subsidies to encourage the development of microgrids as part of their energy transition strategies will additionally stimulate the product penetration.
 

AC Grid Connected Microgrid Market Trends

Increasing technological advancements in energy storage, power electronics, and control systems to make the microgrid system more cost-effective and efficient will uplift the product adoption. Rising demand for independent energy providing systems, especially during emergencies, ensuring continuous power supply to critical facilities such as hospitals, data centers, and military bases will complement the product demand.
 

AC Grid Connected Microgrid Market Analysis

Based on power source, the diesel generators segment is anticipated to reach more than USD 12.4 billion by 2032, owing to their reliability, making them a key component in microgrids, particularly in regions where grid stability is a concern. Furthermore, the ease of refueling and the long storage life of diesel fuel contribute to the product adoption, ensuring that microgrids can maintain power over extended periods without relying on external fuel supplies. Rising demand for power sources with a high degree of flexibility in terms of sizing and scalability coupled with easy integration into hybrid microgrid systems that combine multiple energy sources, including renewables will foster the product growth.
 

Based on power source, the AC grid connected microgrid market is segmented into healthcare, educational institutes, military, utility, industrial/commercial, remote and others. Industrial/ commercial segment is set to grow at a CAGR of over 22.5% through 2032, on account of the need for enhanced energy reliability and resilience. Increasing focus on sustainability and reducing carbon footprints are forcing many industries to meet environmental regulations and corporate sustainability goals, thereby stimulating the product demand. Furthermore, these industries are increasingly seeking energy independence to avoid the risks associated with relying solely on the main grid, thereby boosting product adoption.
 

Asia Pacific AC grid connected microgrid market is likely to exceed USD 20.4 billion by 2032. Many countries in the region are experiencing frequent power outages and grid instability owing to strain on existing infrastructure leading to solutions demand to provide reliable, localized power generation that can stabilize the grid and reduce the frequency of outages. Further, rising demand for continuous power support in rural and remote areas encouraged by governments and organizations through policies and incentives will complement the product penetration.
 

In the U.S., increasing frequency and intensity of natural disasters, such as hurricanes, wildfires, and severe storms, have highlighted the vulnerability of the traditional centralized grid thereby fostering product adoption. Growing commitments to reduce its carbon footprint and transitioning to a cleaner energy system coupled with rising technological innovation and advances in energy storage, smart grid technologies, and automation will enhance the industry statistics.
 

AC Grid Connected Microgrid Market Share

Eminent players are investing heavily in R&D to develop advanced microgrid technologies that improve efficiency, reliability, and integration with renewable energy sources. This includes the development of smart grid technologies, advanced energy management systems, and energy storage solutions that enhance the performance of AC grid connected microgrids. Key players are focusing on regions with high demand for microgrids, such as Asia Pacific and North America, where grid instability, high energy demand, and favorable regulations drive adoption. Additionally, companies are targeting diverse market segments, including industrial, commercial, and community microgrids, to broaden their customer base.
 

AC Grid Connected Microgrid Market Companies

Eminent players operating in the AC grid connected microgrid industry are:

• Caterpillar Inc.
• Eaton
• Emerson
• General Electric
• Piller Power Systems
• PG&E
• PowerSecure
• Saft
• Schneider Electric SE
• Stellar Energy
• Siemens AG
• Victron Energy B.V.
   

AC Grid Connected Microgrid Industry News

• In July 2023, National Grid collaborated with Clarkson University to design an underground microgrid in Potsdam, NY, aimed at improving grid resiliency and efficiency. The project, backed by a USD 381,000 grant from NYSERDA and announced by Governor Andrew Cuomo, includes partners such as GE Energy Consulting, the Village of Potsdam, Nova Energy Specialists, SUNY Potsdam, and Canton-Potsdam Hospital. GE Energy Consulting will handle system simulation, equipment analysis, cost estimation, supply-demand analysis, and the design of the electrical and communication infrastructure.
   
• In May 2021, GreenStruxure, a joint venture between Schneider Electric and Huck Capital, has partnered with ClearGen, to advance the transition of commercial and industrial customers to sustainable and resilient energy solutions. GreenStruxure will develop and operate standardized on-site renewable energy microgrid systems, while ClearGen commits USD 500 million in long-term capital for asset development through Blackstone-managed funds.
   

This AC grid connected microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MW & USD Billion” from 2021 to 2032, for the following segments:

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Market, By Power Source

• Diesel Generators
• Natural Gas
• Solar PV
• CHP
• Others

Market, By Storage Device

• Lithium-ion
• Lead Acid
• Flow Battery
• Flywheels
• Others

Market, By Application

• Healthcare
• Educational Institutes
• Military
• Utility
• Industrial/ Commercial
• Remote
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
  • Spain
  • Italy
  • Denmark
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Malaysia
  • Indonesia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Iran
  • Nigeria
• Latin America
  • Brazil
  • Argentina
  • Chile