AC Grid Connected Microgrid Market Analysis

AC Grid Connected Microgrid Market Analysis

To get key market trends

  Download Free Sample

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.