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

AC Microgrid Market Size

AC Microgrid Market was valued at USD 9.2 billion in 2023 and is anticipated to grow at a CAGR of 20.4% between 2024 and 2032. These are localized electrical networks that operate independently or in conjunction with the main power grid, distributing alternating current (AC) electricity to consumers. They enable improved energy resilience, efficiency, and reliability, offering flexibility to adjust power supply according to demand while ensuring uninterrupted electricity supply in both grid-connected and off-grid settings.
 

Increasing demand for resilient and reliable power supply solutions, especially in areas prone to grid outages or disruptions will improve the business statistics. Technological advancements in power electronics, energy storage, and grid management systems coupled with supportive government policies, and incentives promoting decentralized energy systems will spur investments, thereby augmenting the business landscape.

COVID- 19 Impact

The COVID-19 pandemic slowed down the microgrid industry owing to disruptions in supply chains, project delays, and economic uncertainty. Many projects were put on hold as businesses and governments focused on immediate pandemic response measures. However, increasing recognition of the importance of resilient and decentralized energy systems in mitigating future disruptions will augment the market growth.
 

AC Microgrid Market Trends

Shifting trends towards decentralized energy systems, emphasizing resilience, sustainability, and energy access will stimulate the business landscape. Increasing adoption of renewable energy sources coupled with the integration of smart grid technologies and digitalization to enhance grid management and optimization will stimulate market growth. Furthermore, rising demand in remote or underserved areas drives innovation and investment, supported by government initiatives and policies promoting clean energy which will strengthen the product penetration.
 

AC Microgrid Market Analysis

Based on connectivity, the grid connected segment captured a market share of around 70% in 2023 owing to their seamless integration with the existing grid infrastructure, thereby enabling efficient and cost-effective deployment without the need for extensive upgrades or modifications. They provide stability and reliability by supplementing grid power during peak demand or outages and enhance energy security which will uplift the business trend. Furthermore, the connectivity facilitates bi-directional energy flow, allowing users to sell excess energy back to the grid promotes energy sharing and stability, thereby driving product penetration.
 

Based on storage device, the lithium-ion segment is set to grow at a CAGR of over 21.5 % through 2032 on account of its high energy density, long cycle life, and rapid response capabilities. These batteries offer efficient energy storage, enabling reliable power supply during peak demand or grid outages. Their compact size and scalability make them suitable for various microgrid applications, optimizing space utilization and installation flexibility, will accelerate business growth. Moreover, advancements in battery technology have led to cost reductions, making them more affordable and accessible for various applications, driving their adoption in the market.
 

Asia Pacific AC microgrid market revenue to cross USD 28 billion by 2032. Rapid urbanization & industrialization coupled with expanding population across remote and rural areas, will drive the need for reliable and sustainable energy access, which will augment the industry landscape. Supportive government policies and incentives for renewable energy deployment coupled with technological innovations across developing countries, will bring significant growth opportunities for various stakeholders across the sector.
 

AC Microgrid Market Share

Key market players are forming strategic partnerships and collaborations with local governments, utilities, and community organizations to enable access to new markets and funding opportunities. Companies are also investing in research and development to enhance system efficiency, reliability, and cost-effectiveness. Additionally, initiatives to raise awareness about the benefits of the market and tailored marketing campaigns are being employed to attract a wider customer base and improve market presence.
 

AC Microgrid Market Companies

Eminent players operating in the AC microgrid industry are:

• Advanced Microgrid Solutions
• Caterpillar Inc.
• Delta Electronics, Inc.
• Eaton Corporation
• Enel X
• EnSync Energy Systems
• General Electric Company
• Gridscape
• HOMER Energy
• Kohler Power
• PowerSecure, Inc.
• S&C Electric Company
• Schneider Electric SE
• Siemens AG
• Tata Power
   

AC Microgrid Industry News

• In February 2023, Eaton assisted AEP Ohio in creating the city of Columbus's first microgrid to support sustainable and resilient water infrastructure. The project aims to demonstrate eco-friendly technologies that can be used to update vital infrastructure while also enhancing the quality of life, the environment, and the financial line.
   
• In October 2021, Eaton Corporation Plc constructed a micro-grid consisting of solar power and storage at its circuit breakers factory located in Rico. The company plans to supply 10 MW (AC) of solar PV and 2.23 MW of battery storage to Puerto Rico through its two microgrids by 2022.
   

This AC 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 2019 to 2032, for the following segments:

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Market, By Connectivity

• Grid Connected
• Off Grid

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