Asia Pacific AC Microgrid Market - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Diesel generators, Natural gas, Solar PV, CHP), By Application, 2024 – 2032

Asia Pacific AC Microgrid Market Size

Asia Pacific AC Microgrid Market size was valued USD 3.2 Billion in 2023 and is anticipated to grow at a CAGR of 27.2% from 2024 and 2032. The microgrids function as localized electrical networks, operating independently or in tandem with the main power grid to distribute alternating current (AC) electricity to consumers. They enhance energy resilience, efficiency, and reliability, offering the flexibility to adjust power supply based on demand and ensuring uninterrupted electricity supply in grid-connected and off-grid scenarios.
 

Widespread power outages and disruptions to the main power grid owing to increasing frequency of extreme weather events in the region will augment the requirement for resilient and reliable electricity supply solutions which will improve the business statistics. Government initiatives and policies promoting renewable energy adoption and energy security will drive the product deployment. For instance, countries including Japan and South Korea have ambitious renewable energy targets, creating opportunities for AC microgrid deployment alongside solar and wind energy projects.
 

Asia Pacific AC Microgrid Market Trends

Advancements in digitalization and smart grid technologies coupled with shift towards decentralized energy systems, emphasizing resilience and energy access will stimulate the business landscape. Rising awareness about energy security and resilience in the face of natural disasters and grid disruptions will fuel the product adoption. Rising demand in remote or underserved areas fuels innovation and investment, supported by government initiatives and policies promoting clean energy which will strengthen the product penetration.
 

Asia Pacific AC Microgrid Market Analysis

Based on connectivity, the Asia Pacific AC Microgrid market is segmented into grid connected and off grid. Grid connected is anticipated to grow by more than USD 8 billion by 2032 due to its flexibility to integrate renewable energy sources, enabling the transition toward cleaner and sustainable energy systems. These microgrids offer stability and reliability by augmenting grid power during periods of high demand or outages, thereby enhancing energy security and boosting the market statistics. Additionally, their connectivity enables bi-directional energy flow, enabling users to sell surplus energy back to the grid, promoting energy sharing and stability, driving the product adoption.
 

Based on storage device, the Asia Pacific AC Microgrid market is segmented into lead acid, lithium-ion, flywheels, flow battery, and others. Lithium-ion is set to grow at a CAGR of over 29% by 2032. Key factors including declining costs and increasing energy densities make them an economically viable and efficient solution for energy storage applications leading to improved business trends. In addition, the scalability and modularity of the battery system allow for flexible deployment across various microgrid configurations and sizes, catering to diverse energy needs thereby uplifting the business scenario.
 

China AC microgrid market is anticipated to grow by more than USD 5 billion by 2032 due to its ambitious energy transition goals coupled with stringent environmental regulations. The county's robust manufacturing capabilities and technological expertise in power electronics and smart grid technologies contribute to the development of advanced and cost-effective solutions which will augment the industry landscape. Moreover, the emergence of innovative business models and financing mechanisms along with collaborations between industry stakeholders will foster a conducive ecosystem for market expansion.
 

Asia Pacific AC Microgrid Market Share

Eminent players are implementing innovative strategies to drive market growth. Inorganic strategic partnerships along with investments in research and development for product enhancement are the key drivers supporting manufacturers in the industry. Additionally, growing focus on advanced product development and innovations will drive the business outlook.
 

Asia Pacific AC Microgrid Market Companies

Key players operating in the Asia Pacific AC Microgrid industry are:

• Advanced Microgrid Solutions
• Caterpillar Inc.
• Delta Electronics, Inc.
• Eaton Corporation
• Emerson Electric Co.
• Enel X
• General Electric Company
• HOMER Energy
• Kohler Power
• S&C Electric Company
• Schneider Electric SE
• Siemens AG
• Tata Power
• Tencent Holdings Ltd
• Toshiba Corporation
   

Asia Pacific AC Microgrid Industry News

• In February 2024, Tencent, a prominent technology firm in China, inaugurated a new microgrid at its High-Tech Cloud Data Center in Tianjin. This microgrid boasts a total installed capacity of 10.54 MW and is anticipated to generate 12 million kWh of electricity annually. This output is equivalent to the power consumption of 6,000 households, showcasing Tencent's commitment to sustainable energy solutions and reducing environmental impact.
   
• In November 2020, TPRMG commissioned its 100th off-grid AC microgrid project in Ratnapur, Uttar Pradesh. This 30 kW microgrid uses solar panels to capture solar energy, supported by a battery for energy storage. Additionally, a DG set provides backup power, ensuring round-the-clock electricity supply to the community. Tata Power's initiative highlights its dedication to providing sustainable energy solutions to remote and underserved regions.
   

Asia Pacific 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, 2019 – 2032 (MW & USD Billion)

• Grid Connected
• Off Grid

Market, By Power Source, 2019 – 2032 (MW & USD Billion)

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

Market, By Storage Device, 2019 – 2032 (MW & USD Billion)

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

Market, By Application, 2019 – 2032 (MW & USD Billion)

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

The above information has been provided for the following countries:

• China
• Japan
• South Korea
• India
• Australia