DC Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application & Forecast, 2025 - 2034

DC Microgrid Market Size

The global DC microgrid market was valued at USD 7.8 billion in 2024 and is estimated to grow at a CAGR of 19% from 2025 to 2034. Growing demand for green urbanization will propel the growth of DC microgrids. Municipalities and cities are concentrating on low-carbon energy infrastructure to attain their climate objectives. Smart devices and IoT together with DC microgrids will enhance energy management, lower the cost, and help in the stability of the grid, hence the widespread usage in metropolis cities across the world.
 

Increasing investment in renewable energy will complement the product expansion. Furthermore, rising governments and private sector players focus on integrating solar and wind power into decentralized grids to enhance energy efficiency and reduce transmission losses will contribute to the DC microgrid market growth. In January 2024, the U.S. DOE disbursed USD 104 million to support microgrids and other net-zero initiatives at 31 federal buildings, the first of three planned draws from a USD 250 million pool to support clean energy projects.
 

Growing electrification initiatives in remote and rural areas will augment the penetration of DC microgrids. Governments worldwide are deploying microgrid solutions to provide stable electricity access in off-grid regions, driving product growth. The IEA reported that in 2023, the number of people worldwide lacking electricity declined to 750 million, about 10 million less than in 2022, indicating progress in electrification efforts, particularly in sub-Saharan Africa.

Power electronics and energy storage technological advancements will advance DC microgrids to be more scalable and efficient. Advances in bidirectional inverters, solid-state transformers, and high-efficiency batteries are optimizing power conversion and reducing operational expenses. Advanced energy management systems will facilitate seamless integration of renewables, enhancing grid resilience. These technologies will propel DC microgrid adoption in commercial, industrial, and residential markets, fueling decentralized energy transformation and long-term industry growth.
 

DC Microgrid Market Trends

• Increased adoption of renewable sources will expand the deployment of DC microgrids. Solar and wind energy are being incorporated by industries and societies to reduce carbon footprints and enhance energy independence. University of California, San Diego, received USD 7.1 million in September 2023 to double its microgrid with a 10 MW/40 MWh battery system. The development shows the capability of DC microgrids to incorporate renewable power and enhance energy resilience.
   
• Rising government focus on energy efficiency in infrastructure will propel DC microgrid usage. The federal government is adopting DC microgrids for utilizing power at greater levels, decreasing conversion losses, and increasing resiliency. The Denver Federal Center installed 2021 a DC microgrid with solar and storage and cut electric usage by 10% through direct use of power, showing higher adoption of effective energy microgrid technology in federal buildings.
   
• Growing focus on disaster preparedness and energy resilience will propel product deployments. Disaster-affected communities are investing in DC microgrid solutions for a permanent supply of power, propelling DC microgrid market growth. In September 2023, the Microgrid Global Innovation Forum in London focused on microgrid deployments in isolated and off-grid areas, the importance of these in disaster preparation, and ensuring continuous critical services in case of natural calamities.
   
• Technological advancements in hydrogen-based microgrid systems, such as advanced electrolysis and fuel cell technology, will enhance efficiency and energy reliability in DC microgrid networks, leading to greater usage. In March 2025, the Blue Economy CRC launched Tasmania's first green hydrogen production plant, which employs a DC microgrid-fed electrolyzer with a 262 kg hydrogen daily output to fuel sustainable maritime transport.
   

DC Microgrid Market Analysis

• The DC microgrid industry was valued at USD 5 billion, USD 6.1 billion, and USD 7.8 billion in 2022, 2023, and 2024, respectively. The industry is segmented into grid connected and off grid categories, based on connectivity.
   
• The grid connected market is anticipated to expand at a CAGR of over 19% from 2025 to 2034 on account of their seamless integration, thereby allowing easier deployment and operation within established electrical systems, minimizing disruptions and maximizing compatibility. In 2023, NREL partnered with Caterpillar to install a 750-kW DC micro in Guam with a solid-state switch to reduce grid disturbance and a utility-scale energy storage inverter, demonstrating the application of DC microgrids to create resiliency and efficiency.
   
• The off-grid market will capture more than 30% market share by 2034 due to growing electrification efforts in rural and high-disaster zones. Increased investment in decentralized renewable energy systems such as solar and wind-based DC microgrids will fuel the market. The technologies offer higher efficiency in the form of lower conversion loss and lower dependency on centralized grids and are suitable solution for energy access that are resilient and sustainable, leading to product growth.
   

• Based on storage devices, the DC microgrid market is segmented into lithium-ion, lead acid, flow batteries, flywheels, and others. The Lithium-ion segment holds a market share of approximately 60.1% in 2024.
   
• Greater investment in grid modernization and energy resilience will propel growth in the lithium-ion segment. Governments and utilities are turning their attention to advanced storage technologies to diminish power outages and optimize the utilization of renewable energy. Duke Energy, in March 2024, brought online over 60 MW of battery storage within its regulated service territory, including a 9 MW lithium-ion system in Asheville and a 3.8 kWh lithium iron phosphate battery in Haywood County, to deliver enhanced grid reliability and renewable integration.
   
• The lead-acid segment is expected to expand at a CAGR of more than 15% between 2025 and 2034, due to its cost-effectiveness, reliability, and suitability for microgrid energy storage. Its ability to provide backup power, support load leveling, and stabilize voltage makes it a preferred choice for remote and industrial applications. Additionally, advancements in battery management systems and recycling technologies will enhance performance, extend lifespan, and reinforce its role in sustainable energy storage solutions, leading to battery growth.
   
• The flow battery segment is anticipated to reach more than USD 1.9 billion by 2034, driven by its scalability and modular design, which allow flexible capacity expansion to meet the energy storage needs of DC applications. In February 2022, San Diego Gas & Electric ordered a 2 MW/8 MWh vanadium redox flow battery in Bonita, California, which can power about 1,000 homes for four hours, showcasing the technology's potential to contribute to grid reliability.
   
• The flywheel segment is estimated to grow at a CAGR of over 19.5% from 2025 to 2034, due to increasing demand for high-efficiency and long lifespan energy storage systems. Flywheels offer fast response and extended operating life, which increases grid stability and robustness. In August 2021, G&W Electric initiated construction of a microgrid at its Bolingbrook, Illinois headquarters, incorporating a 1.3 MVA flywheel to supply ride-through power during outages, thereby improving energy reliability.
   

• As of 2024, North America holds a market share of approximately 27.8% which is expected to improve further by 2034. The U.S. DC microgrid market was valued at USD 1.3 billion, USD 1.5 billion, and USD 1.8 billion in 2022, 2023, and 2024, respectively.
   
• Expanding clean energy integration, increasing energy resilience initiatives, and the growing adoption of EV infrastructure will contribute to the U.S. industry growth. In Burlington, the world's first DC microgrid for EV charging at Etratech's headquarters consists of a 500-kW solar PV, a 1 MWh battery energy storage system, and a natural gas generator. The system provides uninterruptible operation during grid failures, and it plays an essential part in energy security.
   
• The European DC microgrid market is anticipated to grow at a CAGR of more than 12.1% from 2025 to 2034, complemented by rising renewable integration, grid modernization, and energy efficiency initiatives. In August 2023, ABB's partnership with Direct Energy Partners (DEP) will enhance DC microgrid efficiency, with DEP’s systems being 10% more efficient and having a 30% lower total cost of ownership. Their DCIDE software simplifies low-voltage DC microgrid design, enabling the energy transition in Europe.
   
• The Asia Pacific DC microgrid market will be valued at 28.3 billion by 2034 due to energy resilience and rural electrification government policies. Digital grid integration and renewable energy plans will propel off-grid DC microgrid. In May 2024, State Grid Qihe launched China's first digital DC microgrid at the village level in Shandong, a 750V solar, storage, and EV charging system, enhancing efficiency and green energy use.
   

DC Microgrid Market Share

• The top four players, ABB, Eaton Corporation, Schneider Electric, and Hitachi Energy, hold a 41.2% market share in the DC microgrid. ABB is concentrating on scalable DC solutions with renewable integration, while Eaton is highlighting efficient power distribution systems. Both are utilizing advanced innovations to improve reliability and increase their footprint in the expanding DC microgrid market.
   
• Leading players in the market fuel strategic partnerships to enhance capabilities. ABB partners with technology firms to develop sophisticated DC control systems, which are designed to deliver improved performance. Eaton collaborates with utilities to deliver optimized power flow and resiliency. The partnerships leverage their expertise and accelerate the deployment of sustainable DC microgrid solutions into applications.
   
• Industry leaders invest heavily in R&D to make DC microgrid technologies best suited for current demands. ABB develops efficient converters and storage devices to maximize uptime, while Eaton designs miniaturized DC architectures for flexibility. These efforts solidify their market leadership, which is well-suited to the need for efficient and reliable DC microgrid systems for today's energy market.
   

DC Microgrid Market Companies

• ABB is among the market leaders in the DC microgrid space with its electrification and automation focus. ABB had revenues of USD 32.9 billion and operational EBITDA of USD 5 billion in 2024. ABB invested USD 1.4 billion in R&D across various business segments. ABB has a primary focus on microgrid technology as well as the integration of renewable energy for enhanced efficiency and reliability.
   
• Eaton Corporation drives the DC microgrid industry through advanced power solutions. In 2024, Eaton reported USD 24.5 billion in revenues and USD 4.1 billion adjusted EBITDA. The company integrates energy storage and renewables to enhance microgrid efficiency to create resilience and sustainability.
   

Eminent players operating in the DC microgrid market are:

• AEG International
• ARDA Power
• ABB
• Eaton Corporation
• Enel X
• EnSync Energy Systems
• Hitachi Energy
• PowerSecure
• Schneider Electric
• SolarWorX
• Sumitomo Electric Industries
• Schaltbau Group
   

DC Microgrid Industry News

• In February 2024, Solarworx announced the operation of a DC microgrid in Mubanga, near Lusaka, Zambia. The commercial MESH grid has 60 connections, consisting of 55 consumer and 5 prosumer connections. Successful commissioning proves the reality of DC microgrids to provide sustainable and reliable energy solutions to communities.
   
• In March 2023, ABB inked a strategic partnership with Direct Energy Partners, a DC microgrid growth driver through digital technology. ABB Technology Ventures will invest a minority in DEP through this partnership. Through this partnership, the growth of DEP's vision of boosting the application of DC microgrids according to the growing trend of electric, decentralized, and power electronics-controlled energy systems will be facilitated.
   

This DC microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2034, 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
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile