Europe Hybrid 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, 2024 – 2032

Europe Hybrid Microgrid Market Size

Europe Hybrid Microgrid Market size was valued at USD 772.6 Million in 2023 and is anticipated to grow at a CAGR of 16.2% between 2024 and 2032. It is a localized energy system that combines multiple types of energy sources, typically renewable energy sources such as solar or wind, with traditional energy generation methods including diesel generators or natural gas turbines. These systems often include energy storage solutions such as batteries to balance supply and demand, ensuring a reliable and continuous power supply.
 

Europe expanding commitments to reduce carbon emissions and increase renewable energy adoption supported by regulatory frameworks such as the European Green Deal and the Renewable Energy Directive (RED II) are set to augment the business statistics. Increasing frequency of extreme weather events and growing concerns about energy security is propelling demand for solutions offering resilient power supply by combining multiple energy sources and storage solutions, ensuring continuous electricity during grid outages and emergencies.

Increasing shift towards decentralized energy systems and the modernization of the electrical grid is fostering the product growth to provide flexible, scalable, and efficient energy solution. Furthermore, rising demand for products with reliable and sustainable power supply, supporting economic development and improving the quality of life in remote and off-grid areas is bolstering the market landscape.
 

Europe Hybrid Microgrid Market Trends

Growing integration of renewable energy sources such as solar, wind, and biomass into hybrid solutions to overcome Europe’s ambitious targets for reducing carbon emissions and enhancing energy sustainability is propelling the industry statistics. Rising corporate social responsibility (CSR) programs and community-led renewable energy projects coupled with increasing collaboration between private companies, local governments, and communities to develop sustainable energy solutions will enhance the product adoption.
 

Europe Hybrid Microgrid Market Analysis

Based on connectivity, the market is segmented into grid connected and off grid. Grid connected segment is poised to cross USD 2.27 billion by 2032. Rising advancements in smart grid technologies, energy storage systems, and power electronics to enhance the efficiency and reliability of microgrid is propelling the grid tied solutions demand. Furthermore, the connectivity offers substantial cost savings by optimizing energy use and reducing the need for expensive peak-time grid power thereby escalating market growth.
 

Based on power source, the Europe hybrid microgrid market is segmented into diesel generators, natural gas, solar PV, CHP and others. Solar PV segment is set to expand at a CAGR of more than 16.9% through 2032. Rising cost of solar PV technology due to advancements in manufacturing processes, economies of scale, and increased competition is creating positive opportunities for the market growth. Furthermore, increasing innovation in solar technology to improve product efficiency, durability, and performance to offer high-efficiency solar panels, better energy storage solutions, and advanced grid integration technologies will complement the power source adoption.
 

The France hybrid microgrid market is expected to reach USD 576 million by 2032, due to its strong commitment to renewable energy and energy transition. The French government is building ambitious energy policies, including the Multiannual Energy Plan (PPE), aiming to increase the share of renewables in the energy mix and reduce reliance on nuclear power thereby propelling the market statistics. Rising investments in the country in advanced energy technologies, including smart grids and energy storage solutions to support the efficient operation and management of solutions will escalate the product penetration.
 

In the U.S. growing emphasis on clean energy, energy security, and resilience is set to influence the market landscape. Rising federal and state-level incentives, such as the Investment Tax Credit (ITC) and grants for renewable energy projects will promote the product adoption. Increasing companies investing in the adoption of solutions requiring lower energy costs, achieving sustainability targets, and enhancing energy security will stimulate the product demand.
 

Europe Hybrid Microgrid Market Share

Eminent market players are heavily investing in research and development to advance energy storage systems, smart grid technologies, and integration capabilities for various renewable energy sources. Companies are also developing industry-specific hybrid microgrid solutions to cater to the unique requirements of different sectors, such as mining, manufacturing, and remote communities.
 

Europe Hybrid Microgrid Market Companies

Eminent players operating in the Europe hybrid microgrid industry are:

• ABB
• Caterpillar Inc.
• ENGIE
• General Electric
• Langley Holdings
• MTU Solution
• Piller Power Systems
• Schneider Electric SE
• S&C Electric Company
• Siemens AG
• Stellae Energy
• Yanmar Holdings Co., Ltd
   

Europe Hybrid Microgrid Industry News

• In October 2023, Langley Holdings UK based manufacturer announced collaboration of its Power Solutions Division along with companies Bergen Engines, Piller Power Systems and Marelli Motori to develop hybrid renewable microgrids. These microgrids is designed to meet the needs while minimizing emissions cost-effectively.
   
• In November 2019, Siemens and Juwi have formed a strategic technology partnership to advance microgrids in the mining industry. Their agreement focuses on the deployment and continuous development of an advanced microgrid control system that integrates renewable energy into a mine’s off-grid power supply.
   

The Europe hybrid microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Million & MW” from 2021 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 countries:

• Germany
• France
• UK
• Russia
• Spain
• Italy
• Denmark