Grid Connected Microgrid Market Size - By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels), By Application & Forecast, 2024 – 2032

Grid Connected Microgrid Market Size

Grid Connected Microgrid Market was valued USD 12.8 billion in 2023 and is anticipated to grow at over 20.4% CAGR between 2024 and 2032. Rising requirement for enhanced energy reliability, resilience, and sustainability along with the growing adoption of distributed energy resources will boost the industry landscape.
 

Additionally, Technological advancements coupled with the introduction of supportive government policies and incentives will augment the business landscape. The declining costs of renewable energy technologies, and improvements in energy storage and grid management solutions will drive the industry outlook.
 

Grid Connected Microgrid Market Trends

Rising demand for resilient energy solutions owing to increasing concerns over grid reliability will stimulate the business landscape. Advancements in smart grid management systems and energy storage solutions coupled with growing government incentives and policies supporting clean energy adoption will fuel the market growth. However, growing urban microgrid deployments catering to the energy needs of densely populated areas by improving energy access in the environment will strengthen product penetration.
 

Grid Connected Microgrid Market Analysis

Based on grid type, the AC grid segment accounted for around 51% revenue share in 2023. Increasing demand for reliable and resilient power supply solutions, particularly in regions prone to grid disruptions will enhance the product adoption. Additionally, shifting focus toward renewable energy sources, including solar and wind power, will enhance the requirement for flexible and efficient grid solutions, strengthening the industry landscape.
 

Based on power source, the diesel generators segment is set to grow at a CAGR of over 21% through 2032. Rising demand for grid resilience and uninterrupted power supply, especially in critical facilities comprising hospitals and data centers has significantly improved these generators demand. They are a dependable energy source, reduce reliance on the main grid and enhance energy security, particularly in regions prone to grid instability or frequent power outages. Furthermore, the scalability, allows operators to easily increase or decrease power generation capacity based on fluctuating demand, grid conditions, or operational requirements, thereby driving the business statistics.
 

Based on storage devices, the grid connected microgrid market is segmented into lithium-ion, lead acid battery, flow battery, flywheels, and others. Lithium-ion segment has been growing significantly owing to enhanced reliability and stability of microgrids. Further, providing backup power during grid outages or fluctuations in renewable energy generation, will support ensure uninterrupted power supply to critical facilities and enhance the grid resilience. In addition, technological advancements, cost reductions and growing transition towards decentralized and renewable energy systems will stimulate the market statistics.
 

Asia-Pacific grid connected microgrid market valuation cross over USD 39 billion by 2032. Increasing energy demand, rapid urbanization, and the need for reliable power infrastructure will augment the industry landscape. Advancements in renewable energy integration coupled with smart grid technologies, will drive the business outlook. Increasing clean energy initiatives coupled with technological innovations in developing countries, will bring in significant growth opportunities for various stakeholders across multiple sectors.
 

Grid Connected Microgrid Market Share

Eminent market players are focusing on technological innovation to develop advanced microgrid solutions that offer higher efficiency and reliability., partnerships and collaborations with other industry stakeholders are being favored to expand market reach and enhance product offerings. Investments in research and development, along with strategic acquisitions, aim to strengthen their competitive position in the market. Moreover, initiatives to raise awareness about the benefits of grid-connected microgrids and tailored marketing campaigns are being employed to attract a wider customer base and improve market presence.
 

Grid Connected Microgrid Market Companies

Eminent players operating in the grid connected microgrid industry are:

• ABB
• Advanced Energy Industries
• Eaton
• Emerson
• FlexGen
• General Electric
• Heila Technologies
• Hitachi Energy Ltd.
• Lockheed Martin Corporation
• Princeton Power Systems
• PowerSecure
• Schneider Electric
• S&C Electric Company
• Siemens AG
• Tesla
   

Grid Connected Microgrid Industry News

• In September 2023, UL Solutions released the latest features for HOMER Grid, an energy modeling software for grid-connected hybrid power projects. The new features allow energy professionals to complete more accurate cost and performance evaluations for a specific distributed energy project. By providing state-of-the-art software solutions like HOMER Grid, UL Solutions aims to strengthen its position as a global leader in applied safety science and renewable energy technology.
   
• In March 2022, Ekurhuleni Municipality, South Africa approved the first grid connected microgrid of a large solar PV plant and battery system. It is one of the biggest microgrids in the area to be formed by solar PV and lithium-ion battery system. Ongoing government investment will accelerate the transition to sustainable electricity generation and increase the adoption of renewable energy across the region.
   

This grid connected 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 Grid Type

• AC
• DC
• Hybrid

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