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

Hybrid Grid Connected Microgrid Market Size

The global hybrid grid connected microgrid market size was valued USD 1.8 billion in 2023 and is estimated to grow at a CAGR of 21% from 2024 to 2032. It is an energy system combining multiple power sources, such as renewable energy, conventional generation, and energy storage, while connected to the main utility grid. This system can operate in parallel with the grid or independently (island mode) during grid outages, ensuring reliable, continuous power. It optimizes energy efficiency, reduces reliance on the grid, and lowers carbon emissions, making it a sustainable solution for industrial, commercial, and residential applications.
 

Rising adoption of cost-efficient solutions that allow businesses and homeowners to minimize dependence on expensive grid electricity by using cheaper renewable energy when available is set to foster product demand. Increasing changing climatic conditions and frequent natural disasters are boosting industries and commercial entities to prioritize product adoption that ensures uninterrupted operations by connecting to the main grid and transitioning to off-grid mode during outages, allowing for continuous power supply.
 

Rising organizations aim to lower their carbon footprint and meet regulatory requirements for clean energy usage is set to influence product penetration. Additionally, hybrid systems provide value to the main utility grid by helping stabilize the grid during times of high demand. This reduces strain on the grid and can provide financial incentives for microgrid operators through demand response programs leading to propel industry landscape.
 

Hybrid Grid Connected Microgrid Market Trends

Increasing financial support from government agencies to develop advanced energy storage technologies, particularly lithium-ion batteries, with affordable and efficient design, leading to impact business expansion. Additionally, the product enables sophisticated energy management systems that optimize the use of available power sources. This results in energy credits or financial compensation, reducing overall energy costs, leading to strengthen product adoption.
 

Hybrid Grid Connected Microgrid Market Analysis

Based on storage device, the market is segmented into lithium-ion, lead acid, flow battery, flywheels and others. Lithium-ion is anticipated to grow by more than USD 7 billion by 2032 owing to its high energy density, allowing for greater energy storage in smaller spaces. The high energy density translates to longer battery life and reduced frequency of replacements, making them a cost-effective and preferred solution in the long term. Rising demand for storage devices with the ability to rapidly store excess energy and discharge it when needed helps maintain system stability and reliability leading to augment product penetration.
 

Based on power source, the hybrid grid connected microgrid market is segmented into diesel generators, natural gas, solar PV, CHP and others. Solar PV segment is set to grow at a CAGR of over 22.4% by 2032 their excess energy storage ability, which can be used for later use, ensures a continuous power supply even when sunlight is not available. Rising adoption of renewable sources with high electricity generation and minimal environmental impact, producing no direct emissions or pollutants during operation is stimulating solar adoption. Additionally, their high scalable, flexibility and low operating and maintenance costs compared to other power sources make solar a preferred choice.
 

Europe hybrid grid connected microgrid market is anticipated to grow by more than USD 2.4 billion by 2032. Country rising commitment to improve renewable energy sources coupled with an increasing focus on energy security and reducing dependence on imported fossil fuels will drive product adoption. Additionally, strong regulatory frameworks, alongside initiatives such as the European Green Deal and Horizon Europe, are not only funding but also supporting projects that boost energy efficiency and sustainability, further fueling business growth.
 

In the U.S., rising extreme weather events, such as hurricanes and wildfires, have highlighted the need for more robust energy systems, bolstering product demand as a backup power solution, ensuring continuous energy supply during grid outages, and addressing these resilience challenges. Many U.S. corporations are setting ambitious sustainability targets and investing in green technologies to reduce their carbon footprint. This step encourages key entrepreneurs to invest in the product incorporated by renewable energy sources and improve overall energy efficiency.
 

Hybrid Grid Connected Microgrid Market Share

Eminent players are tapping into emerging markets by expanding their geographic footprint to cater to diverse market demands and capitalize on regional growth opportunities. Companies are focusing on customizing their hybrid microgrid offerings to address unique regional challenges and regulatory requirements. Additionally, key players are investing heavily in research and development to advance hybrid grid connected microgrid technologies. This includes enhancing energy storage solutions, integrating smart grid technologies, and improving renewable energy systems.
 

Hybrid Grid Connected Microgrid Market Companies

Eminent players operating in the hybrid grid connected microgrid industry are:

• Black & Veatch
• Blue Planet Energy
• Caterpillar
• ComAp
• Eaton
• MTU Solution
• Northern Power Systems
• Piller Power Systems
• PowerSecure
• Stellar Energy
• Victron Energy
   

Hybrid Grid Connected Microgrid Industry News

• In April 2022, ComAp, in partnership with United for Electromechanical Supplies, delivered a Hybrid Microgrid solution for a community development project in Egypt. The project, led by Better Home Group, aims to enhance the power supply of the community by integrating renewable energy, reducing reliance on diesel, and promoting sustainability.
   
• In April 2022, Blue Planet Energy deployed a unique hybrid solar-plus-storage microgrid for Shungnak, a remote community in Alaska. Funded by USDA and NAB, with feasibility studies by NANA Regional Corporation, NAB, and Deerstone Consulting, the microgrid addresses the challenges of extreme conditions and reduces the community's reliance on costly, polluting diesel generators.
   

Hybrid 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 2021 to 2032, for the following segments:

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Market, By Power Source, 2021 – 2032 (MW & USD Billion)

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

Market, By Storage Device, 2021 – 2032 (MW & USD Billion)

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

Market, By Application, 2021 – 2032 (MW & USD Billion)

• 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