Industrial and Commercial Grid Connected Microgrid Market Size By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, Regional Outlook & Global Forecast, 2024 – 2032

Industrial & Commercial Grid Connected Microgrid Market Size

Industrial & Commercial Grid Connected Microgrid Market was valued at USD 1.5 billion in 2023 and is anticipated to grow at a CAGR of 23% from 2024 to 2032. It is a localized energy system that integrates distributed energy resources such as solar panels, wind turbines, and batteries to provide power to industrial and commercial facilities. These microgrids are connected to the main electrical grid but can operate independently if needed, such as during grid outages.
 

Increasing occurrences of natural disasters, extreme weather, and grid outages, are encouraging businesses to prioritize energy security to ensure uninterrupted operations leading to boost product demand. This acts as a crucial backup power source for critical infrastructure and facilities, minimizing downtime, and preventing financial losses. Rising costs of grid-supplied electricity are promoting microgrid adoption for industrial and commercial applications to seek cost-effective energy solutions leading to strengthen the product demand.
 

Rising pressure on industrial and commercial companies to meet sustainability targets and reduce their carbon footprints is set to influence business landscape. Increasing introduction of policies grants, and tax incentives by the government to encourage the adoption of renewable energy and microgrid solutions are driving the industry statistic.
 

Industrial & Commercial Grid Connected Microgrid Market Trends

Expanding advances in energy storage technologies, power electronics, and control systems to boost the feasibility and efficiency of the product are fostering industry growth.  Additionally, rising investments in developing sophisticated energy management systems to enable real-time monitoring and optimization of energy generation, storage, and consumption are driving industry growth. These technologies provide industrial and commercial entities with greater control over their energy use, increasing the attractiveness of adopting microgrid solutions.
 

Industrial & Commercial Grid Connected Microgrid Market Analysis

Based on power source, the diesel generators segment is anticipated to cross more than USD 3.8 billion by 2032, on account of their level of reliability unmatched by renewable energy sources or battery storage, especially in critical applications. Rising demand for power sources offering immediate backup power with the ability to start up quickly and sustain power for extended periods is fostering product penetration. Furthermore, their wide availability and easy transportation properties, bolster product demand.
 

Based on storage device, the industrial & commercial grid connected microgrid market is from flywheels segment is set to grow at a CAGR of over 24.3% through 2032, owing to its ability to provide instantaneous power. Rising demand for storage devices with high power density which help to store and discharge large amounts of energy in a compact system, making the system highly efficient for short-term energy storage in power-hungry environments is boosting device adoption. Furthermore, their mechanical robustness and long operational life, make them highly durable and capable of delivering consistent performance over extended periods without the need for frequent maintenance or replacement leading to complement business trajectory.
 

Asia Pacific industrial & commercial grid connected microgrid market is likely to exceed USD 7.2 billion by 2032. Rising government support in promoting the deployment of microgrids to address energy access issues and reduce dependence on fossil fuels is driving product penetration. Increasing company's shift towards prioritizing sustainability and adopting greener technologies to meet corporate social responsibility (CSR) commitments is strengthening industry projects.
 

In the U.S., aging grid infrastructure and increasing frequency of natural disasters such as hurricanes, wildfires, and storms have increased the need for resilient energy solutions thereby propelling product demand. Rising electricity prices, particularly in states with aggressive clean energy policies, are driving U.S. businesses to explore alternative energy solutions. Furthermore, rising incentives and regulatory support by the U.S. government and other states to encourage the adoption of advanced technology leading to influence business statistics.
 

Industrial & Commercial Grid Connected Microgrid Market Share

Eminent players are heavily investing in research and development (R&D) to enhance the performance, efficiency, and cost-effectiveness of their microgrid solutions. Companies are forming partnerships with microgrid providers and technology companies, utilities, and renewable energy developers to enable the deployment of comprehensive solutions that combine expertise from various fields. Furthermore, key players are focusing on expanding their presence in emerging markets, especially in regions with increasing demand for resilient energy infrastructure, such as Southeast Asia, Africa, and parts of Latin America.
 

Industrial & Commercial Grid Connected Microgrid Market Companies

Eminent players operating in the industrial & commercial grid connected microgrid industry are:

• Ameresco
• Caterpillar Inc.
• General Electric
• Hitachi Energy Ltd.
• Honeywell
• Schneider Electric
• Spirae
• SOLA Group
• PG&E
• Tesla
   

Industrial & Commercial Grid Connected Microgrid Industry News

• In February 2023, Siemens has been expanding its microgrid solutions, particularly with projects such as partnering with Swinburne University to develop an Energy Transition Hub. This partnership focuses on grid-connected microgrid applications for commercial use to support the energy transition.
   
• In March 2022, grid connection of a significant solar PV plant and battery system initiated, marking a pivotal moment for renewable energy initiatives in South Africa. This solar PV, paired with a lithium-ion battery system, is set to become one of the country's largest microgrids. Designed for a commercial and industrial (C&I) client, the 1.8 MW solar PV facility, complemented by a 2.9 bMWh battery, is now grid-connected, enhancing the stability of the local electricity grid. Constructed by SOLA Group for PepsiCo's sub-Saharan Africa division, this system not only ensures a reliable energy supply for the food and beverage giant but also aims to curtail carbon emissions at its distribution hub located near Kempton Park, Johannesburg.
   

This industrial & commercial 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

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

Market, By Storage Device

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

Market, By Grid Type

• AC
• DC
• Hybrid

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