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

Industrial & Commercial Scale Microgrid Market Size

Industrial & Commercial Scale Microgrid Market was valued at USD 2.2 billion in 2023 and is anticipated to grow at a CAGR of 23% from 2024 to 2032. It is a localized energy system designed to generate, distribute, and regulate electricity for industrial or commercial facilities. It integrates multiple energy sources, such as solar, wind, natural gas, or battery storage, and operates either independently or connected to the main grid. These microgrids enhance energy reliability, reduce costs, and support sustainability goals, providing businesses with greater control over their energy supply and consumption.
 

Rising demand for solutions offering potential for cost saving by generating energy locally, reducing reliance on the central grid and minimizing energy transportation costs are set to influence product adoption. Expanding dependency on energy security and reliability, especially for industries that cannot afford power interruptions, such as manufacturing plants, data centers, and hospitals are driving product penetration.
 

Growing pressure on C&I industry to meet sustainability goals and reduce carbon footprints are boosting business growth. Furthermore, many C&I companies are now integrating renewable energy sources such as solar, wind, and biomass into their microgrid systems to align with corporate social responsibility (CSR) initiatives leading to augment industry statistics. Rising development of advanced energy management systems, smart grid technologies, and battery storage solutions are set to propel product demand.
 

Industrial & Commercial Scale Microgrid Market Trends

Rising demand for reliable energy solution to enhance energy security by allowing businesses to continue operations during grid outages are stimulating product adoption. This capability to operate independently in island mode during grid failures is highly attractive for businesses that need to maintain productivity and prevent costly downtime. Furthermore, in a highly competitive business environment, companies are seeking ways to differentiate themselves by adopting cutting-edge energy solutions leading to create product growth opportunity to enhance operational efficiency, reduce costs, and improve environmental performance, providing a competitive advantage.
 

Industrial & Commercial Scale Microgrid Market Analysis

Based on connectivity, the grid connected segment is anticipated to cross more than USD 10.7 billion by 2032. Rising demand for connectivity allowing businesses to manage and optimize their energy consumption by balancing energy from the grid with locally generated power and reducing reliance on traditional energy providers, is augmenting business landscape. Additionally, increasing advancements in energy management systems to enable businesses to monitor and adjust energy consumption in real-time, enhancing efficiency further driving the market growth.
 

Based on storage device, the flywheels segment is set to grow at a CAGR of over 24% through 2032, on account of their ability to deliver fast response times and high-power density. This instantaneous energy makes them well-suited for applications that require rapid power delivery, such as critical manufacturing processes, data centers, and hospitals. Increasing demand for power sources offering higher durability and ability to withstand numerous charge-discharge cycles without significant degradation especially for applications that require frequent cycling and long-term reliability, thereby fostering the product demand.
 

Asia Pacific industrial & commercial scale microgrid market is likely to exceeded USD 10 billion by 2032. Aging grid infrastructure and frequent outages in industrial hubs such as India, Southeast Asia, and parts of China, is causing considerable financial loss leading to propel microgrid adoption as decentralized and reliable energy solution with reducing reliance on unstable central grids. Government in the region are actively promoting grids deployment to enhance energy security, improve rural electrification, and reduce emissions. 
 

In the U.S., rising natural disasters such as wildfires, hurricanes, and extreme weather events in states such as California, Texas, and Florida have highlighted the vulnerabilities of the traditional grid leading to boosting microgrid adoption to ensure continuity of operations during grid outages caused by these events.  Government in the region is at the forefront for supportive the product growth. For instance, California’s Self-Generation Incentive Program (SGIP) and New York’s "Reforming the Energy Vision" (REV) initiative provide financial incentives and regulatory frameworks that encourage businesses to invest in microgrid technology. These programs are especially attractive to industries looking to reduce their carbon footprint and increase energy efficiency.
 

Industrial & Commercial Scale Microgrid Market Share

Eminent players are forming strategic alliances with local utilities, renewable energy providers, and technology companies to expand their product line. Companies are collaborating with major players and regional firms to allow for the co-development of microgrid projects, especially in emerging markets where local expertise and market knowledge are crucial. Key players are expanding their reach into new geographic markets with high demand for microgrids, such as Asia-Pacific, Latin America, and Africa. This expansion also involves collaborating with local governments and meeting regulatory requirements, further boosting market penetration.
 

Industrial & Commercial Scale Microgrid Market Companies

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

• ABB
• Bloom Energy
• Caterpillar Inc.
• Clean Arcpower
• ENGIE
• General Electric
• Honeywell
• Hitachi Energy
• Saft
• Schneider Electric SE
• Xcel Energy Inc
• Yanmar Holdings Co., Ltd
   

Industrial & Commercial Scale Microgrid Industry News

• In April 2023, Xcel Energy rolled out its microgrid development service, targeting large commercial and industrial clients. This initiative not only slashes upfront costs for customers seeking resilient assets but also ensures that Xcel Energy stands by, offering comprehensive support for the operation and maintenance of these systems, guaranteeing their availability when required.
   
• In April 2023, Schneider Electric and GreenYellow have partnered to offer microgrid solutions for small and medium-sized businesses in Europe’s commercial and industrial sectors. Targeting retail stores, logistics centers, commercial buildings, manufacturing plants, and more, these microgrids will help businesses reduce energy costs, enhance energy security, and boost sustainability. The service-based model eliminates the need for upfront investment, providing businesses with all the advantages of microgrids without the financial burden.
   

This industrial & commercial scale microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Billion & 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 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