Military DC Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device & Forecast, 2025 - 2034

Military DC Microgrid Market Size

The global military DC microgrid market was valued at USD 699.9 million in 2024 and is estimated to grow at a CAGR of 18.9% from 2025 to 2034. The increasing focus on sustainability will force military units to incorporate green energy technologies for lesser negative impact on the environment and to comply with domestic and foreign environmental policies. In October 2023, U.S. DOE spent USD 3.4 billion to enhance grid resilience by financing 400 microgrid projects across the country. The project includes critical energy users, including commercial, industrial, military, universities, and data centers, aiming to enhance sustainability and reliability.
 

Rising development of advanced DC microgrid technologies, such as real-time energy management systems, smart grids, and AI-driven analytics designed to enhance the efficiency and scalability of these systems, will propel the product adoption. The need for dependable and affordable power solutions that can sustain critical operations during challenging conditions will further accelerate product implementation.
 

Ongoing deployable DC microgrids provide strategic benefits for forward-operating bases, offering energy independence and resilience in challenging and remote environments, boosting their adoption within the defense sector. In 2024, NTPC worked together with the Indian Army to set up a solar-hydrogen powered microgrid in Ladakh, which offers reliable power to off-grid army camps. The system is standalone and provides an uninterrupted power supply of 200 kW, which is diesel generator energy, and power is stored as green hydrogen. The business expansion during the forecast period will create positive opportunities for these technologies in remote locations.
 

The surge in the requirement for dependable energy to support essential systems and infrastructure during grid outages or cyberattacks will fuel the product penetration. Moreover, the increased need for economical and low-maintenance energy systems, particularly in difficult or remote areas, is likely to bolster the adoption of these technologies.
 

Military DC Microgrid Market Trends

• The increasing incorporation of solar powered photovoltaics and wind turbines into DC microgrids will enhance the business growth. This focus uses less fossil fuels, which synchronizes with the DoD’s aim of implementing 3 gigawatts of renewable energy by 2025. For instance, in 2021, the microgrid at Marine Corps Air Station Miramar had 1.6 MW of solar PV, which greatly diversified and supplemented a sustainable power mix. Furthermore, high demand for military operations demands reliable and resilient power sources will contribute to the product adoption.
   
• High demand for microgrids offering modularity and scalability, allowing for quick deployment and adaptation to varying mission requirements, will influence DC growth. Moreover, this adaptability is vital for use at forward-operating bases and temporary sites where conventional energy facilities cannot be constructed, thus improving the military DC microgrid market forecast.
   
• Rising electricity bills of military operation sites create lucrative opportunities for DC microgrid penetration. As per the research, the U.S. DoD spends USD 4 billion annually on energy across 523 installations, covering over 280,000 buildings and 2 billion square feet, nearly three times the size of all U.S. Walmart stores.  According to Pew Charitable Trusts report, the DoD could save around USD 1 billion by installing microgrids and renewable power solutions on army bases. This will uplift the product demand as an cost-saving and fuel saving power source.
   
• Continued funding directed towards the improvement of DC microgrids, such as developing energy management systems and real-time analytics powered by AI, will increase the product growth. These developments foster the control, monitoring, and optimization of energy resources, which further propels the product adoption.
   

Military DC Microgrid Market Analysis

• The military DC microgrid industry was valued at USD 440 million, USD 543.7 million and USD 699.9 million for the years 2022, 2023, and 2024 respectively. The industry is segmented into grid connected and off grid categories, based on connectivity.
   
• The grid connected segment is anticipated to reach more than USD 2.8 billion by 2034 on account of its reliability and continuous power, particularly in forward-operating bases and remote military locations where conventional power supply may be vulnerable to disruptions from natural disasters, cyber-attacks, or enemy activities. For instance, in March 2025, the U.S. Navy awarded a contract worth 97 million dollars for constructing a battery storage microgrid at its base in Guam; this would be the first microgrid in the Navy. The project intends to improve energy resilience and guarantee reliable power for essential operations.
   
• The off-grid segment is estimated to hold more than 31.3% market share by 2034. Rising demand for uninterrupted power for critical operations, including surveillance, communications, and remote piloting of drones in military bases, will escalate the off grid deployment. Additionally, annually, the U.S. military uses over 10 million barrels of fuel and the supply of fuel to remote bases entails exorbitant costs and security challenges. This drives demand for renewable-powered, battery-backed solutions to cut fuel reliance, lower costs, and enhance safety.
   

• Based on power source, the military DC microgrid market is segmented into diesel generators, natural gas, solar PV, CHP and others. Diesel generators segment held around 32.1% market share in 2024 owing to its capacity to provide electricity using sustainable and readily available resources, which does not exhaust natural supplies, a significant advantage for military operations that are resource inefficient.
   
• The solar PV segment is expected to expand at a CAGR of more than 19.8% between 2025 and 2034. Increasing demand for modular microgrids, allowing for quick deployment in remote and temporary military sites, will propel the business trend. Furthermore, the government also supports the renewable power solar adoption, leading to product growth. In April 2022, Yotta Energy received approximately USD 2 million in funding from the Department of Defense's Environmental Security Technology Certification Program for building a solar-powered microgrid with storage capabilities at Nellis Air Force Base in Las Vegas, Nevada.
   
• The natural gas segment is expected to be worth around USD 950 million by 2034 due to its consistent power supply, which provides a steady and dependable energy source and lessens reliance on the aging and fragile main grid that is susceptible to cyberattacks and outages. Furthermore, the growing use of more affordable power sources in comparison to other fossil fuels will augment the business trend.
   
• The CHP segment is anticipated to grow at a rate of over 16.1% from 2025 to 2034 due to its uninterrupted mechanical and thermal energy functions at military bases. This continuity is vital for operational readiness in isolated or dangerous regions where power outages from the grid can severely disrupt mission-critical activities. Furthermore, the heightened focus on high efficiency power sources, attaining 60-80% efficiency, surpassing conventional methods of power generation, is expected to boost the industry figures.
   

• As of 2024, North America holds a market share of approximately 20%, which is expected to improve further by 2034. The U.S. military DC microgrid market was valued at USD 84.5 million, USD 99.2 million, and USD 118.1 million in 2022, 2023, and 2024, respectively.
   
• Rising focus on energy resilience to protect pivotal military operations during natural disasters, cyberattacks, or grid outages will augment product penetration. Rising investments by government bodies such as the U.S. Department of Defense (DoD) in DC microgrid adoption as part of a broader strategy to enhance energy resilience will augment the business statistics.
   
• Additionally, U.S. is at the forefront in supporting developing regions by boosting the product adoption in their military operations. The U.S. Air Force and Schneider Electric completed a USD 406 million infrastructure improvement project at Japan's Yokota Air Base in November 2023. This project focused on improving energy resilience systems to support national security in the Asia Pacific region.
   
• The Asia Pacific military DC microgrid market will reach USD 2.5 billion by the year 2034. The increasing governmental funding targeting the expansion of power accessibility for military bases in remote areas will accelerate the industry’s growth. In October 2021, the Australian government granted a USD 5.4 million contract to a Victorian company to create a portable microgrid designed to meet the rising power demands of contemporary battlefields. These funds will influence DC adoption driven by its fuel independence & cost reduction.
   
• Additionally, the growing regional concerns relating to energy security, particularly in areas that may experience grid disruptions, will bolster demand for dependable energy solutions, thus strengthening the overall industry. The presence of diverse geographic conditions, such as islands and mountainous terrains, makes traditional energy infrastructure difficult to implement therefore improving product adoption as an ideal solution, particularly for off-grid military bases and remote locations.
   

Military DC Microgrid Market Share

• The top three players, ABB, Schneider Electric, and General Electric, hold a 30.2% market share in the military DC microgrid industry. These players are expanding their offerings to meet a broader range of customer needs. This involves developing integrated solutions that combine renewable energy sources, energy storage systems, and advanced control technologies to create more efficient and flexible systems.
   
• Additionally, companies are partnering with local utilities, technology firms, and government bodies to leverage shared expertise, enhance their market presence, and improve service delivery. Industry leaders invest heavily in R&D to make DC microgrid technologies best suited for current demands. These efforts solidify their market leadership, which is well-suited to the need for efficient and reliable DC microgrid systems for today's energy market.
   

Military DC Microgrid Market Companies

• The top three players, ABB, Schneider Electric, and General Electric, hold a 30.2% market share in the military DC microgrid industry. The players in the market are broadening their range of offerings to serve a wider customer base. This includes designing comprehensive systems that synergistically integrate renewable energy facilities, energy storage units, and sophisticated monitoring and control systems into more advanced and adaptable systems.
   
• Moreover, firms are engaging with local power companies, technology companies, and public sector organizations to take advantage of collaborative skills, strengthen their market position, and enhance service provision. Industry leaders invest heavily in R&D to make DC microgrid technologies best suited for current demands. These efforts solidify their market leadership, which is well-suited to the need for efficient and reliable DC microgrid systems for today's energy market.
   

Eminent players operating in the military DC microgrid market are:

• ARDA Power
• AEG International
• ABB
• Ameresco
• FlexGen Power Systems
• GE Vernova
• PG&E
• Piller Power Systems
• Saft
• Schneider Electric
• Stellar Energy
• Siemens
   

Military DC Microgrid Industry News

• In March 2025, the U.S. Air Force and the Department of Defense, in collaboration with GE Vernova and the University of Utah, are investigating the potential of harnessing geothermal energy for renewable energy and hydrogen fuel microgrid applications at military installations.
   
• In November of 2024, the 158th Fighter Wing installed a microgrid energy management system on its solar array. The initiative intends to increase the energy security of military operations by improving the processes of intercepting and converting solar energy into DC power, then converting it to AC power for advanced microgrid management.
   
• In October 2024, NTPC, in coordination with the Indian Army, set up a 200kW solar hydrogen microgrid in Ladakh. This pilot project seeks to aid in the sustainable power generation for the remote outposts of the army by leveraging hydrogen energy storage systems in place of conventional diesel generators.
   

This military DC 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 2034, 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

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa