Military 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, & Forecast, 2025 - 2034

Military Microgrid Market Size

The global military microgrid market was valued at USD 2 Billion in 2024 and is estimated to grow at a CAGR of 19.1% from 2025 to 2034. Rising demand for uninterrupted power to maintain critical systems and infrastructure, even during grid outages or cyber-attacks in military locations will influence product adoption. The growing need for cost-effective power solutions to operate and maintain, especially in remote or hostile environments where fuel supply lines are vulnerable will foster product penetration.
 

The requirement for reliable and resilient power for military operations will augment microgrid usage. Conventional grids are vulnerable to natural disasters, cyber-attacks, and outages, disrupting critical missions. This drives demand for autonomous microgrids, ensuring continuous power supply and enhancing operational resilience, leading to market expansion. Fort Hunter Liggett, California, completed a USD 21.8 million renewable-powered microgrid in September 2024, the initial Department of Defense base with the system, promoting energy resilience for key missions.
 

Technological improvements such as real-time energy management systems, smart grids, and AI-driven analytics will drive the scalability and efficiency of military microgrids. Camp Arifjan has set the gold standard of innovation and sustainability through the historic commissioning of a first-of-a-kind microgrid system. The initiative led by the U.S. Army Central Operational Energy Team, U.S. Army Corps of Engineers (USACE), Idaho National Laboratory (INL), and Sain Engineering Associates (SEA) is a groundbreaking step ahead in military energy management and operational resiliency.
 

The military focus on sustainability and reducing reliance on fossil fuels will supplement the adoption of renewable energy-based microgrids. Solar, wind, and other renewable energy-based power reduce the carbon footprint and provide an affordable and sustainable power supply for industrial growth. For instance, in October 2024, the Indian Army, in collaboration with NTPC, commissioned a Solar Hydrogen-based microgrid project in Chushul, Ladakh, to provide 200kW of power throughout the year in place of existing diesel generators, and provide a stable power supply in off-grid locations.
 

Military Microgrid Market Trends

• The military's efforts to minimize its carbon footprint will boost the use of sustainable microgrid technologies. In December 2024, the US Navy awarded a USD 97 million contract to construct a battery storage microgrid at Andersen Air Force Base in Guam. The project will feature renewable energy sources, boosting the energy resilience of the base and lowering its fossil fuel consumption, in keeping with the military's sustainability objectives.
   
• Increased innovation of next generation microgrid solutions, such as real-time energy management systems, smart grids, and AI analytics, to enhance the efficiency and scalability of the system will enhance product penetration. Also, increased demand for robust power solutions at lower prices and facilitating critical missions in hostile environments will drive military microgrid market growth.
   
• Increasing integration of renewable energy sources, advanced energy storage systems, and hybrid power solutions will enhance the efficiency and resilience of microgrids, driving their adoption in military applications. In June 2023, the Kirtland Air Force Base in New Mexico launched a project to deploy a DC microgrid system, and the U.S. Air Force Research Laboratory provided Concurrent Technologies Corporation with a USD 4.8 million contract to design and deploy next-generation DC microgrid technologies at the base.
   
• Rising demand for energy resilience in remote and forward-deployed military bases will drive the development of rapidly deployable and mobile microgrid systems for enhanced operational efficiency. The systems will deliver dependable power in harsh environments, minimizing reliance on fuel convoys and increasing mission readiness. Modular, compact configurations will enable expedited assembly and disassembly, making them suitable for short-term and emergency military operations in war zones and disaster areas, driving business growth.
   

Military Microgrid Market Analysis

• The global market for military microgrid was valued at USD 1.2 billion, USD 1.5 billion, and USD 2 billion in 2022, 2023, and 2024, respectively. The industry is segmented into AC, DC, and hybrid categories, based on grid type.
   
• The AC segment is likely to exceed USD 6.4 billion by 2034, driven by its compatibility with existing infrastructure and superior power distribution efficiency. AC microgrids are growing in military bases due to the ease of grid integration and voltage stability. The U.S. Army initiated the construction of a natural gas-fueled AC microgrid in October 2023 at Fort Campbell to improve energy resilience. This is part of plan to install microgrids in all 130 Army bases by 2035 to improve mission readiness with reliable power.
   
• The DC segment is anticipated to grow at a CAGR of over 18.7% from 2025 to 2034, supported by greater efficiency and smooth integration with renewable energy and battery storage. DC microgrids minimize conversion losses, providing stable power for critical defense operations. Increasing product deployment in military bases will enhance energy resilience, lower fuel dependency, and support advanced electrification, strengthening operational efficiency and sustainability in defense infrastructure.
   
• The hybrid segment is estimated to be valued more than USD 1.8 billion by 2034, influenced by the integration of renewable and conventional energy for enhanced resilience. Growing need for continuous power in mission-critical defense operations will drive industry growth. In March 2024, the U.S. Army commissioned a USD 10.9 million hybrid microgrid at White Sands Missile Range, which includes a 700-kW solar array, a 500-kW natural gas generator, and a 500-kW battery system to improve water supply resiliency.
   

• Based on the power source, the military microgrid market is segmented into diesel generators, natural gas, solar PV, CHP, and others. The diesel generator segment holds a market share of approximately 34.2 % in the year 2024.
   
• Diesel generators provide reliable, long-duration backup power for critical military operations, ensuring energy security for off-grid and high-risk bases. Ensuring on-demand and uninterrupted power during grid outages, diesel generators will continue to see strong demand in the market. Schneider Electric expanded the Marine Corps Air Station Miramar microgrid by 6.45 MW of diesel and natural gas capacity, which improved the resilience of the base in 100+ mission-critical facilities.
   
• The natural gas market will exceed USD 2.8 billion by 2034, driven by the military’s shift to cleaner, efficient power. Lower emissions, cost-effectiveness, and fuel availability will enhance its adoption in microgrids. Its reliability and compatibility with renewable energy sources will further accelerate military microgrid market growth.
   
• The CHP segment is expected to grow at a CAGR of over 16.7% through 2034 due to the military focus on energy efficiency and cost-saving power options. The combined advantage of power generation and heat recovery will be the viability of the segment, allowing the optimal use of energy for military bases. In April 2024, the Yokota Air Base, Japan, commissioned a 10.72 MW CHP microgrid in a USD 406 million contract that facilitates the saving of energy and water expenses by 30% and enhances operating resilience.
   
• The solar PV segment is expected to capture over 15.5 % of the market share by 2034 with the support from the military push for renewable integration. The softening cost of solar panels as well as gains in energy storage will drive penetration across military camps. Solar PV's potential in curbing reliance on fuel as well as achieving grid independence will drive adoption.
   

• As of 2024, North America holds a market share of approximately 17% which is expected to improve further by 2034. The U.S. military microgrid market was valued at USD 200 million, USD 240 million, and USD 290 million in 2022, 2023, and 2024, respectively.
   
• Growing emphasis on energy resiliency to protect vital operations and maintain an uninterruptible power supply amid cyberattacks, natural calamities, or grid shutdowns will support the product adoption in the U.S. Improving support from government bodies such as the Department of Defense's heavy investment in microgrid projects as part of its broader energy resilience strategy, aiming to support mission-critical activities without dependency on the main grid will complement the product growth.
   
• The European military microgrid market will cross more than USD 3.6 billion by 2034, influenced by initiatives to enhance energy independence and reduce carbon emissions. In February 2025, the INDY project, supported by the European Defence Fund, concluded its efforts to develop energy-independent military camps. The project achieved 35–55% energy autonomy, up to 45% reduction in logistical burden, and up to 28% lower ownership costs, contributing to the advancement of sustainable energy solutions in military operations.
   
• The Asia Pacific military microgrid market is set to surpass USD 7.6 billion by 2034 due to urbanization, renewables support by the government, and energy resilience. Increasing geopolitical tensions and ensuring power security in secluded defense bases will enhance adoption. In February 2023, Australia committed USD 64 million of solar and battery storage across ten defense locations, bringing 60 MW solar and 25 MWh of storage, improving energy autonomy.
   

Military Microgrid Market Share

• The top four players, ABB, Ameresco, PG&E, and General Electric, hold a 38.8% market share in the military microgrid industry. ABB is emphasizing scalable DC microgrid solutions with the integration of renewables, while Ameresco is working on energy-as-a-service (EaaS) models for military bespeak by utilizing grid modernization efforts, and General Electric is implementing sophisticated microgrid controllers to maximize efficiency and resilience in military use.
   
• Key players establish strategic partnerships to enhance technical expertise, drive innovation, and expand market presence. Collaborations between defense agencies, technology firms, and renewable energy providers strengthen the deployment of advanced military microgrid solutions.
   
• Industry leaders invest in R&D to improve military microgrid efficiency, resilience, and performance. Advancements in energy storage, AI-driven grid management, and predictive analytics enhance system reliability and address evolving energy defense needs.
   

Military Microgrid Market Companies

• ABB is one of the dominant players in the microgrid military market in its automation and electrification segment. ABB recorded revenues and operational EBITDA of USD 32.9 billion and USD 5 billion in 2024, respectively. ABB invested USD 1.4 billion in R&D across businesses. ABB's focus is mainly on microgrid technology combined with renewable energy integration for enhanced efficiency and reliability.
   
• General Electric is focusing on the remote microgrid industry with its energy solutions. GE generated USD 76.7 billion in revenues in 2024, a 10% increase from last year.GE recorded an adjusted EBITDA of USD 10.5 billion at a margin of 13.7%. GE spent about USD 5.2 billion in 2024 on research and development of renewable power and microgrid technology to enhance system efficiency and reliability.
   

Eminent players operating in the military microgrid market are:

• ABB
• Ameresco
• Caterpillar
• FlexGen Power Systems
• General Electric
• Piller Power Systems
• PG&E
• Saft
• Stellar Energy
• Schneider Electric
• Siemens
   

Military Microgrid Industry News

• ?In January 2025, the INDY project initiated a strategic plan for achieving energy-independent military camps in Europe by 2050. The project funded by the European Defense Fund gathered 20 partners across 13 nations to increase energy security and lower the military's carbon footprint. The Institute for Energy Technology shared hydrogen and solar power expertise, advancing technologies to decrease fuel reliance and emissions in defense.
   
• In January 2025, the Ministry of Defence of Ukraine joined NATO's Military Microgrid Resilience Initiative under its Science for Peace and Security Programme. The initiative enhances reliability of power supply for critical military operations based on renewable energy sources. Ukraine will assist in deploying and testing microgrids in combat environments. The program is financed with a NATO grant, strengthening energy resilience.
   

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

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
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa