North America Hybrid Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application, Country Outlook & Forecast, 2024 – 2032

North America Hybrid Microgrid Market Size

North America Hybrid Microgrid Market was valued at USD 608.7 million in 2023 and is anticipated to grow at a CAGR of 10.7% from 2024 to 2032. It is an integrated energy system that combines multiple energy sources, such as solar, wind, and conventional generators, with energy storage systems. It operates by either connecting to the main power grid or independently in island mode. These microgrids are designed to enhance energy reliability, efficiency, and sustainability by optimizing renewable energy sources and reducing reliance on fossil fuels.
 

Growing energy consumption in the region coupled with the aging electrical infrastructure is driving the market growth. Rising government initiatives and policies aimed at promoting renewable energy and reducing carbon emissions in line with supportive programs such as the U.S. DOE microgrid initiatives and Remote Communities program will boost the product adoption.

Rising advancements in energy storage technologies, control systems, and renewable energy integration along with increasing innovations in battery storage technology, such as lithium-ion and solid-state batteries to improve the efficiency and reliability of energy storage are set to augment the business statistics.
 

North America Hybrid Microgrid Market Trends

Rising need for energy security and resilience against natural disasters, cyber-attacks, and other disruptions is boosting the demand for solutions offering a reliable and secure power supply by operating independently from the main grid during emergencies, thereby escalating the product penetration. Increasing focus on sustainability and the transition to renewable energy sources will augment the market landscape. Furthermore, corporations and communities are increasingly adopting hybrid solutions to achieve sustainability goals, reduce energy costs, and enhance resilience, thereby accelerating the product demand.
 

North America Hybrid Microgrid Market Analysis

Based on connectivity, the grid connected segment is likely to exceed USD 1.22 billion by 2032. Rising demand for continuous power supply during grid outages or disruptions, particularly valuable for critical infrastructure including hospitals, military bases, and data centers is fueling the product demand. Furthermore, growing innovations in energy storage technologies and advancements in control systems enabling real time monitoring, predictive maintenance, and optimized energy distribution will stimulate the market landscape.
 

Based on power source, the solar PV segment is set to grow at a CAGR of more than 11% through 2032, owing to its enhanced energy resilience, reliability and contribution to environmental sustainability. Declining solar costs coupled with rising innovations in PV technology, including improvements in panel efficiency, durability, and energy storage solutions will drive the market scenario. In addition, growing emphasis on reducing the carbon footprint and promoting environmental sustainability is likely to improve product adoption.
 

The U.S. hybrid microgrid market is projected to surpass USD 463 million by 2032. Rising support from the government in terms of polices and incentives including the Investment Tax Credit (ITC), state level Renewable Portfolio Standards (RPS), and various grants and subsidies supporting the financial viability of microgrid projects is set to influence the market statistics. Additionally, increasing frequency of extreme weather events, including hurricanes, wildfires, and severe storms is boosting the demand for resilient energy solutions.
 

Growing trend towards decentralized energy systems to reduce dependence on centralized power grids is escalating the demand for solutions that can operate independently or in conjunction with the main grid, providing flexibility and enhancing local energy security. Furthermore, the shift towards reducing carbon emissions and promoting renewable energy to reduce reliance on fossil fuels, supporting national and corporate sustainability goals will enhance the market growth.
 

North America Hybrid Microgrid Market Share

Eminent market players are heavily investing in research and development to innovate and improve the technology including advancements in energy storage solutions, comprising high-efficiency batteries, smart grid technologies, and advanced control systems. Rising collaboration with other technology providers, energy companies, and research institutions is a common strategy among key players. Furthermore, to expand their market presence and capabilities, leading companies are engaging in mergers and acquisitions.
 

North America Hybrid Microgrid Market Companies

Eminent players operating in the North America hybrid microgrid industry are:

• ABB
• Caterpillar Inc.
• ENGIE
• FlexGen Power Systems
• General Electric
• HOMER Energy
• Langley Holdings
• MTU Solution
• Piller Power Systems
• S&C Electric Company
• Schneider Electric SE
• Siemens AG
• Stellae Energy
• Yanmar Holdings Co., Ltd
   

North America Hybrid Microgrid Industry News

• In October 2023, Langley Holdings’ Power Solutions Division entered into a collaboration with companies including Marelli Motori, Bergen Engines, and Piller Power Systems to develop renewable hybrid microgrids. These aim to cost effectively meeting the current and future needs while minimizing emissions.
   
• In February 2022, a government grant and the collaboration of Hakai Energy Solutions and Ageto Energy have enabled a hybrid microgrid to power Harbledown Island in Canada. Hakai Energy plans to build the system, while Ageto Energy will design the microgrid and controls. The collaboration aimed to reduce reliance on fossil fuel and improve renewable source adoption for power generation.
   

This North America hybrid microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Million & 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 Application

• Healthcare
• Educational Institutes
• Military
• Utility
• Industrial/ Commercial
• Remote
• Others

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico