North America Microgrid Market Analysis

North America Microgrid Market Analysis

Based on power source, the market is segmented into diesel generators, natural gas, solar PV, CHP, and others. CHP is anticipated to grow by more than USD 5.1 billion by 2032 on account of its high energy efficiency, reduced fuel consumption, and lower operating costs. Furthermore, its resilience and reliability provide localized power generation and thermal energy supply which helps the system to operate independently or in conjunction with renewable energy sources and energy storage systems during grid outages or disruptions stimulating the source adoption. Increasing adoption of power source with reduced greenhouse gas emissions and reduced environmental impact compared to traditional solutions will drive the industry scenario.
 

Based on storage device, the North America microgrid market is segmented into lithium-ion, lead acid, flow battery, flywheels and others. Lithium ion segment is set to grow at a CAGR of over 11.8% by 2032 due to their high energy storage efficiency, enabling them to store electricity generated from renewable sources such as solar and wind with minimal energy loss. Increasing advancements in battery technology to reduce cost per kilowatt-hour (kWh) in line with rising demand for high scalability systems allows modular expansion according to energy storage requirements, optimizing upfront investment and operational expenses which will uplift the business growth. Moreover, longer operational lifespan and less maintenance compared to traditional lead acid batteries are additional factors stimulating the product demand.
 

The U.S. microgrid market is anticipated to grow by more than USD 9.8 billion by 2032. Rising investments in renewable energy generation, energy storage systems (ESS), smart grid technologies, and microgrid controllers to enhance the efficiency, reliability, and integration capabilities of solutions will complement the industry landscape. Growing supportive regulatory frameworks and government policies coupled with federal incentives such as investment tax credits (ITC), grants, and loan programs incentivize investments in microgrid projects that enhance energy reliability, integrate renewable energy sources, and support grid modernization goals will drive the business scenario.