Off Grid Microgrid Market

Off Grid Microgrid Market Size

The global off grid microgrid market was valued at USD 6.4 billion in 2024 and is estimated to grow at a CAGR of 20.2% 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 the 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.

Supportive government initiatives and rising investments toward off grid energy solutions are anticipated to foster product adoption. In July 2023, the U.S. Department of Energy announced USD 14.7 million in funding for multi-year research, development, and demonstration of microgrid technologies designed for remote and islanded communities lacking traditional grid infrastructure. Such initiatives aimed at advancing off grid energy access will contribute to the market expansion.

Increasing energy demand across remote and underserved areas will boost the industry landscape. Advancements in renewable energy technologies coupled with investments in electrification projects will bolster product adoption. Additionally, the growing frequency and severity of climate-related disasters will increase the demand for decentralized energy solutions that are less susceptible to grid disruptions, thereby driving the off grid microgrid market revenue.

The Trump administration's tariffs on imported solar panels, batteries, and components are adding costs to off grid microgrid developers, with implications on the global market. The tariffs intervene in international supply chains, hike material costs, and test the competitiveness of businesses globally. As the project costs rise, global innovation and off-grid microgrid adoption will stall, slowing the proliferation of independent energy solutions across borders.

Off Grid Microgrid Market Trends

• Growing needs for rural electrification programs and decentralized energy technologies will propel the installation of off grid microgrids. In April 2025, Livoltek and Hexing's Eswatini Revenue Service microgrid system will produce 551.8 MWh in year one and 12,609.7 MWh in 25 years. The system combines rooftop photovoltaics, energy storage, and diesel generators, minimizing dependence on diesel generation and carbon emissions, thus supplementing market growth.
  
• Improvements in energy storage systems, especially cost-effective and high-capacity batteries, will drive the business environment. Furthermore, increasing demand for energy reliability and resiliency, particularly in areas prone to harsh weather and grid outages, will spur off grid microgrid market growth.
  
• Increased investments by private sector players in renewable energy microgrids will supplement the use of off grid systems. In November 2023, Husk Power Systems raised USD 103 million in Series D funding to grow its solar microgrid business in rural villages in Sub-Saharan Africa and South Asia. Capital will assist in speeding up the installation of more than 1,000 new microgrids by 2027, thus driving the industry's growth.
  
• Government policies supporting clean energy adoption and carbon neutrality objectives will drive the deployment of off grid microgrids. Financial incentives, tax credits, and renewable energy project grant programs will fuel business development. Additionally, increasing commitment to curbing greenhouse gas emissions will accompany microgrid growth.
  
• Increasing demand for reliable power solutions in remote and rural areas is expected to stimulate the product penetration. In February 2024, the U.S. Department of Energy initiated a USD 200 million Transmission Facilitation Program to link isolated microgrids in Alaska, Hawaii, and US territories with nearby infrastructure corridors. The program will improve grid reliability and resilience and lower electricity costs in the regions, boosting industry growth.
  

Off Grid Microgrid Market Analysis

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• The off grid microgrid industry was valued at USD 4 billion, USD 5 billion, and USD 6.4 billion in 2022, 2023, and 2024, respectively. The industry is segmented into AC, DC, and hybrid categories, based on grid type.
  
• The hybrid microgrid market is projected to register at a CAGR of over 20.5% from 2025 to 2034 due to the demand for secure decentralized power that utilizes multiple renewable sources. In February 2023, SINOSOAR ordered a 9.52 MW solar hybrid microgrid project in Niger, with a 14.5 MWh battery energy storage system. This project demonstrates the increasing deployment of hybrid solutions in regions with low electrification rates, fostering market expansion.
  
• The AC segment is projected to surpass USD 21.4 billion by 2034, influenced by the increasing use of conventional AC loads across residential, commercial, and industrial off grid systems. Widespread compatibility of AC microgrids with existing appliances and infrastructure will stimulate deployment. Additionally, advancements in inverter and control technologies will complement operational efficiency, boosting industry growth.
  
• The DC segment accounted for over 33.5% of the market share in 2024, due to increasing demand for energy-efficient technologies in data centers and EV charging stations. DC Grid and Liberty Energy collaborated in January 2025 to introduce scalable off grid DC power with "small-scale power output" within three months at EV stations and "hundreds of megawatts" within 12–18 months at data centers. Their products trim power conversion losses by 20% and transmission/distribution losses by 33%, propelling segment growth.
  

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• Based on the power source, the market is segmented into diesel generators, natural gas, solar PV, CHP, and others. The diesel generator segment holds a market share of approximately 32.7 % in the year 2024.
  
• The solar PV market is expected to grow at a CAGR of over 21% during 2025 to 2034, driven by growing government incentives and technological improvements in photovoltaics. In September 2024, Huawei Digital Power inaugurated a solar storage microgrid in Saudi Arabia's Red Sea New City with 400 MW of PV capacity and 1.3 GWh of energy storage. The intelligent system keeps THDu under 1.5% in off grid mode, demonstrating increasing solar PV uptake and facilitating decentralized energy system development in off grid areas.
  
• The CHP segment, holding a 19.1% market share in 2024, is expected to grow by 2034 as demand rises for efficient off grid power solutions. These systems maximize energy use by generating electricity and producing usable heat, reducing both operating costs and emissions. Heightened focus on energy efficiency and sustainability will boost adoption across industrial, commercial, and residential sectors, propelling segment growth throughout the forecast period.
  
• The natural gas segment was valued at USD 1.4 billion in 2024 and is anticipated to grow further by 2034, supported by its key potential to offer stable off grid power and reduced emissions than other fossil fuels. In March 2025, FuelCell Energy, Diversified Energy, and TESIAC collaborated to provide up to 360 MW of off grid electricity from natural gas and coal mine methane to Virginia, West Virginia, and Kentucky data centers. With U.S. data center demand projected to surpass 80 GW in the 2030s, this partnership fuels growth in the segment.
  
• The segment of diesel generators is expected to expand at a CAGR of over 20.5% during 2025 to 2034, backed by the requirement for dependable off grid backup power in isolated and critical locations. High fuel energy density, rapid start-up capability, and robust performance in harsh conditions will augment product deployment. Growing industrialization and increasing off grid construction work combined with ongoing technological progress in emission control technologies, will drive segment growth.
  

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• As of 2024, North America holds a market share of approximately 21.1% which is expected to improve further by 2034. The U.S. market for off grid microgrid was valued at USD 0.79 billion, USD 0.94 billion, and USD 1.1 billion in 2022, 2023, and 2024, respectively.
  
• Increasing energy independence demand and growing investments in renewable infrastructure will drive the growth of the off grid microgrid market in the U.S. Rising emphasis on energy security in remote and critical sites will complement the growth of the industry. Moreover, increasing corporate sustainability objectives will enhance the deployment of off grid microgrids across the country.
  
• The Asia Pacific region was valued at USD 2.3 billion in 2024, fueled by increasing energy needs and investment in green hydrogen and renewable energy technologies. In October 2024, NTPC collaborated with the Indian Army to install a solar hydrogen-based microgrid at Chushul, Ladakh, in place of diesel generators at remote sites and providing 200 kW of round-the-clock power. Enhanced government support for off grid renewable solutions will further drive the region's clean energy transition.
  
• The Middle East and Africa region is expected to reach USD 2 billion by 2034, driven by increasing electrification requirements and investments in renewable energy. PowerGen RE entered a partnership with the Private Infrastructure Development Group and Danish Investment Fund in January 2025 to deploy 120 MW of renewable projects in Nigeria, Sierra Leone, and the Democratic Republic of Congo, electrifying 68,000 households. Additionally, supportive government initiatives will complement the regions off grid microgrid development.
  

Off Grid Microgrid Market Share

• The top 3 players, General Electric, ABB, and Schneider Electric hold around 34.4% share in the off grid microgrid industry. Companies are emphasizing R&D for advanced energy management systems and hybrid microgrid solutions to enhance reliability and flexibility. Strategic partnerships with utilities and governments facilitate large-scale project deployment. Expanding renewable energy portfolios and investing in energy storage technologies strengthen their competitive edge.
  
• Eminent market players are investing in technological innovations to develop advanced microgrid components and systems. They seek to provide more efficient, reliable, and cost saving off grid microgrid solutions through ongoing advancements in energy storage solutions, smart grid technologies, and decentralized energy management systems. Strategic partnerships also play an important role in increasing the market reach and accessing new opportunities.
  

Off Grid Microgrid Market Companies

• ABB is among the leaders in the off grid microgrid industry in its automation and electrification business. ABB posted revenues and operational EBITDA of USD 32.9 billion and USD 5 billion in 2024, respectively. ABB spent USD 1.4 billion on R&D across businesses. ABB is primarily focused on microgrid technology along with integration of renewable energy for greater efficiency and reliability.
  
• General Electric is targeting the off grid microgrid sector with its energy solutions. GE achieved USD 76.7 billion revenues in 2024, which is a 10% increase compared to last year. The company achieved an adjusted EBITDA of USD 10.5 billion at a margin of 13.7%. They have invested around USD 5.2 billion in 2024 on research and development, coupled with offered initiatives, including the development of microgrid systems for remote locations and increasing energy independence.
  

Eminent players operating in the off grid microgrid market are:

• ABB
• ALEC Energy
• Eaton
• Enphase Energy
• General Electric
• Generac Power Systems
• Hitachi Energy
• HOMER Energy
• OutBack Power
• Schneider Electric
• Siemens
• SMA Solar Technology
• Tesla
• Trojan Battery Company
• Tata Power Solar Systems.
  

Off Grid Microgrid Industry News:

• In July 2023, TP Renewable Microgrid, a subsidiary of The Tata Power Company Ltd., launched a "Customer Awareness and New Connection" Mobile Van campaign starting July 18, 2023. The purpose of this initiative was to enhance public awareness about Microgrid, an off grid solar power plant with an energy storage system serving remote areas of India.
  
• In November 2022, ALEC Energy marked a milestone by installing an innovative energy solution in the Visitor Center of Noor Energy 1, the globe's largest CSP installation in Dubai. The off grid microgrid solution utilizes Azelio's long-duration energy storage technology to provide secure and sustainable power to the Visitor Center, demonstrating the promise of CSP and next-generation energy storage in meeting energy requirements in a cost-effective way.
  

This off grid 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 Grid Type

• AC
• DC
• Hybrid

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 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