Remote Microgrid Market Size - By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Grid Type (AC, DC, Hybrid), Regional Outlook & Global Forecast, 2024 – 2032

Remote Microgrid Market Size

Remote Microgrid Market was valued at USD 7.2 billion in 2023 and is anticipated to grow at a CAGR of 19.8% between 2024 and 2032. It is a self-sufficient energy system that operates independently of the main power grid. It typically serves isolated or off-grid areas, generating, storing, and distributing electricity using a combination of renewable energy sources, energy storage systems, and sometimes backup generators. These microgrids are designed to provide reliable power to locations that are difficult to connect to the central grid, such as remote communities, rural areas, or industrial sites.
 

Growing continuous energy demand from remote and rural communities that are not connected to the central power grid is set to influence product adoption. Rising demand for energy resilience, particularly in regions prone to natural disasters or extreme weather conditions will drive the industry landscape. Furthermore, increasing technological advancements in renewable energy sources, such as solar and wind power significantly contribute to the product penetration.

Many governments, particularly in developing regions, are implementing initiatives to support the deployment of microgrids as part of broader efforts to increase energy access and reduce carbon emissions thereby impacting the product demand in remote locations. Moreover, rising corporations and organizations investments in technology as part of their corporate social responsibility (CSR) initiatives and sustainability goals are fostering market growth.
 

Remote Microgrid Market Trends

Increasing need for energy independence in off-grid regions, such as islands, rural communities, and remote industrial sites is set to propel the product penetration. Growing push towards decarbonization to support climate goals and align with the increasing environmental consciousness consumers and stakeholders who demand green energy solutions are some of the additional factors augmenting the business statistics.
 

Remote Microgrid Market Analysis

Based on grid type, the AC segment is anticipated to cross more than USD 20.2 billion by 2032, owing to its compatibility with the existing electrical infrastructure and devices. Rising demand for grid solutions with potential for distributing power over long distances, and easy voltage regulation using transformers, allowing for efficient transmission over extended distances with minimal energy loss are complementing business growth. Furthermore, the AC grid has excellent reliability and performance in various environments, including harsh and remote locations making it a preferred choice for ensuring consistent and reliable power supply, thereby improving the grid adoption.
 

Based on power source, the solar PV segment is set to grow at a CAGR of over 21.4% through 2032, on account of its ability to generate electricity from a virtually limitless source making it a highly sustainable option for remote microgrids, ensuring a continuous power supply without depleting natural resources. Rising adoption of cost-effective renewable solutions for power generation offering easy installation and quick deployment in remote locations where traditional energy infrastructure may be challenging to establish is set to foster the product penetration.
 

Asia Pacific remote microgrid market is predicted to hit USD 19.4 billion by 2032. Rising demand for reliable electricity to remote and rural communities from many parts of Asia, especially in countries such as India, Indonesia, and the Philippines having little or no access to the national grid is set to bolster product demand. Growing launch of ambitious rural electrification programs and financial incentives, subsidies, and policy support for renewable energy projects will encourage product penetration.
 

Furthermore, the region holds a high risk of natural disasters, including typhoons, earthquakes, and floods which can disrupt centralized power infrastructure, creating demand for resilient energy solution that can continue to operate independently of the main grid, ensuring energy security during and after disasters.
 

In the U.S., increasing frequency and intensity of natural disasters, such as hurricanes, wildfires, and extreme weather events, have highlighted the vulnerability of the centralized grid, thereby boosting the product adoption. Increasing demand for continuous power supply solutions from military locations with the ability to operate independently from the national grid, ensuring mission-critical operations even in the event of a cyberattack or grid failure are set to drive the industry growth.
 

Remote Microgrid Market Share

Eminent players are broadening their product and service offerings to address diverse customer needs. This includes developing comprehensive microgrid solutions that integrate renewable energy sources, energy storage, and advanced control systems. Key players are forming strategic partnerships with local utilities, technology providers, and governmental agencies to leverage complementary strengths and enhance market penetration. Furthermore, to stay competitive in the rapidly evolving remote microgrid industry, companies are investing heavily in research and development (R&D) to advance microgrid technologies.
 

Remote Microgrid Market Companies

Eminent players operating in the remote microgrid industry are:

• ABB
• Caterpillar Inc.
• FlexGen Power Systems
• General Electric
• HOMER Energy
• Piller Power Systems
• PG&E
• Saft
• Schneider Electric SE
• Stellar Energy
• Siemens AG
• Victron Energy B.V.
• Yanmar Holdings Co., Ltd
   

Remote Microgrid Industry News

• In May 2024, Pacific Gas and Electric (PG&E) bolstered its remote microgrid initiative, introducing six new installations. These installations aim to cater to individual customers while also removing six miles of overhead lines. By year end, the company envisions operating 12 remote grids, catering to 18 customers, and successfully eliminating approximately 13 miles of overhead distribution lines in high fire-risk zones.
   
• In May 2024, Schneider Electric unveiled its Villaya Flex microgrid solution at the Alliance for Rural Electrification Energy Access Investment Forum in Nigeria. This initiative targets off-grid communities and remote villages. With a commitment to enhancing energy access in sub-Saharan Africa, Schneider Electric aims to address challenges remote areas face, including energy shortages, restricted electricity access, and soaring fuel costs.
   

This remote microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MW & USD Billion” from 2021 to 2032, for the following segments:

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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
  • Malaysia
  • Indonesia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Iran
  • Nigeria
• Latin America
  • Brazil
  • Argentina
  • Chile