Microgrid Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

The report covers Global Microgrid Companies & Market Growth. The market is segmented by Application (Institutional Sites, Commercial Facilities, Remote Off-grid Communities, and Other Applications), Type (Custom Microgrid, Remote Power Systems, and Other Types), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Microgrid Market Size

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Micro Grid Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 15.92 Billion
Market Size (2029) USD 38.12 Billion
CAGR (2024 - 2029) 19.08 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Micro Grid Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Microgrid Market Analysis

The Microgrid Market size is estimated at USD 15.92 billion in 2024, and is expected to reach USD 38.12 billion by 2029, growing at a CAGR of 19.08% during the forecast period (2024-2029).

In 2020, the market was negatively impacted due to the COVID-19 pandemic. In Q1 2020, key countries like the United States and India witnessed the lowest microgrid installations in the last four years. The microgrid market is expected to have a robust growth during the forecast period, primarily due to two main factors, i.e., the global demand for clean energy generation and a self-sufficient source of power generation in times of crisis or grid disconnection. However, the microgrid market is likely to be hindered by high capital cost and technical design problems as the developers have to ensure a symbiotic relationship between the main grid and the microgrid if the microgrid is connected to the grid.

  • The off-grid systems are projected to dominate the microgrid market, particularly to address the issue of interconnection approvals from the utilities.
  • The innovation-oriented endeavors and the funding feasibility studies in many countries are the biggest opportunities for the microgrid market. Apart from independent power generation, microgrids have evolved with high-speed control platforms and forecasting systems that make them more sophisticated. Several national and international forums are in contention on many variables, like cost and funding issues, to develop the market.
  • The Asia-Pacific region is expected to dominate the market during the forecast period due to a high rate of electrification, mainly for rural or semi-urban areas.

Microgrid Market Trends

This section covers the major market trends shaping the Microgrid Market according to our research experts:

Remote Off-grid Communities Systems Expected to Witness Growth

  • The demand for off-grid power networks has been stimulated in many parts of the world, particularly from sectors like defense, commercial places, data centers, and campuses.
  • According to the US Department of Energy, as of 2021, the off-grid microgrid installed capacity was around 4225 MW (4.2GW). The country has planned more off-grid microgrid projects in cities and other strategic locations to make the energy infrastructure more resilient.
  • In September 2021, Alphastruxure started the construction of a 5.6 MW microgrid with distributed energy generation, energy storage, and over 2 MW charging capacity at Brookville Smart Energy Bus Depot in Montgomery County, Maryland. The project is expected to serve the city's public transport by 2023. The initiative to decarbonize the transportation sector with microgrids is a part of a major goal to reduce carbon emissions by 2035.
  • In January 2022, Ameresco Inc. announced that it had been awarded a microgrid project in Prince Edward Island, Canada. The "Slemon Park Microgrid Project" will be developed by the joint effort of Ameresco and Prince Edward Island Energy Corporation. The project is expected to be completed by the end of 2022. It consists of a 10 MW solar facility with DC-coupled energy storage, and both of them will share the same interconnection.
  • Due to such developments, the off-grid microgrid segment is expected to dominate the microgrid market in the future.
Micro Grid Market : Microgrid Installed Capacity, in MW, United States, 2015-2021

Asia-Pacific is Expected to Dominate the market

  • Around 35% of Asia-based utility companies have predicted that microgrids will lead to new revenue streams in the next two years due to the high power demand from rural communities. For instance, the Rockfeller Foundation installed around 160 microgrids in four states of India, namely, Bihar, Uttar Pradesh, Odisha, and Rajasthan. Through this program, more than 70,000 people living in remote areas now have access to electricity.
  • Due to high power demand and governments' push to integrate renewables in the power generation mix in many Asian countries, the nations are prompted to look for more microgrid installations. Even in 2020, the renewable share of power generation in India was about 9.7%, which is far from the required targets. Thus, many energy companies are involved in project development activities for microgrid technology.
  • In April 2021, HIP, Pepco, and Emera Technologies were provided with a financial grant to power a division of the residential sector in Fairmount Heights, Maryland, United States. About USD 200,000 was granted for the project, which is expected to get completed by the early 2022s. It is a part of the state's major program, "Resilient Maryland Program", which aims to develop a solar plus storage network for middle-income households.
  • In November 2021, the United Kingdom earned another microgrid project for the housing and business development of the Grove Park area in Lewisham East, UK. The project includes a 500 kW renewable energy system and energy storage, coupled with a smart grid management controller. It will be developed by SNRG smart grids and Centrica energy company. The project is expected to be completed by 2025.
  • Such developments strongly support the dominance of the Asia-Pacific microgrid market in the coming years.
Micro Grid Market : Growth Rate by Region, 2022-2027

Microgrid Industry Overview

The microgrid market is moderately consolidated. Some of the major players include Hitachi Energy Ltd, General Electric Company, Siemens AG, Eaton Corporation PLC, and Schneider Electric SE.

Microgrid Market Leaders

  1. Siemens AG

  2. General Electric Company

  3. Eaton Corporation PLC

  4. Schneider Electric SE

  5. Hitachi Energy Ltd

*Disclaimer: Major Players sorted in no particular order

Micro Grid Market Concentration
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Microgrid Market News

  • In November 2021, the Los Angeles Transportation Department planned a new microgrid project for the electrification of EVs. The microgrid, with a solar plus storage power supply system, is expected to become the charging station for the fleet. The project, to be developed by Proterra Energy, received a grant of USD 6 million from the California Energy Commission. It is expected to produce around 7.5 MW of power output.
  • In June 2020, Sri Lanka Electricity Company Ltd (LECO) signed a contract with Dimo and DHYBRID GmbH to construct Sri Lanka's first-ever national grid-tied renewable energy-based microgrid at the University of Moratuwa. The project is funded by the Asian Development Bank (ADB) and will embark on a new paradigm in the field of distributed power generation in Sri Lanka.

Microgrid Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Targets, Policies, and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitute Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry


    1. 5.1 Application

      1. 5.1.1 Institutional Sites

      2. 5.1.2 Commercial Facilities

      3. 5.1.3 Remote Off-grid Communities

      4. 5.1.4 Other Applications (Utility/Grid-connected Communities, Military, Etc.)

    2. 5.2 Type

      1. 5.2.1 Customer Microgrid

      2. 5.2.2 Remote Power Systems

      3. 5.2.3 Other Types

    3. 5.3 Geography

      1. 5.3.1 North-America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South-America

      5. 5.3.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Hitachi Energy Ltd

      2. 6.3.2 General Electric Company

      3. 6.3.3 Siemens AG

      4. 6.3.4 Eaton Corporation PLC

      5. 6.3.5 Honeywell International Inc.

      6. 6.3.6 Toshiba Corp.

      7. 6.3.7 Schneider Electric SE

      8. 6.3.8 Standard Microgrid Inc.

      9. 6.3.9 ENGIE EPS SA

      10. 6.3.10 S&C Electric Co.

    4. *List Not Exhaustive

**Subject to Availability
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Microgrid Industry Segmentation

The microgrid market report includes:

Institutional Sites
Commercial Facilities
Remote Off-grid Communities
Other Applications (Utility/Grid-connected Communities, Military, Etc.)
Customer Microgrid
Remote Power Systems
Other Types
Middle-East and Africa
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Microgrid Market Research FAQs

The Microgrid Market size is expected to reach USD 15.92 billion in 2024 and grow at a CAGR of 19.08% to reach USD 38.12 billion by 2029.

In 2024, the Microgrid Market size is expected to reach USD 15.92 billion.

Siemens AG, General Electric Company, Eaton Corporation PLC, Schneider Electric SE and Hitachi Energy Ltd are the major companies operating in the Microgrid Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Microgrid Market.

In 2023, the Microgrid Market size was estimated at USD 13.37 billion. The report covers the Microgrid Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Microgrid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key trends in the Microgrid Market are a) Growth of off-grid microgrids, particularly in remote areas b) Integration of renewable energy sources with battery storage c) Development of advanced control systems for improved efficiency

The segments covered in the Microgrid Market Report are a) Application: Institutional Sites, Commercial Facilities, Remote Off-grid Communities b) Type: Custom Microgrid, Remote Power Systems

Micro Grid Industry Report

The global microgrid market is witnessing significant growth, driven by the demand for reliable and efficient energy solutions across various sectors, including commercial and industrial buildings, remote areas, and healthcare facilities. This market, offering both grid-connected and off-grid systems, is segmented by connectivity, power source, and region, providing a comprehensive industry overview. Key growth drivers include the need for electric vehicle (EV) charging infrastructure, digitalization, smart grid technologies, and the rising demand for energy. However, challenges like grid interconnection complexities and the need for standardization persist. The Asia Pacific region is expected to see notable growth due to increased energy demand and a focus on renewable sources. The hardware segment, including power generators and energy storage systems, dominates the market share, supported by the widespread adoption of microgrid projects. The commercial and industrial buildings segment is also anticipated to grow significantly. Microgrid companies are crucial in this evolving market, enhancing energy reliability, efficiency, and sustainability, thus playing a pivotal role in advancing sustainable energy solutions globally. For detailed market insights and forecasts, refer to industry reports by Mordor Intelligence™. Get a sample of this industry analysis as a free report PDF download.

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Microgrid Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)