Microgrid Market by Types (Grid-connected, Hybrid, and Remote Grid), Power Sources (Natural Gas, Solar PV, Combined Heat & Power (CHP), Fuel Cells, and Diesel), Offerings (Hardware and Software & Services), Applications (Healthcare, Defense, Educational Institutes, Industrial, Commercials, Remote, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
Microgrid Market Outlook 2031
The global microgrid market size was valued at USD 33.88 billion in 2022 and is expected to reach USD 79.89 billion by 2031, expanding at a CAGR of 10% during the forecast period, 2023–2031.
The growth of the market is attributed to the rising demand for sustainable energy, increasing incidences of cyberattacks on energy systems, increasing demand for a dependable and secure global power supply, and expanding global deployment of microgrids for rural electrification are all driving market expansion.
A microgrid is a small set of synchronized electrical sources and loads that are connected to the main power system. In island mode, the microgrid can be separated from the main grid and run independently. Microgrids, otherwise known as small-scale power grids, can be used in associated with a wide variety of renewable energy sources such as solar, wind, and waste-to-energy.
Furthermore, batteries or solar panels can be used to power them. Microgrids connected to the main power source provide a more stable source of electricity since they minimize the impacts of the power grid on localized disasters. Power demand has decreased dramatically as a result of the lockdowns imposed due to Covid-19 in several countries, as most industrial and commercial operations have paused.
Microgrid Market Trends, Drivers, Restraints, and Opportunities
- High installation costs and the lack of regulatory frameworks for microgrid operations are estimated to hamper the market expansion.
- Microgrids offer a range of green power generation technologies that are becoming more preferred around the world as individuals become more conscious of clean energy is estimated to spur market growth in the coming years.
- During the forecast period, government initiatives, planned projects, and private investment are expected to propel the global microgrid market.
- Microgrids are anticipated to produce environmental and environmental benefits through the use of automation as dispersed energy resources are introduced into the power system, offering the profitable potential for the market to create immense opportunities for the market players.
- Possessing high rates of rural electrification, which provides an opportunity for the microgrid industry to expand.
Scope of Microgrid Market Report
The report on the global microgrid market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Microgrid Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Types (Grid-connected, Hybrid, and Remote Grid), Power Sources (Natural Gas, Solar PV, Combined Heat & Power (CHP), Fuel Cells, and Diesel), Offerings (Hardware and Software & Services), and Applications (Healthcare, Defense, Educational Institutes, Industrial, Commercials, Remote, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
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Key Players Covered in the Report |
Toshiba Corp.; Standard Microgrid Inc.; Siemens AG; Schneider Electric SE; S&C Electric Co., Honeywell International Inc.; Hitachi Ltd; General Electric Company; ENGIE EPS SA; and Eaton Corporation PLC |
Global Microgrid Market Segment Insights
Grid-connected segment is projected to hold a large market share
Based on types, the global microgrid market is divided into grid-connected, hybrid, and remote grid. The grid-connected segment is expected to hold a key share of the market during the forecast period owing to the expansion of utility-based grid networks, as well as the widespread usage of renewable energy sources like offshore wind. Grid-connected microgrids provide enhanced grid resiliency and power quality. They have a low environmental effect, which drives demand for clean energy.
Natural gas segment is expected to grow at a significant pace
On the basis of power sources, the market is segmented into natural gas, solar PV, combined heat & power (CHP), fuel cells, and diesel. The natural gas segment is expected to account for a key share of the market in the coming years due to natural gas is the most common energy generation source used by microgrids since it emits fewer carbon emissions than oil or coal-fired electricity.
Software segment is projected to account for a key market share
In terms of offerings, the global microgrid market is bifurcated into hardware and software & services. The software segment is expected to constitute a key share of the market during the forecast period owing to the software solution is aimed at campuses, institutions, infrastructures, and utilities that require advanced monitoring, administration, and optimization of distributed energy at a low cost without having to manage and maintain on-site IT equipment. Microgrid software as a service is a microgrid control system that is hosted remotely.
Remote segment is anticipated to register at a rapid CAGR
Based on applications, the market is segregated into healthcare, defense, educational institutes, industrials, commercials, remote, and others. The remote segment is expected to represent a key share of the market in the coming years due to the rising adoption of microgrids in remote places. Governments across the world are progressively investing in the expansion of power infrastructure to deliver low-cost and clean electricity.
As a consequence, the need for microgrids in rural places has increased. Microgrids are power plants that are set up in remote places to create, manage, and control distributed energy resources, allowing for resource optimization.
North America is anticipated to dominate the market
On the basis of regions, the global microgrid market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market at an impressive CAGR during the forecast period. The regional market growth can be attributed to the explosive growth of microgrids in the defense sector, as well as remote networks to boost cyber-attack protection.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Microgrid Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Microgrid Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Microgrid Market - Supply Chain
4.5. Global Microgrid Market Forecast
4.5.1. Microgrid Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Microgrid Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Microgrid Market Absolute $ Opportunity
5. Global Microgrid Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Microgrid Market Size and Volume Forecast by Types
5.3.1. Grid-connected
5.3.2. Hybrid
5.3.3. Remote Grid
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Microgrid Market Analysis and Forecast by Applications
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Applications
6.2.2. Y-o-Y Growth Projections by Applications
6.3. Microgrid Market Size and Volume Forecast by Applications
6.3.1. Healthcare
6.3.2. Defense
6.3.3. Educational Institutes
6.3.4. Industrial
6.3.5. Commercials
6.3.6. Remote
6.3.7. Others
6.4. Absolute $ Opportunity Assessment by Applications
6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Microgrid Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Microgrid Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Microgrid Demand Share Forecast, 2019-2026
8. North America Microgrid Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Microgrid Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Microgrid Market Size and Volume Forecast by Types
8.4.1. Grid-connected
8.4.2. Hybrid
8.4.3. Remote Grid
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Microgrid Market Size and Volume Forecast by Applications
8.7.1. Healthcare
8.7.2. Defense
8.7.3. Educational Institutes
8.7.4. Industrial
8.7.5. Commercials
8.7.6. Remote
8.7.7. Others
8.8. Basis Point Share (BPS) Analysis by Applications
8.9. Y-o-Y Growth Projections by Applications
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Microgrid Demand Share Forecast, 2019-2026
9. Latin America Microgrid Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Microgrid Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Microgrid Market Size and Volume Forecast by Types
9.4.1. Grid-connected
9.4.2. Hybrid
9.4.3. Remote Grid
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Microgrid Market Size and Volume Forecast by Applications
9.7.1. Healthcare
9.7.2. Defense
9.7.3. Educational Institutes
9.7.4. Industrial
9.7.5. Commercials
9.7.6. Remote
9.7.7. Others
9.8. Basis Point Share (BPS) Analysis by Applications
9.9. Y-o-Y Growth Projections by Applications
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Microgrid Demand Share Forecast, 2019-2026
10. Europe Microgrid Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Microgrid Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Microgrid Market Size and Volume Forecast by Types
10.4.1. Grid-connected
10.4.2. Hybrid
10.4.3. Remote Grid
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Microgrid Market Size and Volume Forecast by Applications
10.7.1. Healthcare
10.7.2. Defense
10.7.3. Educational Institutes
10.7.4. Industrial
10.7.5. Commercials
10.7.6. Remote
10.7.7. Others
10.8. Basis Point Share (BPS) Analysis by Applications
10.9. Y-o-Y Growth Projections by Applications
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Microgrid Demand Share Forecast, 2019-2026
11. Asia Pacific Microgrid Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Microgrid Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Microgrid Market Size and Volume Forecast by Types
11.4.1. Grid-connected
11.4.2. Hybrid
11.4.3. Remote Grid
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Microgrid Market Size and Volume Forecast by Applications
11.7.1. Healthcare
11.7.2. Defense
11.7.3. Educational Institutes
11.7.4. Industrial
11.7.5. Commercials
11.7.6. Remote
11.7.7. Others
11.8. Basis Point Share (BPS) Analysis by Applications
11.9. Y-o-Y Growth Projections by Applications
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Microgrid Demand Share Forecast, 2019-2026
12. Middle East & Africa Microgrid Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Microgrid Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Microgrid Market Size and Volume Forecast by Types
12.4.1. Grid-connected
12.4.2. Hybrid
12.4.3. Remote Grid
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Microgrid Market Size and Volume Forecast by Applications
12.7.1. Healthcare
12.7.2. Defense
12.7.3. Educational Institutes
12.7.4. Industrial
12.7.5. Commercials
12.7.6. Remote
12.7.7. Others
12.8. Basis Point Share (BPS) Analysis by Applications
12.9. Y-o-Y Growth Projections by Applications
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Microgrid Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Microgrid Market: Market Share Analysis
13.2. Microgrid Distributors and Customers
13.3. Microgrid Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. Toshiba Corp.
13.4.2. Standard Microgrid Inc.
13.4.3. Siemens AG
13.4.4. Schneider Electric SE
13.4.5. S&C Electric Co.