Microgrid-as-a-Service Market Report 2025

The microgrid-as-a-service market size has grown rapidly in recent years. It will grow from $2.41 billion in 2024 to $2.73 billion in 2025 at a compound annual growth rate (CAGR) of 13.4%. The growth in the historic period can be attributed to increasing energy demand, grid reliability concerns, rising focus on renewable energy, government initiatives and incentives, growing need for energy resiliency.

The microgrid-as-a-service market size is expected to see rapid growth in the next few years. It will grow to $4.89 billion in 2029 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to the transition to smart grids, rising demand for distributed energy resources, increasing adoption of electric vehicles, focus on sustainability and carbon reduction, and growth in industrial and commercial sectors. Major trends in the forecast period include the integration of artificial intelligence in microgrid management, the rise of energy-as-a-service models, the development of blockchain in energy transactions, the emergence of community microgrids, and the increased use of microgrids in critical infrastructure resilience planning.

The anticipated surge in electricity consumption is set to drive the growth of the microgrid-as-a-service market in the foreseeable future. Electricity, defined as an electrical current used for heating, lighting, and powering machinery, is experiencing an uptick in consumption. This surge is fueling the expansion of microgrid-as-a-service, offering benefits such as reduced long-term energy expenditures, cost-free upgrades to essential energy infrastructure, and enhanced energy reliability. As reported by the Energy Information Administration in April 2023, overall electricity end-use utilization in the United States for 2022 was approximately 2.6% higher than in the previous year. Additionally, industrial sector retail electricity sales in 2022 increased by around 0.7% compared to 2021. Thus, the increased electricity consumption is a key factor driving the microgrid-as-a-service market.

The growing emphasis on integrating renewable energy sources is expected to further boost the microgrid-as-a-service market. Renewable energy integration involves incorporating sources such as wind and solar into existing energy systems to meet power demands sustainably. Microgrid-as-a-Service provides a practical approach to integrating renewable energy, enhancing grid resilience, optimizing energy management, and making clean energy more accessible and cost-effective. According to the Energy Information Administration, the forecast for 2023 anticipates that 16% of total energy generation will come from renewable sources, up from 14% in 2022. This increasing focus on renewable energy integration is a significant driver of the microgrid-as-a-service market.

Major companies operating in the microgrid as a service market are concentrating on creating revolutionary products to improve their market share. This focus on innovation is driven by the increasing demand for sustainable energy solutions and the need for more resilient energy systems in the face of climate change. For instance, in April 2023, Schneider Electric, a France-based multinational corporation has partnered with GreenYellow, a France-based company. Through this partnership they are aiming to deliver innovative commercial and industrial microgrid solutions across Europe. This collaboration seeks to enhance energy management and sustainability for businesses, leveraging Schneider Electric's expertise in energy management and automation alongside GreenYellow's capabilities in renewable energy solutions. By combining their strengths, they plan to offer integrated microgrid systems that can optimize energy efficiency, reduce operational costs, and support the transition to renewable energy sources.

Companies in the microgrid-as-a-service market are also focusing on developing resiliency services to enhance profitability. Microgrid-based resiliency services leverage microgrids to improve the resilience and reliability of electrical power supply. In April 2023, Xcel Energy Inc., a US-based electric utility company, introduced Empower Resiliency in Minnesota, expanding upon its 2021 launch in Wisconsin. This program aims to provide customers with elevated service reliability, exceeding standard benchmarks. Xcel will manage the ownership, installation, operation, and maintenance of microgrid assets, including battery storage, renewable energy sources, and backup generators, meeting resilience needs in Minnesota.

In January 2022, Kohler Co., a US-based manufacturing company, acquired Heila Technologies for an undisclosed amount. The acquisition aims to enhance Kohler Co.'s clean energy management portfolio by integrating Heila Technologies, a company specializing in the integration and operation of distributed energy resources (DERs), enabling Kohler to leverage Heila's innovative modular energy platform to strengthen power resiliency solutions for both residential and industrial applications. Heila Technologies is a US-based renewable energy semiconductor manufacturing company that specializes in providing microgrid as a service (MaaS).

Major companies operating in the microgrid-as-a-service market include Siemens AG, General Electric Company, Caterpillar Inc., Schneider Electric SE, NRG Energy Inc., ABB Ltd., Duke Energy Corp, NextEra Energy Inc., Eaton Corporation plc, Emerson Electric Co., Exelon Corporation, Tech Mahindra Ltd., Aggreko PLC, Solarcity Corporation, Canopy Power Pte Ltd., VECKTA Corporation, Green Energy Corp, Capstone Green Energy Corp, Bboxx Ltd., Northern Power Systems Inc., Pareto Energy Ltd., Honeywell International Inc., AIO Systems Ltd., Primus Power Corp, Spirae Inc., EnSync Energy Inc., LO3 Energy Inc., Metco Engineering Inc., Husk Power Systems Pvt Ltd., Anbaric Development Partners LLC.

North America was the largest region in the microgrid-as-a-service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microgrid-as-a-service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microgrid-as-a-service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Microgrid-as-a-Service (MaaS) is a financing mechanism that allows organizations to deploy microgrids without any upfront investment. MaaS providers facilitate the financing, operation, and maintenance of the microgrid, eliminating financial risk and complexity, thereby making the implementation of more microgrids feasible. The microgrid-as-a-service model simplifies the process and reduces financial risks, promoting the development of additional microgrids.

The primary types of microgrid-as-a-service services include engineering and design services, software as a service, monitoring and control services, and operation and maintenance services. Engineering services encompass all activities and equipment installed during land development for water, sewerage, and electricity installation, solid waste disposal, and the construction of streets, roads, and stormwater drainage systems. Microgrid types include remote or islanded types and grid-connected types, which are used in various sectors such as utility, residential and commercial, military, industrial, and others.

The microgrid-as-a-service market research report is one of a series of new reports that provides microgrid-as-a-service market statistics, including microgrid-as-a-service industry global market size, regional shares, competitors with a microgrid-as-a-service market share, detailed microgrid-as-a-service market segments, market trends and opportunities, and any further data you may need to thrive in the microgrid-as-a-service industry. This microgrid-as-a-service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The microgrid-as-a-service market includes revenues earned by entities by deployment of microgrid control systems, financing mechanism, system maintenance and operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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