Microgrid Global Market Report 2024

The microgrid market size has grown exponentially in recent years. It will grow from $14.36 billion in 2023 to $17.34 billion in 2024 at a compound annual growth rate (CAGR) of 20.7%. The expansion during the historical period can be credited to robust economic growth in emerging markets, rising demand for clean energy sources, and the increasing adoption of microgrids for rural electrification.

The microgrid market size is expected to see rapid growth in the next few years. It will grow to $34.52 billion in 2028 at a compound annual growth rate (CAGR) of 18.8%. The rise in the projected period can be ascribed to a growing demand for electricity, escalating initiatives, and a rising population. Key trends anticipated in the forecast period encompass the utilization of artificial intelligence (AI), the advancement and acceptance of green hydrogen microgrids, the creation of smart, plug-and-play microgrid inverters, the adoption of solar and battery-powered microgrid communities, and various partnerships and collaborations.

The microgrid market is anticipated to experience substantial growth, driven by the increasing adoption of microgrids for rural electrification. Ongoing efforts to provide round-the-clock energy access to rural communities, including micro, small, and medium-sized enterprises (MSME) businesses, contribute to the rising demand for microgrids. These decentralized systems offer advantages such as cost savings, environmental sustainability, and regional equity, distinguishing them from centralized infrastructure. An illustrative example is the collaboration between the Indian government's e-governance services arm and Tata Power in April 2021, aiming to deploy solar-powered microgrids and water pumps in rural areas. Tata Power's proposal to establish 10,000 microgrids aligns with the government's initiative to furnish clean and sustainable energy to rural households and businesses, emphasizing the growing significance of microgrids in rural electrification.

The microgrid market is also expected to benefit from the escalating demand for electricity. Microgrids, functioning independently of the main electricity grid, address the surging electricity demand globally. ExxonMobil projects a yearly increase of 1.8% in electricity demand, reaching nearly half of the sector by 2050. Supporting this, India's power consumption recorded a robust growth of 13.6% in November 2022 compared to the previous year, as per data from the Indian government. This surge in electricity demand is poised to propel the microgrid market forward in the forecast period.

A noteworthy trend influencing the microgrid market is the development and adoption of green hydrogen microgrids. Green hydrogen, produced through electrolysis using renewable energy sources such as wind and solar, is gaining traction for its environmental benefits. Companies in the microgrid sector are prioritizing eco-friendly solutions, with examples such as NTPC Ltd.'s green hydrogen microgrid project in Andhra Pradesh. India is contemplating mandating green hydrogen microgrids for certain industries to promote clean fuels and serve as a testing ground for large-scale hydrogen energy storage initiatives.

The integration of artificial intelligence (AI) stands out as another prominent trend in the microgrid market. AI enhances the speed and precision of forecasting energy supply and demand changes within microgrids. Veritone Inc., a US-based AI company, has introduced an intelligent distributed energy resource management solution (iDERMS) leveraging AI to facilitate the transition to clean energy. This solution employs real-time energy forecasting, optimization, and control to unlock the full potential of Distributed Energy Resources (DERs), exemplifying the transformative role of AI in energy ecosystems.

In December 2022, Hover Energy, a USA-based developer of wind-powered microgrids, acquired Shine Development Partners, a renewable energy development company. This undisclosed acquisition enhances Hover Energy's capabilities and contributes to the global expansion of its patented wind-powered microgrid technology. Shine Development Partners, known for its expertise in medium- to large-scale solar PV and clean energy projects, aligns with Hover Energy's vision for sustainable and innovative microgrid solutions.

Major companies operating in the microgrid market report are General Electric Company, Schneider Electric SE, ABB Group, Siemens AG, Toshiba Corporation, Exelon Corporation, Eaton Corporation PLC, Engie SA, Hitachi Ltd., S&C Electric Company, DESI Power, Gram Power, Mera Gao Power, Omnigrid Micropower Company, State Grid Corporation of China (SGCC), China Southern Power Grid, CleanSpark, Sungrow Power Supply Co. Ltd., Shenzhen Cubenergy Co. Ltd., Shanghai Dowell Technology Co. Ltd., Shanghai Ghrepower Green Energy Co. Ltd., Shenzhen Sinexcel Electric Co. Ltd., Bboxx, Enervalis, Younicos, Supreme Power Solutions Co. Ltd. (SPS), Phono Solar Technology Co. Ltd., Rolls-Royce Power Systems AG, Capstone Turbine Corporation, Elum Energy, CebeEnergy GmbH, AMS, Caterpillar, enSYNC Corporation, Lockheed Martin Corporation, Power Analytics Corporation, LO3 Energy, HOMER Energy LLC, PowerSecure Inc., Primus Power, SolarX, Sola Group, Powin Inc., Moura, Voltalia, Reuniwatt, Neoenergia, Iberdrola, HIMOINSA, Total Eren, Nidec Industrial Solutions, Edelar S.A, ALEC Energy, Mohamed Abdulrahman Al Bahar LLC, Husk Power Systems, Engie Energy Access.

North America was the largest region in the microgrid market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microgrid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microgrid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The growth in the forecast period can be attributed to the increasing focus on reducing carbon footprint, growing adoption of renewable energy sources, and the rising demand for reliable and resilient power supply. Major trends in the forecast period include the integration of advanced energy storage technologies, the implementation of blockchain technology for microgrid operations, and the development of smart microgrids for improved control and efficiency.

The microgrid market research report is one of a series of new reports that provides microgrid market statistics, including microgrid industry global market size, regional shares, competitors with a microgrid market share, detailed microgrid market segments, market trends and opportunities, and any further data you may need to thrive in the microgrid industry. This microgrid 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 market consists of revenues earned by entities by providing services such as self-contained electrical network, electric monitoring and control services, clean energy solution. The market value includes the value of related goods sold by the service provider or included within the service offering. The microgrid market also includes sales of switchgears, inverters, generator, storage devices which are used in providing microgrid services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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