April 2025
28 Apr 2025
The global microgrid market revenue reached USD 51.40 billion in 2025 and is predicted to attain around USD 206.69 billion by 2033 with a CAGR of 18.52%. The demand for microgrids is increasing due to a surge in urbanization across the globe.
A microgrid is a localized, self-reliant energy system that serves a particular area, such as a college campus, hospital complex, or business center. It can work autonomously without the help of a centralized grid. This grid can also function when linked to a main grid, even if it is not connected to the main grid. The microgrid market helps in the decrease of harmful emissions, which results in maximum utilization of renewable resources, enhanced efficiency, and predictable energy costs.
By connectivity, the grid-connected connectivity segment dominated the microgrid market in 2024. The dominance of the segment can be attributed to the increasing popularity of smart micro-grid-connected PV systems. The off-grid connected segment is expected to grow at the fastest rate over the forecast period. The growth of the segment can be credited to the surge in distributed energy resources, like energy storage systems and solar panels.
By type, the hybrid segment held the largest market share in 2024. The domain of the segment can be driven by growing industry demand for a reliable and efficient power supply. The AC microgrids segment is expected to grow at the fastest rate over the forecast period. The growth of the segment is due to the rising smart grid integration and digitalization.
Technological Advancements in Renewable Energy
The ongoing technological innovations in renewable energy technology are the latest trend in the microgrid market. Renewable energy sources can easily be utilized by microgrids to provide power. In addition, as they generate no carbon emissions and have benefits in terms of cost and efficiency, renewable energy sources are rapidly being utilized in microgrids.
Growing Demand for Energy Resilience
Microgrids provide improved reliability and energy resilience by combining energy generation, storage, and distribution capabilities. They can also work autonomously or in line with the main grid, hence offering backup power during disruptions or grid outages caused by extreme weather events, natural disasters, or infrastructure failure. However, the growing severity and frequency of aging grid infrastructure will likely contribute to the market expansion further.
Increasing Need for Infrastructure for EV Charging
Due to the ongoing expansion of electric car (EV) charging systems, there is also a growing demand for microgrids. Energy usage rises when a large number of vehicles are used, especially in places that are over on charging points, putting stress on transmission systems in the grids. Furthermore, microgrids provide a realistic solution as they integrate distribution and localized electricity generation, which improves overall EV charging infrastructure efficiency.
North America dominated the microgrid market in 2024. The dominance of the region can be attributed to the increase in the adoption rate of captive power generation practices in municipal and industrial sectors in countries such as Canada and the U.S. Furthermore, the adoption of microgrid solutions in the U.S. is propelled by its progressive subsidies and regulations, along with the well-established infrastructure. The major players in the region include Honeywell, GE, and Caterpillar.
Asia Pacific is expected to grow at the fastest rate in the microgrid market over the forecast period. The growth of the region can be credited to the rising government initiatives and energy consumption, promoting and modernizing renewables and power networks. Moreover, the surge in public-private collaboration and technological innovations plays a key role in the global shift to renewable energy. The region is also focusing on enhancing energy security.
| Report Attribute | Key Statistics |
| Market Revenue in 2025 | USD 51.40 Billion |
| Market Revenue by 2033 | USD 206.99 Billion |
| CAGR | 18.52% |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2024 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
By Connectivity
By Type
By Offering
By Power Source
By Storage Device
By Power Rating
By End-Use
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