Global Microgrid Market Report and Forecast 2024-2032

Global Microgrid Market Size

The global microgrid market reached approximately USD 28.98 billion in 2023. The market is projected to grow at a CAGR of 10.4% between 2024 and 2032, reaching a value of around USD 70.74 billion by 2032.

Key Takeaways

• Microgrids are crucial for maintaining a reliable supply of power in diverse industries.

• Growing integration of renewable power sources to achieve sustainability goals is a key factor shaping the market trends.

• Fuel cells are used in microgrids that prioritise low emissions and sustainability, especially in urban or environmentally sensitive areas.

A microgrid refers to a separate energy network composed of interconnected charges and distributed energy supplies that can operate alongside or independently of the main power grid. Microgrids are commonly known to be smaller versions of power grids, which provide electricity to customers from producers, help reduce overall costs in the case of an emergency and provide redundancy for the grid. They are more powerful, together with a range of other renewable sources like solar, wind, small hydroelectric power, geoelectric, waste energy systems, and heat and power combined (HPCP) systems than conventional electrical grids. Microgrids are a reliable energy source because they continue to work during power outages.

The increasing demand for microgrid systems which allow customers and developers to achieve environmental goals by using renewable energy as a source of electricity is one of the crucial factors driving the microgrid market growth. Governments of many countries are also taking steps to set up bioelectric power, solar, and wind farms. Others have legislation, such as the Clean Power Plan (CPP), which seeks to reduce carbon dioxide emissions, enforced by countries such as the United States. A variety of technological advancements have also been made to increase the performance of battery inverters to ensure an uninterrupted power supply via microgrids. In addition, better battery technology with higher power inputs and outputs has also been developed for a longer time.

These days, the reliance on new communication technology like wireless cloud computing is growing, making electricity networks vulnerable to cyber-attacks and hackers. For this purpose, a stable network with 24/7 power is required in certain industries, such as military and research laboratories, which are given by microgrids, as they can be run in 'island mode' independently from all external power and data transfer. This is expected to support the growth of the microgrid market globally.

The ability to deliver improved performance against low transmission losses is another factor boosting the demand as microgrids produce local power and decrease reliance on long-haul lines and therefore reduce transmission losses.

Microgrid Market Report Snapshots

Microgrid Market Size

Microgrid Market Trends

Microgrid Market Regional Analysis

Microgrid Companies