AC Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application, Regional Outlook & Global Forecast, 2024 - 2032

AC Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application, Regional Outlook & Global Forecast, 2024 - 2032

Global AC Microgrid Market size will grow at 20.5% CAGR during 2024-2032, driven by a growing focus on renewable energy integration and technological breakthroughs. The surging demand for sustainable and reliable energy sources is a pivotal growth driver for the market. According to IEA, renewables could contribute to nearly 95% of the global power capacity increase by 2026. As global concerns about climate change intensify, there's a pronounced shift towards renewable energy solutions.

AC microgrids offer a decentralized approach to energy generation and distribution, facilitating the integration of renewable sources like solar, wind, and hydropower. This not only reduces reliance on fossil fuels but also aids in mitigating greenhouse gas emissions. The versatility of AC microgrid systems makes them applicable across diverse sectors, including residential, commercial, and industrial, further driving their adoption. As the world seeks to transition to cleaner and more resilient energy systems, the demand for AC microgrids could continue its upward trajectory, fostering innovation and sustainability in the energy sector.

AC Microgrid Market industry is classified based on connectivity, power source, storage device, application, and region.

The off-grid segment will witness decent growth through 2032, as off-grid AC microgrids offer a reliable source of power to communities that are not connected to the main electricity grid. These systems utilize advanced connectivity technologies, such as IoT-enabled monitoring and control systems, to balance energy generation, storage, and consumption. By making use of renewable energy sources and incorporating energy storage solutions, off-grid AC microgrids provide a sustainable and cost-effective alternative to traditional diesel generators in regions where grid connectivity is limited or unavailable.

AC Microgrid Market share from the solar photovoltaic (PV) segment will exhibit robust expansion through 2032, driven by the declining costs of solar panels and the growing efficiency of PV technology. Solar PV systems enhance the sustainability and resilience of AC microgrids by utilizing sunlight to generate electricity. Integrating solar PV arrays with AC microgrid systems allows users to make profits out of abundant solar resources, lower their dependence on grid-supplied electricity, and achieve greater energy independence. Moreover, innovations in energy storage solutions such as batteries enable solar-powered AC microgrids to store excess energy for use during periods of low sunlight or high demand, further enhancing their reliability and efficiency.

Europe AC microgrid industry will witness robust growth through 2032, fueled by supportive government policies, favorable regulatory frameworks, and increasing investments in renewable energy infrastructure. Countries such as Germany, the United Kingdom, and Italy are leading the adoption of AC microgrid solutions, driven by ambitious renewable energy targets and a strong focus on sustainability. Additionally, the integration of smart grid technologies and the growing prevalence of distributed energy resources are further driving the deployment of AC microgrid systems across the region. With Europe at the forefront of the energy transition towards a low-carbon future, the AC microgrid market is poised for continued expansion in the region.