Asia Pacific Grid Connected Microgrid Market Size - By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application & Forecast, 2024 - 2032

Asia Pacific Grid Connected Microgrid Market Size - By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application & Forecast, 2024 - 2032

Asia Pacific Grid Connected Microgrid Market will grow at a CAGR of 27.7% during 2024-2032, driven by aging grid infrastructure and the need for resilience against extreme weather events. The industry will experience significant growth spurred by rising urbanization and industrialization.

According to the World Bank, by 2050, urban populations will more than double, with nearly seven out of ten people residing in cities. As more people migrate to urban areas across the region, the demand for reliable and sustainable energy solutions intensifies. Urban centers require efficient electricity distribution systems to meet the growing energy needs of industries, businesses, and residents alike. Grid-connected microgrids offer a viable solution to address these challenges by providing localized power generation and distribution capabilities. Moreover, microgrids enable urban areas to optimize energy management, enhance grid stability, and reduce reliance on centralized power grids.

Asia Pacific Grid Connected Microgrid industry is classified based on grid type, power source, storage device, application, and region.

The Direct Current (DC) microgrids segment will grow notably till 2032, as they offer higher efficiency, reduced energy losses, and enhanced compatibility with renewable energy sources such as solar photovoltaic (PV) systems and energy storage solutions. The rising deployment of DC microgrids in off-grid and remote areas, as well as in urban environments, seeks to optimize energy management. DC microgrids also provide greater resilience against grid disturbances and blackouts. Moreover, the scalability and modularity of DC microgrid systems make them ideal for diverse applications, ranging from small-scale off-grid installations to large urban infrastructure projects.

The solar photovoltaic (PV) technology segment will witness decent traction till 2032, as solar PV systems, coupled with energy storage solutions, enable reliable and sustainable electricity generation, particularly in regions with abundant sunlight. Moreover, advancements in solar PV technology, such as higher efficiency panels and improved energy storage solutions, are driving down installation and operational costs, making solar PV systems accessible to a wider range of consumers and industries. Furthermore, supportive government policies and incentives aimed at promoting renewable energy adoption will drive further growth.

India Grid Connected Microgrids industry will witness unprecedented growth through 2032, driven by renewable energy targets, in line with initiatives such as the Smart Cities Mission and the National Solar Mission. In addition, India's vast rural population and the presence of remote off-grid communities present a significant opportunity for microgrid deployment. The government's focus on electrification and energy access in rural areas, combined with favorable regulatory frameworks and financing mechanisms, will foster further growth in the market.