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

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

Asia Pacific microgrid market size is set to register 27.4% CAGR during 2024-2032, driven by the increasing demand for reliable and sustainable energy solutions in remote areas and island communities. These regions often face challenges in accessing centralized grid infrastructure, making microgrids an attractive alternative to meet their energy needs independently. The vulnerability of certain areas to natural disasters, such as typhoons and earthquakes, is also highlighting the importance of resilient energy systems.

Growing supportive government policies and initiatives aimed at promoting renewable energy adoption and decentralization of power generation will contribute to the demand for microgrids in APAC. The rapid urbanization, industrialization, and electrification efforts across emerging economies is creating opportunities for microgrid deployments in urban areas, industrial parks, and commercial establishments seeking to reduce dependency on the central grid and improve energy efficiency. As per UNICEF, by 2030, it is anticipated that nearly 55% of the considerable population in the Asia Pacific will be living in urban areas.

The overall industry is divided into connectivity, grid type, power source, storage device, application and region.

Based on grid type, the Asia Pacific microgrid market size from the DC segment is poised to generate substantial revenue by 2032. Microgrids offer increased efficiency and reliability compared to traditional AC systems by minimizing energy losses during conversion processes, making them particularly suitable for remote areas and off-grid applications prevalent in the region. Lately, the proliferation of renewable energy sources, such as solar photovoltaics (PV) and battery storage systems is favoring the adoption of DC microgrids as they seamlessly integrate with DC-based renewable energy systems for enabling efficient generation, storage, and distribution of renewable energy.

In terms of power source, the diesel generators segment in the Asia Pacific microgrid market is set to grow over the forecast period, driven by reliable backup power sources, particularly in remote areas and regions with unreliable grid infrastructure, where grid outages are common. Due to their robustness and ability to provide continuous power supply during emergencies, diesel microgrids have turned essential components for ensuring uninterrupted electricity access for critical infrastructure, such as hospitals, telecommunications networks, and remote communities.

India microgrid industry will grow significantly through 2032, led by renewable energy targets and increasing emphasis on decentralized power generation. The growing demand for reliable and uninterrupted power supply, particularly in rural and remote areas with limited grid access is fueling the deployment of microgrids to meet electricity needs and support economic development. Government initiatives, such as the Smart Cities Mission and rural electrification programs are further driving investments in microgrid projects for providing incentives and supporting mechanisms to accelerate market growth.