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 AC Microgrid Market size will grow at 27.2% CAGR during 2024-2032, driven by increasing demand for reliable and uninterrupted power supply along with the growing investments in renewable energy infrastructure.

According to World Bank, the global population residing in urban areas is projected to surge to 6 billion by 2045. As urban areas expand and industries burgeon across the APAC, the demand for reliable and uninterrupted power supply will intensify. This surge in energy consumption is necessitating innovative solutions to enhance energy efficiency and resilience. AC microgrids offer a promising avenue to meet these escalating energy needs by providing localized and decentralized power generation and distribution systems. Moreover, the dynamic nature of urbanization and industrialization will present opportunities for the integration of renewable energy sources within microgrid infrastructure, further fostering sustainable development pathways.

The Asia Pacific AC microgrid industry is classified into connectivity, storage device, power source, application and country.

By connectivity, the market size from the off-grid segment will gain traction by 2032, due to strong demand to address the energy needs of remote and rural areas with limited or no access to the main power grid. Off-grid microgrids offer independence from centralized power systems while providing reliable electricity supply to communities, industrial facilities, and commercial establishments in remote locations. The versatility and scalability of off-grid AC microgrid solutions also makes them ideal for powering isolated regions, thereby bridging the energy access gap and promoting socio-economic development.

Asia Pacific AC microgrid industry from the solar photovoltaic (PV) power source segment will witness significant growth rate through 2032. Solar PV integration enables microgrids to harness clean and abundant solar energy while reducing reliance on fossil fuels and mitigating greenhouse gas emissions. The declining cost of solar PV modules, coupled with advancements in solar energy storage solutions, are driving the adoption of solar-based AC microgrids across various applications. From residential rooftops to large-scale utility projects, these microgrids offer a sustainable and cost-effective alternative to conventional grid-connected systems.

India AC microgrid industry will witness a decent growth rate up to 2032, owing to the ambitious renewable energy targets, coupled with government initiatives, such as the National Solar Mission and the Smart Cities Mission. Rural electrification projects and off-grid initiatives are fueling the demand for AC microgrids in remote and underserved areas across the nation. With abundant solar resources and the growing emphasis on energy access and sustainability, India presents significant opportunities for players in the market to innovate and expand their presence.