Grid Connected Microgrid Market Size - By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels), By Application & Forecast, 2024 - 2032

Grid Connected Microgrid Market Size - By Grid Type (AC, DC, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels), By Application & Forecast, 2024 - 2032

Grid Connected Microgrid Market size is poised to expand at over 20.4% CAGR from 2024 to 2032 driven by the rising modernization of grid infrastructure.

Aging grid systems in multiple regions necessitates upgrades to accommodate the integration of renewable energy sources to enhance grid resilience. Microgrids offer a robust solution by providing decentralized, self-sufficient power systems that can operate independently or in conjunction with the main grid. Several utilities and grid operators are investing in microgrids to improve reliability, reduce transmission losses, and optimize energy distribution. For instance, in January 2024, Tencent inaugurated a new microgrid project at one of its data centers in China, which it claims would generate enough solar energy to power 6,000 families. Moreover, the implementation of smart grid technologies and advanced control systems in microgrids is contributing to the efficient modernization of grid infrastructure, propelling the market growth.

The grid connected microgrid industry is segmented into grid type, power source, storage device, application, and region.

Based on grid type, the market size from the hybrid segment is projected to record substantial growth from 2024-2032. Hybrid microgrids combine multiple energy sources, such as solar, wind, battery storage, and traditional grid connections to optimize energy efficiency and reliability. These systems offer flexibility, resilience, and cost savings for industrial, commercial, and residential applications. With the rising demand for clean and renewable energy, the deployment of hybrid microgrids is increasing to provide a sustainable solution by reducing carbon footprints and ensuring uninterrupted power supply. Additionally, advancements in energy storage technologies and smart grid integration are enhancing the performance and effectiveness of hybrid microgrids, further fueling their adoption.

In terms of application, the grid connected microgrid market from the utility segment generated considerable revenue in 2023 and is anticipated to witness high demand through 2032. Utilities are increasingly adopting microgrid solutions to enhance grid resilience, reliability, and efficiency. Grid-connected microgrids render benefits, such as load balancing, voltage regulation, and power quality improvement. With ongoing efforts by utilities to modernize aging infrastructure and meet renewable energy targets, grid-connected microgrids have emerged as a strategic solution. Moreover, government incentives and regulations for promoting clean energy integration, along with the need for grid resiliency against natural disasters will drive the segment growth.

Given the regional landscape, the North America grid connected microgrid industry is set to exhibit a robust growth rate between 2024 and 2032 owing to the push towards renewable energy adoption, coupled with government incentives and policies supporting microgrid development in the region. North American utilities are increasingly investing in grid-connected microgrid solutions to improve grid reliability, resiliency, and efficiency. Moreover, the need to mitigate the impacts of extreme weather events, such as hurricanes and wildfires, is surging the adoption of several resilient energy systems, including grid-connected microgrids in the region.