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

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

North America AC microgrid market size is set to record over 10% CAGR between 2024 and 2032, driven by the rising adoption of renewable energy sources and the need for reliable power supply systems. Of late, there has been a shift towards sustainable energy solutions to reduce carbon emissions. Government, utilities, and businesses are investing in AC generators to integrate solar and wind energy into the grid for enhancing energy security and stability.

The demand for distributed power systems is increasing due to construction and weather-related grid disruptions from climate changes. To that end, AC microgrids are utilized to provide power to critical locations like hospitals and military bases during emergencies, with advanced technology, making them more efficient and scalable. To illustrate, in May 2024, Schneider Electric unveiled a new battery energy storage system (BESS) for microgrids, available in two enclosure sizes and different storage and discharge configurations.

The North America AC microgrid industry is divided into connectivity, power source, storage device, application, and country.

Based on storage device, the market size from the lead acid segment is slated to record decent growth rate through 2032, owing to its proven reliability, cost-effectiveness, and widespread availability. Lead- acid batteries have been the preferred choice for a variety of applications, including microelectronics, due to their mature technology, robust performance and manufacturing infrastructure. Moreover, lead- acid batteries have a lower cost compared to energy storage technologies, making them an attractive option for microgrid developers and operators looking to optimize project economics.

North America AC microgrid market from the healthcare application segment is projected to observe robust growth during 2024-2032, backed by reliable power supply. Hospitals, clinics, and health centers need uninterrupted electricity to operate life-saving equipment, regulate the temperature of medicines & vaccines and ensure the safety of patients in emergency situations. AC microgrids offer healthcare facilities the ability to generate, store and manage their own electricity, which ensures energy independence and protection against grid outages.

Canada AC microgrid industry size will grow substantially between 2024 and 2032, attributed to potential renewable energy. The large geographic areas and remote communities across the country are necessitating

distributed energy systems to provide reliable power to areas with limited access to traditional electrical infrastructure. The rise in government programs promoting the development of clean energy, with incentives and subsidies for the deployment of microgrids are also stimulating the regional market growth.