Microgrid Market Analysis

Connectivity (Grid Connected, Off-Grid Connected)

The global microgrid market is segmented and analyzed for demand and supply by connectivity into grid connected, off-grid connected. Out of these, the grid connected segment is estimated to gain the largest market share of about 68% in the year 2037. The growth of the segment can be attributed to the increased use and isntallations of renewable energy sources such as offshore wind. It was observed that offshore wind installations worldwide in 2020 passed 6.1GW, making it the second biggest year since COVID was disrupted. Grid connected microgrids can help to distribute wind energy produced offshore more efficiently and reliably. Additionally, the grid connected microgrids allow for better integration of renewable energy sources, as well as increased resilience against outages and disruptions. Furthermore, grid connected microgrids are able to provide backup power during outages and disruptions, which makes them highly desirable for businesses, governments, and other organizations.

Offering (Hardware, Software & Services)

The global microgrid market is segmented and analyzed for demand and supply by offering into hardware and software & services Out of these, the hardware segment is estimated to gain the significant market share of about 59% in the year 2037. The growth of the segment can be attributed to the increasing investment in renewable energy sources and development of smart grids, which require hardware components like inverters, energy storage, and power converters. Moreover, the segment is also expected to be driven by the increasing need for reliable and efficient energy storage solutions, as well as innovations in energy storage technologies, such as the development of advanced battery systems and other energy storage solutions. For instance, in April 2022, a Coimbatore-based startup, Cellex Battery Systems, has launched its cutting edge energy storage solutions for a variety of sectors in India, including renewable energy storage.

Our in-depth analysis of the global market includes the following segments:

By Connectivity	Grid Connected Off-Grid Connected
By Offering	Hardware Software & Services
By Application	Institutional Sites Commercial Facilities Remote Off-Grid Communities Others

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of microgrid is estimated at USD 11.33 billion.

The microgrid market size was over USD 10.24 billion in 2024 and is poised to cross USD 52.02 billion by the end of 2037, witnessing more than 13.2% CAGR during the forecast period i.e., between 2025-2037. Increasing focus on reducing carbon emissions and the need for reliable and secure power supply along with increasing energy production will boost the market growth.

North America is expected to be the largest with a share of about 38% by 2037, propelled by increasing need for reliable and uninterrupted power supply, especially in remote and rural areas, and increasing popularity of renewable energy sources such as solar and wind energy.

The major players in the market include General Electric Company, Siemens AG, Eaton Corporation Inc., Schneider Electric SE, Honeywell International Inc., ABB, Ltd., S&C Electric Company, Power Analytics Corporation, Exelon Corporation, HOMER Energy LLC.

Microgrid Market Analysis