Microgrid Market Outlook:
Microgrid Market size was over USD 45.54 billion in 2025 and is projected to reach USD 224.58 billion by 2035, witnessing around 17.3% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of microgrid is assessed at USD 52.63 billion.
The growing energy consumption across the world has played a significant role in the market growth. It was observed that there was an increase in energy consumption in 2021 in most countries, +1.3% in China, +4.7% in India, +4.7% in the United States, +9% in Russia, and +4.5% in the European Union. With the increasing demand for energy and the rising focus on renewable energy sources, microgrids are becoming an attractive solution for many businesses and organizations. They provide more reliable, affordable and sustainable energy, while reducing the environmental impact of energy production at the same time. In addition, microgrids are also seen as an efficient way to manage energy demand and storage, as well as providing ancillary services to the grid.
In addition, the market revenue is propelled by rising demand for backup power sources, the introduction of various technological advancements, and increasing investments in the development of microgrid solutions. Moreover, emergence of multiple microgrid companies and government initiatives to promote microgrid implementation, such as SPIDERS (Smart Power Infrastructure Demonstration for Energy Reliability and Security), is expected to impel the market size. These companies and programs are focused on providing reliable, secure, and cost-effective energy solutions. By leveraging new technologies and creating partnerships between government, industry, and academic institutions, they are creating a more sustainable energy landscape.
