Remote Microgrid Market size is evaluated at USD 8.8 billion in 2024 and is poised to exceed USD 97.2 billion by the end of 2037, registering over 20.2% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of remote microgrid is estimated at USD 10.6 billion. The robust market growth is attributed to rising demands for reliable energy solutions in remote and rural areas. Owing to a global focus on renewable energy, which usually powers remote microgrids, the cost of operations has reduced boosting the demand for alternative energy solutions.
The global concern about climate change has surged over the years, with national governments and international bodies renewing their focus on curbing the strain on non-renewable resources; remote microgrids provide a viable solution owing to use of solar, wind, and biomass to power them. The Sustainable Development Goal 7 (SDG7) of the United Nations promotes universal access to affordable renewable energy and aims to double energy efficiency by 2030. The SDG goals are pushing for investments in the renewable energy sector, which boosts the global remote market by providing incentives to key market players in setting up remote microgrids. For instance, in April 2020, the United Nations Development Program (UNDP) designed and implemented a low-cost solar microgrid solution that cut down energy costs by 65%. Additionally, rising adoption of smart grid technologies and integration of energy storage systems boosts the reliability of remote microgrids, facilitating the inflow of more investments.
The demand for energy independence has witnessed a surge in regions with limited access to centralized power grids. Emerging economies in Africa and Southeast Asia, where many communicate do not have access to national grids, are pushing for demands. Additionally, island nations also demand for remote microgrids to reduce dependence on imported fossil fuels. The trend is visible in mining, oil, and gas industries where remote microgrids offer solutions to operational continuity in challenging regions. The market is positioned to provide opportunities for technological advancements, such as integrating energy storage and smart grid solutions, and collaborations with international organizations such as the UNDP to install and operate microgrids. With the global shift towards clean energy accelerating, the remote microgrids are poised to play a crucial role and continue the rapid growth of the remote microgrid market by the end of the forecast period.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
20.2% |
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Base Year Market Size (2024) |
USD 8.8 billion |
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Forecast Year Market Size (2037) |
USD 97.2 billion |
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Regional Scope |
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Grid Type (AC, DC, Hybrid)
The AC segment is predicted to hold more than 51.6% remote microgrid market share by 2037. The segment’s rapid growth is attributed to its compatibility with most of the existing electrical infrastructure. AC microgrids are advantageous owing to higher load availability and cost-efficiency in power protection systems. Key market players leverage battery energy storage systems (BESS) to maintain a stable and continuous power supply in AC microgrids, and to enable storage of excess energy from renewable sources that can be used when the energy demand surges. For instance, in April 2024, Schneider Electric launched the all-in-one BESS for microgrids that are poised to improve the scalability of grids.
The DC grids segment is poised for rapid growth during the forecast period. The segment’s growth is owed to the efficient integration of renewable energy sources. DC microgrids use DC bus networks for interconnection and offer robust power supply reliability in remote regions. Additionally, the low cost of the converter systems, along with the cost-efficiency of renewable energy, boosts the scalability of remote microgrids. This increases the demand for DC microgrids in localized applications such as rural communities and off-grid homes. The market opportunities in developing rural electrification systems are poised to fuel the segment’s continued growth. For instance, in October 2021, Okra Solar reported the use of DC microgrids with Internet of Things (IoT) to provide access to reliable electricity to 140 households in rural Cambodia.
Power Source (Solar PV, Diesel Generators, Natural Gas, CHP, Others)
The solar PV segment in remote microgrid market is projected to register a profitable growth curve at the end of the forecast period. The segment’s growth is owed to the global shift towards renewable energy sources, which has prompted large-scale investments in solar energy. For instance, in June 2024, the International Energy Agency (IEA) reported that solar PV is being accounted for the highest investment than all other electricity generation technologies combined. IEA estimates investment in 2024 to grow to USD 500 billion in solar PV. Renewable energy investments have been steadily increasing globally and are poised to lead the revenue boom of the solar PV segment.
Our in-depth analysis of the remote microgrid market includes the following segments:
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Grid Type |
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Power Source |
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Storage Device |
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APAC Market Forecast
Asia Pacific remote microgrid market is estimated to capture revenue share of around 26.4% by the end of 2037. The market’s dominant share is attributed to large-scale investments in renewable energy by China, India, Japan, South Korea, and Australia. For instance, the IEAs World Energy Investment Report indicated a USD 3 trillion total energy investment in 2024 out of which USD 300 billion accounts for spending on clean energy led by India. This benefits the growth of the remote microgrid market as accessibility and cost-efficiency of clean energy resources improve allowing private sectors and governments to install remote microgrids.
China is poised to dominate the revenue share of the remote microgrid market in Asia Pacific. The growth of the market in China is owed to large-scale investments in clean energy and increasing collaboration of energy solutions companies in the country with governments of emerging economies to provide robust solutions for access to electricity. For instance, in June 2024, POWERCHINA reported the successful handover of first site of the second phase of the Suriname village microgrid photovoltaic project.
Additionally, IEA reported China to dominate the global share of clean energy investments of around USD 675 billion in 2024 to cater to demands in solar, lithium batteries, and electric vehicles. The rising demands and increasing use of renewable energy in microgrids are poised to continue the rapid remote microgrid market growth in the country with companies leveraging green energy for remote microgrid solutions. For instance, in February 2024, Tencent commissioned a new solar microgrid for its high-tech cloud data center in Tianjin that is expected to produce 12 million kWh of electricity annually.
India is projected to increase its revenue share in the APAC region by the end of the forecast period. The market’s growth is attributed to the government’s push for rural electrification and rapid adoption of renewable energy. Initiatives such as the National Solar Mission aiming to increase renewable energy installations to 500 GW by 2030 and rural electrification schemes to provide 100% rural electrification fuel the market’s growth. In March 2022, the Indian state of Kerala pushed for rural microgrid solutions to provide power to around 70 remote tribal settlements. Additionally, multiple government tenders are released for the installation and maintenance of solar microgrids that increases the market opportunities for global and regional energy solution companies in the region. For instance, in August 2023, the Jharkhand Renewable Energy Development Agency (JREDA) issued seven tenders for maintenance and operation of solar microgrids.
North America Market Analysis
North America is poised to register the fastest growth in the global remote microgrid market owing to the push for energy resilience and improvements in grid reliability for remote regions. The IEA reported the U.S. to account for USD 315 billion in clean energy investment in 2024 which is set to benefit the remote microgrid market by improving access and supply of renewable energy solutions for microgrids. U.S. and Canada are leading the market share in North America with a rising percentage of microgrid installations in remote areas for rural communities, defense sector, and offshore industries. For instance, in July 2022, Schneider Electric and ORPC announced partnerships to bolster the use of marine energy for microgrids in remote communities.
The U.S. holds a dominant share in the North America remote microgrid market owing to large-scale investments in green energy and a rapid push by the government to install microgrids in remote areas. For instance, in October 2024, the U.S. Department of Energy (DOE) launched a community microgrid assistance partnership to assist rural and remote communities suffering from electrical isolation, and such programs open market opportunities to provide professional assistance, software solutions, solar panels, and storage solutions for market players. Additionally, in May 2024, the DOE announced a USD 10.5 million microgrid solution projects in indigenous and rural communities. The slew of new project supported by the government boosts the rapid growth of the market and advancements in integration of 5G to microgrids are poised to develop microgrid reliability further.
Canada is estimated to increase its market share by the end of the forecast period. The growth of the market in Canada is owed to a favorable regulatory ecosystem such as government tax benefits in adoption and operation of clean technology (CT) property. For instance, the government announced CT ITC, a refundable tax credit for capital invested in adoption and operation of clean technology from March 2023 to December 2034. Additionally, government investments in multiple remote microgrid projects benefit the surge in market growth. For instance, in September 2023, the government announced investments of more than USD 175 million in 12 clean energy projects in Alberta that include a microgrid to provide clean and reliable electricity to Montana First Nation.
The global remote microgrid market is positioned to witness a surge in revenue share during the forecast period. Key market players are focused on acquisitions and partnerships to provide microgrid solutions to remote communities and compete to acquire increasing government tenders to operate and manage microgrids in rural areas. The competitive market landscape has local and global players vying to increase their revenue share.
Here are some key players in the market:
Author Credits: Dhruv Bhatia
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