Remote Microgrid Market Analysis

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: