Microgrids Market is Estimated to be US$ 125 Billion with a CAGR of 15% by 2035

Global microgrids market set to surge with growing demand for reliable, resilient, and sustainable energy solutions across regions.

ROCKVILLE, MD, UNITED STATES, August 22, 2025 /EINPresswire.com/ -- The global microgrids market is expected to expand from USD 31 billion in 2025 to USD 125 billion by 2035, registering a strong CAGR of 15% over the forecast period. This growth is fueled by rising decarbonization initiatives from both governments and end-users, alongside the growing need for reliable, uninterrupted power supply.

Microgrids are increasingly recognized as a cornerstone of resilient, efficient, and sustainable energy systems, making them particularly valuable in regions with unstable power infrastructure or ambitious carbon reduction goals.

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What Drives the Microgrids Market?

The microgrids market is primarily propelled by the rising need for reliable and uninterrupted power, particularly in regions with unstable grids or limited access to centralized electricity. Governments, businesses, and communities in disaster-prone or remote areas are increasingly adopting microgrid systems to enhance energy resilience and security. These systems ensure continuity of power during outages, minimizing downtime and reducing economic losses.

Additionally, the growing integration of renewable energy sources is accelerating microgrid adoption. Solar, wind, and biomass, often coupled with energy storage systems, are creating sustainable and environmentally friendly power solutions. Microgrids not only provide localized energy security but also support global efforts toward net-zero emissions and decarbonization, particularly in developed economies.

By combining reliability, flexibility, and sustainability, microgrids are becoming a crucial solution for meeting modern energy demands while contributing to long-term climate goals.

Regional Trends in the Microgrids Market

North America leads the global microgrids market, driven by the U.S. demand for energy independence, grid resilience, and reliable backup during outages, natural disasters, and aging infrastructure. Commercial, military, and institutional sectors are increasingly adopting microgrids, supported by federal incentives and decarbonization policies.

Europe shows steady growth, fueled by the EU Green Deal and investments in community and residential microgrids in countries like Germany, the Netherlands, and the U.K. Initiatives such as local energy sharing and net-zero buildings support expansion, though regulatory complexities can slow deployment.

Asia-Pacific is the fastest-growing region, with rapid adoption in urban and rural areas of India and China. Focus areas include renewable integration, rural electrification, and off-grid solutions. Japan and South Korea are investing in microgrids for urban resilience, disaster preparedness, and smart city initiatives, while cost-effective solar-plus-storage solutions are gaining traction.

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Competitive Analysis

The microgrids market is moderately fragmented and rapidly evolving, driven by technological advancements, supportive policies, and growing demand for resilient, decentralized energy systems. Key players include legacy energy providers, grid solution leaders, and emerging firms specializing in distributed energy resources (DERs), energy management systems (EMS), and virtual power plants (VPPs).

Competition is strongest in smart controllers, energy storage, and turnkey EPC solutions. Vendors are focusing on modular, scalable microgrid architectures that integrate renewable energy, battery storage, and intelligent control systems. Customization, energy optimization, and software-driven solutions are becoming major differentiators.

Strategic collaborations—such as partnerships, M&As, and joint ventures—help companies expand market reach and access advanced technologies. R&D investment in AI-powered EMS, blockchain energy trading, and IoT-enabled asset management is increasingly shaping competitive advantage.

Notable industry players include ABB, Schneider Electric, General Microgrids, Honeywell, Lockheed Martin, Caterpillar, Toshiba, Eaton, Hitachi Energy, GE Grid Solutions, and others.

Recent Developments:

March 2025: ABB invested $120 million in the U.S. to expand manufacturing for low-voltage electrification products supporting data centers, utilities, and buildings.
March 2024: Schneider Electric launched a Battery Energy Storage System (BESS), providing a flexible, scalable core for fully integrated microgrid solutions.

Segmentation of Microgrids Market

By Connectivity :
Grid Connected
Off-grid Connected

By End-Use :
Remote
Commercial & Industrial
Government
Military
Utilities
Others

By Region :
North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia & Pacific
Middle East & Africa

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