Utility Scale Grid Connected Microgrid Market Size
The global utility scale grid connected microgrid market was valued at USD 1.5 billion in 2023 and is estimated to grow at a CAGR of 19.6% from 2024 to 2032. It is a localized energy system that can operate independently or in conjunction with the main power grid. It typically integrates renewable energy sources, such as solar or wind, along with energy storage systems to supply power to large-scale facilities, communities, or utilities. Designed for higher capacity, these microgrids enhance grid stability, improve energy resilience, and reduce reliance on traditional power sources, while supporting the integration of clean energy into the grid.
Rising demand for uninterrupted power supply in areas prone to natural disasters, extreme weather events, or frequent grid instability will augment the product adoption. Aging infrastructure of traditional power grids combined with growing energy demands, is placing increasing pressure on grid systems worldwide, creating lucrative opportunities for product adoption.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Utility Scale Grid Connected Microgrid Market Size in 2023: | USD 1.5 Billion |
| Forecast Period: | 2024 – 2032 |
| Forecast Period 2024 – 2032 CAGR: | 19.6% |
| 2032 Value Projection: | USD 8.3 Billion |
| Historical Data for: | 2021 – 2023 |
| No. of Pages: | 75 |
| Tables, Charts & Figures: | 30 |
| Segments covered: | Power Source, Storage Device, Grid Type and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
Rising pressure on utility companies to meet the sustainability targets and reduce their carbon footprints will influence the business landscape. Growing support from the government in terms of policies and financial incentives to promote the adoption of clean energy will augment product penetration.
Utility Scale Grid Connected Microgrid Market Trends
Rising investments in developing advanced microgrid components, such as advanced inverters, energy management systems and smart grid integration will drive the business scenario. Additionally, growing research on modern microgrids offering real-time monitoring and control systems that ensure optimal performance and quick responses to grid changes will enhance product adoption. Increasing pressure on companies to adopt sustainability goals as part of their corporate social responsibility programs will complement the industry landscape.
Utility Scale Grid Connected Microgrid Market Analysis
Based on power source, the diesel generators segment is anticipated to cross more than USD 3 billion by 2032, on account of their ability to provide reliable backup power and ensure continuous energy supply during grid outages, system failures, or periods of high demand. Rising requirement for power sources with reduced initial investment and maintenance costs while providing higher efficiency and reliability will augment the product adoption. Additionally, widespread availability of diesel fuel and established infrastructure for the supply is set to influence the product growth.
Based on storage device, the flywheels segment is set to grow at a CAGR of over 20.5% through 2032, owing to their ability to provide rapid response times capability, particularly important in utility applications where quick adjustments are needed to stabilize the grid and manage fluctuations in energy demand. Rising demand for power sources offering high durability and long operational life, reducing the need for frequent replacements and maintenance will drive the industry outlook. Additionally, increasing focus of the utility sector on sustainability and reducing their carbon footprints is set to propel the product demand as an environmentally friendly alternative to traditional fossil fuel-based power sources.
Asia Pacific utility scale grid connected microgrid market is predicted to hit USD 4.5 billion by 2032. Rising energy demand coupled with increasing government promotion for renewable energy adoption to meet climate targets will bolster business statistics. Growing natural disasters, such as typhoons and earthquakes in the region necessitate the need for localized power generation and distribution leading to market growth. Furthermore, significant investments in energy infrastructure, especially in developing economies, will pave the way for microgrid deployment.
In the U.S., rising adoption of advanced technologies, such as energy storage, artificial intelligence, and IoT, will drive the product penetration. Additionally, increasing regulatory frameworks, economic benefits, and a shift toward decentralized energy systems will complement the product demand.
Utility Scale Grid Connected Microgrid Market Share
Eminent players are forming strategic alliances with technology providers, research institutions, and government agencies to enhance their microgrid capabilities. Leading players are investing heavily in research and development to improve microgrid technologies, including energy storage systems, advanced control algorithms, and renewable energy integration. Furthermore, key players are adopting digital technologies to enhance monitoring, predictive maintenance, and real-time data analytics. Implementing smart grid technologies improves the efficiency and reliability of microgrid operations while enabling better decision-making for energy management.
Utility Scale Grid Connected Microgrid Market Companies
Eminent players operating in the utility scale grid connected microgrid industry are:
- ABB
- Black & Veatch
- Dominion Energy
- ESS Tech
- Eaton Corporation
- General Electric
- Hitachi Energy
- Honeywell
- mtu Solutions
- Schneider Electric
- S&C Electric Company
- Team Sustain
Utility Scale Grid Connected Microgrid Industry News
- In April 2024, Eaton in partnership with Enel North America, launched a major clean energy microgrid at its Arecibo, Puerto Rico facility where it manufactures the circuit breakers. The system is the largest of its kind in Puerto Rico, which significantly lowers the facility’s carbon footprint, enhancing the energy resilience, and strengthening the community infrastructure.
- In March 2021, Dominion Energy secured USD 47.9 million utility energy service contract to enhance energy resilience at Marine Corps Base Quantico. The project includes installing generators to support critical facilities through on-site microgrids during emergencies and refurbishing a microturbine system to lower peak demand and reduce electricity costs for the federal government.
This utility scale grid connected microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2032, for the following segments:
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Market, By Power Source
- Diesel Generators
- Natural Gas
- Solar PV
- CHP
- Others
Market, By Storage Device
- Lithium-ion
- Lead Acid
- Flow Battery
- Flywheels
- Others
Market, By Grid Type
The above information has been provided for the following regions and countries:
- North America
- Europe
- Germany
- France
- UK
- Russia
- Spain
- Italy
- Denmark
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Malaysia
- Indonesia
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Iran
- Nigeria
- Latin America