The size of the microgrid market was USD 32.1 billion in 2023, which will power at a compound annual growth rate of 18.6% by the end of this decade, to reach USD 105.3 billion by 2030.  The growth of thew industry is because of the to the growing requirement for reliable and resilient power solutions. 

Basically, the growing EV charging infra demand, integration of renewable energy, and growing emphasis on electrifying rural areas contribute to the industry expansion.
The grid-connected category is the leader of the industry, with around 75%, in 2023. Grid-connected microgrids has various complex controllers, generators, and distribution networks. Grid connectivity guarantees electricity quality, reduces environmental effects, and improves demand response, along with grid resilience.

Maximum urban and rural areas frequently face difficulties in accessing the main grid since it is limited or does not exist, making grid connected microgrids prevalent. The development in the acceptance of distributed energy sources, for example solar panels and energy storage systems has added fuel to the development of the industry.

Additionally, microgrids are becoming popular as communities look for approaches to disregard their carbon footprint. Emerging countries are extensively making use of remote microgrids for providing electricity to remote locations. 

The off-grid is a quickly growing category, with a rate of more than 18.8% by the end of this decade. This development is because of the increasing requirement to offer electricity in remote areas.

The hardware category is leading the microgrid market, with around 55% in 2023. This is because of the growing count of government projects for decreasing GHG emissions and supporting clean energy, reasonable costs of energy stowage, and the growing count of microgrid projects all over the world. Hardware for this kind of a system has power generators, energy storage systems, and controllers.

The software category will grow at a fastest rate of around 19%, by the end of this decade. This is as a result of the important role of software in modeling flexible energy sources, for example solar and wind, and helping accomplish variable thermal loads and system reconfiguration software. A microgrid has more than a few types of software for, generator and load management, energy management, and SCADA.

The solar PV category will grow the fastest, at a rate of around 19.4% by the end of this decade. This development is because of the tech advancements in the production procedure of organic solar PV modules. 

Due to the growing demand for reliable power solutions all over the globe, the demand for microgrid is on the rise. This trend will continue in like this, in the years to come as well.

Source: P&S Intelligence