AC Grid Connected Microgrid Market By Product Type (Renewable Energy-Based Microgrids, Conventional Microgrids, Hybrid Microgrids), By Application (Energy Generation & Distribution, Renewable Energy Integration, Backup Power Systems, Peak Load Management), By End-User Industry (Residential Sector, Commercial & Industrial Sector, Utility Providers, Military & Defense, Healthcare & Hospitals), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the AC Grid Connected Microgrid Market was valued at USD 33.0 billion in 2023 and will surpass USD 83.3 billion by 2030; growing at a CAGR of 14.1% during 2024 - 2030.

The AC Grid Connected Microgrid market is experiencing significant growth as energy providers and end-users seek more resilient, sustainable, and reliable power solutions. Microgrids, which integrate renewable energy sources such as solar and wind power with traditional energy systems, have become a crucial component in modern energy infrastructure. The growing concerns over energy security, demand for renewable energy, and the ability to manage grid stability during power outages or peak load periods have accelerated the adoption of AC grid-connected microgrids. These systems are especially critical for remote locations, critical infrastructure, and regions aiming to integrate renewable energy into the grid while maintaining reliable service.

Renewable Energy-Based Microgrids Are Leading Owing to Sustainability Demand

Among the different product types in the AC grid-connected microgrid market, renewable energy-based microgrids are leading due to the growing demand for sustainable and eco-friendly energy solutions. As governments worldwide enforce stricter environmental regulations and encourage the use of clean energy, renewable energy-based microgrids have gained traction. These systems integrate solar, wind, and other renewable energy sources to provide electricity in a decentralized manner. The rising emphasis on reducing carbon emissions and achieving sustainability goals further boosts the demand for these microgrids, especially in regions aiming for energy independence and reduced reliance on fossil fuels.

These systems not only help in cutting down greenhouse gas emissions but also enhance the stability and reliability of power in off-grid and remote locations. The adoption of renewable energy-based microgrids is also spurred by advancements in energy storage technologies, which ensure continuous power supply even when renewable energy sources are not available. As the cost of renewable energy technologies decreases and their efficiency improves, the appeal of renewable energy-based microgrids is expected to continue its upward trajectory.

Energy Generation & Distribution Application is Fastest Growing

The energy generation and distribution application segment within the AC grid-connected microgrid market is experiencing rapid growth, owing to the increasing need for efficient and reliable energy management. Microgrids allow for localized power generation and distribution, reducing reliance on centralized grids and mitigating the risk of blackouts during power shortages. This application is crucial in both urban and remote areas, where the demand for a stable and sustainable energy supply is high. Additionally, energy generation and distribution through microgrids enable better load balancing and peak load management, making them a key solution for energy providers looking to improve grid efficiency.

Microgrids that focus on energy generation and distribution can seamlessly integrate renewable energy sources with traditional power systems, making them an ideal solution for energy diversification. As global energy demands increase, energy generation and distribution via microgrids allow for enhanced grid resilience, energy security, and reduced transmission losses. This makes them indispensable in regions that face high energy consumption and frequent grid instability, driving their adoption in the coming years.

Commercial & Industrial Sector Is the Largest End-User of Microgrids

The commercial and industrial sector is the largest end-user of AC grid-connected microgrids, as businesses seek to ensure operational continuity and reduce energy costs. These sectors are highly dependent on continuous power supply, and any disruption can lead to significant operational losses. Microgrids enable businesses to generate their own energy and store it for use during power outages or peak demand periods. They also facilitate load balancing, reduce energy costs, and improve overall operational efficiency, making them a valuable investment for commercial and industrial users.

Industries such as manufacturing, automotive, and data centers are particularly inclined to adopt microgrid solutions for their high energy consumption needs. With growing pressures to achieve sustainability targets and reduce carbon footprints, these sectors are turning to renewable energy-based microgrids to lower their dependency on traditional power sources. The ability to manage energy autonomously, without reliance on grid infrastructure, is highly attractive to businesses looking to ensure resilience against grid disruptions while reducing operational expenses.

North America Dominates the AC Grid-Connected Microgrid Market

North America is the largest regional market for AC grid-connected microgrids, with the United States and Canada leading the way in terms of adoption and development. This dominance is attributed to strong government support, significant investments in renewable energy, and an advanced energy infrastructure that facilitates the deployment of microgrids. Additionally, the region is home to several key players in the microgrid industry, which has accelerated innovation and the adoption of these systems. North America’s focus on reducing carbon emissions, achieving energy security, and integrating renewable energy sources into the grid further supports the growth of the microgrid market.

The U.S. government’s initiatives, such as tax credits for renewable energy and subsidies for energy storage technologies, have also played a crucial role in accelerating microgrid deployments. The region’s widespread adoption of hybrid microgrids, combining renewable energy sources with conventional power systems, is expected to continue to grow as more cities and industries embrace sustainable energy solutions.

Competitive Landscape: Leading Companies Shaping the Market

The AC grid-connected microgrid market is highly competitive, with several global players leading the way in innovation, product development, and regional market share. Key companies in the market include Siemens AG, General Electric (GE), Schneider Electric, ABB Ltd., and Mitsubishi Electric Corporation, among others. These companies are focused on developing and deploying advanced microgrid solutions, often in collaboration with local governments and energy providers, to enhance grid reliability and support renewable energy integration.

These players leverage their extensive industry experience and technological expertise to provide end-to-end solutions for energy generation, storage, and distribution. Partnerships, acquisitions, and strategic collaborations are also common in this market, as companies look to expand their portfolio and market reach. As the demand for sustainable and resilient energy solutions grows, these leading companies are well-positioned to drive the future of the AC grid-connected microgrid market.

Recent Developments:

• Siemens AG and AES Clean Energy signed a partnership to jointly deploy large-scale microgrids, aiming to provide reliable, renewable-powered solutions for underserved areas.
• General Electric unveiled a new AC grid-connected microgrid solution for remote communities to ensure energy access and enhance grid reliability.
• Schneider Electric has expanded its microgrid solutions with advanced energy storage systems, enabling better integration of renewable energy sources and grid management.
• Enel X has formed collaborations with various US cities to install smart, AC grid-connected microgrids that improve energy resilience and reduce environmental footprints.
• Eaton Corporation has acquired a microgrid solutions company to strengthen its portfolio of smart grid and renewable energy technologies.

List of Leading Companies:

• ABB Ltd.
• Ameresco, Inc.
• Doosan GridTech
• Eaton Corporation
• Enel X
• ENGIE
• General Electric (GE)
• Hitachi ABB Power Grids
• Honeywell International Inc.
• Mitsubishi Electric Corporation
• Powerhive, Inc.
• Schneider Electric
• Siemens AG
• Toshiba Corporation
• Wärtsilä Corporation

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