Utility Scale Grid Connected Microgrid Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 - 2032
The Global Utility Scale Grid Connected Microgrid Market was valued at USD 1.5 billion in 2023 and is projected to grow at 19.6% CAGR from 2024 to 2032. These localized energy systems operate either independently or alongside the main power grid, integrating renewable energy sources like solar and wind with energy storage systems. Designed for higher capacity, these microgrids enhance grid stability, boost energy resilience, and reduce dependence on traditional power sources. Their ability to support clean energy integration into the grid is a key driver for their adoption, contributing to a more sustainable energy landscape. The diesel generator segment is expected to surpass USD 3 billion by 2032. Diesel generators are favored for their reliability in providing backup power, especially during grid outages, system failures, or high-demand periods.
Their lower upfront investment, reduced maintenance costs, and proven efficiency make them attractive for continuous power supply. Additionally, the widespread availability of diesel fuel and established distribution networks further support the segment's growth. In terms of storage devices, the flywheel segment is anticipated to grow at a CAGR of over 20.5% through 2032. Flywheels are known for their rapid response capabilities, making them ideal for stabilizing the grid and managing energy demand fluctuations. Their long operational life and high durability reduce the need for frequent maintenance and replacements, driving demand in utility applications.
Furthermore, as the utility sector focuses more on sustainability and lowering carbon footprints, flywheels are gaining attention as a greener alternative to fossil fuel-based energy sources. The Asia Pacific utility-scale grid-connected microgrid market is forecast to reach USD 4.5 billion by 2032. Growing energy demand, coupled with government initiatives promoting renewable energy adoption to meet climate goals, is a significant driver of market growth. The region's vulnerability to natural disasters, such as typhoons and earthquakes, has amplified the need for localized power generation and distribution solutions. Additionally, substantial investments in energy infrastructure, particularly in developing countries, are expected to accelerate microgrid deployment across the region
Their lower upfront investment, reduced maintenance costs, and proven efficiency make them attractive for continuous power supply. Additionally, the widespread availability of diesel fuel and established distribution networks further support the segment's growth. In terms of storage devices, the flywheel segment is anticipated to grow at a CAGR of over 20.5% through 2032. Flywheels are known for their rapid response capabilities, making them ideal for stabilizing the grid and managing energy demand fluctuations. Their long operational life and high durability reduce the need for frequent maintenance and replacements, driving demand in utility applications.
Furthermore, as the utility sector focuses more on sustainability and lowering carbon footprints, flywheels are gaining attention as a greener alternative to fossil fuel-based energy sources. The Asia Pacific utility-scale grid-connected microgrid market is forecast to reach USD 4.5 billion by 2032. Growing energy demand, coupled with government initiatives promoting renewable energy adoption to meet climate goals, is a significant driver of market growth. The region's vulnerability to natural disasters, such as typhoons and earthquakes, has amplified the need for localized power generation and distribution solutions. Additionally, substantial investments in energy infrastructure, particularly in developing countries, are expected to accelerate microgrid deployment across the region
Report Content
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market definitions
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Primary research & validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market Definitions
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 – 2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem
3.2 Regulatory landscape
3.3 Industry impact forces
3.3.1 Growth drivers
3.3.2 Industry pitfalls & challenges
3.4 Growth potential analysis
3.5 Porter's analysis
3.5.1 Bargaining power of suppliers
3.5.2 Bargaining power of buyers
3.5.3 Threat of new entrants
3.5.4 Threat of substitutes
3.6 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Strategic dashboard
4.3 Innovation & sustainability landscape
CHAPTER 5 MARKET SIZE AND FORECAST, BY POWER SOURCE, 2021 – 2032 (USD BILLION & MW)
5.1 Key trends
5.2 Diesel generators
5.3 Natural gas
5.4 Solar PV
5.5 CHP
5.6 Others
CHAPTER 6 MARKET SIZE AND FORECAST, BY STORAGE DEVICE, 2021 – 2032 (USD BILLION & MW)
6.1 Key trends
6.2 Lithium-ion
6.3 Lead acid
6.4 Flow battery
6.5 Flywheels
6.6 Others
CHAPTER 7 MARKET SIZE AND FORECAST, BY GRID TYPE, 2021 – 2032 (USD BILLION & MW)
7.1 Key trends
7.2 AC
7.3 DC
7.4 Hybrid
CHAPTER 8 MARKET SIZE AND FORECAST, BY REGION, 2021 – 2032 (USD BILLION & MW)
8.1 Key trends
8.2 North America
8.2.1 U.S.
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 France
8.3.3 UK
8.3.4 Russia
8.3.5 Spain
8.3.6 Italy
8.3.7 Denmark
8.4 Asia Pacific
8.4.1 China
8.4.2 Japan
8.4.3 South Korea
8.4.4 India
8.4.5 Australia
8.4.6 Malaysia
8.4.7 Indonesia
8.5 Middle East and Africa
8.5.1 Saudi Arabia
8.5.2 UAE
8.5.3 South Africa
8.5.4 Iran
8.5.5 Nigeria
8.6 Latin America
8.6.1 Brazil
8.6.2 Argentina
8.6.3 Chile
CHAPTER 9 COMPANY PROFILES
9.1 ABB
9.2 Black & Veatch
9.3 Dominion Energy
9.4 ESS Tech
9.5 Eaton Corporation
9.6 General Electric
9.7 Hitachi Energy
9.8 Honeywell
9.9 mtu Solutions
9.10 Schneider Electric
9.11 S&C Electric Company
9.12 Team Sustain
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market definitions
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Primary research & validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market Definitions
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 – 2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem
3.2 Regulatory landscape
3.3 Industry impact forces
3.3.1 Growth drivers
3.3.2 Industry pitfalls & challenges
3.4 Growth potential analysis
3.5 Porter's analysis
3.5.1 Bargaining power of suppliers
3.5.2 Bargaining power of buyers
3.5.3 Threat of new entrants
3.5.4 Threat of substitutes
3.6 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Strategic dashboard
4.3 Innovation & sustainability landscape
CHAPTER 5 MARKET SIZE AND FORECAST, BY POWER SOURCE, 2021 – 2032 (USD BILLION & MW)
5.1 Key trends
5.2 Diesel generators
5.3 Natural gas
5.4 Solar PV
5.5 CHP
5.6 Others
CHAPTER 6 MARKET SIZE AND FORECAST, BY STORAGE DEVICE, 2021 – 2032 (USD BILLION & MW)
6.1 Key trends
6.2 Lithium-ion
6.3 Lead acid
6.4 Flow battery
6.5 Flywheels
6.6 Others
CHAPTER 7 MARKET SIZE AND FORECAST, BY GRID TYPE, 2021 – 2032 (USD BILLION & MW)
7.1 Key trends
7.2 AC
7.3 DC
7.4 Hybrid
CHAPTER 8 MARKET SIZE AND FORECAST, BY REGION, 2021 – 2032 (USD BILLION & MW)
8.1 Key trends
8.2 North America
8.2.1 U.S.
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 France
8.3.3 UK
8.3.4 Russia
8.3.5 Spain
8.3.6 Italy
8.3.7 Denmark
8.4 Asia Pacific
8.4.1 China
8.4.2 Japan
8.4.3 South Korea
8.4.4 India
8.4.5 Australia
8.4.6 Malaysia
8.4.7 Indonesia
8.5 Middle East and Africa
8.5.1 Saudi Arabia
8.5.2 UAE
8.5.3 South Africa
8.5.4 Iran
8.5.5 Nigeria
8.6 Latin America
8.6.1 Brazil
8.6.2 Argentina
8.6.3 Chile
CHAPTER 9 COMPANY PROFILES
9.1 ABB
9.2 Black & Veatch
9.3 Dominion Energy
9.4 ESS Tech
9.5 Eaton Corporation
9.6 General Electric
9.7 Hitachi Energy
9.8 Honeywell
9.9 mtu Solutions
9.10 Schneider Electric
9.11 S&C Electric Company
9.12 Team Sustain
