The global microgrid market is projected to grow at a CAGR of 20.1% and reach USD 79.0 billion by 2028. The market’s growth is driven by the increasing demand for decarbonization, reliable power supply, and rural electrification. Governments are also taking initiatives to promote microgrid development.
During the forecast period, the grid-connected segment is expected to grow at the highest CAGR. Grid-connected microgrids enhance grid resilience, improve power quality, mitigate environmental impacts, and enhance grid reliability. The expansion of this segment is driven by the global expansion of utility-based grid networks and the utilization of renewable energy sources.
The software segment is anticipated to grow at a higher CAGR between 2023 and 2028. Microgrid software is used for modeling variable energy sources and managing thermal loads. Advancements in AI, ML, and data analytics have led to the development of sophisticated software tools for microgrid optimization.