Asia Microgrid Market Size To Reach $26.92 Billion By 2033

Asia Microgrid Market Growth & Trends

The Asia microgrid market size is projected to reach USD 26.92 billion by 2033, growing at a CAGR of 19.1% from 2025 to 2033, according to a new report byGrand View Research, Inc. Surging energy demand, rural electrification goals, and widespread deployment of decentralized renewable power solutions across the region drive this growth. National energy security agendas, public-private clean energy partnerships, and favorable policy incentives such as subsidies for solar hybrid microgrids and tariff reforms are pushing Asia toward decentralized, reliable, and climate-resilient electricity systems.

Microgrids are being rapidly deployed across industrial clusters, island communities, and peri-urban regions in Asia to reduce reliance on fossil fuels and fragile centralized grids. Countries like India, China, Indonesia, and the Philippines are spearheading the transition through a combination of solar PV, wind, biomass, diesel hybrids, and increasingly, battery energy storage systems (BESS). These distributed systems are integrated with IoT-enabled energy management platforms, enabling real-time generation, storage, and consumption optimization while supporting grid resilience and carbon reduction.

Multilateral institutions such as the Asian Development Bank (ADB) and World Bank funnel grants and concessional financing into rural microgrid projects and disaster-resilient energy infrastructure. Innovation clusters across Singapore, South Korea, and Japan are leading R&D efforts on modular microgrid controllers, AI-powered demand response, and hybrid DC-AC architecture. Simultaneously, domestic players in India and China are scaling up low-cost, scalable microgrid solutions for underserved populations, aligning with national electrification and decarbonization targets.

Integrated microgrid solutions that combine renewables with smart inverters, demand-side analytics, and long-duration energy storage are transforming Asia’s energy delivery landscape. Nonetheless, challenges remain, ranging from regulatory ambiguity and cross-border technology standardization to financing barriers and intermittent supply chain disruptions. Still, as grid modernization gains traction and regional collaboration strengthens, the Asia Microgrid industry is poised for resilient, inclusive, and technology-driven growth through 2033.

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Asia Microgrid Market Report Highlights

• Based on Grid connectivity, on-grid microgrids dominated the Asia Microgrid industry with a market share of 67.17% in 2024, driven by their integration with national utility networks and ability to support grid flexibility, reliability, and efficiency. On-grid systems are increasingly preferred across urban and industrial applications where grid availability exists but requires reinforcement through localized energy generation and storage. These microgrids help reduce peak demand, enhance energy quality, and seamlessly integrate renewable energy sources such as solar and wind into existing grids.

• Based on source, the solar PV segment held the largest market share in 2024, owing to its widespread availability, scalability, and declining cost of deployment across the region. Solar photovoltaic systems are the backbone of many Asian microgrid installations, especially in remote, off-grid, and peri-urban areas where centralized grid access is limited or unreliable. Their modularity, ease of integration with storage systems, and minimal operational costs make them ideal for decentralized energy applications across residential, commercial, and industrial sectors.

• Based on end use, the institutes & campuses segment held the largest market share of 23.13% in 2024. Educational institutions, research centers, and universities across Asia increasingly adopt microgrids to ensure a reliable, efficient, and sustainable energy supply. These environments typically have stable, predictable energy demand and are ideal for demonstrating and testing advanced energy technologies, including solar PV, energy storage, and smart grid controls.

Asia Microgrid Market Segmentation

Grand View Research has segmented the Asia microgrid market based on grid connectivity, source, offering, pattern, type, power rating, application, end use, and region:

Asia Microgrid Grid Connectivity Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• On grid

• Off grid

Asia Microgrid Source Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Natural Gas

• CHP

• Solar PV

• Diesel

• Fuel Cell

• Others

Asia Microgrid Offering Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Hardware

• Software

• Services

Asia Microgrid Pattern Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Urban / Metropolitan

• Semi Urban

• Rural / Island

Asia Microgrid Type Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• AC Microgrid

• DC Microgrid

• Hybrid Microgrid

Asia Microgrid Power Rating Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Less than 1 MW

• 1 MW to 5 MW

• 6 MW to 10 MW

• Above 10 MW

Asia Microgrid Application Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Residential

• Commercial

• Industrial

Asia Microgrid End Use Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Remote Areas

• Military

• Government

• Utilities

• Institutes & Campuses

• Healthcare

Asia Microgrid Regional Outlook (Volume, MW; Revenue, USD Million, 2021 - 2033)

• Asia

  • East Asia

    • China

    • South Korea

    • Japan

    • Taiwan

  • South Asia

    • India

  • Southeast Asia

    • Vietnam

    • Malaysia

    • Indonesia

    • Singapore

    • Thailand

List of Key Players in Asia Microgrid Market

• ABB (Hitachi ABB Power Grids)

• Schneider Electric

• Siemens

• Hitachi Energy

• General Electric (GE)

• Eaton

• Honeywell International

• CleanGrid Partners

• OMC Power

• Sindicatum