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Microgrid Market Size To Reach $406.23 Billion By 2033

Microgrid Market Size To Reach $406.23 Billion By 2033

January 2026 | Report Format: Electronic (PDF)

Microgrid Market Growth & Trends

The global microgrid market size is expected to reach USD 406.23 by 2033, registering a CAGR of 19.7% from 2026 to 2033, according to a new report by Grand View Research, Inc. The improvement in manufacturing sectors of emerging markets including Mexico, China, and India as a result of favorable government policies to attract investments is expected to promote market growth.

Microgrid differs from conventional electrical distribution systems as it acts as a close proximity medium between the power generation and power consumption sources which results in increasing efficiency and reducing transmission losses. These systems perform dynamic control over energy sources by enabling autonomous as well as automatic self-healing operations.

The rising importance of captive electricity generation as a key alternative to the regulated power supply by municipal regulators in mining and mechanical engineering sectors is expected to have a strong impact. Furthermore, the rising production output of unconventional sources including shale gas in the U.S. and Canada as a result of high utilization of fracking technology is expected to ensure access of natural gas as a power source over the next eight years.

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Microgrid Market Report Highlights

The combined heat and power (CHP) segment emerged as the leading power source in the industry, accounting for approximately 37.9% of total revenue in 2025.
The grid-connected segment accounted for the largest revenue share of approximately 65.4% in the global microgrid market in 2025 and continues to dominate due to its ability to operate in coordination with centralized utility grids.
The education segment accounted for the largest revenue share of approximately 37.1% in the global industry in 2025 and is expected to retain a strong position over the forecast period.
North America led the global microgrid market in 2025, accounting for approximately 35.8% of total revenue. Strong investments in grid resilience, energy security, and decarbonization across the U.S. and Canada drive this dominance.