AC Microgrid Market Size to Reach USD 50.3 Billion by 2032 growing at 20.2% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

AC Microgrid Market, valued at USD 8.1 Billion in 2022, is projected to surpass USD 50.3 Billion by 2032, indicating a robust CAGR of 20.2%

An AC microgrid, short for alternating current microgrid, is a localized group of interconnected loads and distributed energy resources (DERs) that operates as a single controllable unit with respect to the grid. Unlike traditional centralized power systems, which rely on large, distant power plants to generate electricity transmitted over long distances, microgrids are smaller-scale power systems that can operate independently or in conjunction with the main grid. However, high initial investments became a restraint for the AC microgrid market. Grid stability concerns arise due to the intermittent nature of renewable energy sources commonly used in microgrids, necessitating advanced control strategies and energy management systems to maintain grid stability during fluctuations Furthermore, growing digitalization prompted the AC microgrid market. The rise of digitalization has a significant growth in the AC microgrid industry. Leveraging digital technologies, such as smart energy management systems and remote monitoring capabilities, AC microgrids can optimize energy usage, integrate seamlessly with the main grid, and enhance resilience and reliability. Maintenance and advanced analytics further improve operational efficiency, making AC microgrids increasingly attractive for diverse applications, including commercial, industrial, and remote community settings. As a consequence, market leaders are looking into new innovations, signifying a growing trend toward industrial advancements in the AC microgrid industry.

AC Microgrid Market Value

AC Microgrid Market Statistics

  • The AC microgrid market, valued at USD 8.1 billion in 2022, foresees a strong CAGR surpassing 20.2% from 2023 to 2032
  • Asia-Pacific dominates with a sizable 51% market share in 2022
  • North America expects notable expansion, with a forecasted CAGR of 21%
  • Grid connected segment dominates holding a 70% of share in 2022
  • Natural gas achieves considerable market share in 2022
  • Lithium-ion sub-segment holds 56% of the total share in 2022
  • Industrial/commercial sub-segment grabs significant market share in 2022
  • A discernible trend in the AC microgrid market are rising demand of electricity in remote areas

Request for a sample of this premium research report@

AC Microgrid Market Dynamics

Rising Demand of Electricity in Remote Areas Fuels the AC Microgrid Market Value

The AC microgrid market has witnessed steady growth in recent years, primarily driven by the increasing demand for electricity in remote areas. These microgrids offer reliable power solution, especially in regions where traditional grid infrastructure is lacking or unreliable. Their ability to integrate renewable energy sources like solar and wind power makes them particularly attractive for off-grid communities seeking sustainable energy solutions. Additionally, advancements in technology have improved the efficiency and affordability of AC microgrid systems, further fueling their adoption worldwide. Furthermore, the increasing demand for electricity in remote areas further boosts the market growth. For instance, electricity is provided in 2.86 crores households in the Indian villages, with investments of 1.85 lakhs crores. Overall, due to these growing demand of electricity in remote areas drives the AC microgrid market growth.

Advancements in the Smart Grid Technology Offers Significant AC Microgrid Market Opportunity

The advancements in smart grid technology have presented a significant opportunity for the AC microgrid market in the forecast year. Smart grid innovations offer enhanced capabilities for monitoring, control, and optimization of energy distribution within microgrids, leading to increased efficiency, reliability, and resilience. These advancements enable seamless integration of renewable energy sources, efficient management of distributed energy resources, and real-time monitoring of grid conditions. As a result, AC microgrid solutions become more adaptable and scalable, catering to diverse energy needs while supporting the transition towards sustainable energy systems. This convergence of smart grid technology and AC microgrid solutions has poised the energy landscape, driving the adoption of power generation and enhancing grid flexibility and stability.

AC Microgrid Market Segmentation

The global market for AC microgrid has been segmented into connectivity, power source, storage device, applications, and region.

  • Connectivity type is bifurcated into grid connected and off grid
  • Power source is sub-segmented into diesel generators, natural gas, solar pv, CHP, and others
  • Storage device is categorized into lithium-ion, lead acid, flow battery, flywheels, and others.
  • Application segment includes healthcare, educational institute, military, utility, industrial/commercial, remote, and others
  • The AC microgrid market is geographically split into APAC, North America, Europe, Latin America, and the Middle East and Africa

AC Microgrid Market Regional Outlook

In terms of AC microgrid market analysis, Asia-Pacific region dominates the AC microgrid market. One key driver of the AC microgrid market in Asia-Pacific is the region's increasing energy demand. As populations rise and economies expand, there is a corresponding surge in electricity consumption. AC microgrids offer a flexible solution to meet this demand by integrating renewable energy sources, such as solar and wind, with traditional power generation methods. This allows for improved energy efficiency, reliability, and resilience, particularly in areas prone to grid instability or power outages.

Additionally, North America is the rapidly growing region in the AC microgrid market. Countries like U.S, Canada, and Mexico also have the presence of robust key players due to their research and development activities further boost the market demand in this region.

AC Microgrid Market Players

AC microgrid players profiled in the report include Advanced Microgrid Solutions, Caterpiller Inc., Eaton Corporation, EnSync Energy System, General Electric, HOMER Energy, S&C Electric, Schneider Electric SE, SIEMENS AG, and Tata Power.

Click here to buy the Premium Market Research report

Receive our personalized services and customization by clicking here

Mr. Frank Wilson

Acumen Research and Consulting

USA: +13474743864

India: +918983225533