United States Microgrid Market

United States Microgrid Market Size and Share:

The United States microgrid market size was valued at USD 7.9 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 24.4 Billion by 2033, exhibiting a CAGR of 13.3% from 2025-2033.  The market is experiencing significant growth driven by the rising demand for energy resilience, increasing integration of renewable energy, continual advancements in management technologies, expanding rural electrification, and the increasing need for sustainable solutions to support transportation electrification and corporate sustainability goals.

The market is primarily driven by the increasing stringency in regulations and policies that facilitate energy decentralization and grid resilience. In line with this, the increasing adoption of microgrid technology is being driven by federal and state policies implemented by various governments, aimed at addressing the weaknesses and inefficiencies of centralized energy systems. For example, In November 2024, The Inflation Reduction Act (IRA)  prompted 334 clean energy projects over two years, significantly advancing U.S. microgrid and renewable energy development. The IRA's policies emphasize decarbonization and energy resilience, highlighting the importance of continued bipartisan support for clean energy initiatives.                                    

Several industries are increasingly turning to clean energy to integrate with global sustainability goals, in order to reduce operational emissions. This is leading to the development of microgrids providing solutions that are scalable and quite reliable for energy-intensive operations ensuring uninterrupted power supply while integrating renewable sources. This shift toward clean energy has accelerated innovation in microgrid technologies, prompting companies to develop advanced solutions tailored to the needs of energy-intensive industries. These solutions aim to improve operational performance and assist in achieving net-zero goals. Besides, the adoption of electric water heating systems, energy-efficient buildings, and smart home technologies is making microgrids applicable to a wide range of applications.  

United States Microgrid Market Trends:

Electrification of Transportation Infrastructure         

The rapid growth of electric vehicles (EVs) in the United States is transforming energy needs, with a significant emphasis on developing efficient and reliable charging infrastructure. This trend is driving demand for microgrids, which can provide consistent power to EV charging stations, especially in areas where the grid is strained or unreliable. By integrating solar and wind power, microgrids will be sustainable solutions that not only reduce carbon emissions but will also meet increasing energy demands at EV hubs. They can also function off the main grid, providing an uninterrupted service when there is high demand or if the main supply is cut. As transport electrification increases, so does the interest in microgrids as an essential part of sustainable infrastructure that fosters innovation and opens up large-scale market growth opportunities in energy management.  

Rising Adoption of Microgrids in Underserved and Remote Regions         

The growing use of microgrid systems to ensure the stable and sustainable supply of energy in underserved and remote areas is driving the growth of the market. Microgrids are focusing on developing infrastructure for basic services, including health care, education, and small-scale industries to address energy inequality in rural and isolated locations. For example, Schneider Electric, in partnership with United Solar Initiative, is deploying microgrid systems at maternal healthcare clinics in Guatemala. This initiative aims to provide reliable, sustainable energy to improve healthcare delivery in underserved regions, demonstrating the transformative potential of microgrids in addressing global energy and health challenges.   

Continual Advancements in Microgrid Research and Development                     

Research initiatives are driving innovation in areas such as renewable energy optimization, battery storage, and intelligent control systems. Iowa State University has developed a state-of-the-art microgrid research facility to test renewable energy systems. The project aims to advance microgrid technologies, integrating solar, wind, and storage solutions, while preparing students and researchers to address real-world energy challenges in building resilient and sustainable power systems. Moreover, the advancements enhance the ability of the microgrid to operate independently, adapt to varying energy demands, and make them more efficient and reliable, thus supporting the market growth. Integrating solar, wind, and advanced storage solutions are the focus areas that expand the scope of applications in more sectors. Ongoing R&D further enhances existing technologies and lowers costs, leading to a wider adoption and thus contributing to the market.  

United States Microgrid Industry Segmentation:     

IMARC Group provides an analysis of the key trends in each segment of the United States microgrid market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on energy source, and application.  

Analysis by Energy Source:

• Natural Gas
• Combined Heat and Power
• Solar Photovoltaic (PV)
• Diesel
• Fuel Cell
• Others
   

Natural gas plays a crucial role in the United States microgrid market. Its reliability and flexibility as a cleaner energy source make it indispensable for power supply, particularly in microgrids that use natural gas generators. It is also commercially viable with lower carbon emissions compared to traditional fossil fuels, hence making it suitable for both commercial and industrial microgrid applications to aid in the shift towards low-carbon energy systems.  

Combined heat and power (CHP) systems produce both electricity and useful thermal energy from a single source. The technology has gained acceptance in industrial and institutional sectors due to its energy-saving advantages as it reduces waste, saves operation costs, and increases the reliability of the grid.          

Solar photovoltaic (PV) systems are central to the expansion of renewable energy use within microgrids, offering a sustainable and scalable solution for clean power generation. By harnessing abundant solar resources, PV-based microgrids reduce dependency on non-renewable sources and lower carbon footprints.  

Analysis by Application:

• Remote Systems
• Institution and Campus
• Utility/Community
• Defense
• Others
   

Remote systems are an integral component of the market as it helps provide energy solutions for unserved and isolated regions which have unreliable or are out of reach by a conventional grid connection. Using solar and wind as energy resources, these systems ensure an effective power supply with zero or minimal dependence on fossil fuel use.  

Institutions and campuses are one of the biggest adopters of microgrid technology in the U.S., utilizing the systems for energy independence, sustainability, and cost-effectiveness. The systems act as incubators for innovation, providing demonstration of leading-edge energy technologies and reducing carbon footprints to achieve their sustainability goals and meet energy security requirements.    

Utility and community microgrids are changing the way energy is distributed by establishing resilient, localized networks to reduce strain on centralized grids. Such microgrids improve reliability in times of natural disasters or grid failure, making them crucial for disaster-prone areas. Utilities use microgrids to manage peak loads effectively, showing that they are important in modernizing and decentralizing the energy landscape.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

The Northeast will be a crucial region within the U.S. microgrid market due to an aging energy infrastructure and increasing vulnerability to severe weather occurrences, such as snowstorms and hurricanes. New York and Massachusetts are undertaking significant initiatives in microgrid projects to upgrade the resilience of the grids and ensure better energy security. These initiatives support regional renewable energy goals, accelerating community-based microgrid systems growth and reducing dependence on centralized power grids.

In the Midwest, the microgrid market is gaining momentum as the region embraces renewable energy sources such as wind and solar. With vast rural expanses and energy-intensive agricultural operations, microgrids provide a reliable and sustainable energy supply to underserved areas. State-level incentives and investments in research facilities, such as those in Iowa, are accelerating advancements in microgrid technologies, helping the region address grid vulnerabilities and expand clean energy adoption.  

South emerges as a major contributor in the U.S. microgrid market, with a critical need for reliable power across the region, considering regular hurricanes and extreme heat. The states of Texas and Florida in particular are embracing microgrids to strengthen energy resilience for critical infrastructure such as hospitals and emergency services.            

The West leads the U.S. microgrid market with progressive policies and a strong commitment to renewable energy. California, in particular, is a key player, implementing microgrids to combat power outages caused by wildfires and grid strain. The region’s abundant solar and wind resources enable cost-effective microgrid solutions that integrate advanced technologies. This focus on innovation and energy independence positions the West as a frontrunner in sustainable energy transformation.

Competitive Landscape:

The U.S. microgrid market is highly competitive, majorly driven by continual advancements in renewable energy technologies, such as solar and wind power, have enhanced the efficiency and feasibility of microgrid systems. Emerging innovations in energy storage solutions, particularly lithium-ion batteries, have improved the reliability and resilience of these systems. The integration of smart grid technologies and the Internet of Things (IoT) has enabled more sophisticated energy management and real-time monitoring. Supportive government policies and incentives have encouraged the adoption of microgrids, especially in regions prone to natural disasters. Additionally, the increasing demand for energy security and independence among commercial and industrial sectors has spurred investments in microgrid infrastructure.  

The report provides a comprehensive analysis of the competitive landscape in the United States microgrid market with detailed profiles of all major companies.

Latest News and Developments:   

• On 8^th October 2024, Aspen Technology, Inc. introduced the AspenTech microgrid management system (MMS) to help heavy energy users in industries such as refining, chemicals, and mining manage their on-site power generation, active load management, and energy storage. This solution aims to improve operational performance and assist in achieving net-zero goals. 
• On 17^th January 2024, Scale microgrids announced that it has acquired 500 megawatts of community solar projects across the United States. This strategic move underscores the company's commitment to expanding renewable energy access, supporting grid resilience, and promoting sustainability by delivering clean, distributed power solutions to local communities nationwide.

United States Microgrid Market Report Scope:

Key Benefits for Stakeholders:  

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States microgrid market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States microgrid market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States microgrid industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.