AC Grid Connected Microgrids - Global Strategic Business Report

The global market for AC Grid Connected Microgrids was estimated at US$9.9 Billion in 2024 and is projected to reach US$30.0 Billion by 2030, growing at a CAGR of 20.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the AC Grid Connected Microgrids market.

Global AC Grid Connected Microgrids Market - Key Trends & Drivers Summarized

Why Are AC Grid Connected Microgrids Gaining Momentum Across Industries?

The global market for AC grid-connected microgrids is expanding rapidly as the energy sector shifts towards decentralization, resilience, and sustainability. AC microgrids, which operate in conjunction with the main power grid while having the capability to function independently during outages, are becoming a crucial component of modern energy infrastructure. These systems are designed to integrate various energy sources, including solar, wind, and battery storage, ensuring a stable and reliable electricity supply. Governments, utilities, and private enterprises are increasingly investing in grid-connected microgrids to enhance energy security, reduce reliance on fossil fuels, and support the transition towards a cleaner and more efficient power grid.

A key trend shaping the market is the integration of digital technologies, such as artificial intelligence (AI), Internet of Things (IoT), and blockchain, into microgrid management systems. Smart grid-connected microgrids utilize real-time data analytics, predictive maintenance, and automated load balancing to optimize energy distribution and minimize downtime. These advancements not only improve operational efficiency but also enable dynamic pricing models, allowing consumers and businesses to participate in energy trading. Moreover, the standardization of grid codes and regulatory frameworks across different regions is accelerating the deployment of AC microgrids, ensuring seamless integration with existing utility infrastructure.

How Are Technological Advancements Revolutionizing AC Grid-Connected Microgrids?

Recent technological innovations are driving the evolution of AC grid-connected microgrids, making them more efficient, scalable, and resilient. One of the most significant developments is the increasing adoption of energy storage systems (ESS) that enhance microgrid stability and enable peak shaving, load shifting, and demand response capabilities. Advanced lithium-ion and solid-state battery technologies are being integrated into microgrids, providing enhanced energy density, longer life cycles, and improved safety. Additionally, hybrid microgrid configurations combining AC and DC power architectures are emerging as a solution to optimize energy conversion and minimize transmission losses.

Another transformative technology is the implementation of AI-driven energy management systems (EMS). These intelligent platforms leverage machine learning algorithms to predict energy demand, optimize resource allocation, and automate grid operations. AI-powered microgrids can self-adjust in real-time, responding to fluctuations in renewable energy generation and grid conditions. Furthermore, IoT-enabled sensors and smart meters are playing a critical role in enhancing grid connectivity by providing granular data on energy consumption, grid health, and fault detection. As a result, microgrids are becoming more responsive and adaptive, reducing operational costs and enhancing reliability.

What Are the Key End-Use Applications Driving Microgrid Deployment?

The adoption of AC grid-connected microgrids is expanding across multiple sectors, each benefiting from the reliability, flexibility, and cost savings these systems offer. One of the most prominent applications is in industrial and commercial facilities, where businesses seek to mitigate power outages, reduce energy costs, and meet sustainability targets. Manufacturing plants, data centers, and corporate campuses are integrating microgrids to ensure uninterrupted operations while optimizing energy efficiency. Additionally, microgrid-as-a-service (MaaS) models are gaining traction, allowing enterprises to deploy microgrids without the need for large capital investments.

In the public sector, microgrids are being implemented in critical infrastructure such as military bases, hospitals, and emergency response centers to enhance resilience during grid failures. These applications are particularly vital in disaster-prone regions where reliable power is essential for continuity of operations. Moreover, rural and remote communities are leveraging microgrids to gain access to stable electricity, reducing dependence on diesel generators and extending electrification to off-grid areas. The expansion of renewable energy-powered microgrids in developing economies is addressing energy poverty while supporting economic development through improved electrification and job creation.

What's Driving the Accelerated Growth of the AC Grid-Connected Microgrid Market?

The growth in the AC grid-connected microgrid market is driven by several factors, including technological innovation, regulatory support, and increasing demand for resilient energy infrastructure. One of the primary growth drivers is the global push towards renewable energy integration. As governments implement ambitious decarbonization targets, microgrids are playing a crucial role in enabling the efficient deployment of solar, wind, and hybrid energy systems. Grid-connected microgrids facilitate the smooth integration of renewables by stabilizing power fluctuations and enhancing grid reliability, making them an attractive solution for utilities and energy developers.

The rising frequency of extreme weather events and grid instability is also accelerating microgrid adoption. With climate-related disruptions becoming more common, businesses, municipalities, and residential communities are investing in microgrids to ensure energy security and reduce economic losses caused by power outages. Regulatory initiatives, such as financial incentives for microgrid deployment and mandates promoting distributed energy resources (DERs), are further stimulating market growth. Governments are also investing in smart grid modernization projects, reinforcing the need for microgrids as a core component of next-generation energy systems.

Furthermore, the commercialization of energy trading platforms powered by blockchain and peer-to-peer (P2P) energy exchange models is transforming the market. These developments enable decentralized energy markets where prosumers (producers and consumers) can trade excess electricity, reducing reliance on traditional utilities and fostering energy independence. As investment in microgrid research and development (R&D) continues to rise, the market is expected to witness further innovations, cost reductions, and widespread adoption across diverse industries and geographies. With the convergence of renewable energy, digitalization, and grid modernization, AC grid-connected microgrids are set to become a cornerstone of the global energy transition.

Scope of Study:

The report analyzes the AC Grid Connected Microgrids market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Power Source (Diesel Generators, Natural Gas, Solar PV, CHP, Other Power Sources); Application (Remote Application, Healthcare Application, Educational Institutes Application, Military Application, Utility Application, Industrial/Commercial Application, Other Applications)
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Diesel Generators segment, which is expected to reach US$11.9 Billion by 2030 with a CAGR of a 23.1%. The Natural Gas segment is also set to grow at 20.4% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $2.7 Billion in 2024, and China, forecasted to grow at an impressive 26.9% CAGR to reach $7.0 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global AC Grid Connected Microgrids Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global AC Grid Connected Microgrids Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global AC Grid Connected Microgrids Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as ABB Ltd., Eaton Corporation, GE Grid Solutions, LLC, Huawei Technologies Co., Ltd., Mitsubishi Electric Asia Pte Ltd. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 43 companies featured in this AC Grid Connected Microgrids market report include:

• ABB Ltd.
• Eaton Corporation
• GE Grid Solutions, LLC
• Huawei Technologies Co., Ltd.
• Mitsubishi Electric Asia Pte Ltd.
• Pacific Gas and Electric Company
• Piller Group GmbH
• PowerSecure, Inc.
• Schneider Electric SE
• Siemens AG
• SMA Solar Technology AG
• Toshiba Corporation

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.