Decentralized Microgrid Solutions Market to Reach $17.16 Billion by 2032

The global market for decentralized microgrid solutions is experiencing a significant surge in growth, as highlighted by recent data from Credence Research. Starting at $2.77 billion in 2018 and reaching $5.71 billion in 2024, the sector is projected to skyrocket to $17.16 billion by 2032. This growth is driven by industries worldwide facing challenges related to reliability, escalating energy costs, and the increasing pressure to decarbonize, making microgrids a crucial component of modern power infrastructure.

For readers of eeNews Europe involved in energy systems, embedded controls, and grid-edge technology, the evolving microgrid market presents substantial opportunities in advanced power electronics, energy storage, and digital control solutions.

Resiliency, renewables, and digitalization

Once considered experimental, microgrids have now become essential assets for managing localized generation, storage, and power distribution. This transformation aligns with the broader industry trend towards flexible, autonomous energy architectures capable of withstanding grid instability and extreme weather conditions. Commercial and industrial facilities, such as logistics hubs, data centers, and EV charging corridors, are increasingly adopting microgrids to ensure uninterrupted operations, lower costs, and fulfill sustainability goals.

Global investment patterns further support this momentum, with microgrids gaining prominence as energy systems worldwide transition from centralized grid reliance to autonomous, digitally managed structures. Energy storage technologies like lithium-ion, LFP, flow batteries, and hydrogen systems play a critical role in enabling multi-node connectivity, real-time demand response, and seamless islanding capabilities.

Regional growth trends

North America stands out as the largest and most developed microgrid market, expanding from $1.24 billion in 2018 to $2.52 billion in 2024, with expectations of reaching $7.6 billion by 2032. In contrast, Europe is steadily progressing as governments push towards energy autonomy and carbon neutrality. The European market is forecasted to grow from $1.01 billion in 2024 to $2.77 billion by 2032, with countries like Germany, the UK, the Netherlands, and Nordic nations leading the deployment efforts.

On the other hand, Asia-Pacific emerges as the fastest-growing region, with a projected compound annual growth rate (CAGR) of 15%. The region is set to expand from $1.65 billion in 2024 to an anticipated $5.44 billion in 2032, driven by urbanization, increasing electricity demand, and national initiatives supporting rural electrification and renewable energy integration.