Decentralized microgrid solutions market set to hit $17.16 billion by 2032
The global market for decentralized microgrid solutions is entering a period of accelerated growth, according to new data from Credence Research. The sector, valued at $2.77 billion in 2018 and $5.71 billion in 2024, is projected to surge to $17.16 billion by 2032, the report indicates. As industries worldwide confront reliability challenges, rising energy costs, and decarbonization pressures, microgrids are fast becoming a strategic element of modern power infrastructure.
For eeNews Europe readers involved in energy systems, embedded controls, and grid-edge tech, the microgrid market shift highlights significant opportunities in advanced power electronics, energy storage, and digital control solutions.
Resiliency, renewables, and digitalization
Once seen as experimental, microgrids have evolved into key assets for managing localized generation, storage, and power distribution. Their rise aligns with a broader industry push toward flexible, autonomous energy architectures capable of withstanding grid instability and extreme weather conditions, the report indicates. Commercial and industrial facilities (e.g., logistics hubs, data centers, and EV charging corridors) are accelerating microgrid adoption to ensure uptime, reduce operational costs, and meet sustainability commitments.
Global investment trends further reinforce this momentum. According to the report, the systems are gaining prominence as global energy systems transition from centralized grid dependence to autonomous “digitally managed architectures.” Energy storage technologies (e.g., lithium-ion, LFP, flow batteries, and hydrogen systems) are also playing a pivotal role, enabling multi-node connectivity, real-time demand response, and seamless islanding capabilities.
Regional growth trends
North America remains the largest and most mature microgrid market, expanding from $1.24 billion in 2018 to $2.52 billion in 2024, with expectations of reaching $7.6 billion by 2032, the report indicates. Meanwhile, Europe is progressing steadily as governments push toward energy autonomy and carbon neutrality. The European market is projected to grow from $1.01 billion in 2024 to $2.77 billion by 2032, the report also indicates. Germany, the UK, the Netherlands, and Nordic countries remain at the forefront of deployment.
Asia-Pacific, however, is the fastest-growing region, with a forecast CAGR of 15%, the report notes. Expanding from $1.65 billion in 2024 to an expected $5.44 billion in 2032, the region’s growth is fueled by urbanization, growing electricity demand, and national initiatives supporting rural electrification and renewable integration.
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