United States Microgrid Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The United States microgrid market was valued at USD 7.90 Billion in 2024. The industry is expected to grow at a CAGR of 13.80% during the forecast period of 2025-2034. The rise in the frequency of extreme weather events and natural disasters is prompting communities and businesses to adopt microgrids to enable power sustainability during an outage and support sustainable recovery. In turn, all these factors have resulted in the market attaining a valuation of USD 28.78 Billion by 2034.

United States Microgrid Market Report Summary

Description

Value

Base Year

USD Billion

2024

Historical Period

USD Billion

2018-2024

Forecast Period

USD Billion

2025-2034

Market Size 2024

USD Billion

7.90

Market Size 2034

USD Billion

28.78

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

13.80%

CAGR 2025-2034 - Market by Region

Far West

15.7%

CAGR 2025-2034 - Market by Region

Rocky Mountain

14.8%

CAGR 2025-2034 - Market by Application

Remote Systems

14.7%

CAGR 2025-2034 - Market by Source

Solar Photovoltaic (PV)

14.9%

2024 Market Share by Region

Mideast

16.2%United States Microgrid Market Overview

Growing demands for energy security, technological advancements, and adoption of clean energy solutions are some of the factors driving the growth of the United States microgrid market. Current growth drivers are encouraged by the transition to clean energy, grid-independence needs, and enhanced battery storage technology. Trends that support these goals include the use of artificial intelligence to manage smart grids, hybridization of renewable energy sources with traditional power generation, and the development of urban microgrids. It is anticipated that market leaders such as Schmidt, Siemens and General Electric will adopt advanced scalable solutions, coupled with strategic alliances with SMEs for business growth covering commercial, industrial and military sectors for capturing optimal market share.

United States Microgrid Market Growth

Healthcare facilities such as hospitals and clinics are turning to microgrids to provide reliable power, critical for patient care, especially in the event of emergencies or power outages. Being able to operate independently from the main grid increases resilience, security and resource operational efficiency, thereby boosting heavy demand in the United States microgrid market. Military facilities are another key sector driving growth in the microgrid market. The United States military is increasingly developing and deploying microgrids to enable reliability and ensure energy to be supplied, particularly in remote areas or amid conflict situations. Microgrids play a key role in providing secure, independent power sources for critical infrastructure and support national security goals by making the nation less vulnerable to grid failures or cyberattacks.

Key Trends and Recent Developments

The key trends of the United States microgrid market include integration of renewables, energy storage, artificial intelligence-enabled smart grid, and critical-infrastructure challenges in defense.

March 2025

In California, Chick-fil-A celebrated the opening of its third microgrid. One-third of the yearly energy needs of the locally owned and run Quarry Creek facility in Oceanside will be met by the solar plus storage microgrid. A 112-kW canopy and ground-mounted solar array, an 81-kWh battery energy storage system, and an energy management system that uses artificial intelligence and predictive analytics to regulate and maximize the performance of the energy technologies are all part of the system.

February 2025

In the hub of its Global R&D hub in Andover, Massachusetts, Schneider Electric, a pioneer in the digital revolution of energy management and automation, announced the opening of new data center and microgrid research facilities.

October 2024

The Community Microgrid Assistance Partnership (C-MAP) was launched by the Office of Electricity (OE) of the U.S. Department of Energy (DOE). Especially in historically underprivileged and/or Indigenous areas, this program aims to support remote, rural, and electrically separated communities in creating resilient microgrid systems that improve energy security and dependability.

October 2024

A solution for clients with high electrical power needs in mining, chemicals, refining, and other asset-intensive industries, Aspen Technology, Inc. unveiled the AspenTech Microgrid Management System (MMS), which coordinates on-site conventional and renewable power generation with active load management and energy storage.

Deployment of Renewable Energy Sources

The United States microgrid market is progressively integrating renewable energy sources such as solar, wind, and biomass. Businesses are increasingly using microgrids that integrate these clean energy technologies to decrease their dependence on fossil fuels. One example is Pacific Gas and Electric, which has deployed a microgrid in California that draws on solar energy for battery storage to provide backup power, making energy process sustainable, while at same time reducing carbon footprints.

Adoption of Energy Storage Solutions

The growing focus on energy storage is another major trend in the United States microgrid market, as these storage systems can store surplus energy from renewable energy sources and thus improve the reliability and stability of microgrids. Lithium-ion and flow batteries are common battery technologies used to store energy for energy generation during low-generating periods. One prominent example is the 10 MW battery storage system that is deployed at the Fort Carson Army Base in Colorado to provide power backup during grid outages and other emergency scenarios.

Adoption of AI-Powered Smart Microgrids

AI and sophisticated analytics capabilities are transforming microgrid performance through real-time monitoring, optimization, and predictive maintenance. This can provide better stability promoting AI energy supply with a stand-alone energy demand unit, boosting the United States microgrid market dynamics. One prominent example is Duke Energy’s smart microgrid, located in North Carolina, which uses AI for grid management to ensure energy reliability and optimal performance.

Adoption of Military and Critical Infrastructure Microgrids

The U.S. Department of Defense and other key infrastructure sectors are rapidly installing microgrids to attain increased energy resilience. In times of grid outages or emergencies, these microgrids provide reliable power supply to military bases, hospitals, and data centers, boosting the growth of the United States microgrid market. The U.S. Navy, for instance, constructs microgrids at bases such as Naval Base San Diego to integrate renewable sources of energy with backup generators to safeguard mission-critical activities, and decrease exposure to disturbances in the grid.

United States Microgrid Market Opportunities

With urban centers increasingly embracing energy efficiency, the potential for microgrid solutions is large in cities. Unlocking the local energy market, companies are increasingly looking for more localized energy systems to improve resilience, reduce energy costs and meet sustainability targets. This has stimulated major opportunities in the United States microgrid market. Urban microgrids may also incorporate electric vehicle (EV) charging stations, strengthening the business case for intelligent decentralized energy systems. Companies across manufacturing, agriculture, and data centers seek dependable, independent sources of energy to avoid expensive outages, and price surges in the energy sector. They can provide tailored and scalable microgrid solutions to these sectors, increasing operational efficiency and enhancing sustainability with the integration of renewable energy.

United States Microgrid Market Trends

The federal government and state governments are increasingly providing monetary incentives, subsidies, and supportive policies to promote adoption of microgrids. Charts programs like the U.S. Department of Energy’s investment in clean energy technologies help accelerate the overall United States microgrid market development, lowering barriers for businesses and municipalities to invest in microgrids. As electricity prices rise and grid instability becomes more frequent, businesses and local governments are looking for microgrids to provide affordable reliable power. The trend is hastening the deployment of decentralized energy solutions as companies look to manage risks and cap their energy bills while ensuring a robust power supply.

United States Microgrid Market Restraints

• The major fixed cost of microgrid installations in terms of equipment, integration, and infrastructure can dissuade businesses and communities from investing in these systems in instances where organizations are smaller or operating on tight budgets. This factor poses a serious challenge to the United States microgrid market growth.
• Variability in microgrid laws across states and complex permitting procedures can slow down microgrid implementation. Without standardized policies and incentives at the federal level, the market can have difficulty growing and developing.

United States Microgrid Industry Segmentation

The EMR’s report titled “United States Microgrid Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Energy Source

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

Market Breakup by Application

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

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States Microgrid Market Share

Market Insights by Energy Source

Natural gas and combined heat and power (CHP) systems are becoming increasingly useful for providing reliability and efficiency for continuous energy supply, boosting increased microgrid demand in the United States. The increasing proliferation of PV based solar plants is due to their sustainable nature as well as compatibility with storage solutions. Diesel generators are still used for backup power, particularly in remote areas. Fuel cells are of interest due to clean energy advantages and high efficiency. Other sources such as wind and biomass are emerging as part of hybrid systems that combine resources and provide flexibility and microgrid resilience.

Market Analysis by Application

Remote systems that provide reliable power while decreasing the reliance on the main grid have gained ground, shaping the overall United States microgrid market dynamics. This particular segment is expected to grow at a CAGR of 14.7% over the forecast period. Microgrids are being adopted by institutions and campuses to improve energy security, lower costs and meet sustainability goals. Utility and community microgrids are growing as they demonstrate grid resilience and the ability of renewable energy sources to complement one another. Microgrids are increasingly being used in the defense sector to provide the energy reliability required for military operations. Other sectors, including industrial sites and commercial buildings, are also investigating microgrids to improve efficiency, sustainability, and backup power.

United States Microgrid Market Regional Analysis

New England Microgrid Market Opportunities

The increasing microgrid demand in New England stems from the emphasis on renewable energy and resilience throughout the region, particularly in light of frequent winter storms. Commercial & municipal microgrid adoption is on the rise in many states including Massachusetts and Connecticut, as energy independence, grid reliability, and sustainability become paramount.

Mideast Microgrid Market Insights

Urbanization and the emerging need for resilient electrical power systems across the industrial and commercial sectors are driving the demand for microgrids in the Mideast. Microgrids are garnering interest in urban areas, from Ohio to Pennsylvania, as a way to improve energy reliability, issue renewables and lessen the reliance on the grid.

Great Lakes Microgrid Market Growth

The Great Lakes microgrid market experiences continuous demand driven by extreme weather events, such as ice storms, that require backup power. States with higher levels of clean energy deployment, like Michigan or Wisconsin, are seeing energy resilience as a priority in their infrastructure development, while microgrids are excellent options for providing reliable energy sources for critical facilities and communities.

CAGR 2025-2034 - Market by

Region

Far West

15.7%

Rocky Mountain

14.8%

Southeast

13.1%

New England

XX%

Mideast

XX%

Southwest

XX%

Plains Microgrid Market Outlook

Across the Plains, many rural residents find access to the main grid hindered, which helps drive microgrid demand in the Plains. Strategically, microgrids offer crucial energy security to agricultural operations and small towns and these areas of operations can promote energy independence and sustainability goals.

Southeast Microgrid Market Dynamics

The Southeast microgrid market is experiencing demand as concerns over hurricane damage and power outages increase. Particularly in Florida and Georgia, microgrids are increasingly being deployed to improve energy resilience in vulnerable areas, ensuring uninterrupted power supply for critical infrastructure as well as supporting the attainment of renewable energy goals.

Southwest Microgrid Market Outlook

The Southwest region’s rich solar energy resources play an important role in the overall United States microgrid market expansion, particularly in Nevada and Arizona. Such systems enable energy independence and resilience, whilst also providing a sustainable alternative to grid power; particularly eye-catching in remote locations and desert environments where grid access is restricted.

Rocky Mountain Microgrid Market Trends

The Rocky Mountain region, which includes states such as Colorado and Wyoming, is experiencing increased adoption of microgrids, based on its diverse energy requirements, such as remote communities, mining operations, and military bases. The regional market is expected to grow at a CAGR of 15.7% over the forecast period. These areas get security of energy and better integration of renewables like wind and solar with microgrids.

Far West Microgrid Market Insights

The Far West microgrid market observes high demand, especially in California, as renewable energy policies push more generation to the grid, which forces grid operators to manage system instabilities. Microgrids are installed for emergencies and to help meet the state's ambitious clean energy goals, by combining solar and storage systems for added resilience.

Competitive Landscape

The United States microgrid market players are looking to improve energy resilience, lower costs, and incorporate renewable energy solutions. Most of the United States microgrid companies are looking to offer scalable, configurable microgrid systems for different industries using advanced technologies such as AI, energy storage, and hybrid solutions to enhance efficiency, sustainability, and grid independence.

Schneider Electric SE

With a focus on innovation, Schneider Electric, established in 1836 and based in France, provides cutting-edge microgrid solutions to facilitate sustainability, resilience, and efficiency across industries. They specialize in pairing renewable energy with energy storage systems.

General Electric Company (GE)

General Electric Company, established in 1892 in New York, United States, specializes in advanced microgrids, establishing energy efficiency and providing more robust grid resilience. They combine renewable and storage to make their microgrids more reliable and scalable solutions for utilities and military industries.

Eaton Corporation plc

Founded in 1911, Eaton Corporation plc is a global power management company, which provides microgrid solutions for increased energy reliability and sustainability. The company’s microgrid solutions support renewable energy, storage, and automation technologies for commercial, industrial, and military applications.

Siemens AG

With its headquarters in Munich, Germany, Siemens AG offers smart grid solutions, energy storage and renewable integration products. Their cutting-edge technology powers vital infrastructure, urban infrastructures and industries while contributing to energy resilience and sustainability.

Other key players in the United States microgrid market report are Bloom Energy Corporation, PowerSecure, Inc., AlphaStruxure, Aggreko Ltd., Hitachi Energy Ltd., and BoxPower Inc., among others.