Germany Microgrid Market Size, Share, and COVID-19 Impact Analysis, By Power Source (Natural Gas, CHP, and Fuel Cell), By Product (Remote, Grid Connected, and Hybrid), and Germany Microgrid Market Insights, Industry Trend, Forecasts to 2035

Germany Microgrid Market Forecasts to 2035

• The Germany Microgrid Market Size Was Estimated at USD 4812.7 Million in 2024
• The Germany Microgrid Market Size is Expected to Grow at a CAGR of around 16.54% from 2025 to 2035
• The Germany Microgrid Market Size is Expected to Reach USD 25912.5 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, the Germany Microgrid Market Size is Anticipated to Reach USD 25912.5 Million by 2035, Growing at a CAGR of 16.54% from 2025 to 2035. Rising energy security requirements, renewable energy integration, supportive laws, affordable technologies, and growing need for robust, localised power solutions across communities and sectors are driving the expansion of the microgrid industry in Germany.

Market Overview

The Germany microgrid market involves localised electrical systems capable of operating either independently or in conjunction with the main power grid. The move away from centralised power plants toward decentralised and distributed energy generation is expected to drive market growth, particularly in cities, communities, and campuses seeking improved reliability, resilience, and energy efficiency. These systems increase the performance and stability of regional grids and improve local energy security. The increasing implementation of various renewable energy sources is also expected to increase demand for microgrids. A major element of the market is the growing prominence of captive power generation in manufacturing, since it will minimise the dependence on the regional electricity grid. A broader public interest in alternative renewable energy sources such as wind, solar, and hydrogen is expected to drive industry growth. In developing markets, growth in government spending for infrastructure has dramatically increased due to recent urbanisation and population expansion. The increased emphasis on infrastructure is expected to play a very important role in the increased demand for electricity, which is expected to accelerate the microgrid industry's growth.

Report Coverage

This research report categorizes the market for the Germany microgrid market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany microgrid market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany microgrid market.

Driving Factors

The microgrid market in Germany is being driven by the introduction of renewable energy, increasing prices of electricity, and increasing energy security awareness. Government support for decarbonisation is accelerating adoption, particularly in conjunction with advancements in energy storage and smart grid technology. Deployment is becoming increasingly feasible due to falling prices of distributed renewables, supportive legislation, and new delivery models such as Microgrid-as-a-Service (MaaS). Sustainability targets from corporations and ESG commitments are also supporting further market growth, particularly within the industrial sector and critical infrastructure developments.

Restraining Factors

Complicated laws and regulations, high capital costs, and challenges related to integrating with the existing national electrical grid. Adoption may be hindered by a lack of understanding and technical experience in rural or small-village situations. Also, concerns about the reliability of the system and data security may hinder the widespread adoption of advanced microgrid technologies. These factors hamper the microgrid market during the forecast period.

Market Segmentation

The Germany microgrid market share is classified into power source and product.

• The CHP segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Germany microgrid market is segmented by power source into natural gas, CHP, and fuel cell. Among these, the CHP segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The move away from traditional Separate Heat & Power (SHP) systems and towards energy generation from a single fuel is expected to have a major impact on the category growth. Fuel cells are expected to grow significantly over the forecast period. It is expected that fuel cells' minimal electrolytic loss and ability to operate at high temperatures would soon increase their range of uses.

• The grid-connected segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Germany microgrid market is segmented by product into remote, grid-connected, and hybrid. Among these, the grid-connected segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The increasing popularity of smart micro-grid-connected photovoltaic systems that reduce transmission losses to deliver electricity to consumers is probably going to have a big impact. North Power Systems has been utilising technology in recent years that integrates its wind turbines with solar PV, diesel gensets, and other microgrid power sources.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Germany microgrid market and a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Siemens AG
• Hitachi Energy
• SMA Solar Technology
• MVV Energie AG
• ABB
• Eaton
• Schneider Electric
• General Electric (GE)
• Advanced Energy Industries
• S&C Electric Company
• Others

Key Target Audience

• Investors
• Market players
• End-users
• Government Authorities
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Germany microgrid market based on the below-mentioned segments:

Germany Microgrid Market, By Power Source

• Natural Gas
• CHP
• Fuel Cell

Germany Microgrid Market, By Product

• Remote
• Grid Connected
• Hybrid