Middle East Microgrid Market Size, Share, By Power Source (CHP, Natural Gas, Solar PV, Diesel, Fuel Cell, and Others), By End Use (Government, Education, Commercial, Utility, Defense, and Others), Middle East Microgrid Market Size Insights, Industry Trend, Forecasts to 2035

Middle East Microgrid Market Size Insights Forecasts to 2035

• Middle East Microgrid Market Size 2024: USD 6.72 Bn
• Middle East Microgrid Market Size 2035:  USD 19.98 Bn
• Middle East Microgrid Market Size CAGR 2024: 10.41%
• Middle East Microgrid Market Size Segments: Power Source and End Use

Middle East Microgrid Market Size represents the installation, commissioning, and functioning of tiny power grids that are able to function both independently and combined with the main grid. Microgrids are equipped with renewable energy sources, power storage systems, and smart technologies, which together give a consistent, economical, and durable electricity supply. Places that benefit from microgrids are isolated areas, heavy industry, and even the city. They provide power continuously, and dependency on classical grids is reduced, integration of renewables is supported, and energy security and quality are improved.

The deployment of Microgrids in the country is highly encouraged by the government of Saudi Arabia in line with its Vision 2030 energy diversification plan. Major government programs, in cooperation with the K.A. CARE and the Saudi Electricity Company, have been established, and the signing of a total of USD 720 million microgrid and intelligent energy solution contracts is among the activities. This project will not only advance the area of microgrid technology in the Kingdom but also support electricity grid resilience, quality, and reliability.

An increase in renewable energy use, coupled with continuous government support, has led to a rise in demand for reliable off-grid power, which presents a good opportunity for microgrid projects to be developed in remote areas, industrial zones, and smart cities in the Middle East.

Market Dynamics of the Middle East Microgrid Market Size:

The Middle East Microgrid Market Size is driven by the increasing energy requirement, the occasional power cuts, and the reliability issue of electricity supply in distant and industrialised territories. Besides, the growing investments in renewable energy, the governments’ support for eco-friendly energy diversification policies, and the rapid uptake of smart grids all contribute to this emerging market. Moreover, the dedication to cutting down on carbon emissions and the ongoing efforts to make the energy supply more secure have all been factors that pushed the microgrid installation.

The Middle East Microgrid Market Size is restrained by high initial capital costs, complex regulatory frameworks, and a lack of technical expertise. Moreover, the integration of existing grids and the intermittent nature of renewable energy sources are among the factors that still challenge the acceptance of microgrids on a large scale.

The future of Middle East Microgrid Market Size is bright and promising, with the main batter that faces the positive and promising future trends of the market like adoption of renewable energy, government support, tech progress, and demand for power solutions that are resilient, efficient and eco-friendly in cities, industries and even remote areas.

Market Segmentation

The Middle East Microgrid Market Size share is classified into power source and end use.

By Power Source:

The Middle East Microgrid Market Size is divided by power source into CHP, natural gas, solar PV, diesel, fuel cell, and others. Among these, the solar PV segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This is due to factors such as the huge amount of sunlight, the government's renewable energy initiatives, and the relatively low operational costs when compared to fossil fuels. Besides, there is an increasing demand for green, dependable, off-grid power solutions in both remote and urban areas.

By End Use:

The Middle East Microgrid Market Size is divided by End Use into government, education, commercial, utility, defense, and others. Among these, the government segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The government sector is the largest one for the products and services provided by the companies, and the reason for that is the investments in critical infrastructure, smart city projects, and national energy security initiatives.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Middle East Microgrid Market Size, along with 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 elaborative 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.

Top Key Companies in Middle East Microgrid Market Size:

• ABB Ltd.
• Schneider Electric SE
• Siemens AG
• General Electric Company
• Honeywell International Inc.
• Hitachi Energy Ltd.
• Eaton Corporation plc
• ENGIE SA
• Yokogawa Electric Corporation
• Tesla Inc.
• Others

Recent Developments in Middle East Microgrid Market Size:

In March 2025, ENGIE SA announced the starting point of a significant solar and storage microgrid project of 300 MW in the United Arab Emirates. It is specifically aimed to cater to the needs of remote communities as well as industrial towns in Abu Dhabi's Al Dhafra area. The project will feature solar PV generation in combination with state-of-the-art lithium-ion battery systems that would guarantee power availability 24 hours a day, 365 days a year, thereby reducing yearly carbon emissions by more than 1.5 million tons. This measure is in line with the UAE’s Energy Strategy 2050 and shows the company’s commitment to the region by making microgrid technology more popular through its clean energy innovations.

Key Target Audience

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

Market Segment

This study forecasts revenue at the Middle East, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Middle East Microgrid Market Size based on the below-mentioned segments:

Middle East Microgrid Market Size, By Power Source

• CHP
• Natural Gas
• Solar PV
• Diesel
• Fuel Cell
• Others

Middle East Microgrid Market Size, By End Use

• Government
• Education
• Commercial
• Utility
• Defense
• Others