United Kingdom 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 UK Microgrid Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Microgrid Market Forecasts to 2035

• The United Kingdom Microgrid Market Size Was Estimated at USD 3,573.5 Million in 2024
• The UK Microgrid Market Size is Expected to Grow at a CAGR of around 16.95% from 2025 to 2035
• The UK Microgrid Market Size is Expected to Reach USD 19,998.6 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, The UK Microgrid Market Size is anticipated to Reach USD 19,998.6 Million by 2035, Growing at a CAGR of 16.95% from 2025 to 2035. The industry is being stimulated by the growing requirement for independent power systems due to the increased energy consumption in rural areas.

Market Overview

The UK Microgrid Market Size includes a local electric system that may supply power in parallel or isolation from larger electric grids. The shift away from remote central station power plants and towards more localised and distributed generation for increased dependability, resilience, and energy in cities, communities, and campuses is expected to have a significant impact on market growth. These electrical distribution services are utilised to improve the functioning and stability of the regional electric grid as well as to increase local resilience. Furthermore, the needs of microgrids are anticipated to increase shortly as a result of the use of renewable resources for power generation. It is anticipated that one of the main motivating factors will continue to be the growing significance of captive power production systems in the manufacturing sector to lessen dependency on electricity supply from the area electric grid. It is anticipated that rising awareness of power generation from alternative renewable sources, such as wind, solar, and hydrogen, will boost market expansion. Government spending on infrastructure development has increased in emerging countries due to population expansion and urbanisation in recent years. It is anticipated to be essential in increasing power demand, which will accelerate the expansion of the microgrid sector.

Report Coverage

This research report categorizes the market for the UK 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 United Kingdom 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 United Kingdom microgrid market.

Driving Factors

Several factors are driving the development of the microgrid market in the UK, including growing demand for energy security, the integration of renewable energy resources, and government support to facilitate decarbonization. Since energy prices are sharply increasing, and resiliency is vital in the state of electricity supply, industries and communities are deploying localized energy systems. Advancements in energy storage technology and smart grid solutions are also accelerating growth.

Restraining Factors

High initial investment costs, complex regulatory frameworks, and integration challenges with the existing national grid. Limited awareness and technical expertise can hinder adoption, particularly in rural or smaller communities. Additionally, concerns over data security and system reliability may slow down the widespread implementation of advanced microgrid technologies. These factors hamper the microgrid market during the forecast period.

Market Segmentation

The United Kingdom 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 United Kingdom 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 segment growth is anticipated to be significantly impacted by the shift in preference from traditional Separate Heat & Power (SHP) systems to energy generation from a single fuel. Throughout the projected period, fuel cells are anticipated to expand at a notable rate. Fuel cells' capacity to function at high temperatures and their low electrolytic loss are anticipated to expand their range of applications shortly.

• 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 United Kingdom 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. There will likely be a significant influence from the growing popularity of smart micro-grid-connected PV systems that lower transmission losses to supply electricity to consumers. In recent years, North Power Systems has been using technology that combines its wind turbines with diesel gensets, solar PV, or other microgrid power sources.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom microgrid market and a with 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

• ABB
• Siemens
• GE
• Eaton
• Schneider Electric
• Enertechnos
• Gridcog
• AceOn Group
• i-EM SAT
• 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 United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom microgrid market based on the below-mentioned segments:

United Kingdom Microgrid Market, By Power Source

• Natural Gas
• CHP
• Fuel Cell

United Kingdom Microgrid Market, By Product

• Remote
• Grid Connected
• Hybrid