United States Microgrid Market Size, Share, and COVID-19 Impact Analysis, By Power Source (CHP, Natural Gas, Solar PV, Diesel, Fuel Cell, and Others), By Connection Type (Remote, Grid Connected, and Hybrid), and United States Microgrid Market Insights, Industry Trend, Forecasts to 2035

United States Microgrid Market Insights Forecasts to 2035

• The US Microgrid Market Size Was Estimated at USD 24464.5 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 15.74% from 2025 to 2035
• The US Microgrid Market Size is Expected to Reach USD 122111.9 Million by 2035

According to a research report published by Spherical Insights & Consulting, The United States Microgrid Market Size is anticipated to reach USD 122111.9 Million by 2035, growing at a CAGR of 15.74% from 2025 to 2035. The expansion of the United States microgrid market is propelled by growing demand for localised energy systems, increased investment in grid resilience, and the shift to renewable energy integration.

Market Overview

A microgrid is a small energy system that may function both separately and in tandem with the larger power grid. U.S. microgrids are becoming more flexible and more performant because of the end result of advances in power electronics, control systems, and distributed energy resource integration. Research focus is also shifting towards real-time optimization tools, intelligent energy dispatch, and effective islanding solutions that will maintain overall grid integrity during weakened grid conditions or very high-demand conditions. These solutions will promote adoption in California, where renewable energy and resilience are of the utmost urgency. As long as public and private entities continue to modernize the electric grid, there will remain an emphasized role for research and development, as it provides evident, effective, responsive, and scalable microgrid solutions to the market. Considering the development of digital energy management technologies, particularly AI-powered control systems supported by Internet of Things-enabled monitoring, which open up entrance points into the United States.

The U.S. Department of Energy (DOE) has launched several programs to promote the expansion of microgrids through its Office of Electricity (OE). In May 2024, DOE announced around $10.5 million in financing for multi-year microgrid research, development, and demonstration (RD&D) to support Indigenous and underserved communities in remote, rural, and islanded places. The DOE Microgrid R&D (MGRD) program also aims to create solutions that improve grid reliability and resilience. DC microgrids, planning and design tools, control and operation technology, and resilience modelling are some examples of these technologies.

Report Coverage

This research report categorizes the market for the United States 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 States microgrid market. Recent market developments and competitive strategies such as expansion, product launch, 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 States microgrid market.

Driving Factors

The growth of the United States microgrid market is boosted by expanding use of renewable energy sources, rising demand for energy resilience in the face of grid failures and natural disasters, and encouraging government policies that encourage clean energy and infrastructure modernisation. The necessity for dependable electricity in remote or vital facilities, growing expenditures in smart grid infrastructure, and developments in energy storage technologies all contribute to the market's rapid expansion. Cost reduction and environmental concerns are also important factors.

Restraining Factors

The United States microgrid market faces obstacles as it needs relays, monitoring equipment, and system engineers, which can considerably raise the cost of putting a microgrid in, as opposed to putting the other grid in. Microgrids are also more costly than traditional grids because they can store, transfer, and recycle energy.

Market Segmentation

The United States microgrid market share is classified into power source and connection type.

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

The United States microgrid market is segmented by power source into CHP, natural gas, solar PV, diesel, fuel cell, and others. Among these, the solar PV segment held the largest market share in 2024 and is expected to grow at a remarkable CAGR during the forecast period. The segment is driven because it is the building block of the microgrid industry, fuelled primarily by decreasing costs, government support, and the versatility of applications for residential, commercial, and critical infrastructure. By providing clean, reliable power, solar PV microgrids are critical for decarbonisation and sustainability targets. In the USA, adoption is still being spurred by federal and state policies promoting renewable energy.

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

Based on the connection type, the United States microgrid market is segmented into remote, grid-connected, and hybrid. Among these, the hybrid segment held the highest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is propelled as it leverages multiple energy sources, typically solar photovoltaics, energy storage, and backup generators, to provide maximum reliability and efficiency. Hybrid microgrids are particularly well-suited for remote communities and critical infrastructure applications because they can smoothly transition between grid-connected and islanded modes.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United States microgrid market, 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 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

• Exelon Corp
• NRG Energy Inc
• Spirit AeroSystems Holdings Inc. Class A
• Honeywell International Inc.
• GE Aerospace
• Eaton
• Tesla
• Caterpillar
• Power Analytics Corporation
• S&C Electric Company
• Aspen Technology, Inc.
• Others

Recent Development

• In October 2024, Aspen Technology, Inc. introduced the AspenTech microgrid management system (MMS) to help heavy energy users in industries such as refining, chemicals, and mining manage their on-site power generation, active load management, and energy storage. This solution aims to improve operational performance and assist in achieving net-zero goals.

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 United States, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United States microgrid market based on the following segments:

United States Microgrid Market, By Power Source

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

United States Microgrid Market, By Connection Type

• Remote
• Grid Connected
• Hybrid