U.S. Microgrid Market Size Worth USD 106.96 Billion by 2034 | CAGR: 15.8%

The U.S. microgrid market size is expected to reach USD 106.96 billion by 2034, according to a new study by Polaris Market Research. The report “U.S. Microgrid Market Size, Share, Trends, Industry Analysis Report By Power Source (Natural Gas, CHP, Solar PV, Diesel, Fuel Cell, Others), By Product, By Application– Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

A microgrid is a localized energy system that can operate independently or in coordination with the main power grid. It typically includes distributed energy resources such as solar panels, batteries, generators, and control systems to produce, store, and manage electricity.

Cost savings through peak shaving and demand management are driving the market growth. Microgrids lower electricity bills by reducing reliance on grid power during peak demand hours, a practice known as peak shaving. Businesses and communities significantly cut operational costs by using stored or generated energy during times of high utility rates. This financial benefit is becoming increasingly attractive, especially as energy prices fluctuate. Microgrids further support load optimization and efficient energy use, which is particularly valuable for large commercial and industrial users. As a result, cost efficiency is fueling the adoption of microgrids in the U.S. market.

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Improvements in battery storage technology are significantly boosting the performance and efficiency of microgrids. Modern battery systems allow microgrids to store surplus energy generated from renewable sources and release it when needed, improving energy reliability and reducing costs. These technological advancements make microgrids more scalable, flexible, and cost-effective. Users can now manage energy loads more efficiently and participate in demand response programs with innovations such as lithium-ion battery and flow batteries. The rise in energy storage capabilities is directly supporting the widespread adoption of advanced microgrid systems in the U.S.

U.S. Microgrid Market Report Highlights

• In 2024, the CHP segment dominated with the largest share. CHP is favored as it simultaneously produces electricity and useful thermal energy from a single fuel source, making it highly efficient
• The grid connected segment is expected to experience the fastest growth during the forecast period as these systems operate in connection with the main utility grid, allowing users to switch between grid power and local generation as needed.
• A few key market players are ABB, Eaton Corp., Exelon, General Electric, Honeywell International, Northern Power, NRG International, Pareto Energy, Siemens AG, and Spirae.

Polaris Market Research has segmented the U.S. microgrid market report on the basis of power source, product, and application:

By Power Source (Revenue – USD Billion, 2020–2034)

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

By Product (Revenue – USD Billion, 2020–2034)

• Remote
• Grid Connected
• Hybrid

By Application (Revenue – USD Billion, 2020–2034)

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