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US Microgrid as a Service Market

ID: MRFR/ICT/13896-HCR
100 Pages
Garvit Vyas
October 2025

US Microgrid Market Research Report: By Type (Grid Connected, Off-Grid), By Component (Hardware, Software, Services), By Power Source (Natural Gas, Solar PV, Diesel, Fuel Cell) and By End-Use (Industrial, Healthcare) - Forecast to 2035

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US Microgrid as a Service Market Summary

As per MRFR analysis, the US microgrid as-a-service market was estimated at 518.7 USD Million in 2024. The US microgrid as-a-service market is projected to grow from 637.9 USD Million in 2025 to 5050.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 22.98% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US microgrid as-a-service market is experiencing robust growth driven by technological advancements and increasing demand for energy resilience.

  • The largest segment in the US microgrid as-a-service market is the commercial sector, while the fastest-growing segment is the residential sector.
  • There is a notable trend towards the increased adoption of renewable energy sources, which is reshaping the market landscape.
  • Enhanced technological innovations are facilitating more efficient energy management solutions within microgrid systems.
  • Key market drivers include the growing demand for energy resilience and the cost-effectiveness of microgrid solutions.

Market Size & Forecast

2024 Market Size 518.7 (USD Million)
2035 Market Size 5050.0 (USD Million)

Major Players

Schneider Electric (FR), Siemens (DE), General Electric (US), Honeywell (US), Engie (FR), ABB (CH), Microgrid Energy (US), Sungrow (CN), Eaton (US)

US Microgrid as a Service Market Trends

the microgrid as-a-service market is undergoing a notable transformation, driven by the increasing demand for reliable and resilient energy solutions. This shift is largely influenced by the growing emphasis on sustainability and the need for energy independence. As stakeholders seek to mitigate risks associated with traditional energy sources, the adoption of microgrid systems is becoming more prevalent. These systems offer flexibility and efficiency, allowing users to manage energy resources effectively. Furthermore, advancements in technology are enhancing the capabilities of microgrids, making them more accessible to a wider range of consumers. In addition, regulatory frameworks are evolving to support the integration of microgrid solutions into the existing energy infrastructure. This trend indicates a potential for increased investment in renewable energy sources, which aligns with national goals for reducing carbon emissions. The microgrid as-a-service market appears poised for growth, as both public and private sectors recognize the benefits of decentralized energy systems. As the landscape continues to evolve, stakeholders are likely to explore innovative business models that facilitate the deployment of microgrid solutions, ultimately contributing to a more sustainable energy future.

Increased Adoption of Renewable Energy Sources

the microgrid as-a-service market is seeing a surge in the integration of renewable energy technologies. This trend is driven by the need for cleaner energy solutions and the desire to reduce reliance on fossil fuels. Stakeholders are increasingly investing in solar, wind, and other renewable sources, which are becoming essential components of microgrid systems.

Enhanced Technological Innovations

Technological advancements are playing a crucial role in the evolution of the microgrid as-a-service market. Innovations in energy storage, smart grid technologies, and real-time monitoring systems are enhancing the efficiency and reliability of microgrids. These developments enable users to optimize energy consumption and improve overall system performance.

Regulatory Support and Policy Frameworks

the microgrid as-a-service market benefits from supportive regulatory environments and policy initiatives. Governments are implementing frameworks that encourage the development and deployment of microgrid solutions. This support is likely to foster investment and facilitate the transition towards more resilient and sustainable energy systems.

US Microgrid as a Service Market Drivers

Supportive Regulatory Environment

the microgrid as-a-service market benefits from a supportive regulatory environment in the US. Policymakers are increasingly recognizing the importance of decentralized energy systems and are implementing frameworks that encourage the development and deployment of microgrid technologies. Incentives such as tax credits, grants, and favorable interconnection policies are being introduced to stimulate investment in microgrid solutions. Recent legislative measures have aimed to streamline the permitting process for microgrid projects, making it easier for stakeholders to implement these systems. This regulatory support is crucial for the growth of the microgrid as-a-service market, as it reduces barriers to entry and fosters innovation. As the regulatory landscape continues to evolve, it is likely to further enhance the attractiveness of microgrid solutions for a diverse range of users.

Growing Demand for Energy Resilience

the microgrid as-a-service market experiences a notable surge in demand for energy resilience among various sectors, particularly in the US. Organizations are increasingly recognizing the importance of reliable energy sources to mitigate risks associated with power outages and disruptions. This trend is particularly pronounced in critical infrastructure sectors such as healthcare and emergency services, where uninterrupted power supply is essential. According to recent data, nearly 70% of businesses in the US have reported that energy resilience is a top priority, driving investments in microgrid solutions. The microgrid as-a-service market is positioned to capitalize on this demand, offering tailored solutions that enhance energy security and reliability. As more entities seek to fortify their energy systems, the market is likely to expand, reflecting a shift towards decentralized energy management and increased reliance on microgrid technologies.

Cost-Effectiveness of Microgrid Solutions

the microgrid as-a-service market appeals due to the cost-effectiveness of its solutions. Businesses and municipalities are recognizing that traditional energy sources often come with high operational costs and volatility. In contrast, microgrid systems can provide a more stable and predictable cost structure. Recent analyses indicate that organizations can save up to 30% on energy costs by implementing microgrid solutions, particularly when integrating renewable energy sources. This financial incentive is driving the adoption of microgrid as-a-service offerings, as stakeholders seek to optimize their energy expenditures. Furthermore, the ability to avoid peak demand charges and reduce reliance on grid electricity enhances the economic viability of microgrids. As the market continues to evolve, the emphasis on cost savings is likely to remain a key driver, encouraging further investment in microgrid technologies.

Increased Focus on Sustainability Initiatives

the microgrid as-a-service market sees a heightened focus on sustainability initiatives across various sectors in the US. Organizations are increasingly prioritizing environmental responsibility and seeking ways to reduce their carbon footprints. This shift is driving the adoption of microgrid solutions that facilitate the integration of renewable energy sources, such as solar and wind power. Recent surveys indicate that over 60% of companies in the US are actively pursuing sustainability goals, which often include transitioning to cleaner energy systems. The microgrid as-a-service market is well-positioned to support these initiatives by providing flexible and scalable energy solutions that align with sustainability objectives. As the demand for environmentally friendly energy options continues to grow, the market is likely to expand, reflecting a broader commitment to sustainable practices.

Technological Advancements in Energy Management

Technological advancements are playing a pivotal role in shaping the microgrid as-a-service market. Innovations in energy management systems, battery storage technologies, and smart grid solutions are enhancing the efficiency and reliability of microgrid operations. For instance, the integration of artificial intelligence and machine learning algorithms allows for real-time monitoring and optimization of energy usage, which can lead to improved performance and reduced operational costs. As these technologies become more accessible, the microgrid as-a-service market is likely to benefit from increased adoption rates. Furthermore, the US government has been actively promoting research and development in energy technologies, which may further accelerate the growth of this market. The convergence of these technological advancements with the growing need for sustainable energy solutions suggests a promising future for the microgrid as-a-service market.

Market Segment Insights

By Grid Type: Grid-connected (Largest) vs. Islanded (Fastest-Growing)

In the US microgrid as-a-service market, the grid-connected segment holds a significant share, making it the largest segment within this category. Its prevalence can be attributed to existing infrastructure and the growing demand for reliable energy sources in urban and suburban areas. Grid-connected microgrids provide seamless integration with the larger grid, enhancing resilience and ensuring continuous power supply with minimal disruptions. The islanded segment, while smaller in market share, is emerging as the fastest-growing arena in the microgrid as-a-service market. This growth is driven by the increasing need for energy independence in remote areas and during natural disasters. Moreover, advancements in renewable energy technologies and storage solutions are enabling islanded microgrids to become more efficient, appealing to customers seeking reliable off-grid power solutions.

Grid-connected (Dominant) vs. Islanded (Emerging)

The grid-connected segment is a dominant player in the US microgrid as-a-service market, characterized by its ability to leverage existing electrical infrastructure, which lowers the barriers to implementation. This segment enhances overall energy efficiency and reliability, especially in urban settings where power demands are high. In contrast, the islanded segment serves as an emerging alternative for locations requiring self-sufficient energy solutions. These microgrids are well-suited for remote or disaster-prone areas, providing resilience in times of power outages. The growth of islanded microgrids is particularly influenced by innovations in renewable energy adoption and storage technology that enable these systems to function autonomously while meeting localized energy needs.

By Service Type: Monitoring & Control Service (Largest) vs. Software as a Service (Fastest-Growing)

The US microgrid as-a-service market showcases a diverse range of service types, with Monitoring & Control Service occupying a dominant position in terms of market share. This service is essential for ensuring operational efficiency and reliability of microgrids, which is crucial in today's energy landscape. Meanwhile, Software as a Service is emerging as a rapidly growing segment, catering to the increasing demand for agile and flexible software solutions that enhance microgrid performance. As the market evolves, key growth drivers such as advancements in technology, increased investment in renewable energy sources, and the rising need for energy independence contribute to the expansion of these service types. Monitoring & Control Services are being enhanced by IoT and AI technologies, which help optimize energy distribution and consumption. In contrast, the Software as a Service segment is gaining traction due to its scalability and cost-effectiveness, appealing to a broader range of customers seeking tailored energy solutions.

Monitoring & Control Service (Dominant) vs. Software as a Service (Emerging)

Monitoring & Control Service is the dominant player in the US microgrid as-a-service market due to its vital role in managing and optimizing complex energy systems. It enables real-time monitoring, fault detection, and system reliability, making it indispensable for microgrid operations. This segment not only ensures that energy can be delivered efficiently but also supports regulatory compliance and sustainability goals. On the other hand, Software as a Service is emerging rapidly, driven by the demand for user-friendly applications that facilitate better management and analysis of energy usage. This service type is gaining a competitive edge by offering customizable solutions that meet the unique needs of various microgrid operators, thereby fostering innovation and enhancing overall market dynamism.

Get more detailed insights about US Microgrid as a Service Market

Key Players and Competitive Insights

The microgrid as-a-service market in the US is characterized by a dynamic competitive landscape, driven by the increasing demand for decentralized energy solutions and the need for enhanced energy resilience. Key players such as Schneider Electric (FR), Siemens (DE), and General Electric (US) are strategically positioned to leverage their technological expertise and extensive portfolios. Schneider Electric (FR) focuses on digital transformation and sustainability, aiming to integrate advanced analytics into their microgrid solutions. Siemens (DE) emphasizes innovation through partnerships and acquisitions, enhancing their capabilities in energy management. General Electric (US) is concentrating on regional expansion and the development of scalable microgrid solutions, which collectively shape a competitive environment that is increasingly focused on technological advancement and customer-centric solutions.

The business tactics employed by these companies include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several players vying for market share. However, the collective influence of major companies like Honeywell (US) and ABB (CH) suggests a trend towards consolidation, as these firms seek to enhance their competitive positioning through strategic collaborations and technological integration.

In October 2025, Honeywell (US) announced a partnership with a leading utility provider to develop a new microgrid solution aimed at enhancing energy reliability for critical infrastructure. This strategic move underscores Honeywell's commitment to innovation and positions the company to capitalize on the growing demand for resilient energy systems. The partnership is expected to leverage Honeywell's advanced technologies, potentially setting a new standard in the microgrid sector.

In September 2025, ABB (CH) launched a new microgrid management platform that integrates AI and machine learning capabilities. This platform is designed to optimize energy distribution and improve operational efficiency for users. The introduction of this technology indicates ABB's focus on digitalization and its potential to reshape energy management practices within the microgrid landscape, enhancing the company's competitive edge.

In August 2025, Siemens (DE) completed the acquisition of a regional microgrid technology firm, which is anticipated to bolster its capabilities in delivering customized energy solutions. This acquisition reflects Siemens' strategy to enhance its service offerings and expand its market reach, potentially allowing for more tailored solutions that meet specific customer needs.

As of November 2025, current competitive trends in the microgrid as-a-service market are heavily influenced by digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in driving innovation. The competitive differentiation is likely to evolve from traditional price-based competition towards a focus on technological innovation, reliability, and supply chain efficiency, suggesting a transformative shift in how companies position themselves in the market.

Key Companies in the US Microgrid as a Service Market market include

Industry Developments

The US Microgrid Market has seen significant developments recently, with major players actively expanding their footprint. Companies like Duke Energy and Enel X are spearheading initiatives for smart microgrid deployments, emphasizing renewable energy integration and resilience against grid disturbances. In July 2023, Caterpillar announced its expansion into the microgrid sector by launching several innovative products aimed at enhancing energy efficiency, illustrating the growing interest in sustainable energy solutions. Mergers and acquisitions are also shaping the landscape; in August 2023, ABB announced its acquisition of a key technology firm, enhancing its capabilities in smart grid and microgrid technologies.

General Electric has reported a notable increase in its market valuation due to its aggressive investment in microgrid technology, impacting the overall growth of the market. Additionally, companies like S and C Electric Company and Siemens are collaborating with local governments to develop and implement microgrid projects, enhancing energy security and access in underserved areas. The emphasis on energy independence and sustainability continues to drive investments and innovations in the US microgrid market, reflecting the increasing importance of resilient energy systems in national infrastructure planning.

Future Outlook

US Microgrid as a Service Market Future Outlook

The microgrid as-a-service market is projected to grow at a 22.98% CAGR from 2024 to 2035, driven by increasing demand for renewable energy and energy independence.

New opportunities lie in:

  • Development of integrated energy management software solutions.
  • Expansion of microgrid financing models for diverse customer segments.
  • Partnerships with local governments for community-based microgrid projects.

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in energy solutions.

Market Segmentation

US Microgrid as a Service Market Grid Type Outlook

  • Grid-connected
  • Islanded

US Microgrid as a Service Market Service Type Outlook

  • Software as a Service
  • Monitoring & Control Service
  • Operation & Maintenance Service

Report Scope

MARKET SIZE 2024 518.7(USD Million)
MARKET SIZE 2025 637.9(USD Million)
MARKET SIZE 2035 5050.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 22.98% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Schneider Electric (FR), Siemens (DE), General Electric (US), Honeywell (US), Engie (FR), ABB (CH), Microgrid Energy (US), Sungrow (CN), Eaton (US)
Segments Covered Grid Type, Service Type
Key Market Opportunities Growing demand for decentralized energy solutions drives innovation in the microgrid as-a-service market.
Key Market Dynamics Rising demand for renewable energy solutions drives innovation and competition in the microgrid as-a-service market.
Countries Covered US

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FAQs

What is the expected market size of the US Microgrid as a Service Market in 2024?

The US Microgrid as a Service Market is expected to be valued at 500.0 million USD in 2024.

What is the projected valuation for the US Microgrid as a Service Market by 2035?

By 2035, the market is expected to reach a valuation of 2300.0 million USD.

What is the expected CAGR for the US Microgrid as a Service Market from 2025 to 2035?

The market is anticipated to grow at a CAGR of 14.882% from 2025 to 2035.

Which grid type has a higher market value in the US Microgrid as a Service Market in 2024?

The grid connected segment has a higher market value, expected to be 300.0 million USD in 2024.

What will be the market size of the islanded grid type in 2035?

The islanded grid type is expected to reach a market size of 900.0 million USD by 2035.

Who are some of the key players in the US Microgrid as a Service Market?

Major players include Microgrid Institute, Ceres Technologies, ABB, and Schneider Electric among others.

What is the market size of the grid connected type by 2035?

The grid connected type is projected to reach a market size of 1400.0 million USD by 2035.

What are the opportunities for growth in the US Microgrid as a Service Market?

The opportunities for growth include advancements in renewable energy integration and digital solutions for grid management.

What challenges does the US Microgrid as a Service Market face?

Challenges include regulatory hurdles and the need for substantial investments in infrastructure.

How is the US Microgrid as a Service Market expected to evolve in the coming years?

The market is expected to evolve with increased adoption of decentralized energy systems and sustainability initiatives.

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