Energy Storage for Microgrids Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type of Storage Technology, By Ownership Model, By Application, By Region & Competition, 2020-2030F
The Global Energy Storage for Microgrids Market was valued at USD 35.58 billion in 2024 and is projected to reach USD 51.74 billion by 2030, growing at a CAGR of 6.28% during the forecast period. This market involves the integration of various energy storage technologies-including batteries, mechanical storage, and thermal systems-within microgrids, which are localized power systems capable of operating independently or alongside the main grid. Energy storage enables these systems to balance supply and demand, store surplus renewable energy, and ensure backup power during outages. Rising interest from commercial, residential, industrial, military, and utility sectors is driving adoption, particularly in areas facing unreliable power supply or frequent disruptions. The transition toward renewable energy sources, coupled with growing concerns around energy reliability and disaster preparedness, is accelerating investment in microgrid-based storage solutions.
Market Overview
Forecast Period
2026-2030
Market Size 2024
USD 35.58 Billion
Market Size 2030
USD 51.74 Billion
CAGR 2025-2030
6.28%
Fastest Growing Segment
Third-party-owned
Largest Market
North America
Key Market Drivers
Rising Demand for Energy Resilience and Reliability
The growing emphasis on ensuring continuous and reliable power supply is a primary driver of the Energy Storage for Microgrids Market. Microgrids, functioning independently or in tandem with the utility grid, rely on energy storage systems to deliver uninterrupted electricity during outages, infrastructure failures, or extreme weather conditions. Increasing incidents of hurricanes, wildfires, and floods have highlighted vulnerabilities in traditional grid systems, prompting demand for resilient alternatives. Energy storage technologies like lithium-ion, flow, and advanced lead-acid batteries enable microgrids to store renewable energy and supply it when needed, maintaining stability. This is especially critical for essential facilities such as hospitals, military bases, and data centers. In remote and underserved areas where grid access is limited, these systems serve as vital tools to achieve energy autonomy and support consistent power availability.
Key Market Challenges
High Capital Costs and Economic Viability
A major hurdle facing the widespread deployment of energy storage in microgrids is the high initial investment required. Despite falling battery costs, the overall capital expenditure-including storage equipment, power electronics, software, and system integration-remains significant. For many small and mid-sized users or isolated communities, this cost burden limits adoption. Additionally, determining return on investment can be complex due to fluctuating energy demands and decentralized usage patterns. The economic feasibility of such systems hinges on specific operational models, like peak load management or backup services, which may not consistently yield measurable financial returns. Furthermore, the performance degradation and replacement costs associated with intensive cycling of batteries over time add to the total ownership cost, deterring potential users from long-term commitments.
Key Market Trends
Rapid Adoption of Lithium-Ion Battery Technology
The market is witnessing a strong trend toward the adoption of lithium-ion batteries, driven by their high energy density, extended cycle life, and declining cost. These batteries are increasingly favored for both new installations and upgrades, as they deliver reliable performance across diverse microgrid applications. Advances in lithium-ion chemistries-such as lithium iron phosphate and nickel manganese cobalt-have further enhanced safety, durability, and efficiency. As lithium-ion batteries gain traction in the electric vehicle sector, their widespread production is lowering costs and strengthening global supply chains. Additionally, government incentives, research initiatives, and public-private collaborations are fostering adoption. Their modular and lightweight characteristics make them particularly suited for integration with renewable energy systems, playing a pivotal role in enhancing microgrid functionality in rural and disaster-affected areas.
Key Market Players
Tesla, Inc.
ABB Ltd.
Siemens AG
General Electric Company
Schneider Electric SE
Eaton Corporation plc
NEC Energy Solutions
Fluence Energy, Inc.
LG Energy Solution
BYD Company Limited
Report Scope:
In this report, the Global Energy Storage for Microgrids Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Energy Storage for Microgrids Market, By Type of Storage Technology:
Lithium-ion Batteries
Lead-acid Batteries
Flow Batteries
Sodium-based Batteries
Flywheel Energy Storage
Compressed Air Energy Storage
Thermal Energy Storage
Energy Storage for Microgrids Market, By Ownership Model:
Utility-owned
Third-party-owned
Customer-owned
Energy Storage for Microgrids Market, By Application:
Remote Systems
Islanded Microgrids
Grid-connected Microgrids
Military Microgrids
Industrial and Commercial Microgrids
Community and Utility Microgrids
Energy Storage for Microgrids Market, By Region:
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
Spain
South America
Brazil
Argentina
Colombia
Asia-Pacific
China
India
Japan
South Korea
Australia
Middle East & Africa
Saudi Arabia
UAE
South Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Energy Storage for Microgrids Market.
Available Customizations:
Global Energy Storage for Microgrids Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Product Overview
1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. Executive Summary
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
5. Global Energy Storage for Microgrids Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Type of Storage Technology (Lithium-ion Batteries, Lead-acid Batteries, Flow Batteries, Sodium-based Batteries, Flywheel Energy Storage, Compressed Air Energy Storage, Thermal Energy Storage)
5.2.2. By Ownership Model (Utility-owned, Third-party-owned, Customer-owned)
5.2.3. By Application (Remote Systems, Islanded Microgrids, Grid-connected Microgrids, Military Microgrids, Industrial and Commercial Microgrids, Community and Utility Microgrids)
5.2.4. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
5.3. By Company (2024)
5.4. Market Map
6. North America Energy Storage for Microgrids Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Type of Storage Technology
6.2.2. By Ownership Model
6.2.3. By Application
6.2.4. By Country
6.3. North America: Country Analysis
6.3.1. United States Energy Storage for Microgrids Market Outlook
6.3.1.1. Market Size & Forecast
6.3.1.1.1. By Value
6.3.1.2. Market Share & Forecast
6.3.1.2.1. By Type of Storage Technology
6.3.1.2.2. By Ownership Model
6.3.1.2.3. By Application
6.3.2. Canada Energy Storage for Microgrids Market Outlook
6.3.2.1. Market Size & Forecast
6.3.2.1.1. By Value
6.3.2.2. Market Share & Forecast
6.3.2.2.1. By Type of Storage Technology
6.3.2.2.2. By Ownership Model
6.3.2.2.3. By Application
6.3.3. Mexico Energy Storage for Microgrids Market Outlook
6.3.3.1. Market Size & Forecast
6.3.3.1.1. By Value
6.3.3.2. Market Share & Forecast
6.3.3.2.1. By Type of Storage Technology
6.3.3.2.2. By Ownership Model
6.3.3.2.3. By Application
7. Europe Energy Storage for Microgrids Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Type of Storage Technology
7.2.2. By Ownership Model
7.2.3. By Application
7.2.4. By Country
7.3. Europe: Country Analysis
7.3.1. Germany Energy Storage for Microgrids Market Outlook
7.3.1.1. Market Size & Forecast
7.3.1.1.1. By Value
7.3.1.2. Market Share & Forecast
7.3.1.2.1. By Type of Storage Technology
7.3.1.2.2. By Ownership Model
7.3.1.2.3. By Application
7.3.2. France Energy Storage for Microgrids Market Outlook
7.3.2.1. Market Size & Forecast
7.3.2.1.1. By Value
7.3.2.2. Market Share & Forecast
7.3.2.2.1. By Type of Storage Technology
7.3.2.2.2. By Ownership Model
7.3.2.2.3. By Application
7.3.3. United Kingdom Energy Storage for Microgrids Market Outlook
7.3.3.1. Market Size & Forecast
7.3.3.1.1. By Value
7.3.3.2. Market Share & Forecast
7.3.3.2.1. By Type of Storage Technology
7.3.3.2.2. By Ownership Model
7.3.3.2.3. By Application
7.3.4. Italy Energy Storage for Microgrids Market Outlook
7.3.4.1. Market Size & Forecast
7.3.4.1.1. By Value
7.3.4.2. Market Share & Forecast
7.3.4.2.1. By Type of Storage Technology
7.3.4.2.2. By Ownership Model
7.3.4.2.3. By Application
7.3.5. Spain Energy Storage for Microgrids Market Outlook
7.3.5.1. Market Size & Forecast
7.3.5.1.1. By Value
7.3.5.2. Market Share & Forecast
7.3.5.2.1. By Type of Storage Technology
7.3.5.2.2. By Ownership Model
7.3.5.2.3. By Application
8. Asia Pacific Energy Storage for Microgrids Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Type of Storage Technology
8.2.2. By Ownership Model
8.2.3. By Application
8.2.4. By Country
8.3. Asia Pacific: Country Analysis
8.3.1. China Energy Storage for Microgrids Market Outlook
8.3.1.1. Market Size & Forecast
8.3.1.1.1. By Value
8.3.1.2. Market Share & Forecast
8.3.1.2.1. By Type of Storage Technology
8.3.1.2.2. By Ownership Model
8.3.1.2.3. By Application
8.3.2. India Energy Storage for Microgrids Market Outlook
8.3.2.1. Market Size & Forecast
8.3.2.1.1. By Value
8.3.2.2. Market Share & Forecast
8.3.2.2.1. By Type of Storage Technology
8.3.2.2.2. By Ownership Model
8.3.2.2.3. By Application
8.3.3. Japan Energy Storage for Microgrids Market Outlook
8.3.3.1. Market Size & Forecast
8.3.3.1.1. By Value
8.3.3.2. Market Share & Forecast
8.3.3.2.1. By Type of Storage Technology
8.3.3.2.2. By Ownership Model
8.3.3.2.3. By Application
8.3.4. South Korea Energy Storage for Microgrids Market Outlook
8.3.4.1. Market Size & Forecast
8.3.4.1.1. By Value
8.3.4.2. Market Share & Forecast
8.3.4.2.1. By Type of Storage Technology
8.3.4.2.2. By Ownership Model
8.3.4.2.3. By Application
8.3.5. Australia Energy Storage for Microgrids Market Outlook
8.3.5.1. Market Size & Forecast
8.3.5.1.1. By Value
8.3.5.2. Market Share & Forecast
8.3.5.2.1. By Type of Storage Technology
8.3.5.2.2. By Ownership Model
8.3.5.2.3. By Application
9. Middle East & Africa Energy Storage for Microgrids Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Type of Storage Technology
9.2.2. By Ownership Model
9.2.3. By Application
9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
9.3.1. Saudi Arabia Energy Storage for Microgrids Market Outlook
9.3.1.1. Market Size & Forecast
9.3.1.1.1. By Value
9.3.1.2. Market Share & Forecast
9.3.1.2.1. By Type of Storage Technology
9.3.1.2.2. By Ownership Model
9.3.1.2.3. By Application
9.3.2. UAE Energy Storage for Microgrids Market Outlook
9.3.2.1. Market Size & Forecast
9.3.2.1.1. By Value
9.3.2.2. Market Share & Forecast
9.3.2.2.1. By Type of Storage Technology
9.3.2.2.2. By Ownership Model
9.3.2.2.3. By Application
9.3.3. South Africa Energy Storage for Microgrids Market Outlook
9.3.3.1. Market Size & Forecast
9.3.3.1.1. By Value
9.3.3.2. Market Share & Forecast
9.3.3.2.1. By Type of Storage Technology
9.3.3.2.2. By Ownership Model
9.3.3.2.3. By Application
10. South America Energy Storage for Microgrids Market Outlook
10.1. Market Size & Forecast
10.1.1. By Value
10.2. Market Share & Forecast
10.2.1. By Type of Storage Technology
10.2.2. By Ownership Model
10.2.3. By Application
10.2.4. By Country
10.3. South America: Country Analysis
10.3.1. Brazil Energy Storage for Microgrids Market Outlook
10.3.1.1. Market Size & Forecast
10.3.1.1.1. By Value
10.3.1.2. Market Share & Forecast
10.3.1.2.1. By Type of Storage Technology
10.3.1.2.2. By Ownership Model
10.3.1.2.3. By Application
10.3.2. Colombia Energy Storage for Microgrids Market Outlook
10.3.2.1. Market Size & Forecast
10.3.2.1.1. By Value
10.3.2.2. Market Share & Forecast
10.3.2.2.1. By Type of Storage Technology
10.3.2.2.2. By Ownership Model
10.3.2.2.3. By Application
10.3.3. Argentina Energy Storage for Microgrids Market Outlook