Nanogrid Market Size & Share, by Storage Technology (Lithium-Ion Batteries, Advanced Lead-Acid, Flow Batteries); Power Source; Connectivity; Application; End user; Component - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2026-2035

Nanogrid Market - Regional Analysis

APAC Market Insights

The Asia Pacific in the nanogrid market is anticipated to hold the largest share of 38.6% by the end of 2035. The market’s upliftment in the region is primarily attributed to the huge demand for energy, a rise in grid instability, and robust renewable energy targets. In addition, energy accessibility in emerging nations, along with decarbonization and energy security in developed countries, are also fueling the market’s exposure in the region. According to an article published by the Asia Development Bank in April 2025, the aspect of clean energy investment in the region has grown by over 900%, and significantly reached USD 729.4 billion as of 2023, which comprises almost 45% of the international investment. Moreover, the People’s Republic of China (PRC) readily accounted for the maximum of this investment, based on which India, along with 7 other nations, has joined the PRC in exceeding renewables by 75% for the national energy capacity addition as of 2022.

China in the nanogrid market is growing significantly, owing to the unrivaled combination of central industrial policy, domestic necessity, and manufacturing scale. Besides, the Dual Carbon objective is considered the primary driver for the market, which has been significantly enforced through the National Development and Reform Commission (NDRC) support and provincial mandates. As stated in an article published by Ember Energy Organization in August 2025, wafers and cells currently cater for more than 40% of the country’s solar product exports as of 2025. Regarding this, cell expenses have readily lowered by 82% since 2022, owing to which pane costs have been reduced in recent years. Furthermore, continuous photosensitive devices and photovoltaic modules supply chain in the country and the overall region is also driving the market’s growth.

2023 Assembled Photovoltaic Modules and Photosensitive Devices Export and Import in the Asia Pacific

Source: OEC

India in the nanogrid market is also growing due to a rise in the electricity demand, critical grid deficiencies, and ambitious renewable targets. For instance, as stated in an article published by the PIB Government in April 2023, the country’s government has declared the plan to provide 50 GW of renewable energy capacity every year for the upcoming 5 years to reach the 500 GW target by the end of 2030. Additionally, the government has also invited bids to ensure connected renewable energy capacity, which comprises wind power capacity of nearly 10 GW per annum. Meanwhile, the country at present constitutes an overall renewable energy capacity of 168.9 GW, with almost 82 GW at different implementation stages, along with 41 GW under the tendering stage. This includes 10.7 GW bio power, 41.0 GW wind power, 51.7 GW hydro power, and 64.3 GW solar power, thereby making it suitable for fueling the market’s demand in the country.

Europe Market Insights

Europe in the nanogrid market is expected to emerge as the fastest-growing region during the projected period. The market’s development in the region is highly propelled by the presence of the regulatory mandate for energy security, industrial competitiveness, and decarbonization. According to the March 2025 Europe Council article, the regional climate law has successfully reached the objective of lowering emissions by almost 55% by the end of 2030 as a legalized obligation. In addition, countries in the region have integrated the newest legislation to gain this objective and ensure a regional climate-neutral by the end of 2050. Besides, the Environment Council has adopted a general strategy and reached a provincial deal of increasing emission reduction by 2030 across sectors, which are covered by 62% of ETS in comparison to 61% of target proposed by the Commission, thereby proliferating the market in the overall region.

Germany in the nanogrid market is gaining increased traction, owing to the potent convergence of ambitious policy, acute energy security demands, and industrial capability. Additionally, the energy transition initiative is considered the foundational driver, which is legally mandated by the Renewable Energy Sources Act (EEG). As per a report published by the Federal Ministry for Economic Affairs and Climate Action in 2023, the country’s newest federal government has readily proclaimed to ensure national action that is poised to overhaul the energy system by 2030 by covering 80% of electricity consumption. This is possible by providing almost 50% of the heating demand, and meanwhile, greenhouse gas emissions are expected to drop by 65%. Moreover, the renewable energy share is projected to increase by nearly 40% in energy consumption by the end of 2030, while the country is focused on improving energy efficiency by 36% to 39%, both of which are driving the market’s upliftment.

Poland in the nanogrid market is also developing due to the urgent requirement to shift away from the coal-based power system, and catering to the soaring need from reshoring sectors and gaining regional climate targets. Besides, as per an article published by the Europe Commission in December 2022, the Commission has readily adopted the overall 5 Polish operational programmes, along with Territorial Just Transition Plans (TJTPs), which are worth over €3.8 billion. These operate under the Just Transition Fund (JTF) for supporting climatic transition across coal regions, including Łódzkie, Lower Silesia, Wielkopolska, Małopolska, and Silesia. These particular regions receive the majority of the grant provision, and with a nearly €2.4 billion budget for West Małopolska and Silesia, this overall funding opportunity assists regional inhabitants and provides support, especially during the green economy transition with clean air and latest employment opportunities.

North America Market Insights

North America in the nanogrid market is predicted to witness steady and considerable growth by the end of the forecast duration. The market’s growth in the region is highly propelled by innovative regulatory frameworks, increased grid electricity expenses, and acute climate-based resilience demands. In addition, the modernization of the aging grid, along with federal policy and private investment, are also uplifting the market in the region. As per an article published by the U.S. Department of Energy (DOE) in October 2023, 70% of transmission lines are more than 25 years old and are readily approaching the end of their 50 to 80-year lifecycle. Besides, the DOE declared almost USD 3.5 billion for 58 projects across 44 states to effectively strengthen electric grid reliability and resilience across the U.S. These projects leveraged over USD 8 billion in private and federal investments as part of the Grid Resilience and Innovation Partnerships (GRIP) Program. Therefore, with such investments and developments, there is a huge growth opportunity for the market in the region.

The nanogrid market in the U.S. is gaining increased exposure, owing to budget allocation, federal expenditure, progressive manufacturing tax credits, decarbonization and industrial efficiency program, and the EPA’s sustainable materials program and green chemistry. Besides, as stated in a data report published by the U.S. Government Accountability Office in November 2024, OECD readily supports DOE offices and comprises 8 portfolios for 17 programs, comprising USD 8 billion for Regional Clean Hydrogen Hubs, USD 7.1 billion for Carbon Management, and USD 6.3 billion for Industrial Demonstrations. Therefore, these clean projects are suitable for lowering the risk of the latest technologies and permit additional and large-scale private investment, along with ensuring commercialization. Besides, generous funding from the DOE for energy demonstrations is also boosting the market in the country.

Standard DOE Funding for Clean Energy Demonstrations (2024)

Source: U.S. Government Accountability Office

The nanogrid market in Canada is also growing due to indigenous energy sovereignty, remote communities, strict provincial building codes, carbon pricing, resilience to climate events, grid modernization, federal investment tax incentives, and leadership in digitalized grid innovation. According to an article published by the Government of Canada in June 2025, the Clean Energy for Rural and Remote Communities (CERRC) program, since its launch, has generously allocated USD 220 million for more than 8 years to diminish diesel reliance for power and heat in remote and indigenous communities in the country. In addition, the CERRC also received USD 233 million for more than 5 years through the domestic budget program. Besides, the NRCan’s Indigenous Off-Diesel approach readily supports 14 indigenous clean energy communities and has offered over USD 28 million for community-based clean energy planning, implementation, and engagement projects, thus suitable for the market’s upliftment in the country.