This paper presents the latest comprehensive literature review of AC and DC microgrid (MG) systems in connection with distributed generation (DG) units using renewable energy sources (RESs), energy storage systems (ESS) and loads. A survey on the alternative DG units' configurations in the low voltage AC (LVAC) and DC (LVDC) distribution networks with several applications of microgrid systems in the viewpoint of the current and the future consumer equipments energy market is extensively discussed. Based on the economical, technical and environmental benefits of the renewable energy related DG units, a thorough comparison between the two types of microgrid systems is provided. The paper also investigates the feasibility, control and energy management strategies of the two microgrid systems relying on the most current research works. Finally, the generalized relay tripping currents are derived and the protection strategies in microgrid systems are addressed in detail. From this literature survey, it can be revealed that the AC and DC microgrid systems with multiconverter devices are intrinsically potential for the future energy systems to achieve reliability, efficiency and quality power supply.