gRPC is ideal in microservices architectures due to its performance benefits and language-agnostic nature. It’s also beneficial when low latency, high efficiency communication is required between services, as it uses HTTP/2 for transport and Protocol Buffers for serialization, reducing data overhead. gRPC supports bi-directional streaming which can be useful for real-time applications. Additionally, it provides features like flow control, error handling and load balancing out of the box, simplifying development.