ID: MRFR/E&P/6520-HCR | February 2021 | Region: Global | 111 pages
Microgrid control system is a combination of distributed energy technologies and intelligent software that monitors, predicts, and optimizes energy supply and energy demand. Microgrid helps in grid modernization, integrates smart grid technologies, and promotes customer participation through demand side management. Microgrid ensures the supply of electricity during power failure and blackout situations. The increasing need for electrification in rural areas has led to the high adoption rate of microgrid control systems.
The microgrid control system market size is projected to reach USD 3.84 Billion by 2024 from an estimated USD 2.08 billion, with a CAGR of 13.05% from 2019 to 2024. The major factors driving the growth of the global microgrid control system market include increasing investments in electric networks, refurbishment of the existing grid networks, and increase concern of carbon emission. According to Emissions Gap Report, the global carbon emissions would reach 44 gigatonnes of CO2 by 2020, decreasing to 40 gigatonnes by 2025 and then to 22 gigatonnes by 2050.
Additionally, the global microgrid control system market is projected to grow at a high rate during the forecast period due to the increase in adoption of renewable energy sources. According to the Bloomberg New Energy Finance (BNEF), in 2018, investment in clean technologies reached USD 138.2 billion, which has increased the demand for electricity. This would drive the microgrid monitoring market. Moreover, according to IEA, renewable energy sources hold the largest share of investment in power generation, owing to investments of approximately USD 350 billion, annually. Countries across the globe are shifting their focus towards renewable power generation. For instance, the Chinese government aims to spend USD 360 billion on renewable energy by 2020, leading to an increase in the demand for microgrid control system in the country. Rising electrification projects would act as an opportunity for microgrid control system market. However, the high cost of installation and maintenance of microgrid control system would hinder the market growth.
Key players in the microgrid control system market such as ABB, Schneider Electric, and Emerson are actively focusing on signing contracts and agreements with utilities and industries to supply microgrid control systems. Moreover, in 2019, ABB signed a contract with SUSI to promote the deployment of microgrids and energy storage solution wherein, ABB would provide its Ability based microgrid technology. This would add to the growth of microgrid control system market.
The global microgrid control system market has been segmented based on grid type, ownership, component, end-use, and region. On the basis of grid type, the global market is segmented into on-grid and off-grid. The off-grid segment is expected to dominate in the market, worldwide. This is because the off-grid microgrids are mainly used to provide power sources for developing countries such as in rural area in Asia Pacific and the Middle East & Africa. On the basis of component, the global microgrid control system market is divided into hardware and software. On the basis of ownership, the global market is divided into public and private. The private segment is estimated to register the higher growth during the forecast period. This is because investments in electrification projects is on the rise, which deploy microgrid technologies, encouraging private players to invest in the microgrid control system.
The global microgrid control system market is expected to grow at ~13.05% CAGR during the forecast period.
The key players operating in the global microgrid control system market are ABB (Switzerland), Eaton Corporation (Ireland), Schneider Electric (France), Siemens (Germany), Emerson (US), Spirae (US), Schweitzer Engineering Laboratories (US), Etap (US), S&C Electric Company (US), Woodward, Inc. (US), Power Secure, Inc. (US), Ontech Electric Corporation (China), and General Electric (US).
The global microgrid control system market is expected to witness substantial growth during the forecast period owing to the growing need for efficient transmission & distribution and the development in key industries such as manufacturing and construction. According to India Brand Equity Foundation (IBEF), increasing electrification would drive the growth of power consumption to 1,847 TWh in India by 2022.
On the basis of region, the global microgrid control system market is segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America. Asia-Pacific holds the largest share in the microgrid control system market due to the increased investments in the smart grid infrastructure development, modernization and upgradation of electrical networks, growing dependence on renewable power generation sources, and infrastructural activities in recent past. China accounted for the highest installed generation and distribution capacity in the region due to the high demand for electric supply, resulting in an increased demand for microgrid control system systems. Similarly, growing electrification projects in countries such as India, Australia, and Indonesia would drive the growth of the microgrid control system in Asia-Pacific. Moreover, North America is expected to be the second largest market for microgrid control systems. The US is expected to dominate the market in North America, owing to the growing smart grid activities and rising investments in renewable sources.
Frequently Asked Questions (FAQ) :
At 13.05% CAGR, the microgrid control system market can expand between 2019 and 2024.
The microgrid control system market can value at USD 3.84 Billion by 2024.
Emerson (US), Schweitzer Engineering Laboratories (US), Spirae (US), and Etap (US) are prominent companies in the microgrid control system market.
Smart electricity management offered by microgrid control system can boost the market expansion.
The rise in number of electrification projects in APAC can bolster the microgrid control system market.