ID: MRFR/E&P/1645-HCR | February 2021 | Region: Global | 188 pages
Microgrid Market is projected to be worth USD 47.62 Billion by 2028, registering a CAGR of 12.55% during the forecast period (2021 - 2028)., The market was valued at USD 23.47 Billion in 2020.
The global microgrid is projected to grow at a high rate during the forecast period, mainly due to increasing power generation through renewable energy resources for which proper grid is required which could help the supply of electricity in the smallest of area. According to T&D World, microgrid deployment continue to increase globally with 1,568 projects till 2016, representing more than 15 GW of capacity. All these factors are likely to drive the microgrid market.
Global market of microgrid has been segmented based on type, component, power source, and end-user. On the basis of component, hardware sub-segment is expected to be the largest sub-segment within the market. Whereas, software sub-segment is expected to witness high growth rate. This growth can be attributed to the increasing adoption of software across various end-user segments including industrial & commercial sites, university campuses, municipalities, and utilities. Software as a part of microgrid component, allows operators microgrid operators to manage and control distributed energy resources with integrated weather and load forecasting.
The key players of global Microgrid market are ABB (Switzerland), GE (US), Eaton (Ireland), Schneider Electric (France), Honeywell (US), Exelon Corporation (US), S&C Electric (US), Power Analytics Corporation (US), Siemens (Germany), and Microgrid Energy LLC (US), among others.
A microgrid is a local energy grid with some sort of control ability, through which it can disconnect from the traditional grid and operate autonomously, without any support of a centralized grid. A microgrid also consists of interconnected loads and distributed energy resources within clearly defined electrical boundaries that act as a single controllable entity with respect to the main grid. Moreover, the microgrid can function when connected to the main grid as well as when it is not connected to the main grid and act as an electrical island. The major advantages of microgrid are a reduction in harmful emissions resulting from optimal use of renewable resources and energy efficiency programs, field-proven reliability improvement over grid-only interconnections, improved efficiency, and long-term predictable energy cost.
Increasing demand for reliable and secured power supply globally, government initiatives to reduce carbon footprint, widespread industrialization and population growth fueling demand for energy storage systems, the convergence of IoT in enhancing microgrid connectivity, and benefits of clean and reasonable energy. Utilities, across the globe, consider microgrids as a building block for a smart grid and focus on microgrid R&D as a key focus area. For instance, according to SmartGrid Consortium (NYS), the New York government has been taking initiatives towards microgrid growth, as a result of which, 20 microgrid projects were selected from an extensive candidate list of New York located microgrid projects. In-depth analysis of these projects is based on various parameters including energy delivery, regulations, business model, technology, and development.
Global microgrid market is expected to witness a high growth rate during the forecast period owing to increasing deployment of a microgrid in the emerging economies which prove to be the potential market for microgrids. For instance, the Southeast Asian countries are witnessing more and more installation of microgrids through various on-going as well as upcoming projects. In recently announced consortium called ‘CleanGrid Partners’, the companies participating in CleanGrid Partners include Singapore-based developer WEnergy Global and consulting firm ICMG Partners. The total investment to be made by all the companies is expected to be USD 100 million within 3-4 upcoming years. All these factors are likely to drive the market in the emerging market.
|CAGR||12.55% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Component, Power Source and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ABB (Switzerland), GE (US), Eaton (Ireland), Schneider Electric (France), Honeywell (US), Exelon Corporation (US), S&C Electric (US), Power Analytics Corporation (US), Siemens (Germany), and Microgrid Energy LLC (US)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The need to curb the emissions and an increased predisposition towards renewable energy sources is projected to motivate the microgrid market in the approaching period.
A 12.55% CAGR is expected to see to the progress of the microgrid market in the upcoming period.
Contenders in the microgrid market are GE (US), Eaton (Ireland), Honeywell (US), S&C Electric (US), ABB (Switzerland), Power Analytics Corporation (US), Schneider Electric (France), Siemens (Germany), Exelon Corporation (US), and Microgrid Energy LLC (US), among others.
The region in North America is anticipated to accomplish a favorable growth pace in the approaching period.
The enhanced investments being devoted to solar energy are expected to create promising outlook for development in the forthcoming years.