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The Global Microgrid Market Size is valued at USD 31.58 billion in 2023 and is predicted to reach USD 106.19 billion by the year 2031 at a 16.49% CAGR during the forecast period for 2024-2031.
Key Industry Insights & Findings from the Report:
- The growing emphasis on clean energy and sustainability encourages the use of microgrids for renewable energy integration.
- There is an increasing demand for high rates of electrification, primarily in rural or semi-urban areas. It is expected to drive industry growth.
- North America dominated the market and accounted for a revenue share of global revenue in 2023.
- One of the significant concerns restraining industry growth is the high upfront costs associated with designing, installing, and commissioning microgrid systems.
A microgrid is a self-sufficient energy system that supplies a particular area, such as a medical facility, college campus, or commercial district. It doesn't require the assistance of a centralized grid to function autonomously. When connected to the main grid, a smart microgrid can also operate; even when it isn't, it operates as an electrical island. By lowering harmful emissions, renewable resources are used to their full potential, efficiency is increased, and long-term energy costs are predictable.
Government attempts to reduce carbon footprint and increase demand for dependable and secure power supply in commercial and industrial sectors around the world are projected to boost the microgrid market's expansion. The market is also anticipated to grow quickly across various end-user industries, including commercial, industrial, government, and healthcare, due to software designed to monitor and regulate distributed energy resources with integrated weather and load forecasts.
The microgrid sector is anticipated to produce a modest amount of cash in the upcoming years with minimal testing, development, and research investments. But as the microgrid industry matures, it will likely only produce small profits for the major participants in the next years.
Recent Developments:
- In May 2022, Siemens announced a grid software suite to manage the complexity of grid systems. Siemens Smart Infrastructure has developed an open, modular software suite.
- In March 2022, GE Renewable Energy's Grid Solutions and BOND Civil & Utility Construction will collaborate on an engineering, procurement, and construction project(EPC).
Competitive Landscape:
Some of the Microgrid Market players are:
- ABB Group
- Caterpillar
- Eaton Corporation
- Exelon Corporation
- General Electric
- Heila Technologies
- Hitachi Energy
- Homer Energy
- Honeywell International Inc.
- Pareto Energy
- Power Analytics Corporation
- S&C Electric
- Schneider Electric
- Siemens
- Spirae Inc.
- Toshiba Corporation
Market Segmentation:
The microgrid market is segmented based on connectivity, Offering, power source, pattern, types, power rating, and end-use. Based on connectivity, the market is categorized as grid-connected and off-grid connected. Based on offering, the market is segmented as hardware (power generators, energy storage systems, controllers), software, and services.
The market is segmented by power source: natural gas, solar P.V., combined heat and power, diesel, fuel cell and others. Based on Pattern, the market is segmented as urban/metropolitan, semi-urban and rural/island. Based on the types of microgrids, the market is segmented into ac microgrids, dc microgrids, and hybrid microgrids. Based on power rating, the market is segmented as less than 1 M.W., 1MW to 5MW, 5MW to 10MW and more than 10MW. On the basis of End Use, the market is segmented into commercial & industrial, remote areas, military, government, utilities, institutes & companies and healthcare.
Based On Connectivity, The Grid Segment Is A Major Contributor To The Microgrid Market
The grid category is expected to hold a major share of the global microgrid market. The market share of the grid connectivity segment will increase over the next several years, and the quantity of money made from this product will increase significantly. In a grid-connected system, a highly accessible power grid coupled to the main grid at a point of common coupling can act as an additional power source for a microgrid. It increases energy efficiency and offers a safe and reliable power source, which is projected to hasten the market spread of microgrids. It offers protection for electricity against disasters brought on by storms, earthquakes, and tsunamis. Microgrid deployment is increasing due to the use of artificial intelligence (Al), which enables continuous adaptation and improvement of the operation of microgrid controllers.
The Commercial & Industrial Segment Witness Growth At A Rapid Rate
During the anticipated period, the commercial & industrial segment will hold the largest market share in the polymers market. The commercial and industrial sector is anticipated to expand due to ongoing developments in creative and intelligent solutions that are in line with the current product deployments. Additionally, rapid urbanization in developing countries and government reforms that facilitate the development of commercial and industrial settings would accelerate sector expansion.
The North America Microgrid Market Holds A Significant Revenue Share In The Region
The North America Microgrid Market is expected to register the highest market share in revenue shortly. The market for microgrids globally also includes a sizable presence in North America. The United States, which has a strong legacy of energy industry innovation and a mature and well-developed energy infrastructure, dominates the region. Numerous factors, such as the rising demand for dependable and resilient energy systems, the uptake of renewable energy sources, and the implementation of beneficial laws and regulations, are fueling the expansion of the microgrid market in North America.
For instance, many states in the U.S. have developed incentive programs and set ambitious renewable energy targets to promote the implementation of microgrids. In addition, Asia Pacific will dominate the market due to the rising demand for dependable and sustainable energy sources, particularly in developing nations like India and China. This region is anticipated to account for a sizeable portion of the worldwide microgrid market. Energy demand in these nations has increased dramatically due to rising population and industrialization, which has spurred the expansion of the microgrid industry in the area. The development of the industry has also been assisted by governments in the Asia-Pacific region, implementing favorable policies and measures to support the deployment of microgrids.
Microgrid Market Report Scope:
|
Report Attribute |
Specifications |
|
Market size value in 2023 |
USD 31.58 Bn |
|
Revenue forecast in 2031 |
USD 106.19 Bn |
|
Growth rate CAGR |
CAGR of 16.49% from 2024 to 2031 |
|
Quantitative units |
Representation of revenue in US$ Billion, and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
|
Segments covered |
Connectivity, Offering, Power Source, Types, Power Rating, And End-Use |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
|
Competitive Landscape |
Schneider Electric (U.S.), Eaton Corporation (U.S.), Honeywell International Inc. (U.S.), Homer Energy (U.S.), S&C Electric (U.S.), and Power Analytics (U.S.) |
|
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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