The global microgrid market size is anticipated to reach of around US$ 50,000 Mn by 2027 and is anticipated to grow at a CAGR of around 11% in terms of revenue during the forecast period 2020 – 2027.
A microgrid is a locally operated grid that can be separated from the conventional grid without any central network assistance and run independently. An integrated demand and distributed energy supplies under specifically defined electrical boundaries often form a microgrid that operates in addition to the main grid as a single, functional body. However, when connected to the main grid too, the microgrid will run and act as an electric area if it is not linked to the main grid. Including maximum utilization of sustainable sources and energy efficiency programs, increased stability of network enabled interconnections, enhanced performance and long-term stable electricity costs is the main advantage of microgrid development.
Growing consumer demand for electricity for automated distribution systems and growing integrated distribution systems are main drivers of consumer microgrid market growth. Moreover, rapid industrial sector growth is another aspect that will further boosts global consumer demand for microgrids. Another factor that further promotes growth of the consumer market is rising internet penetration and convergence of technology (IoT) in the service industry. The main drivers of the global microgrid market are high capital spending and high construction costs. Additional factors that may hinder the development of the global economy are emerging technical challenge and stringent government policies and regulations. Increasing microgrid penetration is projected to build competitive opportunities for manufacturers on the global market over the next 10 years for projects related to rural electrification. For instance, in partnership with the Massachusetts Institute of the Environmental Policy and Energy Center (ETEC), General Electric and Tata Trust, Tata Power Delhi distribution (TPDDL) has planned to create pilot solar microgrids in two villages in Bihar.
Over the next few years, technological progress has an significant role to play in the development of the microgrid market. Digital control systems and clean energy technologies are gathering popularity with the introduction of advanced technology. Due to the low cost of electricity generation the centralized power networks such as microgrids are most frequently used. In addition, solar microgrid vendors focus on building innovative energy production technologies that contribute to the development of robust and extensible microgrids.
The market research study on “Microgrid Market (By Connectivity: Grid Connected, Off-Grid/Island/Remote; By Offering: Hardware (Power Generators, Energy Storage & Distributors, Controllers), Software & Services; By Grid Type: AC Microgrid, DC Microgrid, Hybrid Microgrid; By Pattern: Urban, Semi-urban, Remote; By End-Use: Commercial & Industrial, Remote, Government, Utilities, Institutes & Campuses, Military, Healthcare) - Global Industry , Analysis, Market Size, Opportunities and Forecast, 2020 - 2027” offers detailed insights on the global microgrid market entailing insights on its different market segments. Market dynamics with drivers, restraints and opportunities with their impact are provided in the report. The report also provides competitive landscape to understand the current stance of particular player. The report provides insights on global microgrid market are connectivity, offering, grid type, pattern, end-use, and major geographic regions. The microgrid market analysis is provided for major regional markets including North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. For each region, the market size for different segments has been covered under the scope of report.
America has a large market share and maintains the leading position. The area is growing as microgrids are being used more and more in the field of security and remote systems to enhance cyber-attack security. North America is followed by Asia Pacific, Europe, Middle East & Africa and Latin America. Some parameters promote the production of such grids are in the regulated European market. Across the region, the main focus is on the deployment of high-scale renewables like offshore wind, which requires significant transmission network investments. The sector becomes interwoven and clean energy diversity, including solar and wind, is primarily targeted to cross-border energy trade.
With various small and large manufacturers operating in terms of costs and efficiency, the global microgrid market is competitive by nature. Major players included in this report Exelon, EnSync, Eaton, Viridity Energy, Homer Energy LLC, Siemens, Lockheed Martin, Schneider, ABB, Caterpillar, Honeywell, Advanced Microgrid Storage and others.
The global microgrid market is segmented as below:
Microgrid Market By Connectivity
Microgrid Market By Offering
Software & Services
Microgrid Market By Grid Type
Microgrid Market By Pattern
Microgrid Market By End-Use
Microgrid Market By Geography
Middle East & Africa
A microgrid is a locally operated grid that can be separated from the conventional grid without any central network assistance and run independently.
High capital cost is a major factor expected to restraint the growth of the market.
The increased demand of automated grid systems, reduction in carbon footprint, advancement in microgrid connectivity by integration of IOT, and benefits of low cost and clean energy storage is the major drivers for the growth of the microgrid market.
The market value of microgrid is anticipated to be worth around US$ 50,000 Mn in 2027.
It is anticipated to grow around 11% CAGR amid the forecast period 2020-2027.
North America held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.