Microgrid market was valued at US$ 25 billion in 2021; it is expected to register at a compound annual growth rate (CAGR) of 17.0% during 2022–2028.
The primary operation of microgrids needs their connection with grids. However, as they can also break off and operate separately through local energy generation, their demand during power outages, storms, and other emergencies is increasing. Distributed generators, renewable resources such as solar panels, and batteries are the general sources that can power microgrids. In addition to their abilities to provide backup for grids during emergencies and connect to a local energy resource, lower operating cost is another factor driving the adoption of microgrids in utilities, and the healthcare and industrial sectors.
MARKET DYNAMICS
The growing demand for reliable and secure power supply to meet the needs of ongoing industrialization and urbanization contributes to the overall growth of the microgrid market. Also, government bodies, especially in emerging economies, are taking steps to lower carbon footprints and promote clean energy storage solutions. Marble Bar (Western Australia), Ross Island (Antarctic), BHP Billiton Leinster Nickel Mine (Western Australia), and Fort Collins (Municipality in Colorado in the US) are a few of the areas using advanced energy storage solutions. Such transitions in energy storage and consumption preferences are projected to bolster the microgrid market growth in the coming years.
Strategic Insights
MARKET SCOPE
The "Global Microgrid Analysis to 2028" report aims to provide an overview of the market based on type, component, and end-use industry. The microgrid is expected to witness high growth during the forecast period. The report provides key statistics based on the revenue performances of leading microgrid players, and offers key trends and opportunities prevailing in the market.
MARKET SEGMENTATION
The microgrid is segmented on the basis of type, component, and end-use industry. Based on type, the market is segmented into grid connected and off-grid. The market, by component, is segmented into hardware, software, and services. Further, on the basis of end-use industry, the microgrid is segmented into military, healthcare, government and utilities, institutes, industrial, and others.
REGIONAL FRAMEWORK
The report provides an overview and forecast of the global microgrid based on various segments, emphasizing both qualitative and quantitative information. It also provides market size and forecast for the period of 2020–2028 with respect to five major regions North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America. The microgrid in each region is subsegmented into respective countries and other segments. The report covers an analysis and forecast of 18 countries, along with current trends and opportunities prevailing in the abovementioned regions.
APAC dominated the microgrid with ~36% share in 2021. A few of the aspects fueling the growth of the microgrid in APAC countries are mentioned below.
- ?Large portion of populations in these countries lack access to electricity.?Many innovators in the microgrid are based in Asian countries, including Australia, China, and Japan, which are building capabilities to promote the use of microgrids in the industrial sector.?APAC countries depend on energy-as-a-service business models.?Key enablers driving the penetration of microgrids include development modular microgrids and connected microgrids since IoT is prevailing in Asian economies.
The following figure showcases a trend in the revenue growth of the microgrid:
Source: The Insight Partners Analysis
The report analyzes factors affecting the microgrid from both the demand and supply side, and further describes market dynamics regulating the market growth, i.e., drivers, restraints, opportunities, and future trends. It also provides exhaustive PEST analysis for North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
IMPACT OF COVID-19 PANDEMIC ON MICROGRID
The COVID-19 pandemic has affected the global economy in various ways. The adverse effects on businesses led to adversities in various sectors including energy sector. However, emerging digitization platforms such as microgrids have got negatively impacted to some extent due to supply chain disruption and temporary shutdown of manufacturing plants. Irrespective of the disturbances caused by the global health crisis in the energy & power sector, the microgrid market players experienced a double-digit percentage hike in the demand for microgrids.
MARKET PLAYERS
This report on the microgrid market covers key developments by market players, including organic and inorganic growth strategies. Organic growth strategies in the market mainly include product launches, product approvals, and others (such as patents and events). Inorganic growth strategies activities witnessed in the microgrid industry are acquisitions, partnerships and collaborations. The microgrid industry players are anticipated to have lucrative growth opportunities in the future. Following is the list of a few prominent companies engaged in the microgrid market.
- ?ABB Group?Eaton Corporation?General Electric Company?HOMER Energy LLC?Honeywell International?PECO (Exelon Corporation)?Power Analytics Corporation?S&C Electric Company?Schneider Electric?Siemens AG
The microgrid market report focuses on leading market players, and presents the profiles of companies with their SWOT analysis and market growth strategies. The company profiles also include components and services offered by market players along with their financial information of the last 3 years and key developments in the last 5 years.
The Insight Partner's dedicated research and analysis team c of experienced professionals with advanced statistical expertise, which helps them offer various customization options in the existing study.