Global Microgrid Market

Global Microgrid Market Size, Share, Growth Analysis, By Power Source(Natural Gas, CHP), By Product(Remote, Grid Connected), By Application(Government, Education) - Industry Forecast 2023-2030


Report ID: SQMIG55A2027 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 96 | Figures: 76

Global Microgrid Market Insights

Microgrid Market size was valued at around USD 46.78 billion in 2021 and is expected to rise from USD 54.41 billion in 2022 to reach a value of USD 197.88 Billion by 2030, at a CAGR of 16.3% over the forecast period (2022–2030).

The rise of the home and industrial sectors is anticipated to be a major driving factor in developing nations like Mexico, China, India, and Russia, as well as in China. It is anticipated that the market growth is significantly impacted by the trend away from remote central station power plants towards more localized and distributed generation for improved reliability, resilience and vitality in towns, neighborhoods, and universities.

These electrical distribution services are utilized to improve the regional electric grid's operation and stability as well as local resilience. Furthermore, it is anticipated that in the near future the demands for microgrids will increase as a result of the use of renewable resources for power generation. A major driving force is anticipated to continue to be the growing significance of captive power generating systems in the manufacturing sector to reduce dependency on electricity supply from the regional electric grid. In addition, rising public awareness of power generation from alternative renewable sources including hydrogen, solar, and wind is anticipated to benefit market expansion.

Governments of various nations have increased their spending on infrastructure development over the past few years due to population expansion and urbanization in rising economies like Mexico, China, and India. Therefore, it is anticipated that rising construction spending in the aforementioned nations will play a significant role in fostering power demand, thereby fostering the expansion of the microgrid industry. The Galvin Project Inc.'s implementation of the Galvin Energy Initiative is intended to result in increased investment on the creation of fresh prototypes for intelligent microgrids and open up new markets. In addition, the development of the United States and Canada as centers for shale gas production as a result of the widespread use of hydraulic fracturing technology is anticipated to guarantee that consumers will have access to power sources.

US Microgrid Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2022–2030

Global Market Size

USD 46.78 billion

Largest Segment

CHP

Fastest Growth

CHP

Growth Rate

16.3% CAGR

Global Microgrid Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
Global Microgrid Market By Power Source, 2022-2030 ($ Bn)
Global Microgrid Market By Power Source, 2022-2030 (%)

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Global Microgrid Market Segmental Analysis

The global microgrid market is segmented based on power source, product, application, and region. Based on power source, the market is segmented into natural gas, CHP, solar PV, diesel, fuel cell, and others. Based on product the market is segmented into remote, grid connected, hybrid. Based on application, the market is segmented into government, education, commercial, utility, defense, and others. Regionwise, the global microgrid market is segmented into North America, Europe, Asia-Pacific, Latin America, and MEA.

Microgrid Market Analysis by Power Source

In 2022, the combined heat and power (CHP) power source segment led the market and held a share of revenue of more than 36.0%. The segment growth is anticipated to be significantly impacted by consumers' choice for energy generation from a single fuel over conventional separate heat & power (SHP) systems.The fuel cell is anticipated to grow at a significant rate during the forecast period. In the near future, fuel cells' capacity to function at high temperatures and minimal electrolytic loss are projected to expand the range of applications for them.

The design can be helpful if wealthy countries like the U.S., Germany, the U.K., and Japan assist initiatives to increase the output of solar energy used for power generation. In addition, additional growth prospects are anticipated over the coming few years as a result of technological developments in the creation of organic solar PV modules. Due to strict rules intended to reduce the amount of electricity produced from fossil fuels, the diesel power source market is anticipated to develop at a moderate rate during the projected period. In developed economies' manufacturing sectors, the high adoption rate of diesel power sources for electricity generation is also anticipated to be a positive influence.

Microgrid Market Analysis by Ingredient

In 2022, the grid-connected product segment, which accounted for more than 64.0% of total sales, led the global market. It is anticipated that the growing use of smart micro-grid-connected PV systems to deliver electricity to consumers by lowering transmission losses would have a significant impact. North Power Systems has been using technology that combines its wind turbines with solar PV, diesel gensets, or other microgrid power sources during the past few years. Grid initiatives in Hawaii, Alaska, the Bahamas, and Antarctica have utilized this hybrid technology.

In rural and urban regions with limited or no access to the main grid, connected microgrids are becoming more and more common. The development of microgrids that are connected to the grid has also been spurred by the proliferation of distributed energy resources like solar panels and energy storage units. Additionally, as communities look for ways to lower their carbon footprint and boost their energy independence, microgrids are spreading more widely. As the defense searches for strategies to lessen its reliance on conventional fuel sources, defense microgrids are also becoming more and more popular. In underdeveloped nations, distant microgrids are utilized to bring electricity to rural areas.

Global Microgrid Market By Power Source, 2022 (%), 2021 (%)

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Global Microgrid Market Regional Insights

In 2022, North America held the dominant position in the global market and contributed more than 35.0% of total sales. It is anticipated that the high adoption rate of captive power generating techniques in the industrial and municipal sectors of the United States will have a significant impact on lowering dependency on the government-controlled power supply. The market for electricity distribution systems is expected to expand during the next eight years as a result of the significant presence of silver and copper ore processing plants in Peru and Chile and those countries' substantial mineral deposits.

Asia Pacific is anticipated to witness substantial growth between 2023 and 2030. The optimistic prognosis for the manufacturing and construction industries in important countries like China and India as well as legislative support for promoting domestic investment are expected to be major driving drivers. The Middle East and Africa area is also seeing expansion in the microgrid business as a result of the desire to improve energy security and reduce dependence on conventional fuel sources. Microgrids are being developed by nations like Saudi Arabia and the United Arab Emirates to power far-off oil and gas projects and provide access to energy in rural areas.

Global Microgrid Market By Geography, 2022-2030, 2022–2030
  • Largest
  • Fastest

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Global Microgrid Market Dynamics

Microgrid Market Drivers

Growing Focus on Renewable Energy

  • Microgrids are often used to integrate renewable energy sources, such as solar and wind power, into the grid, as they allow for more efficient and effective use of these intermittent sources of energy.

Microgrid Market Restraints

High Upfront Costs

  • The high upfront costs of installing a microgrid can be a barrier to adoption, particularly for small businesses or residential customers.

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Global Microgrid Market Competitive Landscape

The presence of multiple large and small-scale manufacturers has resulted in a fragmented competition for the microgrid market. Global competitors as well as regional competitors, who are well-versed in the laws and suppliers that govern the markets, are fiercely competitive. Well-known businesses are always involved in merger and acquisition activities, as well as the expansion of manufacturing facilities, investments in R&D activities, and finding chances to vertically integrate across the value chain.

Microgrid Market Top Player’s Company Profiles

  • General Electric Company
  • Eaton Corporation PLC
  • Honeywell International Inc.
  • Exelon Corporation
  • Caterpillar Inc.
  • Tesla Inc.
  • Hitachi Ltd.
  • Johnson Controls International PLC
  • PowerSecure International Inc.
  • S&C Electric Company
  • Veolia Environnement S.A.
  • Bloom Energy Corporation
  • EnSync Energy Systems Inc.
  • Advanced Microgrid Solutions LLC
  • Echogen Power Systems Inc.
  • Power Analytics Corporation
  • Duke Energy Corporation

Microgrid Market Recent Developments

  • In March 2021, Schneider Electric announced the launch of its new microgrid solution, EcoStruxure Microgrid Advisor, which uses artificial intelligence to optimize microgrid performance and reduce energy costs.
  • In April 2021, ABB announced that it had won a contract to supply a microgrid solution for a new waste-to-energy plant in the UK, which will provide reliable and sustainable power to the facility and the local grid.

Global Microgrid Key Market Trends

  • Growing Demand for Renewable Energy: There is a growing trend towards the integration of renewable energy sources, such as solar and wind power, into microgrid systems. This is driven by increasing concerns over climate change and the need to reduce carbon emissions.
  • Increasing Adoption of Energy Storage: Energy storage solutions, such as batteries and fuel cells, are becoming increasingly important components of microgrid systems. These solutions help to balance supply and demand and provide backup power in the event of outages or disruptions.
  • Emergence of Virtual Power Plants: Virtual power plants (VPPs) are becoming more popular in the microgrid market, allowing for the aggregation of distributed energy resources into a single, coordinated system. This can improve the efficiency and reliability of microgrid systems.
  • Focus on Resilience: With increasing frequency and severity of natural disasters and other disruptions to the grid, there is a growing focus on resiliency in microgrid systems. This includes the ability to operate autonomously during outages, as well as the ability to quickly restore power after disruptions.

Global Microgrid Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global microgrid market analysis, we found that the rise of the home and industrial sectors is anticipated to be a major driving factor in developing nations such as Mexico, China, India, and Russia, as well as in China. It is anticipated that the market growth will be significantly impacted by the trend away from remote central station power plants towards more localized and distributed generation for improved resilience and vitality in towns, neighborhoods, and universities. There is a growing trend towards the integration of renewable energy sources, such as solar and wind power, into microgrid systems. This is driven by increasing concerns over climate change and the need to reduce carbon emissions.

Report Metric Details
Market size value in 2021 USD 46.78 billion
Market size value in 2030 USD 197.88 Billion
Growth Rate 16.3%
Base year 2021
Forecast period 2022–2030
Forecast Unit (Value) USD Billion
Segments covered
  • Power Source
    • Natural Gas, CHP, Solar PV, Diesel, Fuel Cell, and Others
  • Product
    • Remote, Grid Connected, and Hybrid
  • Application
    • Government, Education, Commercial, Utility, Defense, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • General Electric Company
  • Eaton Corporation PLC
  • Honeywell International Inc.
  • Exelon Corporation
  • Caterpillar Inc.
  • Tesla Inc.
  • Hitachi Ltd.
  • Johnson Controls International PLC
  • PowerSecure International Inc.
  • S&C Electric Company
  • Veolia Environnement S.A.
  • Bloom Energy Corporation
  • EnSync Energy Systems Inc.
  • Advanced Microgrid Solutions LLC
  • Echogen Power Systems Inc.
  • Power Analytics Corporation
  • Duke Energy Corporation
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Microgrid Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Microgrid Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Microgrid Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Microgrid Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Microgrid Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Microgrid Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQ's

Microgrid Market size was valued at around USD 46.78 billion in 2021 and is expected to rise from USD 54.41 billion in 2022 to reach a value of USD 197.88 Billion by 2030, at a CAGR of 16.3% over the forecast period (2022–2030).

The presence of multiple large and small-scale manufacturers has resulted in a fragmented competition for the microgrid market. Global competitors as well as regional competitors, who are well-versed in the laws and suppliers that govern the markets, are fiercely competitive. Well-known businesses are always involved in merger and acquisition activities, as well as the expansion of manufacturing facilities, investments in R&D activities, and finding chances to vertically integrate across the value chain. 'ABB Ltd.', 'Schneider Electric SE', 'Siemens AG', 'General Electric Company', 'Eaton Corporation PLC', 'Honeywell International Inc.', 'Exelon Corporation', 'Caterpillar Inc.', 'Tesla Inc.', 'Hitachi Ltd.', 'Johnson Controls International PLC', 'PowerSecure International Inc.', 'S&C Electric Company', 'Veolia Environnement S.A.', 'Bloom Energy Corporation', 'EnSync Energy Systems Inc.', 'Advanced Microgrid Solutions LLC', 'Echogen Power Systems Inc.', 'Power Analytics Corporation', 'Duke Energy Corporation'

Microgrids are often used to integrate renewable energy sources, such as solar and wind power, into the grid, as they allow for more efficient and effective use of these intermittent sources of energy.

Growing Demand for Renewable Energy: There is a growing trend towards the integration of renewable energy sources, such as solar and wind power, into microgrid systems. This is driven by increasing concerns over climate change and the need to reduce carbon emissions.

In 2022, North America held the dominant position in the global market and contributed more than 35.0% of total sales. It is anticipated that the high adoption rate of captive power generating techniques in the industrial and municipal sectors of the United States will have a significant impact on lowering dependency on the government-controlled power supply. The market for electricity distribution systems is expected to expand during the next eight years as a result of the significant presence of silver and copper ore processing plants in Peru and Chile and those countries' substantial mineral deposits.

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