USD 54.41 billion
Report ID:
SQMIG55A2027 |
Region:
Global |
Published Date: March, 2024
Pages:
182
|
Tables:
96 |
Figures:
76
Global Microgrid Market size was valued at USD 54.41 billion in 2022 and is poised to grow from USD 63.28 billion in 2023 to USD 211.79 Billion by 2031, at a CAGR of 16.3% during the forecast period (2023-2031).
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.
Global Market Size
USD 54.41 billion
Largest Segment
CHP
Fastest Growth
CHP
Growth Rate
16.3% CAGR
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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.
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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.
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Microgrid Market Drivers
Growing Focus on Renewable Energy
Microgrid Market Restraints
High Upfront Costs
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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
Microgrid Market Recent Developments
In May 2023, Schneider Electric launched EcoStruxure Microgrid Flex, a pioneering standardized microgrid solution that revolutionizes project timelines, which results in a higher return on investment.
In April 2023, Schneider Electric launched Easy UPS 3-Phase Modular with a capacity ranging from 50 kW to 250 kW and an N+1 scalable configuration. It integrates with the EcoStruxure architecture, enabling remote monitoring services for enhanced performance monitoring and management.
In March 2023, ABB partnered with Direct Energy Partners (DEP), a start-up using digital technology to accelerate adoption of direct current (DC) microgrids. This partnership focuses on local energy generation and distribution with scalable DC microgrids that reduce overall energy and operating costs.
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 2023 | USD 54.41 billion |
Market size value in 2031 | USD 211.79 Billion |
Growth Rate | 16.3% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
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.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Microgrid Market:
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Product ID: SQMIG55A2027