USD 3 billion
North America Microgrid Market Size, Share, Growth Analysis, By Grid type(Alternate current microgrid, Direct current microgrid), By Power source(Natural gas, Combined heat and power) - Industry Forecast 2024-2031
Report ID:
SQMIR55E2042 |
Region:
Regional |
Published Date: April, 2024
Pages:
157
|
Tables:
65 |
Figures:
81
North America Microgrid Market Insights
North America Microgrid Market size was valued at USD 3 billion in 2021 and is poised to grow from USD 3.42 billion in 2022 to USD 9.76 billion by 2030, growing at a CAGR of 14% in the forecast period (2023-2030).
The North America microgrid market has experienced substantial growth and evolution in recent years, driven by a convergence of technological advancements, energy security concerns, and a shifting energy landscape. Microgrids are localized energy systems that can operate independently or in conjunction with the main grid, utilizing a combination of distributed energy resources (DERs) like solar panels, wind turbines, batteries, and backup generators. One of the primary drivers behind the surge in microgrid adoption is the increasing need for energy resilience and reliability. Extreme weather events, natural disasters, and grid vulnerabilities have highlighted the importance of having resilient energy solutions that can continue to provide power during disruptions.
Microgrids offer the ability to "island" from the main grid, ensuring critical facilities like hospitals, military bases, and data centers have a reliable power supply. Renewable energy integration is another key factor influencing the market. North America has witnessed a growing emphasis on reducing carbon emissions and transitioning towards cleaner energy sources. Microgrids facilitate the integration of renewable resources into the energy mix, enhancing sustainability and reducing dependence on fossil fuels. Moreover, advancements in energy storage technologies have significantly contributed to microgrid development. Batteries and other storage solutions enable microgrids to store excess energy generated during peak production periods for use during high-demand periods or grid outages. This enhances grid stability and can also contribute to load management and cost savings. Government policies and incentives have also played a pivotal role in fostering the microgrid market. Various federal and state-level initiatives have encouraged the deployment of microgrids by offering grants, tax credits, and regulatory support. These incentives have attracted investments from both public and private sectors.
North America Microgrid Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2023-2030
Global Market Size
Largest Segment
Alternate current microgrid
Fastest Growth
Alternate current microgrid
Growth Rate
14% CAGR
North America Microgrid Market ($ Bn)
Country Share for North America Region (%)
North America Microgrid Market By Grid type ($ Bn)
North America Microgrid Market By Grid type (%)
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North America Microgrid Market Segmental Analysis
The North America Microgrid Market is segmented on the basis of Grid type, Connectivity, Offering, Vertical, Power source and region. By Grid type, the market is segmented into alternate current microgrid, direct current microgrid and hybrid. By Connectivity, the market is segmented into grid connected and remote/island. By Offering, the market is segmented into hardware, software and services. By Vertical, the market is segmented into healthcare, educational institutions, industrial, military and electric utility. By Power source, the market is segmented into, natural gas, combined heat and power, diesel, solar, fuel cells and others. By region, the market is segmented into U.S., Canada and Mexico.
North America Microgrid Market Analysis By Grid Type
In the North America Microgrid Market, AC microgrids dominate the market. AC microgrids use alternating current for the distribution of electricity. They are the more traditional type of microgrid and are widely adopted in various applications. AC microgrids are well-suited for commercial, industrial, and residential settings due to their compatibility with the existing AC grid infrastructure. They can integrate various distributed energy resources (DERs) like solar panels, wind turbines, and energy storage systems to enhance resilience, efficiency, and reliability.
On the other hand, the fastest-growing segment within the North America Microgrid market is the Hybrid Microgrid. Hybrid microgrids combine both AC and DC components, utilizing the strengths of each system to optimize energy management and system performance. Hybrid microgrids are gaining momentum due to their flexibility and ability to accommodate a diverse range of energy sources and loads. They can offer increased energy efficiency, better integration of renewables, and enhanced grid stability. The flexibility to operate in both AC and DC modes makes them well-suited for various applications, including remote communities, military bases, and critical infrastructure.
North America Microgrid Market Analysis By Power Source
In the North America Microgrid market, Combined Heat and Power (CHP), also known as cogeneration, has been a dominant power source for microgrids in North America. CHP systems simultaneously generate electricity and useful heat from a single energy source, such as natural gas or biomass. This approach enhances energy efficiency by capturing waste heat that would otherwise be discarded in conventional power generation processes. CHP-based microgrids are widely used in industrial, commercial, and institutional settings, where the demand for both electricity and heat is relatively constant.
On the other hand, Natural gas has been a significant and fast-growing power source for microgrids in North America. Natural gas is relatively abundant, cleaner-burning compared to other fossil fuels, and offers a more stable supply compared to renewable energy sources like solar and wind. Natural gas-based microgrids are favored for their reliability and flexibility, making them suitable for a variety of applications including remote communities, critical infrastructure, and commercial facilities.
North America Microgrid Market By Grid type, 2021 (%)
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North America Microgrid Market Regional Insights
The North America Microgrid Market is analyzed based on its regional presence, which includes U.S., Canada and Mexico. In the North America microgrid market, the United States (U.S.) stands out as the dominant region due to its extensive adoption of microgrid solutions across various industries and applications. The U.S. has exhibited a robust growth trajectory in microgrid deployment, driven by factors such as its advanced energy infrastructure, regulatory support, and a diverse range of applications including commercial, industrial, and military sectors. The U.S. government's emphasis on grid resilience and renewable energy integration has further bolstered the prominence of microgrids in the country.
Meanwhile, Canada emerges as the fastest-growing region in the North America microgrid market. The Canadian market has experienced rapid expansion owing to its commitment to transitioning to clean and resilient energy systems. Favorable policies, government incentives, and a growing focus on reducing greenhouse gas emissions have prompted substantial investments in microgrid projects throughout the country. Canada's vast geographical landscape and remote communities also drive the need for decentralized energy solutions, propelling the demand for microgrids as a reliable and sustainable power source.
North America Microgrid Market By Geography, 2023-2030
- Largest
- Fastest
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North America Microgrid Market Dynamics
North America Microgrid Market Drivers
Resilience and Reliability:
- Microgrids offer enhanced resilience and reliability to local energy systems. They can operate independently or in conjunction with the main grid during disruptions, such as natural disasters or grid failures. In North America, where extreme weather events like hurricanes, wildfires, and winter storms are common, the need for reliable and resilient energy supply drives the adoption of microgrids.
Decentralization and Energy Independence:
- Microgrids enable local communities, businesses, and institutions to generate and manage their own energy. This decentralization of energy production provides greater control over electricity supply and reduces dependence on centralized power sources. As North America continues to emphasize sustainability and energy independence, the demand for microgrids grows.
North America Microgrid Market Restraints
Regulatory and Policy Barriers:
- The development and deployment of microgrids can be hindered by complex and inconsistent regulatory frameworks. Utility regulations, interconnection standards, and permitting processes may not always be conducive to the integration of microgrid systems. Uncertainty around regulatory requirements can discourage potential investors and stakeholders from participating in the microgrid market.
High Initial Costs:
- While microgrids offer long-term cost savings and benefits, their initial installation and setup costs can be relatively high. These costs include infrastructure, control systems, renewable energy sources, energy storage systems, and grid integration. The upfront financial burden may deter some entities from adopting microgrids, especially smaller communities or organizations with limited budgets.
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North America Microgrid Market Competitive Landscape
The North America Microgrid Market features a dynamic competitive landscape with several key players vying for prominence. Established energy companies such as Schneider Electric, Siemens AG, and ABB Group bring robust expertise and innovative solutions to the market. Meanwhile, emerging players like to contribute fresh perspectives and disruptive technologies. This landscape is characterized by a blend of established giants and agile newcomers, fostering healthy competition that drives innovation and advancements in microgrid technology, integration, and service offerings. As the market continues to expand, collaborations, strategic partnerships, and ongoing technological developments are poised to shape the competitive trajectory of North America's microgrid sector.
North America Microgrid Market Top Player’s Company Profile
- General Electric
- Eaton
- ABB
- Siemens
- Schneider Electric
- Honeywell
- Caterpillar
- Toshiba Corporation
- Mitsubishi Electric
- Tesla
- S&C Electric Company
- Advanced Microgrid Systems
- Helia Technologies
- Hitachi Energy Ltd
- General Microgrids
- Exelon Corporation
- PowerCell Sweden
- Sunverge Energy
- EnSync
- Ampard
- Pivot Energy
- East Coast Power
- Microgrid Solar
- Tabuchi Electric
- Delta Energy Systems
- KSTAR
North America Microgrid Market Recent Developments
- In January 2023, the U.S. Department of Energy announced that it would be investing $100 million in microgrid projects across the country.
- In February 2023, the California Public Utilities Commission approved a $1.3 billion plan to support the development of microgrids in the state.
- In March 2023, the Canadian government announced that it would be investing $50 million in microgrid projects in rural and remote communities.
- In April 2023, the New York State Energy Research and Development Authority announced that it would be awarding $10 million in grants to support the development of microgrids in the state.
North America Microgrid Key Market Trends
- Increasing Resilience and Grid Independence: One of the prominent trends in the North American microgrid market has been the growing emphasis on enhancing resilience and achieving grid independence. Microgrids are being adopted as a solution to mitigate the impacts of power outages caused by extreme weather events, natural disasters, and other disruptions. With the increasing frequency and severity of these events, businesses, communities, and critical infrastructure are turning to microgrids to ensure a reliable and stable power supply. These microgrids often incorporate renewable energy sources, energy storage systems, and advanced control technologies to manage energy distribution efficiently during both grid-connected and islanded modes.
- Integration of Renewable Energy Sources: The integration of renewable energy sources, such as solar photovoltaics (PV) and wind power, has been a significant trend in the North American microgrid market. Microgrids are seen as a way to incorporate clean and sustainable energy generation into local energy systems. By combining renewable sources with energy storage and smart control systems, microgrids can optimize energy production and consumption, reduce greenhouse gas emissions, and potentially decrease reliance on fossil fuels. This trend is driven by environmental concerns, government policies promoting renewable energy adoption, and the decreasing cost of renewable technologies.
North America Microgrid Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our North America Microgrid Market analysis, the market has witnessed substantial growth driven by increasing focus on energy resiliency, sustainability, and grid modernization. Factors such as rising concerns over power outages, renewable energy integration, and the need for decentralized energy solutions have spurred microgrid adoption. The region's diverse energy landscape, encompassing urban centers, remote communities, and industrial facilities, has contributed to the market's expansion. Government initiatives, incentives, and technological advancements have further propelled the market, fostering collaborations between utilities, technology providers, and stakeholders. The COVID-19 pandemic underscored the importance of reliable power supply, accelerating microgrid deployment. While challenges like regulatory frameworks and initial investment persist, the North America microgrid market is poised for continued growth, offering a resilient, sustainable, and flexible energy solution for various sectors, including commercial, industrial, and residential, thus reshaping the energy paradigm.
| Report Metric | Details |
|---|---|
| Market size value in 2021 | USD 3 billion |
| Market size value in 2030 | USD 9.76 billion |
| Growth Rate | 14% |
| Base year | 2023 |
| Forecast period | 2023-2030 |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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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 North America 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
- Exhibit: Impact analysis of DROC, 2021
- 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 North America 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
- Exhibit: Impact analysis of DROC, 2021
- 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
- Competitive rivalry
- 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(%)
- Total number of companies covered
Methodology
For the North America 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 North America 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 North America Microgrid Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the North America 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.
North America Microgrid Market Report Snapshots
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