Microgrid Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Microgrid Market size is projected to reach a CAGR of 18.7% from 2023-2030.

A microgrid is a self-reliant, localized energy system that serves a specific area including a hospital complex, college campus, and business centers. It can operate autonomously without any support from a centralized grid. A smart microgrid can also function when connected to the main grid and even when it is not connected to the main grid, it acts as an electrical island. It helps in the reduction of harmful emissions resulting in optimal use of renewable resources, improved efficiency, and long-term predictable energy cost.

Growth in demand for reliable and secured power supply in commercial and industrial sectors across the globe, coupled with government initiatives taken to reduce carbon footprint is expected to fuel the microgrid market growth. Moreover, the rapid adoption of software across various end-user segments including commercial, industrial, government, and healthcare to manage and control distributed energy resources with integrated weather and load forecasting is also expected to boost the market during the forecast period. Furthermore, factors such as growth in the development of smart cities, increase in demand, growth of rugged loT, and rise in adoption of ruggedized computers are expected to drive the growth of the market in the future.

On the other hand, the high production cost of rugged devices acts as a major barrier and hampers market growth. Additionally, the Lack of a well-defined regulatory policy framework is another restraint of the microgrid market. Ambiguous state laws pose a major obstacle in the path of microgrid deployment.

The COVID-19 pandemic has impacted the society and overall economy across the globe. The impact of this outbreak has grown day by day which affects the supply chain. This has created uncertainty in the stock market; decreased business confidence, a slow supply chain, and increased panic among customers. European countries under lockdown have suffered a major loss of business and revenue due to the shutdown of manufacturing units in the region. Operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, which led to a decrease in the growth of the microgrid market in 2020. According to the microgrid market trends, the COVID-19 pandemic has severely impacted the global manufacturing and industrial sectors as production facilities have stalled, which, in turn, led to significant demand in industries.

Delvens Industry Expert's Standpoint

The microgrid market is rapidly growing as the demand for reliable and sustainable energy solutions increases. With the advancement of technology and increasing investments, microgrids are becoming more cost-effective and efficient. The market is driven by factors such as government initiatives and policies, the need for energy security, and the rising adoption of renewable energy sources. However, there are still challenges that need to be addressed, such as integration issues, regulatory hurdles, and high initial costs. Despite these challenges, the microgrid market is expected to continue its growth trajectory in the coming years. As more businesses and communities recognize the benefits of microgrids, the market is likely to become more competitive, leading to further innovation and advancements in the field.

Market Portfolio

Key Findings

• The connectivity segment is bifurcated into Grid Connected and Off-grid Connected. The grid-connected segment is anticipated to dominate the market during the forecast period. Microgrids that are grid-connected consist of multiple generators, distribution systems, and sophisticated controls. In addition to improving grid resiliency, enhancing power quality, and reducing their environmental impact, these technologies have a number of other advantages, which result in increased demand.
   
• The offering segment is further segmented into Hardware, Software, and Services. The hardware segment is expected to lead the market with the highest CAGR during the forecast period. The hardware of microgrids comprises power generators, energy storage systems, and controllers. There are several factors contributing to the growth of the microgrid market for the hardware segment, including the increasing number of microgrid projects worldwide, the decreasing costs of energy storage, and the increasing number of government initiatives to promote clean energy and minimize greenhouse gas emissions.
   
• The end-user segment is further segmented into Commercial & Industrial, Remote Areas, Military, Government, Utilities, Institutes & Campuses, and Healthcare. The commercial & industrial microgrid market is expected to grow at the highest CAGR. The growth of this market segment can be attributed to the consistent requirement for uninterrupted power supply to maintain smooth operations during industrial operations in order to lower downtime, increase productivity, and reduce equipment damage.
   
• The power rating segment is further segmented into Less than 1 MW, 1 MW to 5 MW, 5 MW to 10 MW, and More than 10 MW. The 1 MW to 5 MW segment is anticipated to dominate the market during the forecast period. In this segment, microgrid systems use both renewable and non-renewable power sources, but the majority of the site uses non-CHP natural gas as their power source. Commercial & Industrial is the major end-user where microgrid systems with power ratings between 1 MW to 5 MW are required and thus helping in the growth of this segment.

Regional Analysis

North America to Dominate the Market

• North America now leads the industry due to increased industrialization and electrification. North America will account for 28% of the microgrid market's growth.
   
• The United States and Canada are the region's most important microgrid markets. Factors such as the US government's increased initiatives to deploy energy-efficient power solutions are propelling the microgrid industry in North America forward.

Competitive Landscape

• Siemens AG
• General Electric
• S&C Electric Company
• ABB Group
• Schneider Electric SE
• Engie Group
• Honeywell International Inc.
• Echelon Corporation
• Pareto Energy Limited
• Toshiba Corporation
• Duke Energy Corporation
• Power Analytics Corporation
• Eaton Corporation
• Hitachi Energy
• Homer Energy
• Caterpillar Inc.
• Tesla Energy
• Emerson Electric
• Pareto Energy
• Powerhive
• Go Electric

Recent Developments

• In May 2022, Siemens launched a grid software suite to manage the complexity of the grid systems, Siemens Smart Infrastructure has developed an open, modular software suite.
   
• In March 2022, GE Renewable Energy’s Grid Solutions partnered with BOND Civil & Utility Construction for an Engineering, Procurement & Construction (EPC) contract from Empire Offshore Wind, to design and build an onshore digital substation for Empire Wind 1, New York's first offshore wind farm.

Reasons to Acquire

• Increase your understanding of the market for identifying the best and most suitable strategies and decisions on the basis of sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for Microgrid Market so as to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope