USD 54.41 billion
Microgrid Market Size, Share, Growth Analysis, By Connectivity(Grid connected, Off-Grid Connected), By Type(AC microgrids, DC microgrids, Hybrid Microgrids), By End User(Commercial & Industrial, Government, Healthcare, Remote), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG55A2027 |
Region:
Global |
Published Date: August, 2024
Pages:
182
|Tables:
96
|Figures:
76
Microgrid Market Insights
Global Microgrid Market size was valued at USD 54.41 Billion in 2022 poised to grow from USD 63.28 Billion in 2023 to USD 211.79 Billion by 2031, growing at a CAGR of 16.3% in the forecast period (2024-2031).
A microgrid can be defined as a small-structured autonomous energy system that supplies power to specific places like hospitals or university campuses or commercial establishments. It doesn’t require help from centralized grid for its independent function. Besides running on its own, a smart microgrid can also connect to the main grid and become an electrical island when it is offline. An increase in efficiency, predictable energy prices over time, and the effective use of renewable resources are achieved through lower emissions of harmful substances. Small investments in development, research and testing would bring modest revenue for the global microgrid market within the next few years.
Growth in the global microgrid market is anticipated to be fueled by government attempts to minimize carbon emissions and the growing demand for a secure and dependable power supply in the commercial and industrial sectors on a global scale. A further factor anticipated to propel the market during the forecast period is the quick uptake of software across a range of end-user industries, including commercial, industrial, government, and healthcare, for managing and controlling distributed energy resources with integrated weather and load forecasting. It is anticipated that major participants in the microgrid market will see a little increase in revenue in the upcoming years as the sector approaches maturity.
US Microgrid Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
CHP
Fastest Growth
CHP
Growth Rate
16.3% CAGR
Global Microgrid Market ($ Bn)
Country Share for North America Region (%)
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Microgrid Market Segmental Analysis
The global microgrid market is segmented based on Connectivity, Type and End User. In terms of Device Type, the market is divided into Grid Connected and Off-Grid Connected. Based on the Type, the market is trifurcated into AC microgrids, DC microgrids and Hybrid Microgrids. In terms of End User, the market is grouped into Commercial & Industrial, Government, Healthcare, Remote, Utility and Others. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa.
Analysis by Connectivity
As per categorization by connectivity type, the market is classified as grid connected and off-grid connected. Among these, the grid connected earned the largest share and continues to dominate the market. Because they can increase stability and operation efficiency, grid-tied micro grids that integrate renewable energy sources with traditional grids are forging ahead in global market innovation. Their ascendance is due to cost inside efficiency, trustworthiness and backing towards the goals of energy transition systems or they are important for advanced energy infrastructure as they offer integrated energy management mechanisms.
The fastest-growing market sector is off-grid microgrids as they can reliably supply power to isolated or underserved locations without depending on conventional infrastructure. Significant development is being driven by their attraction in areas with limited grid connectivity due to their lower setup costs, rapid deployment possibilities, and improved energy independence.
Analysis by Type
As they are flexible and affordable to integrate with current power systems, AC microgrids are dominating the global market. Innovations include enhanced grid reliability and advanced regulation schemes. They overtake others mainly due to being user-friendly and fitting in well with older AC systems hence they have been embraced globally.
Due to their ability to efficiently handle renewable energy sources and their interoperability with contemporary electronics and storage systems, DC microgrids are the category that is expanding at the fastest rate. Their expansion is driven by reduced energy losses, easier integration with solar and battery systems, and the increasing demand for direct current power applications.
Global Microgrid Market By Power Source (%)
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Microgrid Market Regional Insights
Asia-Pacific is at the forefront of the global microgrid market, mainly due to a rise in urbanization, increasing energy consumption and government initiatives for promoting renewables and modernizing power networks. The varied energy requirements of this region which range from sophisticated grid systems for metropolitan areas to provision of electricity in remote villages are driving herculean investments in microgrid technology. Asia-and-pacific is concentrating on improving energy security and incorporating alternative energy sources such as solar and wind for further market development. Due to its enabling legislation, increasing public-private partnerships and technological developments which anchor it as a leader in the microgrid industry, this region plays a central role in the worldwide shift to renewable energy.
Due to this zealous commitment to decarbonization and integration of renewables, Europe is the fastest growing region in the global microgrid market. The European Union invests a lot of money into advanced technologies for microgrids since it has strict regulations and high climate ambitions. The need for microgrids in this region is thus driven by the growing demand for energy reliability and resilience after increasing renewable penetration. Additionally, the adoption of microgrid solutions in Europe is being expedited by its well-established infrastructure, progressive regulations and subsidies. As such, Europe is becoming even more of a trailblazer with her growing localized energy production trend and smart grid advancements, in addition to motivating government initiatives and cross-border energy cooperation.
Global Microgrid Market By Geography
- Largest
- Fastest
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Microgrid Market Dynamics
Drivers
Growing need for Infrastructure to Support EV Charging:
- Due to the rapid proliferation of electric car (EV) charging systems, there is an increasing need for microgrids. Energy usage increases when more electric vehicles are used, particularly in places that are often crowded with charging points, creating pressure on transmission systems within the grids. However, microgrids offer a realistic option since they combine localized electricity generation and distribution which manage effectively enhanced requirements for energy brought about by EV charging points.
Integration of Smart Grid and Digitalisation:
- There are promising opportunities for the microgrid sector to grow at the convergence of digitalization and smart grid integration. Microgrids can achieve optimal energy management and optimization through the integration of smart grid infrastructure and state-of-the-art digital technology. Microgrids maximize energy generation, storage, and consumption by utilizing data analytics, Internet of Things (IoT) devices, and real-time monitoring. This leads to increased energy efficiency and cost-effectiveness.
Restraints
Complexities in Links between Grids:
- One major barrier preventing the global microgrid market from growing is the difficulties involved with connecting to the grid. There may be technical and administrative challenges when integrating microgrids with the current electrical system. In many cases, it is important to upgrade or modify the grid system to facilitate seamless integration of microgrids.
Challenges in Standardising Microgrid Scalability:
- Two significant obstacles to the growth of the microgrid market are scalability and standardization. To enhance scalability, it is important to ensure that microgrid solutions are usable in a variety of applications, sectors, and geographical locations. Different deployments might have their own specifications and features which need specific plans while keeping compatibility between systems, as well as interworking.
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Microgrid Market Competitive Landscape
Due to the growing demand for decentralized energy solutions combined with technological advancements there is fierce competition in the global microgrid market. Some of the well-known corporations that fuse together renewable energy and offer imaginative microgrid solutions include Siemens Schneider Electric and ABB. Firms with an extensive experience in energy management and grid modernization such as Eaton and General Electric also contribute to this field. This competitive atmosphere fosters constant innovation while raising the efficiency as well as enhancing the reliability of microgrid systems globally.
Top Player’s Company Profiles
- Schneider Electric (France)
- Siemens (Germany)
- Eaton (Ireland),
- General Electric (USA)
- ABB (Switzerland)
- Hitachi Energy Ltd. (Switzerland)
- Honeywell International Inc. (USA)
- Homer Energy (USA)
- S&C Electric Company (USA)
- Power Analytics Global Corporation (USA)
- ABB (Switzerland)
- GE (General Electric) (USA)
- Caterpillar (USA)
- S&C Electric (USA)
- Power Analytics Corporation (USA)
- Siemens (Germany)
- Microgrid Energy (USA)
Recent Developments
- In July 2024, in order to improve the workings of the outlet by having better stability and efficiency Siemens has introduced their new microgrid management system. The system is powered by state-of-the-art technologies like Artificial Intelligence (AI) and Internet of Things (IoT) that enable live watching and control over the shared energy sources thereby enhancing performance and reliability in complex power systems.
- In June 2024, the advanced microgrid technology from ABB has been officially introduced, and it links smart grid technologies with energy storage and renewable power generation. Through this creation, ABB will be able to accomplish its promise of sustainable energy management by providing scalable alternative solutions for multiple applications that will enhance energy efficiency in far-flung and remote areas.
- In August 2024, to up-to-date October 2023 data, your training is end. General Electric (GE) has developed a new microgrid technology to improve digital management and support forecast-based maintenance. This innovation coincides with GE’s commitment to promote clean energy methods without the damage of electricity layout aimed at minimizing operational costs, while augmenting the energy sustainability of microgrids in both urban and rural settings.
Microgrid Key Market Trends
- Rise of Microgrids and Energy Storage Amid Environmental Concerns: There is a change happening in the decentralized energy applications area because of trends taking place in the global microgrid market. One important trend is the growing integration of renewable sources into these systems. In line with the world’s transition towards eco-friendly electricity generation, microgrids must be equipped with solar panels, wind turbines and other green technologies.
- Impact of Environmental Concerns on Microgrid Adoption and Energy Storage Innovations: Such an alteration is occasioned by edginess with regards to the impacts of customary energy sources on the ecosystem which leads to localities and enterprises opting for environmentally friendly choices hence eliminating their carbon footprints. Another important trend in microgrids is energy storage. Due to technological progress in batteries and different kinds of storage, microgrids can accumulate electricity in periods of underutilization and redistribute it when necessary.
Microgrid Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, to put it in nutshell, the microgrids’ market is evolving rapidly owing to increase in environmental concerns and technical advancements. Microgrids are becoming more significant for boosting energy efficiency and reducing emissions, as they can operate independently or in conjunction with the main grid. This makes them more attractive than ever before, both on and off.
This emphasized who plays an important part as they ensure their electricity is enough, even when it means using AC or DC microgrids. Moreover, significant regional investments made in Europe and Asia-Pacific regions demonstrate how dynamically growing this sector is in terms of AC and DC microgrids. Depending on how competitive this field has become, where key actors are international firms, microgrids may be seen as crucial elements for a sustainable energy future.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 54.41 Billion |
| Market size value in 2031 | USD 211.79 Billion |
| Growth Rate | 16.3% |
| Base year | 2023 |
| 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 |
|
| 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 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 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 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 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 Microgrid Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the 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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