Microgrid Monitoring System Market Size, Share, Growth Analysis, By Grid Type(On-Grid, Off-Grid), By Component(Software, Hardware), By End User(Residential & Commercial, Industrial, Utility, Others), By Region - Industry Forecast 2024-2031

Microgrid Monitoring System Market Driver

• Increasing investments in transmission and distribution facilities: The market is boosted by rising energy consumption and the requirement for an optimal power supply. The off-grid segment is expected to rise in the coming years due to rising electrification in remote areas. Microgrids are being used to reduce the carbon footprints emitted by industries, which account for 23% of worldwide carbon emissions. Microgrids are being used because of their high efficiency and low carbon generation.
• Rising usage of software to boost the microgrid monitoring system: The rapid use of software for managing and controlling distributed energy resources across diverse end-user categories, such as industrial, healthcare, commercial, and government. The increasing number of cyberattacks on energy systems is fueling industry expansion.

Microgrid Monitoring System Market Restraint

• High installation and maintenance costs of microgrids to hamper the growth: Microgrids' high installation and maintenance costs are projected to stifle market expansion. In addition, there is a lack of standard and legal frameworks for microgrid operations, as well as technical issues in island mode. Building a new microgrid or converting an existing system to a hybrid microgrid can cost anywhere from tens of thousands to hundreds of millions of dollars. The generation assets, such as solar PV arrays, batteries, and/or combined heat and power systems, are the most expensive aspect of a microgrid.
• Investments in grid automation and microgrid monitoring systems that can intelligently monitor and manage all of the components, managing the way the microgrid consumes and generates energy, will also demand a significant amount of capital. Microgrids are more expensive than regular grids since they can store, convert, and recycle energy, as well as provide superior reliability and power quality. This functions as a stumbling block to the microgrid monitoring system market growth.