Microgrid as a Service Market Overview
Microgrid as a Service Market Size was valued at USD 1.8 billion in 2022. The Microgrid as a Service market industry is projected to grow from USD2.11086 Billion in 2023 to USD 7.550136988 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.27% during the forecast period (2023 - 2032).The growth in the market will be attributed to the increasing government support, the growing need for better power systems, and the drive of Microgrid as a service market growth offers because the implementation of microgrids in multiple industries are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Microgrid as a Service Market Trends
Rapid advances in technology are driving the market growth
Vendors in the market are adopting advanced technologies in the energy generation process. This is leading to the development of flexible and scalable microgrids. For instance, in February 2020, Canopy Power launched the latest version of its Hornbill technology platform for monitoring and managing remote microgrid systems in Singapore. The platform provided by Canopy includes three major components: real-time monitoring, remote management, and advanced analytics. These technologies help minimize operation and maintenance costs, maximize uptime, and increase project bank ability. Similarly, some vendors adopt blockchain technology in microgrids to enable peer-to-peer network transactions. Such technological advances are expected to impact the market's growth during the forecast period positively. This factor drives the market CAGR.
Additionally, microgrid services market has a huge growth because of the low cost and reliable service. This is an ideal solution for consumers looking for something that is reliable and cost-saving. The continuous technological demands in the market drive the growth rate of Microgrid as a Service Market Analysis. Some other factors that drive the market are an uptick in consumer demand arising out of severe weather fluctuations, a reduction in the price of distributed generation, and state incentive programs. The market growth will be attributed to the increasing government support and the growing need for better power systems. The drive of Microgrid as a Service Market Growth offers because of the implementation of microgrids in multiple industries. This is used in multiple sectors, for example, wind, solar, geothermal, biomass, fossil fuel, etc. It is used to generate and supply electricity to a local community or a military base. Thus, driving the Microgrid as a Service market revenue.
Microgrid as a Service Market Segment Insights
Microgrid as Grid Type Insights
Based on grid type, the global Microgrid as Service market segmentation includes Grid-connected, Islanded. The islanded segment dominated the market, as it permits facilities to gain better and manages distributed power sources.
Figure1: Global Microgrid as a Service Market, by Grid Type, 2022 & 2032(USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Microgrid as Service Type Insights
The global Microgrid as a Service market segmentation, based on Service Type, includes Software as a Service, Monitoring & Control Service, and Operation & Maintenance Service. The software as a service segment dominated the market; using SaaS solutions results in a safer, more reliable, and power-efficient microgrid system. It allows microgrid owners to have a single point of accountability and reduced risk of project delays and failures. This makes the management of Software easier for microgrid users such as universities, companies, manufacturers, communities, and utilities. Such benefits drive the growth of the Software as a service segment during the forecast period.
Microgrid Service Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia-Pacific Microgrid as a Service Market will dominate this market, owing Industrial players are awaited to seize chances in developing the Region; observing industrial sector development will boost the Region's market growth. Moreover, China’s Microgrid as a Service market held the largest market share, and the Indian Microgrid as a Service market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: GLOBAL MICROGRID AS A SERVICE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Microgrid as a Service market accounts for the second-largest market share due to the expanding necessity of improved power foundation and the government's start to reestablish energy. Further, the German Microgrid as a Service market held the largest market share, and the UK Microgrid as a Service market was the fastest-growing market in the European Region.
The North American Microgrid as a Service market area is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanded creation rates, excellent force, and safe mechanical tasks.
Microgrid as a Service Key Market Players& Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Microgrid as a Service market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. Microgrid as a Service industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Microgrid as a Service industry to benefit clients and increase the market sector. The Microgrid as a Service industry has offered some of the most significant advantages in recent years. Major players in the Microgrid as a Service market, including General Electric (U.S.), Exelon Corp. (U.S.), Eaton Corp. PLC (Ireland), Northern Power Systems Corp. (U.S.), Spirae, Inc. (U.S.), NRG Energy, Inc. (U.S.), Schneider Electric SE (France), ABB Ltd. (Switzerland), Siemens AG (Germany), and Duke Energy Corporation (U.S.)., and others, are attempting to increase market demand by investing in research and development operations.
Siemens AG is a German multinational technology conglomerate. Its operations encompass automation and digitalization in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, rail transport solutions, health technology and digital healthcare services. Siemens and a renewable energy developer, juwi, entered into a strategic technology partnership to focus on microgrids in the mining industry. Both companies aim to roll out and continuously develop advanced microgrid control systems that will seamlessly integrate power from renewable energy to a mine's off-grid power supply.
Rolls-Royce Power Systems AG is a German company owned by Rolls-Royce Holdings with holdings in engine manufacturing brands and facilities. The company previously traded, from 2006 to 2014, as Tognum AG. Rolls-Royce Power Systems announced that they would partner with technology company ABB for microgrid technology and advanced automation advancements. Both companies aim to create an energy-efficient microgrid solution for commercial and industrial companies.
Key Companies in the Microgrid as a Service market include
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General Electric (U.S.)
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Exelon Corp. (U.S.)
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Eaton Corp. PLC (Ireland)
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Northern Power Systems Corp. (U.S.)
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Spirae Inc. (U.S.)
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NRG Energy Inc. (U.S.)
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Schneider Electric SE (France)
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ABB Ltd. (Switzerland)
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Siemens AG (Germany)
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Duke Energy Corporation (U.S.)
Microgrid as a Service Industry Developments
Nov 2019: Siemens and a renewable energy developer, juwi, entered into a strategic technology partnership to focus on the microgrids in the mining industry. Both companies aim to roll out and continuously develop advanced microgrid control systems that will seamlessly integrate power from renewable energy to a mine's off-grid power supply.
Apr 2019: Rolls-Royce Power Systems announced that they will partner with technology company ABB for microgrid technology and advanced automation advancements. Both companies aim to create an energy-efficient microgrid solution for commercial and industrial companies.
Microgrid as a Service Market Segmentation
Microgrid as a Service Grid Type Outlook
Microgrid as a Service Type Outlook
Microgrid as a Service Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Microgrid as a Service Market Highlights:
