Microgrid Market Size was valued at USD 32.35 Billion in 2023. The Microgrid industry is projected to grow from USD 37.6 Billion in 2024 to USD 142.28 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.89% during the forecast period (2024 - 2032). Increasing demand for secure and reliable power supply is expected to drive the Market globally throughout the forecast period.
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
June 2024: GE introduced a new microgrid technology that combines its digital energy management systems with advanced battery storage solutions. This technology aims to improve grid resilience and support renewable energy integration.
To fulfill the objectives of the smart grid project, future electrical networks must be adaptable, accessible, dependable, and financially feasible. Research on alternative microgrid topologies or designs is focusing more on controlling equipment failure as a result of growing attempts to reduce greenhouse gas (GHG) emissions. Growing environmental concerns and the use of renewable energy are also opening up lucrative industry opportunities. With this, the use of Renewable Energy Sources (RES) including solar, wind, and other micro-sources is growing. adoption of the hybrid microgrid network is anticipated to be driven by the rising need for combined or hybrid integrated grid networks. Most installations combine CHP systems with other technologies like solar PV and energy storage. CH is most frequently utilized to provide thermal energy and baseload electricity for continuous microgrids.
The market segmentation, based on type, includes Grid Connected, and Off-Grid. The Grid Connected segment held the majority share in 2021, contributing to around ~30% of the Microgrid market revenue. Grid-connected microgrids are made up of several generators, distribution networks, and sophisticated controllers. These technologies offer a variety of other benefits, which enhance demand, in addition to enhancing grid resilience, ensuring electricity quality, and lowering their environmental effect.
Based on Components, the market segmentation includes Hardware, Software, and Services. The Hardware segment dominated the market in 2021. Microgrid hardware consists of power producers, energy storage devices, and controllers. Several reasons are driving the expansion of the hardware market, including an increase in the number of microgrid projects globally, lower energy storage prices, and an increase in the number of government programs to encourage renewable energy and reduce greenhouse gas emissions.
Based on Power Sources, the market segmentation includes Natural Gas, Solar PV, Diesel, and Fuel Cell. The Solar PV segment dominated the market in 2021 with market growth. Due to its adaptability and abundance, natural gas has a substantial market share and microgrid power systems with very little environmental effect. The ample supply of natural gas and its adaptability to a wide range of uses are driving up demand for solar PV globally.
Based on End-Use, the market segmentation includes Industrial, Healthcare. The Industrial segment dominated the market in 2021 the market growth. The continual necessity for uninterrupted power supply to ensure smooth operations throughout industrial activities to decrease downtime, boost productivity, and prevent equipment damage has contributed to the expansion of this market sector. Government measures to encourage the usage of renewable energy and reduce greenhouse gas (GHG) emissions are also driving the expansion of the market for commercial and industrial end-users.
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. In 2021, Asia Pacific led the market. This is mostly caused by the area's low electrification rate, poor grid connectivity, and high electricity demand. It is predicted that the Asia Pacific market would grow significantly during the forecast period, largely as a result of the region's quick industrialization and urbanization, particularly in China and India. Additionally, governments in Asia-Pacific nations intend to support distributed energy generation and microgrids to provide electricity to their citizens.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Microgrid industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Microgrid industry to benefit customers and expand the market sector. The market has recently given medicine some of the most important advantages. Major market players, including ABB, GE, Eaton, Schneider Electric, Honeywell, and others, are attempting to increase market demand by funding R&D initiatives.
ABB is a corporation that offers industrial clients electrification, automation, robotics, and digitalization solutions. It has four primary businesses Electrification, Process Automation, Motion, Robotics, and Discrete Automation. The Electrification division provides modular substation packages, distribution automation products, switchgear, circuit breakers, measuring and sensing devices, control products, solar power solutions, EV charging infrastructure, wiring accessories, and enclosures and cabling systems. The Process Automation division offers turnkey engineering, control technologies, software and lifecycle services, measurement and analytics solutions, marine and turbocharging options, human-machine interfaces (HMI), and integrated safety technology. The Motion division provides electrical motors, generators, and mechanical power transfer devices. The Robotics and Discrete Automation division provides industrial robots, software, application solutions, engineering systems, and related services.
Also, An intelligent power management firm is Eaton. Electrical Americas, Electrical Global, Hydraulics, Aerospace, Vehicles, and eMobility are its five business segments. The electrical and industrial components, residential products, power quality, fire detection, wiring devices, structural support systems, circuit protection, lighting products, power distribution and assemblies, hazardous duty electrical equipment, safe explosion-proof instrumentation, power reliability equipment, and services are all provided by the electrical Americas and electrical segments. For mobile and industrial equipment, the hydraulics segment provides hydraulics components, systems, and services. For both commercial and governmental purposes, the aerospace section provides fuel, hydraulics, and pneumatic systems. The drivetrain, powertrain systems, and other vital parts for automobiles, light trucks, and commercial vehicles are the focus of the category for vehicles.
May 2022 Caterpillar acquired Tangent Energy Solutions, a provider of energy as a service (EaaS) that enables Caterpillar to collaborate with utilities and energy suppliers directly. The in-house software developed by Tangent Energy is a DERMS platform that controls, monitors, and makes money from onsite energy assets including microgrids, natural gas power, and renewable energy storage.
October 2021 Caterpillar provided hybrid energy solutions technology, including 7.5MW of battery storage, to a gold mine microgrid in the Democratic Republic of the Congo.
November 2021 GE Digital and Florida Power & Light Company (FPL) have announced the launch of the University of Central Florida's new cutting-edge Microgrid Control Lab. The lab will serve as a cutting-edge research facility as well as a control room for engineering instructors and students. The lab at UCF is co-sponsored by FL and GE Digital and will contain control center equipment and software that students will use to mimic and evaluate real-life grid control operations and develop methods to improve and safeguard the future grid.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 32.35 Billion |
| Market Size 2024 | USD 37.6 Billion |
| Market Size 2032 | USD 142.28 Billion |
| Compound Annual Growth Rate (CAGR) | 17.89% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Component, Power Source, End-Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | ABB, GE, Eaton, Schneider Electric, Honeywell, Caterpillar, S&C Electric, Power Analytics Corporation, Siemens, Microgrid Energy |
| Key Market Opportunities | Growing demand for microgrids in Healthcare, Military, and Government sectors Increasing government investment in microgrid projects |
| Key Market Dynamics | Increasing demand for secure and reliable power supply Advantages of clean energy storage Government initiatives to reduce carbon footprint |
Microgrid Market Highlights:
Frequently Asked Questions (FAQ) :
The Microgrid market size was valued at USD 32.35 Billion in 2023.
The market is projected to grow at a CAGR of 17.89% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the Microgrid market.
The key players in the market are ABB, GE, Eaton, Schneider Electric, Honeywell, Caterpillar, S&C Electric, Power Analytics Corporation, Siemens, and Microgrid Energy.
The Grid Connected category dominated the market in 2021.
The Industrial had the largest share in the market for Microgrid.
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