Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The Microgrid market is driven by a number of factors that together determine its dynamics and development path. One of the main catalysts is the demand for safe and robust power solutions. In response to the challenges that traditional power grids present including frequent outages and natural disasters, businesses and communities are turning to microgrids as a feasible alternative source of electricity.
Microgrids’ ability to operate independently or in collaboration with the main grid during disruptions increases energy security thus acting as an alternative for a wide variety of applications. Furthermore, the growing importance of sustainability and carbon footprint minimization has accelerated adoption of microgrids. Systems of this kind often use renewable energy in the form of solar and wind power, offering a more environmentally friendly source.
Governments and regulatory bodies across the world are introducing policies that encourage deployment of microgrids as part and parcel of larger programs aimed at promoting renewable energy sources amid climate change. Another important trend shaping the microgrid market is technology innovation. The microgrid can become more efficient and effective with the integration of smart grid technologies, energy storage solutions as well as advanced control systems into it.
Automation and the real-time monitoring features provide better control of energy resources, leading to an improvement in microgrid system performance. With technology development, the concepts, and systems in microgrid are likely to get better with more innovations because of their inherent nature. Economic factors have a major role to influence the microgrid market.
An important factor for potential adopters of microgrid systems is the total cost of ownership incurred, which incorporates installation costs together with maintenance and operational expenses. Yet the declining prices for renewable energy technologies and, consequently improving efficiency in microgrid components manifests as a benefit – affordability. Furthermore, savings in costs due to energy independence and power resilience make microgrids a good investment alternative for corporations and societies.
Additionally, the market for microgrids is greatly influenced by regulatory landscape. Microgrid solutions require a supportive environment from Governments and regulatory authorities. Decentralized energy generation, grid modernization, and renewable energy integration policies provide a favorable framework to facilitate the growth of microgrid market. On the other hand, regulatory barriers, or lack of enabling policies can hamper wide acceptance of microgrids.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 24.76 Billion |
| Growth Rate | 12.24% (2022-2030) |
Microgrid Market Highlights:
Global Microgrid Market Overview
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.
Microgrid Market Trends
-
The Adoption of Smart Grids Initiatives is Encouraged by the Growing Need for Clean Energy
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.
Microgrid Market Segment Insights
Microgrid Type Insights
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.
Microgrid Component Insights
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.
Microgrid Power Source Insights
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.
Microgrid End-Use Insights
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.
Figure 2 Microgrid Market, by End-Use, 2024 & 2032 (USD Million)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Microgrid Regional Insights
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
Figure 3 Microgrid Market Share By Region 2021 (%)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Microgrid Key Market Players & Competitive Insights
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.
List of the Key Companies in the Microgrid Market include
- ABB
- GE
- Eaton
- Schneider Electric
- Honeywell
- Caterpillar
- S&C Electric
- Power Analytics Corporation
- Siemens
- Microgrid Energy
Microgrid Industry Developments
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.
Microgrid Market Segmentation
Microgrid Type Outlook
- Grid Connected
- Off-Grid
Microgrid Component Outlook
- Hardware
- Software
- Services
Microgrid Power Source Outlook
- Natural Gas
- Solar PV
- Diesel
- Fuel Cell
Microgrid End-Use Outlook
- Industrial
- Healthcare
Microgrid Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
