The global microgrid market is estimated to grow from USD 24.6 billion in 2021 to USD 42.3 billion by 2026 at a CAGR of 11.4% during 2021–2026. The growth of the microgrid market is driven by factors such as rising focus on decarbonization by various end users and government, increasing demand for uninterrupted power supply, growing adoption of microgrids for rural electrification, and rising instances of cyberattacks on energy infrastructures. Initiatives by governments of different countries to encourage the development of microgrids are also fueling the growth of the market.
“Grid connected segment to register higher CAGR during the forecast period”
The grid connected segment of the microgrid market is projected to register the highest CAGR during the forecast period, by connectivity. They offer a number of benefits, such as grid resiliency, improved power quality, and low impact on the environment, thereby leading to increased demand. The growth of this segment can be attributed to the expansion of utility-based grid networks globally, coupled with the large-scale harnessing of renewable sources of energy, including offshore winds.
“ Hardware segment is estimated to hold the largest share of the market during the forecast period”
The hardware segment of the microgrid market is estimated to register the largest market share in 2026, by offering. The hardware of microgrids comprises power generators, energy storage & distribution systems, and controllers. The key drivers for the growth of the microgrid market for the hardware segment include the growing number of microgrid projects worldwide, decreasing costs of energy storage and renewable sources of energy, and increasing government initiatives to promote the use of clean energy and minimize greenhouse gas (GHG) emissions.
“Controllers for microgrid hardware segment to register higher CAGR during the forecast period”
The controllers segment of the microgrid hardware market is projected to register the highest CAGR during the forecast period, by hardware type. Smart meters are expected to witness increased demand globally due to the growing requirement for record maintenance by utility companies for monitoring and billing purposes. Smart meters enable remote data collection for billing and offer improved power quality (PQ).
“Remote segment is estimated to hold the largest share of the market during the forecast period”
The remote segment of the microgrid market is estimated to register the largest market share in 2026, by end use. Key factors driving the demand for microgrids for rural electrification are the growing government support and surge in the deployment of microgrid projects in remote areas. Governments of different countries are increasingly investing in the development of electricity infrastructures to provide low-cost and clean electricity. This results in increased demand for microgrids in remote areas to generate power, as well as to manage and control distributed energy resources.
“APAC is projected to become the fastest geographical market between 2021 and 2026”
APAC is expected to witness the highest CAGR in the microgrid market during the forecast period. The growth of the market in APAC can be attributed to the high rate of rural electrification in several economies such as India, Malaysia, and the Philippines. The large number of unelectrified islands in Indonesia and the Philippines, and the lack of proper electricity infrastructure in emerging economies led to the demand for cost-effective microgrids in the region. This is expected to contribute to the growth of the microgrid market in APAC during the forecast period.
Breakdown of profiles of primary participants:
- By Company: Tier 1 = 50%, Tier 2 = 30%, and Tier 3 = 20%
- By Designation: C-level Executives = 35%, Directors = 30%, and Others (sales, marketing, and product managers, as well as members of various organizations) = 35%
- By Region: Americas = 40%, Europe= 25%, APAC=20%, and ROW=15%
Major players profiled in this report:
The microgrid market is dominated by a few established players such as ABB (Switzerland), General Electric Company (US), Siemens (Germany), Eaton Corporation (Ireland), and Schneider Electric (France).
This report offers detailed insights into the microgrid market based on connectivity (grid connected, off-grid connected), offering (hardware, software, services), type (AC microgrids, DC microgrids, hybrid), patterns (urban/metropolitan, semiurban, rural areas/ islands), end use (commercial & industrial, remote, institutes & campuses, government, utilities, military, and healthcare), and region (Americas, Europe, Asia Pacific (APAC), and Rest of the World (RoW) which includes the Middle East and Africa (MEA)) and Africa.
The report also provides a comprehensive review of microgrid market drivers, restraints, opportunities, and challenges in the market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the microgrid market and provides them information on key market drivers, restraints, challenges, and opportunities.