The global microgrid market size is estimated to be USD 26.9 billion in 2022 and is projected to reach USD 63.2 billion by 2027, at a CAGR of 18.6% during the forecast period. Some of the major factors contributing to the growth of microgrid market includes the increasing number of microgrid projects across different industries, surging energy demand and adoption of renewable energy in Asia Pacific, growing interest of investors in EaaS business model to minimize costs, and rising encouragement from governments for developing microgrid projects.
“Grid-connected microgrids accounted for larger share, due to expansion of utility-based grid networks and use of renewable sources”
The grid connected segment likely to hold largest market share and expected to grow at the highest CAGR during the forecast period. Grid-connected microgrids are physically connected to the utility grid via a switching mechanism at the point of common coupling (PCC), but they can also disconnect into island mode and reconnect to the main grid when required. Grid-connected microgrids contain multiple generators, distribution systems, and sophisticated controls. Furthermore, these technologies enhance grid resiliency, enhance power quality, and reduce their environmental effects, in addition to improving grid reliability. This results in an increase in demand.
“Microgrid software market likely to witness higher growth between 2022 and 2027”
The microgrid software market is projected to record the highest growth rate during the forecast period. Software used in microgrids established in remote locations allows microgrid operators to dynamically manage and control distributed energy resources with integrated weather and load forecasting. The hosted software services used by microgrids eliminate the requirement for onsite hosting of the IT infrastructures. This is expected to drive the growth of the microgrid software market in the near future.
“The power generators for microgrid hardware segment likely to witness highest market share between 2022 and 2027”
The power generators segment held the largest size of the microgrid hardware market in 2021 and expected to dominate the microgrid hardware segment during the forecast period. The use of renewable sources of energy such as PV cells, wind turbines, and hydro turbines for power generation is one of the prominent factors contributing to the growth of the microgrid hardware market globally. Other advantages of integrating renewable sources of energy with microgrids are reduced emissions of greenhouse gases and lowered dependency on local or imported fuels.
Americas likely to be the largest market during the forecast period between 2022 and 2027.
The microgrid market in the Americas has been studied for North America and South America. North America accounted for ~70% share in the overall Americas microgrid market in 2021. Countries such as US, and Canada have formulated number of policies to enhance the establishment of microgrids. The US is leading the microgrid market in Americas. The US and Canadian governments are initiating several funding programs and investments to expand decentralized grids; this is supporting the adoption and development of microgrids in these countries. An increase in the adoption of renewable sources of energy for electricity generation and the flexibility of microgrids in terms of using multiple power sources for electricity generation are also driving the growth of the microgrid market in the region.
A variety of executives from key organizations operating in the microgrid market were interviewed in-depth, including CEOs, marketing directors, and innovation and technology directors.
- By Company Type: 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%
Schneider Electric (France), General Electric (US), Siemens (Germany), Eaton Corporation (US), ABB (Switzerland), Hitachi Energy (Switzerland), Honeywell International Inc. (US), HOMER Energy (US), S&C Electric (US), Power Analytics (US) are the key players in the microgrid market. These top players have strong portfolios of products and services and a presence in both mature and emerging markets.
The study includes an in-depth competitive analysis of these key players in the microgrid market, with their company profiles, recent developments, and key market strategies.
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), power source (natural gas, solar PV, combined heat and power, diesel, fuel cell, and others), power rating ( less than 1 MW, 1 MW to 5 MW, 5 MW to 10 MW, and above 10 MW), 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.