The microgrid market is poised to record significant growth through 2030 owing to increasing demand for uninterrupted power supply. In addition, rising emphasis on electrification in developing countries is expected to further drive market demand over the forecast period.
Recently, major players operating in the industry have been strategically investing in product launches, R&D activities, and mergers & acquisitions to improve their business presence, thereby fostering microgrid market outlook. For instance, in July 2022, Enerox GmbH, a specialist in energy storage infrastructure & services, commonly known as CellCube, and G&W Electric, a power grid solutions expert, entered into a strategic partnership agreement to develop an integrated microgrid solution for the U.S. market.
As part of the deal, G&W Electric agreed to add Enerox’s product, the vanadium redox flow battery, as the active energy storage ingredient within its portfolio of microgrid solutions. G&W Electric’s new microgrid was designed to support peak load shaving, islanding, and sub-cycle power backup for asset protection.
The microgrid market has been bifurcated on the basis of grid type, storage device, application, power source, connectivity, and region.
Based on storage device, the market has been further segmented into lead acid, flywheels, lithium-ion, flow battery, and others. Continuous advancements in storage technologies are expected to boost the growth of the lead acid segment through the analysis timeframe. The flywheels market size is set to progress at a rate of more than 23% by 2030. The others segment is anticipated to exceed a valuation of $3 billion by 2030.
On the basis of application, the microgrid market has been categorized into educational institutes, utility, remote, healthcare, military, industrial/commercial, and others. The military segment is poised to grow steadily over 2022-2030 on account of mounting demand for reliable and efficient electricity generation systems.
The utility segment is likely to witness substantial growth at a CAGR of approximately 21% over the review timeline. The remote segment is speculated to reach around $28 billion in revenue by the end of 2030. In 2021, the others segment surpassed $500 million in revenue and is foreseen to observe notable expansion through the study timespan.
In the context of power source, the market has been divided into natural gas, CHP, diesel generators, solar PV, and others. Among these, the CHP segment is estimated to grow at a rate of above 20% over the assessment period. The others segment was valued at over $1.1 billion in 2021.
In the regional context, the Middle East & Africa microgrid market is expected to register sizable gains in the upcoming time period owing to favorable norms and policies to promote renewable energy integration in the MEA region. Meanwhile, the Latin America microgrid industry is projected to exhibit steady expansion to attain a valuation of roughly $4 billion by the end of 2030.