Global Microgrid Market Insights Forecasts to 2032

• The Global Microgrid Market Size was valued at USD 53.9 billion in 2022.
• The Market is growing at a CAGR of 16.3% from 2022 to 2032.
• The worldwide Microgrid Market size is expected to reach USD 245.5 billion by 2032.
• Asia Pacific is expected to grow the fastest during the forecast period.

 

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The Global Microgrid Market Size is expected to reach USD 245.5 billion by 2032, at a CAGR of 16.3% during the forecast period 2022 to 2032.

 

Market Overview

A microgrid is a small-scale electric system that may deliver power in parallel or isolation from larger power networks. Microgrids are a managed network of interconnected charges with a combination of technologies such as power generation, transmission, and distribution. A smart microgrid can operate when connected to the primary grid; otherwise, it functions as an electrical island. Renewable resources are utilized to their maximum potential, efficiency is increased, and long-term energy costs are predictable by reducing harmful emissions. The trend toward more localized and distributed generation for increased reliability, resiliency, and energy in cities, communities, and campuses is expected to have a significant impact on market growth. These electrical distribution services are used to increase local resiliency and maintain the operation and stability of the regional electric grid. Microgrids are systems that transmit, distribute, and manage the flow of electricity to end customers. Microgrids generate energy for use in smaller community-based systems by using renewables such as solar PV and wind turbines. These clean energies are used with microgrids to reduce carbon footprint, hence increasing microgrid usage and propelling the sector.

 

Report Coverage

This research report categorizes the global microgrid market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global microgrid market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global microgrid market. Technological innovation and advancement will further optimize the performance of the product, enabling it to acquire a wider range of applications in the downstream market.

 

Driving Factors

The adoption of microgrids is being boosted by the continuous demand for electricity in the healthcare and military industries. The rising power outage in cities and rural areas may cause significant harm to a variety of facilities, including hospitals and military bases, by disrupting power supplies. Many items in hospitals require energy, such as lights, heating, and cooling, as well as electricity for life support systems such as dialysis and ventilator equipment, oxygen monitoring meters, and others. Also, the increasing government support and surge in microgrid project implementation are elements driving the market for rural electrification microgrids. The installation of solar-powered water pumps and microgrids in rural India would be performed through a partnership announced in April 2021 between Tata Power and the Indian government's e-governance services division, CSC. Furthermore, the advances in renewable energy technology are also predicted to drive the market throughout the forecast period. Microgrids can easily generate power from renewable energy sources. Furthermore, because they produce almost no carbon emissions and have efficiency and economic advantages, renewable energy sources are increasingly being utilized in microgrids.

 

Restraining Factors

Building a new microgrid or converting an existing system to a hybrid system can cost thousands if not hundreds of millions of dollars. Batteries, solar photovoltaic collectors, and combined heat and power systems are the most expensive generation assets. Furthermore, significant money is required for grid automation and control systems that can intelligently monitor and manage all components, effectively controlling microgrid electricity. Although these systems can store and convert energy and increase reliability and power quality over traditional grids, the costs remain prohibitively high. This element is limiting the market's expansion. Microgrid investments are considered high risk due to a lack of long-term track records, challenges in anticipating and rising community energy demand over time, and the unique characteristics of each community and project. All of these factors restrain the market expansion.

 

Market Segmentation

• In 2022, the Combined Heat and Power (CHP) segment is influencing the market with the largest market share over the forecast period.

On the basis of power source, the global microgrid market is segmented into factors such as, diesel generators, natural gas, solar PV, and CHP. Among these segments, The Combined Heat and Power (CHP) power source category dominated the global market, accounting for more than 36.0% of the total revenue share in 2022. The shift from traditional Separate Heat and Power (SHP) systems to energy generation from a single fuel is likely to have a significant impact on segment growth.

 

• In 2022, the 50 MW segment is dominating the largest market growth during the forecast period.

Based on the capacity, the global microgrid market is classified into different segments such as Less than 5 MW, 5 MW - 10 MW, 10 MW - 20 MW, 20 MW - 50 MW, and Above 50 MW. the 50 MW category has a leading market share due to the low electrification rate of grid connectivity relative to the other capacity segments. The components utilized in every system, regardless of capacity, are the same, for example, solar panel, charge controller, and battery, which may absorb more charge and result in the long run. The segments 10 MW-20 MW and 20 MW-50 MW are also referred to as medium-scale capacity. The growing need for advanced technology in power generation and distribution has increased demand for 10 MW- 20 MW and 20 MW-50 MW capacity segments. Another factor driving demand for medium-scale plants is the ease of access to components such as panels, inverters, and others.

 

• In 2022, the educational institutes segment is dominating the largest market share of 37% during the forecast period.

On the basis of application, the global microgrid market is bifurcated into educational institute, remote areas, military, utility distribution, commercial & industrial, and others. Among these segments, the education application category dominated the global market, accounting for more than 37.0% of the total revenue share in 2022. Rising government investment in education infrastructure improvement to provide school education in rural areas in developing countries such as China and India are expected to have a favorable impact. Extensive power supply requirements for providing lighting, Heat Ventilation Air Conditioning (HVAC), and the operation of electronic items in hospitals, corporate offices, and retail outlets are expected to have a significant influence.

 

Regional Segment Analysis of the microgrid market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

North America held the market with the largest market share of 35.2% over the forecast period

 

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North America is led significant market growth over the forecast period due to the rapid adoption of captive power-generating methods in the industrial and municipal sectors of the United States to reduce dependency on the government-controlled power supply is predicted to have a significant impact. The presence of numerous microgrid companies and government programs, such as the Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS) program, have boosted market interest in the area.

 

Asia Pacific is projected to witness a significant growth rate during the forecast period, due to the favorable outlook for the manufacturing and construction industries in major economies such as China and India, as well as legislative support for supporting domestic investments, are projected to be major driving drivers. Furthermore, governments in Asia-Pacific countries want to boost distributed energy generation and microgrids to provide electricity to their citizens.

 

Competitive Analysis

The report offers the appropriate analysis of the key organizations/companies involved within the global microgrid market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Lockheed Martin Corporation
• ZBB Energy Corporation
• ABB Ltd.
• GE Digital Energy
• Power Analytics Corporation
• Consert Inc.
• Viridity Energy Inc.
• S&C Electric Company
• Chevron Energy
• Toshiba Corporation
• HOMER Energy LLC
• Honeywell International Inc.
• Microgrid Energy LLC
• Siemens

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Development

• In May 2022, Siemens developed a grid software suite to manage the complexity of grid networks. Siemens Smart Infrastructure has developed a software suite that is open and adaptable.

 

• In May 2022, Tangent Energy Solutions, a provider of energy as a service (EaaS), was acquired by Caterpillar, allowing Caterpillar to cooperate directly with utilities and energy providers. Tangent Energy's in-house software is a DERMS platform that controls, monitors, and profits from onsite energy assets such as microgrids, natural gas power, and renewable energy storage.

 

• In November 2021, The Los Angeles Department of Transportation is working on a new microgrid project to help with EV electrification. The microgrid, which will be powered by solar and storage, will function as a charging station for the fleet. Proterra Energy received a USD 6 million grant from the California Energy Commission to develop the project. It is projected to produce roughly 7.5 MW of power.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2022 to 2032. Spherical Insights has segmented the Global Microgrid Market based on the below-mentioned segments:

 

Global Microgrid Market, By Power Source

• Diesel Generators
• Natural Gas
• Solar PV
• CHP

 

Global Microgrid Market, By Capacity

• Less than 5 MW
• 5 MW - 10 MW
• 10 MW - 20 MW
• 20 MW - 50 MW
• Above 50 MW

 

Global Microgrid Market, By Application

• Educational Institutes
• Remote Areas
• Military
• Utility Distribution
• Commercial & Industrial
• Others

 

Microgrid Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico

• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa