NEW
YORK, July 15, 2024 /PRNewswire/ -- The
global microgrid market size is estimated to grow by
USD 32.84 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 15.12% during the forecast period. Need
for resilience is driving market growth, with a trend
towards rapid advances in technology. However, high
implementation costs poses a challenge. Key market players
include ABB Ltd., Anbaric Development Partners LLC, Canopy Power,
Eaton Corp. Plc, Emerson Electric Co., Exelon Corp., General
Electric Co., General MicroGrids, Gram Power (India) Pvt. Ltd., Honeywell International
Inc., Pareto Energy, Power Analytics Global Corp., Powerhive Inc.,
S and C Electric Co., Schneider Electric SE, Siemens AG, Spirae
LLC, Tesla Inc., TotalEnergies SE, and UL Solutions Inc..
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Microgrid Market
Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
15.12%
|
Market growth
2024-2028
|
USD 32848.9
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
12.81
|
Regional
analysis
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
North America at
28%
|
Key
countries
|
US, China, Russia,
Germany, and Australia
|
Key companies
profiled
|
ABB Ltd., Anbaric
Development Partners LLC, Canopy Power, Eaton Corp. Plc, Emerson
Electric Co., Exelon Corp., General Electric Co., General
MicroGrids, Gram Power (India) Pvt. Ltd., Honeywell International
Inc., Pareto Energy, Power Analytics Global Corp., Powerhive Inc.,
S and C Electric Co., Schneider Electric SE, Siemens AG, Spirae
LLC, Tesla Inc., TotalEnergies SE, and UL Solutions Inc.
|
Market Driver
The electricity utility business is undergoing significant
transformations with microgrids emerging as the new foundation of
the electricity sector. Advancements in compact energy storage
systems, advanced control systems, and efficient renewable power
generation sources are enabling the creation of energy resources
closer to consumers without compromising energy quality. The
declining cost of power generation is driving the adoption of
decentralized power systems like microgrids, which is
expected to increase their popularity among consumers. Blockchain
technology, known for its association with bitcoins, is being
integrated into microgrid systems for peer-to-peer energy trading.
For instance, Brooklyn Microgrid's blockchain-based peer-to-peer
energy trading system approved a 12-month pilot program in early
2020, allowing locals to buy and sell solar energy within the
New York City region. This
initiative empowers individuals with surplus energy to earn income,
revolutionizing the microgrid industry. Current microgrid systems
utilize several power electronic devices and energy sources while
connected to the grid or in island mode. The US Department of
Energy (DOE) has designated R&D programs to develop
next-generation microgrids with a capacity of less than 10 MW,
capable of reducing outage time by more than 98%, reducing
emissions by over 20%, and improving system efficiency by more than
20%. The USD425 million allocated to
the Advanced Research Projects Agency-Energy, USD2,848 million to the Energy Efficiency and
Renewable Energy, USD750 million to
Fossil Energy's R&D programs, and USD190
million to the Office of Electricity are expected to foster
new technologies, enabling microgrids to work in parallel with
utility distribution grids and transition seamlessly to an
autonomous power system mode. These technological advancements will
accelerate microgrid adoption and potentially disrupt the
traditional power sector. Collaboration between utilities on
microgrid projects is also anticipated due to these developments.
Consequently, these factors are projected to fuel the growth of the
global microgrid market during the forecast period.
Microgrids are becoming a significant trend in the electric
system, offering reliable electricity supply through renewable
resources like wind, solar, and hydrogen. Smart microgrids are
gaining popularity as power sources for regional electric grids,
with prototypes using wind turbines, solar PV, and fuel cells.
Hydraulic fracturing technology and diesel gensets are still used,
but the shift is towards hybrid technology and distributed energy
resources. Defense microgrids ensure energy security for defense
bases and remote installations, including healthcare facilities and
residential infrastructure. Energy storage systems reduce
transmission losses and provide backup power for data centers,
lighting, electronic goods, and public infrastructure like
streetlights and traffic signals. The shift to microgrids reduces
carbon footprint and decreases dependence on traditional fuel
sources like diesel and fossil fuels.
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Market Challenges
• Microgrids
represent a complex and costly power generation solution, involving
advanced technologies for power generation resources, distribution
infrastructure, and control systems. These components are
categorized as infrastructure, generation, and controls. The cost
of building a microgrid varies significantly, ranging from
USD250,000 to USD100 million, depending on the specific
customer requirements. Integration with additional technologies to
ensure platform functionality increases equipment production costs.
In the US, microgrids must adhere to mandatory standards like IEEE
1547 and 2030 for interaction with local utility distribution grids
and their energy management systems (EMS), distribution management
systems (DMS), and supervisory control and data acquisition (SCADA)
systems. The high cost of microgrid components is a significant
challenge for the global microgrid market's growth.
• Microgrids
offer a solution to various challenges in the power sector,
including rural electrification, grid instability, and
urbanization. In remote areas, microgrids can provide reliable
electricity using solar-powered water pumps and energy-efficient
technologies. Grid resiliency is improved through the use of local
energy communities, grid-connected assets, and sophisticated
controllers. Microgrid project implementation requires system
engineers, monitoring systems, and a microgrid financing scheme.
Hybrid microgrids can combine generators like CHP systems, natural
gas, diesel, and energy storage devices. Grid-connected
connectivity ensures power quality and grid infrastructure
stability. Remote energy management and smart control solutions
enable efficient distribution networks and fuel consumption
solutions. Microgrid topologies and micro-sources vary, with hybrid
networks offering the greatest flexibility. Power producers and
energy storage devices play crucial roles in this growing
market.
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Segment Overview
This microgrid market report extensively covers market
segmentation by
- Application
- 1.1 Remote
- 1.2 Institutions and campus
- 1.3 Military
- 1.4 Others
- Connectivity
- 2.1 Grid connected
- 2.2 Off-grid connected
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Remote- Remote microgrids have become
essential in villages and regions where grid-connected power is
unavailable or intermittent. The average capacity of these
microgrids ranges from 10 kW. Prospective markets include
India, Indonesia, Bangladesh, and several African and Southeast
Asian countries. Diesel generators remain a significant component
of remote microgrids, but the declining cost of solar panels and
advancements in energy storage are enabling clean energy microgrids
to reach areas where grid investments are not feasible. Energy
storage systems are added to microgrids to reduce fuel costs, meet
peak loads, and improve diesel generator efficiency. The increasing
demand for electricity in remote areas, outpacing the expansion
rate of conventional grids, is driving the deployment of remote
microgrids. These systems are self-sustaining and not connected to
grids, employing standalone power sources such as diesel
generators, solar, and wind energy. Energy storage systems store
excess solar and wind energy, providing continuous and reliable
power. Remote microgrids offer ancillary services, including
frequency and load regulation, which benefit utilities by
increasing the integration of renewable energy sources into the
grid, fueling their growth during the forecast period.
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geographical analysis including forecast (2024-2028) and historic
data (2017-2021) - Download a Sample Report
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reports
The global Microgrid as a Service (MaaS) market is experiencing
robust growth driven by increasing demand for energy security and
sustainability. MaaS provides scalable and flexible energy
solutions, enhancing grid reliability and resilience. Key players
are innovating to offer comprehensive services, including design,
implementation, and maintenance.
Similarly, the global Energy Storage market is expanding rapidly
due to the rising adoption of renewable energy sources. Energy
storage systems are crucial for balancing supply and demand,
improving grid stability, and reducing energy costs. Advances in
battery technology are significantly driving market growth.
Research Analysis
Microgrids are local electric systems that can operate
independently or in parallel with the main power grid, supplying
electricity to a local community or organization. They are becoming
increasingly popular as the integration of renewable resources into
electric grids grows. Microgrids utilize various power generation
sources, including wind energy, solar energy, hydrogen, fuel cells,
and battery storage systems. They can also include dispersed energy
resources such as microturbines, wind turbine generators, solar
generators, and energy storage. Microgrids can be designed with
various topologies, including hybrid microgrid networks, to manage
peak loads and electrical networks more efficiently. Smart
microgrids can link loads and micro-sources to optimize energy
usage and ensure a reliable electricity supply. Solar PV and other
renewable resources play a significant role in microgrid power
generation, while energy storage solutions help manage fluctuations
in supply and demand. Off-grid microgrids provide electricity to
remote areas not connected to the main power grid.
Market Research Overview
The microgrid market encompasses the development,
implementation, and operation of electric systems that can operate
independently or in parallel with the main power grid. These
electric systems utilize renewable resources such as wind, solar,
hydrogen, and others as power sources. Microgrids offer energy
security and resilience, particularly in remote locations and
defense applications. Smart microgrids use sophisticated
controllers and monitoring systems to optimize energy usage and
ensure grid stability. Fuel cells and battery storage systems
provide backup power and energy storage capabilities. Microgrids
can also be integrated with distributed energy resources like solar
panels, wind turbines, and hydropower generators. The market
includes various grid projects, from small-scale residential
infrastructure to large-scale defense bases and data centers.
Microgrids can reduce carbon footprint by utilizing renewable
energy sources and energy-efficient technologies. The market also
includes grid infrastructure development projects, rural
electrification, and urbanization initiatives. Microgrids can help
mitigate grid instability and congestion, making them an essential
component of modern energy systems.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Remote
- Institutions And Campus
- Military
- Others
- Connectivity
-
- Grid Connected
- Off-grid Connected
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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