Microgrid Technology Market Size, Share, Growth, and Industry Analysis, By Type (Grid-Tied Type Microgrid, Independent Type Microgrid and Others), By Application (Commercial/Industrial, Community/Utility, Campus/Institutional, Military, Remote and Others), Regional Forecast From 2023 To 2030

Updated On: 11 September 2023

MICROGRID TECHNOLOGY MARKET REPORT OVERVIEW

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The global microgrid technology market size was USD 19.59 billion in 2021 and the market is projected to touch USD 49.22 billion by 2028, exhibiting a compound annual growth rate (CAGR) of 13.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the microgrid technology market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

A microgrid is a local electrical grid with clearly defined electrical boundaries that operates as a single, controllable unit. It can function in both grid-connected and island modes. Standalone microgrid' or 'isolated microgrid' works only off-grid and cannot be linked to a larger electric power supply. A standalone microgrid features its own forms of energy, which are augmented by an energy storage system. They are utilised in situations where electricity distribution and transmission from a major centralised source of energy is too far and expensive to operate. They provide a rural electrification alternative in isolated places and on relatively confined islands. A standalone microgrid may successfully combine multiple distributed generation (DG) sources, particularly renewable energy sources (RES).

COVID-19 Impact: COVID-19s Underlying Condition Crippled the Market Growth

Since December 2019, the COVID-19 virus has spread to about numerous nations. The World Health Organization proclaimed it to be a public health emergency. The COVID-19 is already having an influence on the world and have a major impact on the technology market growth. The scarcity and lack of availability of skilled personnel and professionals to operate the technology affected the growth rate of the market. In addition to the shutdown of the manufacturing units also affected the market share negatively.

 LATEST TRENDS

"North American Commercial and industrial (C&I) Microgrids to Boost Market Growth"

These microgrids are rapidly maturing in North America and Eastern Asia; yet, the paucity of well-known standards for them hinders their global adoption. The primary reasons for installing an industrial microgrid are power supply security and reliability. There are several manufacturing processes where a power outage can result in significant revenue losses and a lengthy start-up time. Industrial microgrids can be constructed to offer (near-) zero-emission industrial processes and can incorporate combined heat and power (CHP) generation fueled for both renewable power and waste processing; energy storage can also be employed to optimize the operations of various subsystems.

MICROGRID TECHNOLOGY MARKET SEGMENTATION

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• By Type

Based on type the market is classified as grid-tied type microgrid, independent type microgrid and others.

• By Application

Based on application the market is classified as commercial/industrial, community/utility, campus/institutional, military, remote and others.

DRIVING FACTORS

"Government Initiatives and the Development of Smart Cities to Attract the Market Share"

Many Asian countries are looking for more microgrid installations due to rising power demand and governments' drive to include renewable into the power generation mix. In many nations, the most promising options for the industry are innovation-driven undertakings and funding feasibility studies. Microgrids have gone beyond independent power generation to include high-speed control platforms and forecasting systems, making them more sophisticated. Several national and international forums are battling over several elements, such as cost and finance difficulties, in order to build the industry.

"Remote Off-grid Communities Systems to Witnesss Surplus Growth in Market"

Requirement for off-grid power systems has grown in many areas of the world, notably in industries such as defence, commercial buildings, data centers, and universities. Community microgrids can service thousands of users and help local energy penetration (heating, electricity, and cooling). Some residences in the community grid may have a few renewable sources that really can satisfy their consumption as well as the need of their neighbors in the same community. The community microgrid may also include a centralised or distributed energy storage system. These grids can take the shape of an alternating current and direct current microgrid linked together via a bi-directional power electronic converter. According to the US Department of Energy, the installed capacity of off-grid microgrids was roughly 4225 MW as of 2021. (4.2GW). The country has planned many off-grid microgrid projects to be installed in cities and various strategic locations to make the efficiency of energy more resilient.

RESTRAINING FACTORS

"Uncertainty in the Speed of the Aircraft to Restrain the Market from Product Utilization"

The operation of these grids requires dealing with a great deal of uncertainty, which is essential for the economical and reliable operation of microgrids. Load profile and weather are two factors that complicate coordination in isolated microgrids, where the crucial demand-supply balance and often higher component failure rates necessitate addressing a closely coupled problem over a long time horizon. Because of the smaller number of loads and closely correlated variations in available energy resources, this uncertainty is higher than in bulk power systems.

MICROGRID TECHNOLOGY MARKET REGIONAL INSIGHTS

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"North American region to Lead the Market With Presence of Prominent Manufacturers"

The North American region has the largest microgrid technology market share, with almost half share of production by North America globally. The market growth is enhanced corresponding to the factors such as implementation and developments of advanced technology in verticals including power generation, electronics, information technology and other sectors. The increment in the demand of rising power generation, IT and many more sectors in the North American region results in stimulating the microgrid technology market growth.

KEY INDUSTRY PLAYERS

"Prominent Manufacturers to Contribute Towards Expansion of Market"

The report is an extensive research which presents the historic and futuristic performance of industry with competitive landscape analysis which incorporates prominent key players, and revenue trends of industry. The report provides substantial analysis of company profiling, growth insights, supply-demand chain, production and consumption demand, business expansion strategies adopted by top key players. The information is a collusion of latest technological developments, trends, production lines mergers and acquisitions, market study and other factors.

List of Market Players Profiled

• ABB (Switzerland)
• GE (U.S.A)
• Echelon (U.S.A)
• S&C Electric (U.S.A)
• Siemens (Germany)
• General Microgrids (U.S.A)
• Microgrid Solar (U.S.A)
• Raytheon (U.S.A)
• Sunverge Energy (U.S.A)
• Toshiba (Japan)
• NEC (Japan)
• Aquion Energy (U.S.A)
• EnStorage (Israel).

INDUSTRY DEVELOPMENT

• November 2021: The Los Angeles Department of Transportation developed a new microgrid technology initiative for EV electrification. The microgrid, which will be powered by solar and storage, will serve as the fleet's charging station. The California Energy Commission awarded Proterra Energy a USD 6 million grant to develop the project. It is planned to generate approximately 7.5 MW of power.
• June 2020: Sri Lanka Electricity Company Ltd (LECO) inked a contract with Dimo and DHYBRID GmbH to build the country's first national grid-connected renewable energy-based microgrid technology at the University of Moratuwa. The Asian Development Bank (ADB) is funding the project, which would usher in a new approach in the domain of distributed power generation in Sri Lanka.

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the segmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Analysis of sales, the impact of the market players,  recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.