Modular Microgrids Market Size, Share, Growth and Industry Analysis, By Type (Hardware System and Software System), By Application (Remote, Commercial and Industrial, Utility Distribution, Institutional and Military, Community and Other), Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 April 2024

Modular Microgrids Market Report Overview

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The global modular microgrids market size was USD 1799.4 million in 2022 and is projected to touch USD 3973.18 million by 2031, at a CAGR of 9.2% during the forecast period.

According to the U.S. Department of Energy Microgrid Exchange Group, a microgrid is a collection of interlinked loads and distributed energy resources that operates as a single, controllable entity with respect to the grid and is contained within well-defined electrical borders. In required to function in both grid-connected and island mode, a microgrid can interconnect to and disengage from the grid.

COVID-19 Impact: Economic Uncertainty and Poor Consumer Confidence Resulted in the Negative Impact on the Microgrids Sector

The global COVID-19 pandemic has been unprecedented and staggering; with the modular microgrids market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Due to the tight lockdowns and social segregation used to stop the COVID-19 breakout, the modular microgrids market suffered. The market for modular microgrids was influenced by economic uncertainty, a partial corporate shutdown, and poor consumer confidence. The epidemic caused delays in logistical operations, which in turn affected the supply chain. However, due to the relaxation of the constraints, the microgrids industry is anticipated to pick up steam in the post-pandemic environment.

LATEST TRENDS

"Collaboration by Power Management Company to Utilize Renewable Sources of Electricity to Power Production"

Plans for a second collaborative microgrid project in Puerto Rico were announced by power management company Eaton and Enel X, the Enel Group's innovative energy services business division, in October 2021. By taking these actions, Eaton will be able to utilize additional renewable sources of electricity to power its production and improve the energy resilience of its operations while also reducing the burden on the regional energy infrastructure.

Modular Microgrids Market Segmentation

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• By Type

Based on type, the market is distributed into Hardware System and Software System

• By Application

Based on application, the market is divided into Remote, Commercial and Industrial, Utility Distribution, Institutional and Military, Community and Other

DRIVING FACTORS

"Instant Benefits Offered by the Microgrids Makes the Initial Setup Easy and Future Growth Less Difficult and Expensive"

A group of dispersed technologies known as a modular microgrid can produce and distribute electrical load either simultaneously or independently from a centralized grid. Microgrids, which frequently run on solar energy, are becoming more and more plug-and-play. This means that if a component stops working, it can be changed separately from the system, saving money on maintenance. Additionally, this makes initial setup and future growth less difficult and expensive. A modular microgrid can therefore offer instant benefits.

"Helps in Saving a Lifetime of Work and Maintains Crucial Facility Operations Therefore these Microgrids are Frequently Built by Universities and Institutions"

In the United States, schools and institutions were early users of modular microgrid technology. That's because microgrids offer a campus consistent, reasonably priced power around-the-clock. By serving as a shelter in the event of a power outage, this maintains crucial facilities operational to serve the campus and larger community. Because university research labs frequently use temperature-sensitive specimens, modular microgrids are especially crucial to these facilities. Power interruptions may cost them a lifetime of work and millions of dollars. To assist in achieving their climate change objectives, these organizations frequently build microgrids. The modular microgrids can also be applied in training courses for students interested in careers in the energy sector.

RESTRAINING FACTORS

"Operation Related Issues and Uncertain State Rules Act as Barriers in the Development of Microgrids"

The modular microgrids' ability to operate in an isolated mode presents one of the biggest operational challenges they confront. Microgrids must maintain stability while operating with the assistance of dispersed energy supplies. When there is an excess or a shortage of electricity, microgrids typically experience instability. A generator could trip off due to an excess of electricity, cutting off the microgrid's power source. On the contrary hand, a lack of electricity might cause equipment to malfunction. Another barrier to the microgrid industry is the absence of a clear regulatory policy framework. Uncertain state rules are a significant barrier to the development of  the modular microgrids market growth.

Modular Microgrids Market Regional Insights

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"Extension of Traditional Energy Grids and Rising Rural Electrification Initiatives is Supporting the Market Expansion in Asia Pacific"

For modular microgrid systems during the anticipated time, Asia Pacific will be the largest market. The demand for electricity in the Asia Pacific area is rising faster than the capacity of conventional electrical networks, which is raising the use of modular microgrids even more. Modular microgrids market share for the Asia Pacific's economic growth is expected to be fueled by the extension of traditional energy grids, major investment in electrification projects, and the moderating and upgrading of current electric networks. The expansion of the regional market for modular microgrids has been aided by rising rural electrification initiatives in developing countries like Bangladesh and India. Additionally anticipated to support market expansion are the region's major leading businesses and the region's regulatory framework.

KEY INDUSTRY PLAYERS

"Major Players are Investing in R&D and Growth Tactics to Stay Ahead of their Competitors in the Market"

The key competitors in the modular microgrids industry are employing a variety of growth strategies. To improve the use of their products, they are heavily investing in product R&D. To broaden their market and geographic reach, they are offering new cutting-edge products, product developments, and organic as well as inorganic growth tactics. Additionally, they are working on ways to better understand the demands of their clients and meet all of their wants in order to capture a larger market share. To keep ahead of their rivals in the market, the competitors are using all of these strategies in addition to others.

List of Market Players Profiled

• ABB-Hitachi (Switzerland)
• Schneider Electric (France)
• PowerSecure (U.S.)
• GE Grid Solutions (France)
• Siemens (Germany)
• Eaton (U.S.)
• Schweitzer Engineering Laboratories (U.S.)
• Bloom Energy (U.S.)
• SMA Solar Technology (Germany)
• Gridscape (U.S.)
• SimpliPhi Power (U.S.)
• Scale Microgrid Solutions (U.S.)
• Gham Power (India)
• BoxPower (U.S.0

REPORT COVERAGE

This report covers the modular microgrids market. The CAGR expected to be in during the forecast period, and also the USD value in 2022 and what it is expected to be in 2028. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.