Northbrook, IL 60062 -- (SBWire) -- 12/13/2023 --The global microgrid market size is estimated to be USD 31.5 billion in 2023 and is projected to reach USD 79.0 billion by 2028, at a CAGR of 20.1% during the forecast period.
Some of the major factors contributing to the growth of the microgrid market include the increasing digitalization and smart grid integration, increasing usage of microgrids across various end-user industries, rising instances of cyberattacks on energy infrastructures, and the surging demand to electrify rural areas.
The rapid expansion of electric vehicle (EV) charging infrastructure is spurring a heightened demand for microgrids. The growing adoption of EVs results in a substantial surge in electricity consumption, particularly in areas housing multiple charging stations.
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Grid-connected microgrid to lead the microgrid market during the forecast period.
Grid Connected microgrids have access to the main power grid, which provides a backup in case of a disruption to the microgrid's own power generation or distribution system. This makes them more reliable than off-grid microgrids, which are not connected to the main grid and must rely on their own power generation and distribution systems. Grid Connected microgrids are typically less expensive to install and operate than off-grid microgrids. This is because they can take advantage of the existing power grid infrastructure, which can save on costs for transmission lines and substations. Grid Connected microgrids can also help to improve the reliability of the main power grid, reduce greenhouse gas emissions, and improve energy efficiency. These factors have all contributed to the greater market share of grid-connected microgrids.
Hardware segment to account for the largest market share during the forecasting period.
The hardware components of microgrids consist of power generators, energy storage systems, and controllers. The hardware segment of the microgrid market is experiencing growth due to various factors. These factors include the rise in the number of microgrid projects globally, the decreasing costs of energy storage, and the increasing government initiatives to promote clean energy and reduce greenhouse gas emissions. Microgrids utilize diverse energy sources, including renewable sources like solar, wind, and photovoltaic cells, as well as non-renewable sources such as fuel cells, diesel generators, combined heat and power (CHP) systems, micro-CHP systems, and microturbines.
Commercial & Industrial end users to grow at the highest CAGR during the forecast period.
The commercial and industrial microgrid market is projected to exhibit the highest CAGR during the forecast period. This growth can be attributed to the need for a reliable power supply to ensure uninterrupted operations in various industries. Maintaining a smooth and continuous power flow helps minimize downtime, boost productivity, and prevent equipment damage. As a result, the commercial and industrial sectors are increasingly adopting microgrid solutions to meet their power demands. Furthermore, government initiatives aimed at encouraging the adoption of clean energy and reducing greenhouse gas (GHG) emissions are also driving the growth of the microgrid market in commercial and industrial settings. These initiatives incentivize and support businesses to implement sustainable energy solutions, including microgrids. By embracing clean energy alternatives, companies can align with environmental goals, comply with regulations, and contribute to a greener future.
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Asia Pacific to grow at the highest CAGR during the forecast period.
The Asia-Pacific microgrid market is expected to grow significantly in the coming years. This growth is driven by several factors, including the increasing demand for reliable and resilient power supply, the growing focus on renewable energy, the increasing penetration of smart grids, and supportive government policies. The Asia-Pacific region is home to many countries prone to natural disasters, such as typhoons and earthquakes. Microgrids can provide a reliable and resilient power supply in the event of a disaster. Additionally, the region is one of the leading regions in terms of the adoption of renewable energy.
Key Market Players
Schneider Electric (France), Siemens (Germany), General Electric (US), Eaton (US), and ABB (Switzerland) are among the major players in the microgrid companies.
Microgrid Market Size, Share, Growth Analysis and Trends 2028