Dublin, Aug. 09, 2022 (GLOBE NEWSWIRE) -- The "Microgrid Market by Connectivity (Grid-connected, Off-grid), Offering (Power Generators, Controllers, Energy Storage, Software, Services), End User (Commercial & Industrial, Military, Utilities), Type, Power Rating & Geography - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The global microgrid market size is estimated to be USD 26.9 billion in 2022 and is projected to reach USD 63.2 billion by 2027, at a CAGR of 18.6%
Some of the major factors contributing to the growth of microgrid market includes the increasing number of microgrid projects across different industries, surging energy demand and adoption of renewable energy in Asia Pacific, growing interest of investors in EaaS business model to minimize costs, and rising encouragement from governments for developing microgrid projects.
Grid-connected microgrids accounted for larger share, due to expansion of utility-based grid networks and use of renewable sources
The grid connected segment likely to hold largest market share and expected to grow at the highest CAGR during the forecast period. Grid-connected microgrids are physically connected to the utility grid via a switching mechanism at the point of common coupling (PCC), but they can also disconnect into island mode and reconnect to the main grid when required.
Grid-connected microgrids contain multiple generators, distribution systems, and sophisticated controls. Furthermore, these technologies enhance grid resiliency, enhance power quality, and reduce their environmental effects, in addition to improving grid reliability. This results in an increase in demand.
Microgrid software market likely to witness higher growth between 2022 and 2027
The microgrid software market is projected to record the highest growth rate during the forecast period. Software used in microgrids established in remote locations allows microgrid operators to dynamically manage and control distributed energy resources with integrated weather and load forecasting.
The hosted software services used by microgrids eliminate the requirement for onsite hosting of the IT infrastructures. This is expected to drive the growth of the microgrid software market in the near future.
The power generators for microgrid hardware segment likely to witness highest market share between 2022 and 2027
The power generators segment held the largest size of the microgrid hardware market in 2021 and expected to dominate the microgrid hardware segment during the forecast period.
The use of renewable sources of energy such as PV cells, wind turbines, and hydro turbines for power generation is one of the prominent factors contributing to the growth of the microgrid hardware market globally. Other advantages of integrating renewable sources of energy with microgrids are reduced emissions of greenhouse gases and lowered dependency on local or imported fuels.
Americas likely to be the largest market during the forecast period between 2022 and 2027.
The microgrid market in the Americas has been studied for North America and South America. North America accounted for ~70% share in the overall Americas microgrid market in 2021. Countries such as US, and Canada have formulated number of policies to enhance the establishment of microgrids.
The US is leading the microgrid market in Americas. The US and Canadian governments are initiating several funding programs and investments to expand decentralized grids; this is supporting the adoption and development of microgrids in these countries. An increase in the adoption of renewable sources of energy for electricity generation and the flexibility of microgrids in terms of using multiple power sources for electricity generation are also driving the growth of the microgrid market in the region.
Competitive landscape
Schneider Electric (France), General Electric (US), Siemens (Germany), Eaton Corporation (US), ABB (Switzerland), Hitachi Energy (Switzerland), Honeywell International Inc. (US), HOMER Energy (US), S&C Electric (US), Power Analytics (US) are the key players in the microgrid market. These top players have strong portfolios of products and services and a presence in both mature and emerging markets.
Premium Insights
- Increasing Demand for Uninterrupted and Reliable Power Supply Driving Microgrid Market
- Hardware to Hold Largest Share of Microgrid Market in 2022 and 2027
- Power Generators to Account for Largest Size of Microgrid Hardware Market from 2022 to 2027
- Grid-Connected Microgrids to Account for Larger Share of Market from 2022 to 2027
- Microgrids with Power Ratings from 1 Mw to 5 Mw Are Likely to Account for Largest Market Size from 2022 to 2027
- Commercial & Industrial to Account for Largest Size of Microgrid Market from 2022 to 2027
Market Dynamics
Drivers
- Increasing Emphasis on Decarbonization by End-users and Governments
- Growing Need for Reliable, Uninterrupted Power Supply
- Surging Use of Microgrids for Rural Electrification
- Rising Instances of Cyberattacks on Energy Infrastructure
Restraints
- Huge Installation and Maintenance Costs of Microgrids
Opportunities
- Increasing Number of Microgrid Projects Across Different Industries
- Surging Energy Demand and Adoption of Renewable Energy in Asia-Pacific
- Growing Interest of Investors in Eaas Business Model to Minimize Costs
- Rising Encouragement from Governments for Developing Microgrid Projects
Challenges
- Lack of Standardization and Regulatory Frameworks Related to Microgrid Operations
- Technical Challenges of Microgrids Operating in Island Mode
Value Chain Analysis
- Microgrid Market Ecosystem
Pricing Analysis
- Analysis and Trend of Average Microgrid Cost
- Trends/Disruptions Impacting Customer's Business
Key Technology Trends
- Blockchain-Based Microgrids/Blockchain Microgrids
- Smart Microgrids
- Advent of Ai-Based Microgrids
Porter's Five Forces Analysis
Case Studies: Microgrid Market
- GE Provided Campus-Based Microgrid System to University of Ontario Institute of Technology (Canada)
- GE Provided Systems Offering Resilient, Reliable Power for Navy Shipyard Project in Philadelphia (US)
- Solar One Energy Used Homer Grid to Model Energy Costs for Ace Natural
- S&C Electric Supplied Services for Half Moon Ventures' Project
- Ergon Energy Partnered with S&C Electric Company
Company Profiles
Key Players
- Schneider Electric
- Siemens
- General Electric
- Eaton Corporation
- ABB
- Hitachi Energy
- Honeywell International Inc.
- Homer Energy (Part of Ul)
- S&C Electric Company
- Power Analytics Corporation
Other Players
- Caterpillar Inc.
- Tesla Energy (Subsidiary of Tesla)
- Emerson Electric
- Pareto Energy
- Anbaric Transmission
- Exelon Corporation
- Spirae LLC
- General Microgrids
- Gram Power Inc.
- Powerhive
- Advanced Microgrid Solutions
- Go Electric
- Ferroamp
- Canopy Power
- Green Energy Corp
For more information about this report visit https://www.researchandmarkets.com/r/pi4ape
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