Dublin, Sept. 07, 2023 (GLOBE NEWSWIRE) -- The "Microgrid Market by Connectivity (Grid Connected, Off-grid), Offering (Hardware (Controllers, Energy Storage), Software, Services), End User, Type, Power Source, Power Rating (Below 1 MW, 1-5 MW, 5-10 MW) and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global microgrid market is poised for remarkable growth, with a projected trajectory from USD 31.5 billion in 2023 to USD 79.0 billion by 2028, indicating an impressive compound annual growth rate (CAGR) of 20.1% throughout the forecast period.
Key Market Drivers:
Several driving factors, including decarbonization efforts, rural electrification initiatives, resilience requirements, and cybersecurity concerns, underpin the promising growth potential of the microgrid market. Opportunities stemming from government initiatives, technological advancements, electric vehicle integration, management of distributed energy resources, and expansion across industrial and commercial sectors are key contributors to this robust growth.
Key Insights:
- Grid-Connected Microgrids Take the Lead: The grid-connected microgrid segment is expected to dominate the market by capturing the largest share and exhibiting substantial growth. Grid-connected microgrids provide the flexibility to disconnect and reconnect with the main grid as needed, enhancing power quality, reducing environmental impact, and improving grid reliability. Advanced control mechanisms and multiple distribution systems drive the demand for grid-connected microgrids due to their enhanced functionality and benefits.
- Microgrid Software Holds Promise: The microgrid software market is projected to experience the highest growth rate during the forecast period. As microgrid systems become more complex, necessitating the integration of diverse energy sources, energy storage systems, and intelligent controls, sophisticated software solutions are crucial for effective management and optimization. Microgrid software facilitates energy flow control, load balancing, real-time monitoring, and predictive analytics, enabling the efficient and reliable performance of microgrids.
- Healthcare Sector: A Growth Hub: The healthcare sector presents substantial growth opportunities within the microgrid market. Critical power requirements, potential for energy cost savings, environmental sustainability focus, resilience and emergency preparedness needs, and supportive regulatory environments are driving growth in this sector. Healthcare facilities require uninterrupted power supply for critical operations, making microgrids an essential solution for patient care and safety.
- Americas at the Helm: The microgrid market in the Americas, encompassing North and South America, is projected to hold the largest market share in 2022. North America, with nearly 70% of the microgrid market share in the Americas, is driving growth through technological leadership, government support, energy security emphasis, market diversity, and active research and development.
Premium Insights:
- Increasing Demand for Rural Electrification and Minimizing Greenhouse Gas Emissions to Drive Microgrid Market
- Hardware Segment to Hold Largest Share of Microgrid Market in 2028
- Power Generators Segment to Lead Microgrid Hardware Market from 2023 to 2028
- Grid-Connected Microgrids Segment to Dominate Market from 2023 to 2028
- Microgrids with Power Ratings from 1 to 5 MW to Account for Largest Market Share in 2028
- Commercial & Industrial Buildings Segment to Account for Largest Share of Microgrid Market from 2019 to 2028
- Asia-Pacific to Account for Largest Share of Microgrid Market in 2028
Market Dynamics:
Drivers:
- Increasing emphasis on decarbonization
- Growing need for reliable and uninterrupted power supply
- Deployment of microgrids for rural electrification
- Instances of cyberattacks on energy infrastructure
- Rising demand for EV charging infrastructure
- Need for demand response and load management capabilities
Restraints:
- High installation and maintenance costs of microgrids
- Complexities in grid interconnections
Opportunities:
- Growth in microgrid projects across industries
- Surge in energy demand and renewable energy adoption in Asia-Pacific
- Investor interest in EAAS business model for cost reduction
- Government support for microgrid projects
- Digitalization and smart grid integration
Challenges:
- Lack of standardization and regulatory frameworks for microgrid operations
- Technical challenges of microgrids operating in island mode
- Complexities in standardizing scalability of microgrids
Case Study Analysis:
- GE Provided Campus-Based Microgrid System to University of Ontario Institute of Technology (Canada)
- GE Provided Resilient and Reliable Power Supply Systems for Navy Shipyard Project in Philadelphia (US)
- Solar One Energy Used Homer Grid to Model Energy Costs for Ace Natural
- S&C Electric Company Provided Energy Storage Integrator for Microgrid Project by Half Moon Ventures
- S&C Electric Company Provided Energy Storage Systems for Microgrids of Ergon Energy
- AEG Power Solutions Provided Grid-Forming Inverter for Uninterrupted Power Supply to Mbogo Valley Tea Factory
- Hitachi Energy Provided Affordable Power to South Africa
Companies Mentioned
- ABB
- Ameresco
- Anbaric Development Partners, LLC
- Canopy Power
- Caterpillar
- Eaton
- Emerson Electric Co.
- Exelon Corporation
- Ferroamp
- General Electric
- General Microgrids
- Go Electric Inc.
- Gram Power
- Heila Technologies
- Hitachi Energy Ltd.
- Homer Energy (Part of Ul LLC)
- Honeywell International Inc.
- Pareto Energy
- Power Analytics
- Powersecure, Inc.
- S&C Electric Company
- Schneider Electric
- Siemens
- Spirae LLC
- Tesla Energy (Subsidiary of Tesla)
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 324 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $31.5 Billion |
| Forecasted Market Value (USD) by 2028 | $79 Billion |
| Compound Annual Growth Rate | 20.1% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/oghkeb
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