The global microgrid market is estimated to garner a sizeable revenue and grow at a CAGR of ~17% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the growing deployment of renewable energy resources in microgrids, increasing number of construction projects, and the rising need of power for carrying out daily activities. In 2020, the multi-family residential construction rose by 1 percent since the last year, whereas commercial construction witnessed a hike by 2 percent in that year. In addition to these, escalating number of cyberattacks on energy infrastructure around the world, and surge in demand for clean energy are also expected to drive market growth in the upcoming years. Furthermore, increase in collaborative contracts among prominent market companies and hike in the number of product launches are projected to offer lucrative opportunities for market growth in the near future.
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The market is segmented by application into institutional sites, commercial facilities, remote off-grid communities, and others, out of which, the remote off-grid communities segment is anticipated to hold the largest share in the global microgrid market on account of the growing adoption of microgrid in remote areas for fulfilling the energy requirements, and rising governmental investments to develop electricity infrastructure for providing clean electricity. Additionally, on the basis of connectivity, the grid connected segment is projected to acquire the largest share during the forecast period, which can be ascribed to the high reliability of grid-connected microgrids in remote or island areas, and their ability to offer enhanced quality power and high grid resilience.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global microgrid market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of the rapid rate of rural electrification in several Asian countries, namely India, Malaysia, and the Philippines, and rising development activities to improve the electricity infrastructure. For instance, Maharashtra Energy Development Agency issued a tender for a 29.4 KW microgrid project for Maharashtra, India in 2019. The worth of the project is evaluated to exceed INR 6,140,000 and provide electricity to more than three villages in that region. Moreover, the market in North America is predicted to gather the largest share during the forecast period in view of the increasing number of microgrid projects, and growing emphasis of governments to build a clean future and support the natural resources sectors in the region. In addition, the presence of major market players is also assessed to boost the growth of the market in the region.
The global microgrid market is further classified on the basis of region as follows:
Our in-depth analysis of the global microgrid market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are rising deployment of renewable energy resources in microgrids and increasing number of construction projects.
The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2022 – 2030.
Technical issues faced while operating island mode microgrids are estimated to hamper the market growth.
Asia Pacific will provide more business opportunities owing to the rapid rate of rural electrification in several Asian countries, namely India, Malaysia, and the Philippines.
The major players in the market are General Electric Company, Siemens AG, Eaton Corporation Inc., Schneider Electric SE, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by connectivity, offering, application, and by region.
The grid connected segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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