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  • Microgrid Market Growth Analysis | 2023-2028

    Microgrid Market Growth Analysis | 2023-2028

    Microgrid Market Growth Analysis | 2023-2028
    Report code - SR1181 Delivery - 2 Weeks
    Microgrid Market Size, Share, Trends, Dynamics, Forecast, & Growth Analysis &ndas See more...

    Market Insights

    The microgrid market was estimated at USD 29.15 billion in 2022 and is likely to grow at a CAGR of 19% during 2023-2028 to reach USD 82.79 billion in 2028.

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    What is a microgrid?

    A microgrid is a self-contained energy system that serves a small geographic area, such as a hospital, college campus, or corporate center. It typically consists of a small-scale power generation system, such as solar panels, wind turbines, or diesel generators, and may include energy storage, such as batteries or fuel cells, to provide power during periods of low or no generation.

    Microgrids are designed to provide reliable and resilient power to communities, particularly in areas with unreliable or unstable grid infrastructure. They can also help to integrate renewable energy sources into the grid, reduce reliance on fossil fuels, and lower greenhouse gas emissions.

    Microgrid Market Report Overview

    Market Size in 2028

    USD 82.79 Billion

    Market Size in 2022

    USD 29.15 Billion

    Market Growth (2023-2028)

    CAGR of 19%

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2028

    Market Dynamics

    The industry landscape will be bolstered by the rising need for a stable and reliable power supply, as well as rising electrification rates, primarily in developing economies. The business scenario will be fueled by the increasing penetration of distributed energy resources (DERs) as a result of rapid commercial and industrial expansion. The rising instances of cyberattacks on energy infrastructures. Microgrids can help to improve grid resilience by providing a decentralized and distributed power system. Government’s initiatives to encourage the development of microgrids. Governments around the world are providing financial incentives and regulatory support for the development of microgrids. These factors are expected to drive the growth of the market in the coming years.

    Restraint: Grid connectivity complications. Grid interconnection challenges hinder the growth of the global microgrid market due to technical and logistical difficulties in integrating microgrids with the existing electrical grid. These challenges can lead to delays and increased costs, potentially discouraging organizations from pursuing microgrid installations. Resolving these issues through streamlined processes and clear guidelines is crucial for fostering the growth of the microgrid market.

    Opportunity: Integration of smart grids and digitalization. Digitalization and smart grid integration offer significant growth opportunities for the microgrid market. By integrating advanced technologies and smart grid infrastructure, microgrids can optimize energy generation, storage, and consumption, resulting in enhanced efficiency and cost-effectiveness. This convergence of digitalization and microgrids opens new possibilities for energy management and the development of intelligent grid systems. The synergy between digitalization and microgrids provides sophisticated energy management tools, leading to improved operational performance, reduced costs, and increased sustainability. Thus, digitalization and smart grid integration present a promising opportunity for the global microgrid market.

    Challenges: Difficulties in standardizing microgrid scalability. The microgrid market faces challenges in scalability and standardization, which require effective deployment across diverse applications, sectors, and locations. Consistent standards guide system design and implementation, enabling seamless interoperability and reducing costs. Modular design approaches provide flexibility and adaptability. Best practices drive standardization, ensuring consistent performance and reliability. By establishing clear guidelines and widely adopting best practices, the industry can overcome these challenges, enabling widespread deployment and integration of microgrid solutions across diverse applications, sectors, and locations.

    Microgrid-Market-Dynamics

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    Segment Analysis

    By Connectivity Type

    The market is segmented as grid-connected and off-grid. The grid-connected segment is expected to witness a significant growth rate in the market during the forecast period owing to the potential of the connected microgrids to handle peak demand, improve system supply, and maintain stability in the event of a large network breakdown. Furthermore, growing consumer demand for power supply security, together with the development of Tier II and III cities, backed by government regulations and guidelines, will give birth to opportunities for business growth.

    By Grid Type

    The market is segmented as AC microgrid, DC microgrid, and hybrid. AC microgrid type is expected to register a high growth rate in the global microgrid market owing to its lower transmission losses, minimum heat generation, and effective high-end voltage levels across the network. Furthermore, it is extremely compatible with grid networks and does not require inverters for power delivery, propelling the industry dynamics. Also, the increasing deployment of high-voltage AC power networks, as well as big solar and wind farms connected to AC transmission lines, will positively influence the business environment.

    By Power Source Type

    The market is segmented as diesel generators, natural gas, solar PV, CHP, and others. The natural gas power source seems to dominate the market during the forecast period. Rising carbon emission concerns, in addition to a major shift towards renewable energy sources, will influence industry revenue. Low carbon emissions, continuous power supply, great flexibility for quick deployment, and significant renewable integration will drive market demand.

    By Storage Device Type

    The market is segmented as lithium-ion, lead acid, flow battery, flywheel, and others. The lithium-ion-based storage device segment is likely to dominate the market during the forecast period. The industry trend will be driven by effective performance, extended life cycles, high energy density, and a rising propensity for battery-powered devices. Additionally, the widespread adoption of sustainable energy systems with intensive research and development efforts will have a favorable effect on market expansion.

    By Application Type

    The market is segmented as healthcare, educational institutes, military, utility, industrial/commercial, remote, and others. The industrial/commercial application is estimated to account for the major share of the market during the forecast period on account of the increasing government efforts and mandates to reconstruct and overhaul existing T&D networks, as well as increased incentives to install energy-efficient alternatives. In the current context, the industrial and commercial sectors are focusing on the implementation of smart solutions across new and traditional grid infrastructure, which will favorably influence industry potential.

    Regional Insights

    Asia-Pacific is estimated to be the leading region in the global microgrid market during the forecast period. This regional market is driven by the rising favorable norms and incentives by various countries to pace up the sustainable energy mix. In addition, regional carbon emission targets and increased usage of stand-alone power sources will foster the technology demand over the forecast period. In addition, North and South Americas accounted for more than 35% market share in 2021.

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    Critical Questions Answered in the Report

    • What are the key trends in the global market?
    • How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
    • What is the impact of COVID-19 on the global market?
    • What are the key strategies adopted by the major vendors to lead in the market?
    • What is the market share of the top vendors?

    Market Segmentation

    This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

    The microgrid market is segmented into the following categories.

    By Connectivity Type

    • Grid Connected
    • Off Grid

    By Grid Type

    • AC Microgrid
    • DC Microgrid
    • Hybrid

    By Power Source Type

    • Diesel Generators
    • Natural Gas
    • Solar PV
    • CHP
    • Others

    By Storage Type

    • Lithium-ion
    • Lead Acid
    • Flow Battery
    • Flywheel
    • Others

    By Application Type:

    • Healthcare
    • Educational Institutes
    • Military
    • Utility
    • Industrial/Commercial
    • Remote
    • Others

    By Region

    • North America (Country Analysis: the USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
    • Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

    MIcrogrid-Market-Segmentation

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    Key Players

    Some of the key players in the global market are-

    • Honeywell International
    • Tesla
    • Eaton
    • Siemens
    • GE
    • Caterpillar
    • Schneider Electric
    • HOMER Energy
    • Toshiba Corporation
    • AMS
    • S&C Electric
    • Hitachi ABB Power Grids
    • Spirae
    • General Microgrids
    • Lockheed Martin Corporation
    • Heila Technologies
    • Exelon Corporation.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players and those willing to enter the microgrid market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Microgrid Market.

    How lucrative is the future?

    The market forecast and trend data and emerging trends.

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts.

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast.

    What are the top players and their market positioning?

    Competitive landscape and Market share analysis.

    How complex is the business environment?

    Porter’s five forces, PEST, and Life cycle analysis.

    What are the factors affecting the market?

    Drivers & challenges.

    Will I get the information on my specific requirements?

    10% free customization.

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

    More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

    We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to 3 players)
    • SWOT analysis of key players (up to 3 players)

    Segmentation

    • Current market segmentation by any one of the grid types by application type.

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

    Frequently Asked Questions (FAQs)

    A microgrid is a self-contained energy system that serves a small geographic area, such as a hospital, college campus, or corporate center.

    The microgrid market was estimated at USD 29.15 billion in 2022.

    The microgrid market is likely to reach USD 82.79 billion in 2028.

    The microgrid market is likely to grow at a CAGR of 19% during 2023-2028.

    Asia-Pacific is estimated to be the leading region in the market during the forecast period.

    Eaton, Siemens, GE, Caterpillar, Schneider Electric, HOMER Energy, Honeywell International, Toshiba Corporation, AMS, S&C Electric, Tesla, Hitachi ABB Power Grids, Spirae, General Microgrids, Lockheed Martin Corporation, Heila Technologies and Exelon Corporation are the key companies in the market.

    The grid connected segment is expected to have the largest share in the market during the forecast period.

    The industry landscape will be bolstered by the rising need for a stable and reliable power supply, as well as rising electrification rates, primarily in developing economies. The business scenario will be fueled by the increasing penetration of distributed energy resources (DERs) as a result of rapid commercial and industrial expansion.