ALBANY : The global microgrid market was worth US$ 63.5 Bn in 2020. The market is likely to rise at a CAGR of 11.3% during the forecast period, from 2021 to 2031 and is expected to reach valuation of US$ 206.1 Bn by 2031. End users’ reliance on utility grids to satisfy their power needs has risen due to the growing population and rapidly increasing electricity consumption. The global energy consumption is anticipated to rise by approximately 56% by 2040, as per the U.S. Energy Information Administration (EIA). Additionally, as a result of increasing industrialization and urbanization, energy consumption is rapidly increasing, and main grids are unable to meet this demand adequately. These gaps are turning into business possibilities for microgrid firms looking to expand their power supply services.
Microgrid connects loads within well-defined electric limits with distributed energy sources. Microgrids can function independently, so they are becoming more popular during major grid outages. As such, the device helps in the mitigation of risks associated with grid outages and disruptions. The global microgrid market can be divided into grid-tied (grid-connected) and off-grid segments based on connectivity.
In order to address power-generating concerns, service providers are using monitoring systems, system engineers, and relays. Furthermore, the microgrid market is benefiting from the rapid rise of Industry 4.0, which is converting into revenue opportunities for market players. The AEC (Architecture, Engineering, and Construction) industry’s increasing funding on equipment and machinery are supporting the Industry 4.0 trend.
Key Findings of Market Report
- On-site microgrid systems have the potential to function in the event of earthquakes, floods, or tornadoes. In addition, in an event of a power outage, these systems can take the place of traditional grids. In order to deal with such emergency situations, governments are formulating plans to strategically install microgrids near police stations, hospitals, pharmacies, petrol stations, and grocery shops.
- Utilization of environment-friendly power sources in microgrids has been growing, owing to near-zero-fossil-fuel by-products and cost savings.
- Microgrids provide benefits such as matrix modernization and a combination of appropriate fuel age sources, including renewables, as well as the reconciliation of a few keen network advancements. It also aids in supplying local loads from adjacent force sources, resulting in the reduction in transmission and appropriation losses as well as increase in the system’s overall competence.
- Microgrids supplement macrogrids by handling power inconsistencies from regional renewables and providing additional services to bulk power systems and sensitive loads. As a result of all of these benefits, product usage is increasing across a wide range of applications, including community and utility, commercial and industrial, campus and institution, defense and military, and remote island. In the next few years, this is projected to open up lucrative sales opportunities in the global microgrids market.
Microgrid Market: Growth Drivers
- The global market is expected to be driven by breakthroughs in renewable energy technologies during the forecast period. Microgrids can readily produce power employing renewable energy technology. Furthermore, the use of renewable energy sources in microgrids has grown as a result of their near-zero carbon emissions and cost-effectiveness.
- Asia Pacific is a major region for players in the global microgrid market, with a plethora of expansion opportunities. Many factors, including low electrification rates, increased demand for power, and poor grid connectivity in Asia Pacific, have contributed to the region’s growth. Due to rapid industrialization and urbanization in many countries, the market is expected to offer lucrative avenues in the upcoming years.
Global Microgrid Market: Key Players
Some of the key market players are
- Schneider Electric SE
- Power Analytics Corporation
- Honeywell International Inc.
- Siemens AG
- Duke Energy Corporation
- S&C Electric Company
Global Microgrid Market: Segmentation
Connectivity
- Grid-tied (Grid-connected)
- Off-grid
Application
- Campus & Institution
- Community & Utility
- Commercial & Industrial
- Defense & Military
- Remote Island
