Global Microgrid Market was valued US$ 28.6 billion in 2019 and is expected to grow at a significant CAGR of 12.6% during the forecast period (2021-2027). Microgrid is an autonomously operating traditional energy grid i.e., it is like a local energy grid but has control capability and can disconnect from the grid to operate autonomously. According to the U.S. Department of Energy Microgrid Exchange Group, a microgrid is a group of connected loads and energy sources within clearly defined electrical boundaries and acts like a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid which enables it to operate in both grid-connected and island-mode. With the falling cost of solar energy and its environmental benefits, most microgrids nowadays are being designed to supply electricity with a combination of solar power and battery storage. Grids connects businesses, homes and other buildings to a central power source which allows the working of appliances like electronics, heating/cooling systems etc. Due to this when a part of the grid needs to be repaired, everyone is affected. Microgrids help in this aspect. Microgrids can break off from the main grid and work on its own local energy in times of crisis like power outages and storms.
The main driver of this market growth is its ability to produce clean energy. Microgrids can be powered by renewable technologies such as wind systems, solar systems, microturbines, hybrid systems and combustion turbines. Microgrids can be integrated with these renewables technologies to reduce the carbon footprints on the environment. Several governments worldwide are taking initiatives to reduce the carbon footprints on the environment, for example, the Government of Delhi, India started a transition to zero-emission vehicles in 2020, aiming to have 25% of all newly registered vehicles to be EVs by 2024, which number is currently 0.2%. A few drawbacks that the microgrid market can encounter include the initial setting up cost and the high maintenance cost of microgrids. The setting up costs of microgrid are 25-30% higher than the traditional grids.
ABB, General Electric Company, Siemens AG, Eaton Corporation Inc, Schneider Electric SE, Honeywell International Inc., HOMER Energy LLC, S&C Electric Company, Power Analytics Corporation, and Exelon Corporation are some of the prominent players operating in the Global Microgrid market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst Connectivity, Off Grid segment holds the major share”
Based on connectivity, the global microgrid market is segmented into Grid Connected and Off Grid. Amongst connectivity, the off-grid segment of the global microgrid market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027. Usage of off-grid microgrid systems is gaining popularity as its need for power outage in remote areas is growing. There is an increasing demand for power infrastructure in the rural areas and due to which it is easiest to install off grid microgrids to enhance the already built-up infrastructures in these regions.
“Amongst Grid Type, AC Microgrid segment holds the major share”
Based on grid type, the global microgrid market is segmented into AC Microgrid, DC Microgrid and Hybrid. Amongst grid type, AC microgrid accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. AC microgrids can lower transmission losses with minimal heat generation and have effective high-end voltage levels across the network. This is likely to sway the demand for this technology. Additionally, these are also highly compatible with grid networks and do not need any invertors for power supply. Moreover, they can be deployed with large solar and wind farms which may further enhance their market growth.
“Amongst Power Source, Natural Gas segment holds the major share”
Based on power source, the global microgrid market is segmented into Diesel generators, Natural Gas, Solar PV, CHP, and Others. The natural gas segment generated revenue of US$ XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of US$ XX billion by 2027F. Government policies are favoring the integration of efficient and sustainable power generation to boost the natural gas (NG) powered microgrid infrastructure. Shifting towards renewable power sources and lowering their carbon footprint is boosting the use of natural gas microgrids.
“Amongst Storage Device, Lithium-Ion segment holds the major share”
Based on storage device, the global microgrid market is segmented into Lithium-ion, Lead Acid, Flow Battery, Flywheels, and Others. Amongst storage device, the lithium-ion segment of the global microgrid market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027. Batteries are an important part of the microgrid system as they improve the performance, generator efficiency and system reliability. These storage devices can minimize the fuel consumption. Until recently, lead-acid storage devices were considered the most economical and were the most popular.
“Amongst Application, Industrial/Commercial segment holds the major share”
Based on application, the global microgrid market is segmented into Healthcare, Educational Institutes, Military, Utility, Industrial/ Commercial, Remote, and Others. Amongst application, industrial/commercial segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. The growing efforts of the government to revamp and reconstruct the existing T&D networks along with the installation of energy efficient solutions will help drive the business outlook. For example, State grid of Liu Zhenya of China has nearly 1 million employees and 1.1 billion customers and has plans to connect the entire world with transmission lines, starting with Asia.
“North America represents one of the largest markets of Global Microgrid market”
For a better understanding of the market dynamics of the Global Microgrid market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC) and Rest of the World. North America dominated the market and grabbed around XX% market share owing to increasing adoption of renewable energy across the world.
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• Deep dive regional level analysis of the industry
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