The global microgrid market is anticipated to grow at a rapid pace i.e. 11.6% CAGR during the forecast period owing to rising global demand for clean energy generation and provides a self-sufficient source of power generation during crisis or grid disconnection. Microgrids can be utilised as a backup or supplemental power source for major grids in order to meet end customers' rising electricity demands. The increased need for proper electrification in the emerging economies, rising dissemination of distributed energy resources (DER’s) owing to robust commercial and industrial development, sectors like military & research needs a secure network along with 24*7 power supply which can be offered by microgrids owing to its functioning under Island mode and independent of external power and transmissions, thus foster the industry landscape. Also, cut in transmission losses, robust usage of software among several end-user verticals like commercial, government, industrial, and healthcare so as to manage and control distributed energy resources, integrates weather, and load forecasting will bolster the growth of the market.
In October 2021, Eaton, a power management company, and Enel X, the Enel Group's advanced energy services business line, announced that they will collaborate on a second microgrid project in Puerto Rico. The projects will lower demand for regional energy infrastructure, allow Eaton to use more renewable energy in production, and improve Eaton's energy resilience.
The COVID-19 outbreak has substantially impacted the growth of the global microgrid market due to the lack of skilled professional in operating the technology and temporary shutdown of manufacturing unite worldwide.
Browse 80 market data Tables and 50 Figures spread through 300 Pages and in-depth TOC on " Microgrid Market by Offering (Hardware, Software, and Services), by Type (AC Microgrids, DC Microgrids, and Hybrid), by Connectivity (Grid Connected and Off-Grid Connected), by Storage Device (Lithium-Ion, Lead Acid, Flow Batteries, and Flywheel), by Power (Combined Heat & Power (CHP), Solar Photovoltaic, Natural Gas, Fuel Cell, and Diesel), by End Use (Utilities, Commercial & Industrial, Institutes & Campuses, Military, Remote, Government, and Healthcare), and Region - Global Forecast to 2027"
By end use, the remote segment contributes to the largest share in the microgrid market.
The remote segment contributes to the largest share in the global microgrid market owing to increased demand for microgrids for rural electrification, support from government and surging microgrid projects in remote areas. Thus, the increased demand for microgrids in remote areas to transmit power and manage and control distributed energy resources will drive the growth of the segment.
Global Microgrid Market Segmentation Analysis
Segment |
Categorization |
Leading Category |
Offering |
Hardware, Software, and Services |
Hardware (Largest) |
Type |
AC Microgrids, DC Microgrids, and Hybrid |
AC Microgrids (High CAGR) |
Connectivity |
Grid Connected and Off-Grid Connected |
Grid Connected (Largest) |
Storage Device |
Lithium-Ion, Lead Acid, Flow Batteries, and Flywheel |
Lithium-Ion (High CAGR)
|
Power |
Combined Heat & Power (CHP), Solar Photovoltaic, Natural Gas, Fuel Cell, and Diesel |
Combined Heat & Power (CHP) (Largest) Fuel Cell (Fastest)
|
End Use |
Utilities, Commercial & Industrial, Institutes & Campuses, Military, Remote, Government, and Healthcare |
Remote (Largest) Commercial & Industrial (High CAGR) |
Region |
North America, Europe, Asia-Pacific, and Rest of the World |
North America (Largest) Asia-Pacific (High CAGR)
|
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“Asia-Pacific is anticipated to have high CAGR in the Microgrid Market during 2021-2027.”
Asia-Pacific is estimated to have a high CAGR during 2021-2027 owing to increased favorable norms and incentives by several countries so as to increase the adoption of sustainable energy mix globally will propel the growth in the region. Moreover, the need for technology will be fueled by regional carbon emission objectives and an increase in the use of stand-alone power sources.
Some of the major players in the global microgrid market include ABB, Hitachi Energy Ltd., General Electric, Eaton, Siemens, Schneider Electric, Honeywell International Inc., HOMER Energy (Acquired by UL LLC), S&C Electric Company, and General Microgrids.
Scope of the Report
Report Metric |
Details |
Market Size Available for the Years in the Study |
2015–2027 |
Historical Period |
2015–2020 |
Base Year |
2020 |
Forecast Period |
2021–2027 |
Segments Covered in the Study |
Offering, Type, Connectivity, Storage Device, Power, End Use, and Region |
Geographies Covered in the Study |
North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.) |
Companies Covered in the Study |
ABB, Hitachi Energy Ltd., General Electric, Eaton, Siemens, Schneider Electric, Honeywell International Inc., HOMER Energy (Acquired by UL LLC), S&C Electric Company, and General Microgrids |
Global Microgrid Market Coverage
Offering Insight and Forecast 2015-2027
Type Insight and Forecast 2015-2027
Connectivity Insight and Forecast 2015-2027
Storage Device Insight and Forecast 2015-2027
Power Insight and Forecast 2015-2027
End Use Insight and Forecast 2015-2027
Geographical Segmentation
Microgrid Market by Region
North America
Europe
Asia-Pacific (APAC)
Rest of the World (RoW)