The global microgrid market reached a value of US$ 25.9 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 49.2 Billion by 2027, exhibiting a CAGR of 11.2% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use sectors. These insights are included in the report as a major market contributor.
A microgrid is a distinct energy system which consists of interconnected loads and distributed energy resources that are capable of operating in parallel with, or independently from the main power grid. Generally, microgrids are considered as the smaller versions of power grids which deliver electricity from producers to consumers. They help to reduce the overall cost and provide backup for the grid in case of emergencies. As compared to traditional electrical grids, microgrids are more efficient and combined with various renewable sources such as solar, wind power, small hydro, geothermal, waste-to-energy, and combined heat and power (CHP) systems. Additionally, they can be powered by batteries, distributed generators or solar panels. Apart from this, microgrids are a reliable source of electricity as they operate continuously at the time of power outages.
Global Microgrid Industry Drivers:
- In order to ensure uninterrupted power supply through microgrid, various technological advancements have been made to enhance the performance of battery inverters. Other than this, improved battery technologies have also been developed with higher power inputs and outputs for a longer period of time. Such features and technologies are driving the growth of the microgrid market.
- The demand for microgrids is on a rise as they allow consumers and developers to meet the environmental objectives by using renewable energy in the form of power generation source. In line with this, governments of several nations are taking initiatives to establish bio power, solar and wind energy farms. Other than this, countries like the United States have implemented regulations like the Clean Power Plan (CPP) rule which are aimed towards reducing carbon dioxide emissions.
- Nowadays, dependence on modern communication technologies, such as wireless cloud computing, is increasing which makes power systems susceptible to cyber-attacks and hackers. Therefore, some of the sectors like military and research labs require a secure network with round-the-clock power supply which is provided by microgrids as they are capable of functioning under 'Island mode' and independent of all external power, and data transmissions. This has contributed towards their augmenting demand across the globe.
- Another force that has been proactive in maintaining the growth of the global microgrid market is low transmission losses. Microgrids generate power locally and reduce dependence on long distance transmission lines and thus cut transmission losses.
Key Market Segmentation:
- IMARC Group provides an analysis of the key trends in each sub-segment of the global microgrid market, along with forecasts at the global and regional level from 2022-2027. Our report has categorized the market based on energy source and application.
Breakup by Energy Source:
- Natural Gas
- Combined Heat and Power
- Solar Photovoltaic (PV)
- Fuel Cell
- The microgrid market has been segmented on the basis of energy sources which mainly include natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell and others. Amongst these, combined heat and power is the most popular source of energy generation used by microgrids as it produces less carbon emissions as compared to oil or coal-fired generation.
Breakup by Application:
- Remote Systems
- Institution and Campus
- Microgrids find several applications which include remote systems, institution and campus, utility/community, defence and others. Currently, remote systems are being majorly used in remote systems which offer localised power to islands, industrial mines and military installations.
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
- On a geographical front, North America enjoys the leading position, holding the majority of the market share. The growth in the region is due to the increasing use of microgrids in the defence sector and remote systems for improving security against cyberattacks. North America is followed by Asia Pacific, Europe, Middle East and Africa, and Latin America.
The global microgrid market is fragmented in nature with the presence of numerous small and large manufacturers who compete in terms of prices and quality. Some of the leading players operating in the market are:
- Lockheed Martin
- ABB Ltd
- General Electric
- Eaton Corporation
This report provides a deep insight into the global microgrid market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter's five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the microgrid market in any manner. Key Questions Answered in This Report:
- How has the global microgrid market performed so far and how will it perform in the coming years?
- What are the major regions in the global microgrid market?
- What has been the impact of COVID-19 on the global microgrid market?
- Which are the popular energy sources in the global microgrid market?
- What are the key applications in the global microgrid market?
- What are the various stages in the value chain of the global microgrid market?
- What are the key driving factors and challenges in the global microgrid market?
- What is the structure of the global microgrid market and who are the key players?
- What is the degree of competition in the global microgrid market?
- How are microgrids manufactured?