Microgrid Market by Power, Product, Application

List of Tables

[199 Pages Report] The Microgrid Market size was estimated at USD 35.24 billion in 2023 and expected to reach USD 37.90 billion in 2024, at a CAGR 8.30% to reach USD 61.60 billion by 2030.

The microgrid represents a group of distributed energy resources and a mesh of interconnected loads acting as a separate controllable unit of the main power grid. Microgrid offers resilience to overcome grid disturbances and power outages, improving customer reliability on power systems. The rising demand for renewable energy and stable global power supply raise the utilization of microgrid solutions. Cyber attacks on electricity infrastructure have created an increasing need for microgrid solutions to independently operate power grids in disaster situations. However, concerns regarding the high installation costs of microgrids may limit their adoption in the current market scenario. The market is expected to face challenges due to technological concerns encountered during the service of island-style microgrids. However, increasing R&D investments by the public and private sectors for developing advanced electrical infrastructure fuels the adoption of microgrid solutions. In addition, Government initiatives to encourage the development of microgrids aid in expanding renewable energy capacity in developing countries.

KEY MARKET STATISTICS
Base Year [2023]	USD 35.24 billion
Estimated Year [2024]	USD 37.90 billion
Forecast Year [2030]	USD 61.60 billion
CAGR (%)	8.30%

Power: Emerging potential of solar photovoltaic in microgrids

Combined heat and power (CHP) is used for implementing microgrids, owing to its ability to lower energy costs and improve overall system reliability. Diesel generators are conventional power sources integrated with microgrids, known for their quick-start capabilities in existing power infrastructure. Fuel cells generate electricity through electrochemical processes between hydrogen and oxygen, resulting in virtually zero emissions. Fuel cell technology offers significant potential for microgrid applications as it provides continuous power output with minimal maintenance requirements. Natural gas-powered turbines or engines can offer efficient and relatively low-emission alternatives in microgrids compared to diesel generators. Solar photovoltaic (PV) systems are increasingly popular for implementing microgrids as they enable reliable daytime energy generation while contributing to energy resilience that assists in withstanding grid disruptions or extreme weather conditions.

Product: Burgeoning popularity of hybrid microgrids

Grid-connected microgrids are connected to the main electrical grid infrastructure and can operate in parallel with it to enhance overall system resilience. Hybrid microgrids combine multiple generation sources, such as solar photovoltaic, wind turbines, battery storage systems, and conventional generators, such as diesel and gas turbines. This diversification in energy sources ensures improved energy reliability and reduced dependence on a single source of power generation. Remote microgrids cater to isolated communities or off-grid areas where traditional electrical infrastructure is either unavailable or difficult to reach due to geographical constraints, including remote islands or mountainous regions. In addition, remote microgrids also significantly promote energy access and support socio-economic development in rural and remote areas worldwide.

Application: Penetration of microgrids in the utility sector

Microgrid systems are deployed to generate, store, and supply electricity in a commercial building application to operate backup generators and emergency power systems. Mobile microgrids have a wide scope of applications in the defense sector as a properly configured microgrid provides critical resiliency to military installations, ensuring energy security for operating bases and mission readiness when local power is disrupted across the region. Colleges and universities use microgrid technology to offer uninterrupted, affordable power to serve the campus and larger community in a power outage. The government provides services and emergency shelters to supply electricity using microgrids for several emergencies that seamlessly serve critical situations. Microgrids can provide utilities with a lower-cost alternative to meeting peak demand requirements and other chain of supply issues.

Regional Insights

The microgrid market in the Americas has been experiencing significant growth with growing concerns over climate change and increasing demand for clean and reliable energy sources. The United States and Canada strongly focus on modernizing energy infrastructure to increase resilience against natural disasters such as hurricanes, wildfires, and ice storms. The U.S. Department of Energy's Office of Electricity Delivery & Energy Reliability has allocated substantial funds to research and develop advanced microgrid technologies. Consequently, California, New York, Massachusetts, and Illinois have implemented policies supporting microgrid deployment. In addition, countries including Brazil, Chile, Mexico, and Colombia are investing heavily in integrating renewable energy generation into their existing electrical networks through microgrids. The growth of the microgrid market in the Asia-Pacific and Europe regions has been experiencing significant growth by various factors, such as increasing demand for reliable and stable power sources, growing emphasis on renewable energy integration, and rising implementation of supportive government policies. The European Union's 'Clean Energy Package' framework promotes local energy communities (LECs) and encourages investments toward innovative solutions, such as microgrids that offer flexibility and stability to electricity grids. In addition, Asia-Pacific witnessed the continued growth of the microgrid sector due to increasing demand for reliable power supply and rising governmental support promoting clean energy solutions. On the other hand, implementing government policies and initiatives plays an important role in promoting the adoption of microgrids in the MEA region. The African Development Bank (AfDB) actively supports rural electrification projects through its "New Deal on Energy for Africa" initiative. Similarly, Kenya and Nigeria have implemented regulatory frameworks encouraging private sector participation in off-grid power projects. Saudi Arabia and Jordan have set ambitious targets for renewable energy generation, which further boost the deployment of microgrids.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Microgrid Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Microgrid Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Microgrid Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Bloom Energy Corporation, BoxPower Inc., Caterpillar Inc., CleanSpark, Inc., Cummins Inc., Eaton Corporation PLC, Emerson Electric Co., Enchanted Rock Holdings, LLC, Encorp, Enel X S.r.l., General Electric Company, Gridscape, Hitachi, Ltd., Honeywell International Inc., Hover Energy, LLC, Intel Corporation, Leclanche SA, Lockheed Martin Corporation, MAN Energy Solutions SE, Nidec Corporation, NRG Energy, Inc., Pareto Energy, Power Analytics Global Corporation, Powerhive, PowerSecure, Inc., S&C Electric Company, Saft Groupe SAS, Scale Microgrid Solutions LLC, Schneider Electric SE, Schweitzer Engineering Laboratories, Inc., Siemens AG, Spirae, LLC, Tesla, Inc., UL, LLC, and Veolia Environnement SA.

Market Segmentation & Coverage

This research report categorizes the Microgrid Market to forecast the revenues and analyze trends in each of the following sub-markets:

Power
- Combined Heat and Power
- Diesel
- Fuel Cell
- Natural Gas
- Solar Photovoltaic

Product
- Grid connected
- Hybrid
- Remote

Application
- Commercial
- Defense
- Education
- Government
- Utility

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Microgrid Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Microgrid Market?

3. What are the technology trends and regulatory frameworks in the Microgrid Market?

4. What is the market share of the leading vendors in the Microgrid Market?

5. Which modes and strategic moves are suitable for entering the Microgrid Market?

Product Code: MRR-036C5CF3A81C

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing inclination toward adoption of renewable energy across economies
  - 5.1.1.2. Rising demand for stable and safe global power supply
  - 5.1.1.3. Increasing instances of cyber attacks on electricity infrastructure
- 5.1.2. Restraints
  - 5.1.2.1. Concerns regarding high costs of microgrid
- 5.1.3. Opportunities
  - 5.1.3.1. Increasing investments for development of advanced electric monitoring and controlling infrastructure
  - 5.1.3.2. Government initiatives to encourage development of microgrids
- 5.1.4. Challenges
  - 5.1.4.1. Complexities in deployment and operation of microgrids
5.2. Market Segmentation Analysis
- 5.2.1. Power: Emerging potential of solar photovoltaic in microgrids
- 5.2.2. Product: Burgeoning popularity of hybrid microgrids
- 5.2.3. Application: Penetration of microgrids in the utility sector
5.3. Market Trend Analysis
- 5.3.1. Supportive government initiatives and investments for microgrids in the Americas
- 5.3.2. Growing use of microgrids to meet energy demands for regional and rural areas across Asia-Pacific region
- 5.3.3. Expanding renewable energy sector and government support for the development of microgrids in EMEA region
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis
5.9. Client Customization
- 5.9.1. Technology Trends

6. Microgrid Market, by Power

6.1. Introduction
6.2. Combined Heat and Power
6.3. Diesel
6.4. Fuel Cell
6.5. Natural Gas
6.6. Solar Photovoltaic

7. Microgrid Market, by Product

7.1. Introduction
7.2. Grid connected
7.3. Hybrid
7.4. Remote

8. Microgrid Market, by Application

8.1. Introduction
8.2. Commercial
8.3. Defense
8.4. Education
8.5. Government
8.6. Utility

9. Americas Microgrid Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Microgrid Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Microgrid Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. TROES Corp. Successfully Closes Pre-Series A Funding Round and Initiates Series A Financing, Demonstrating Strong Growth Potential in Energy Storage-Centered Microgrid Solutions
- 12.3.2. Microgrid Solutions Provider Nuru Raises USD 40 Million
- 12.3.3. Cadiz Partners with Scale Microgrids to Develop Clean Energy Microgrids for Water Supply, Pipeline Project
- 12.3.4. Schneider Electric Introduces EcoStruxure Microgrid Flex
- 12.3.5. Gridscape to Develop Renewable Energy Microgrids for 30 Critical Facilities in California with EBCE
- 12.3.6. Schneider Electric and GreenYellow Join Forces To Provide Commercial And Industrial Microgrid Solutions Across Europe
- 12.3.7. Fluence, Siemens BESS-Powered Microgrid Takes Azores Island Closer To 'a Sustainable Future'
- 12.3.8. ABB invests in Direct Current microgrid start-up Direct Energy Partners to accelerate energy transformation
- 12.3.9. Eaton helps AEP Ohio Develop First Microgrid For City Of Columbus To Support Resilient, Sustainable Water Infrastructure
- 12.3.10. Hover Energy acquires premier solar company, Shine Development Partners
- 12.3.11. Tesla-Backed Startup Launches Microgrid Powering 2 African Villages
- 12.3.12. Hover Energy's 36 kW rooftop-Mounted Microgrid Combines Wind, Solar And Energy Storage
- 12.3.13. ABM Broadens Its Technical Solutions Capabilities With Acquisition of Rapidly Expanding RavenVolt
- 12.3.14. Siemens To Deploy First Microgrid Of Middle East In Doha
- 12.3.15. Scale Microgrid Solutions Acquires Three Community Solar Projects in Upstate New York

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio