Global Microgrid Market Size, Share, Growth Analysis, By Power Source(Natural Gas, CHP), By Product(Remote, Grid Connected), By Application(Government, Education) - Industry Forecast 2024-2031

Global Microgrid Market size was valued at around 54.41 billion in 2022 and is expected to rise from USD 63.28 billion in 2023 to reach a value of USD 211.79 Billion by 2031, at a CAGR of 16.3% over the forecast period (2023-2031).

It is expected that the growth of the domestic and industrial sectors will be a key driver in China and other growing countries including Mexico, China, India, and Russia. In order to improve reliability, resilience, and vibrancy in towns, neighborhoods, and colleges, it is projected that the shift away from remote central station power plants toward more localized and distributed generation would have a substantial impact on market growth.

The operation and stability of the regional electric grid as well as local resilience are enhanced by the use of these electrical distribution services. Furthermore, the utilization of renewable resources for power generation is expected to result in a rise in demand for microgrids in the near future. The growing importance of captive power producing systems in the manufacturing sector to lessen reliance on electricity supply from the local electric grid is expected to remain a major driving force. Furthermore, it is projected that growing public awareness of power generation from alternative renewable sources including hydrogen, solar, and wind will help market expansion.

In recent years, governments across the globe have augmented their expenditure on infrastructure development in response to growing urbanization and population growth in developing economies such as China, India, and Mexico. As a result, it is projected that growing construction expenditure in the aforementioned countries will significantly contribute to increasing power demand and, in turn, the growth of the microgrid sector. By putting the Galvin Energy Initiative into practice, The Galvin Project Inc. hopes to attract more capital for the development of additional intelligent microgrid prototypes and expand its market reach. Furthermore, it is expected that the widespread application of hydraulic fracturing technology will lead to the establishment of the United States and Canada as hubs for shale gas production, ensuring that customers will always have access to power sources.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Microgrid Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Microgrid Market Segmental Analysis

Based on product, application, geography, and power source, the worldwide microgrid market is divided into segments. The market is divided into natural gas, CHP, solar PV, diesel, fuel cells, and other power sources. The market is divided into remote, grid-connected, and hybrid segments based on the product. The market is divided into segments according to application, including government, education, commercial, utility, defense, and others. The world market for microgrids is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Drivers of the Global Microgrid Market

Since microgrids make it possible to use intermittent renewable energy sources like solar and wind power more effectively, they are frequently used to integrate these sources into the grid.

Restraints in the Global Microgrid Market

Adoption may be hampered by the high upfront costs of microgrid installation, especially for small enterprises or residential users.

Market Trends of the Global Microgrid Market

Growing Need for Renewable Energy: Including renewable energy sources like solar and wind power into microgrid systems is becoming more and more popular. The need to cut carbon emissions and growing concerns about climate change are the driving forces behind this.

Growing Adoption of Energy Storage: Fuel cells and batteries are two examples of energy storage technologies that are becoming more and more crucial parts of microgrid systems. In the event of disruptions or outages, these technologies offer backup power and aid in maintaining supply and demand equilibrium.

Virtual Power Plants (VPPs) are gaining traction in the microgrid industry by facilitating the integration of disparate energy supplies into a unified, synchronized system. This has the potential to increase microgrid systems' dependability and efficiency.

Focus on Resilience: Resiliency in microgrid systems is receiving more attention as a result of the frequency and severity of natural catastrophes and other grid interruptions rising. This involves the capacity to function independently during blackouts and to promptly reestablish electricity following disturbances.