"Rapid Growth in Distributed Energy Generation expected to uplift the Global Microgrid Market"
The global microgrid market was valued at US$ 31.43 Bn in the year 2021 and is expected to reach US$ 78.09 Bn by the year 2030, expanding at a CAGR of 10.7% during the forecast from 2023 to 2030.
Evolutionary changes in the operational and regulatory environment of electric utilities along with the emergence of distributed generation have opened alluring opportunities for on-site electricity generation. This multiple-generation approach increases the reliability of power as well as generation efficiency. Additionally, mission-critical facilities, large power consumers, and areas with prolonged outages have great benefits from a microgrid. Furthermore, the U.S. Department of Defense (DoD) has found out that commercial grids are highly vulnerable to cyber-attacks and security threats, therefore microgrid provides a reliable environment to overcome this issue.
As per the Blackout Tracker annual Report published by Eaton, power blackouts cost nearly US$ 150 Bn to the global economy and influence almost 14.2 Mn people annually. Poor maintenance, natural calamities, overloading, mall operation of control & protection systems, cyber-attacks, and equipment failure are some of the prime factors responsible for the power blackouts. Consequently, the microgrid is a technology boon that we can rely on.
"Industrial/ Commercial Segment dominated the Global Microgrid Market in 2021"
The industrial / Commercial application segment dominated the global microgrid market in the year 2021. In many developing as well as developed countries power outages is a common problem and due to this several industries suffer from heavy losses. As a solution, several companies in the commercial & Industrial sector have switched to microgrid solutions to overcome the power outage problem. In addition, this in-house distributed generation helps them in enhancing their power efficiency. Furthermore, the companies can easily integrate renewable sources for power generation to their existing grid.
"The Asia Pacific dominated the Global Microgrid Market in the year 2021 and seeks Opportunistic Growth during the Forecast Period"
The Asia Pacific held the majority of the revenue share in the global microgrid market in 2021. The prime factor attributed to this is the increased rural electrification program along with a large number of commercial microgrid deployment in the advanced nations. For instance, the total investment on Asian microgrids expected to reach US$ 31 Bn by 2023. Remote microgrid seeks lucrative growth in Asian countries owing to a lack of robust grid infrastructure. However, Japan is majorly focused on grid-tied systems and other distributed generation technology such as Virtual Power Plants (VPP). In addition, the microgrid deployment tracker identifies 575 new microgrid project in the region that depicts the rise of the Asia Pacific market.
Apart from this Latin America assumed to be the fastest-growing region during the forecast period. Among which, the Caribbean market is the most opportunistic owing to a series of hurricanes along with frequent other natural calamities in the near past. In March 2019, the Environmental Defense Fund in Puerto Rico announced to build a low-carbon microgrid in rural areas to beat the power-cut problems during natural disasters.
Key Players & Competitive Landscape:
"The Global Microgrid Market is a Highly Competitive Market with the Presence of a Large Number of Players"
The global microgrid market is a fragmented market with the presence of a large number of small and large players. The race to provide the best quality of power at a low price has turned the market to be highly competitive.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Microgrid market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
| Segmentation | |
Grid Type
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Source
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Storage
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Application
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
