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2022

Microgrid Market

Microgrid Market Size, Share, Competitive Landscape and Trend Analysis Report by Connectivity, Type and End User : Global Opportunity Analysis and Industry Forecast, 2020-2030

SE : Electronic Systems and Devices

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Author's: Aishwarya Rajvaidya and NN Kundan | Sonia Mutreja
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The global microgrid market size was valued at $15.88 billion in 2020, and is projected to reach $59.74 billion by 2030, registering a CAGR of 14.9% from 2021 to 2030.

A microgrid is a self-reliant, localized energy system that serves a specific area including a hospital complex, college campus, and business centers. It can operate autonomously without any support of a centralized grid. A smart microgrid can also function when connected to the main grid and even when it is not connected to the main grid, it acts as an electrical island. It helps in reduction of harmful emissions resulting in optimal use of renewable resources, improved efficiency, and long-term predictable energy cost.     

Microgrid-Market

Growth in demand for reliable and secured power supply in commercial and industrial sectors across the globe, coupled with government initiatives taken to reduce carbon footprint are expected to fuel the microgrid market growth. Moreover, rapid adoption of software across various end-user segments including commercial, industrial, government, and healthcare to manage and control distributed energy resources with integrated weather and load forecasting is also expected to boost the market during the forecast period.

In the coming years, the microgrid industry is expected to generate moderate cash output with modest investments in development, research, and tests. However, the microgrid market is nearing the maturing stage, and is expected to generate modest revenue for key players in the coming years. 

Factors such as growth in development of smart cities, increase in demand, growth of rugged loT, and rise in adoption of ruggedized computers are expected to drive growth of the market in the future. However, high production cost of rugged devices acts as a major barrier and hampers the market growth. Furthermore, rise in need for hard and reliable electrical equipment for military and aerospace industries are expected to offer lucrative opportunities for the microgrid market growth.

Segmentation

The microgrid market share is analyzed on the basis of connectivity, type, end user, and region. By connectivity, the market is divided into grid connected and off-grid connected. By type, it is classified into AC microgrids, DC microgrids and hybrid. By end user, it is categorized into commercial & industrial, government, healthcare, remote, utility and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries.

Microgrid Market
By Connectivity
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Grid Connected segment generated the highest revenue in 2020.

COVID-19 Banner

The ongoing spread of COVID-19 has become one of the biggest threats to the global economy and is causing widespread concerns and economic hardship for consumers, businesses, and communities across the globe. The “new normal” that includes social distancing and working from home has created challenges with daily activities, regular work, needs, and supplies, causing delayed initiatives and missed opportunities.

The COVID-19 pandemic has impacted the society and overall economy across the globe. The impact of this outbreak has grown day-by-day that affects the supply chain. This has created uncertainty in the stock market; decreased business confidence, slow supply chain, and increased panic among customers. European countries under lockdown have suffered a major loss of business and revenue due to shutdown of manufacturing units in the region. Operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, which led to decrease in growth of the microgrid market in 2020.

Microgrid Market
By Type
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AC microgrids segment generated the highest revenue in 2020.

According to the microgrid market trends, the COVID-19 pandemic has severely impacted the global manufacturing and industrial sectors as production facilities have stalled, which, in turn, led to significant demand in industries.

Emergence of COVID-19 has declined growth of the microgrid market size in 2020, and is estimated to witness slow growth till the end of 2021. Implementation of partial or complete lockdown across various countries globally is the prime reason for decline in growth rate of the market. As industries were temporarily shut, it reduced the need for maintenance from various industries.

Microgrid Market
By End User
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Remote segment generated the highest revenue in 2020.

Top Impacting Factors

The significant factors that impact the global microgrid market growth include increasing demand in remote areas and backup for Military bases, stringent government initiatives to reduce carbon footprints. In addition, High installation and maintenance cost microgrids. Moreover, growing demand of microgrids in Commercial and industrial sector for reliable and uninterrupted power and electricity supply and rapid industrialization and increasing demand for power has affected the market growth to a certain extent. Each of these factors is anticipated to have a definite impact on the global microgrid market during the forecast period. These factors are expected to offer lucrative opportunities for the market growth in the coming years.

Microgrid Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 16.4% during 2020-2030

Key Benefits for Stakeholders

  • This study comprises analytical depiction of the microgrid market size, and opportunity along with current trends and future estimations to depict imminent investment pockets.
  • The overall microgrid market analysis is determined to understand profitable trends to gain a stronger foothold. 
  • The report presents information related to key drivers, restraints, size and microgrid market opportunities with a detailed impact analysis.
  • The microgrid market outlook forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency. 
  • Porter’s five forces analysis illustrates potency of buyers and the microgrid market forecast of key vendors.
  • The report includes the industry trends and the microgrid market share of key vendors.

Microgrid Market Report Highlights

Aspects Details
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By Connectivity
  • Grid connected
  • Off-grid connected
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By Type
  • AC microgrids
  • DC microgrids
  • Hybrid Microgrids
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By end user
  • Commercial and Industrial
  • Government
  • Healthcare
  • Remote
  • .Utility
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

SPIRAE INC., ABB Group, Schneider Electric, SIEMENS, HONEYWELL, S&C ELECTRIC, GENERAL ELECTRIC, EATON CORPORATION, EXELON CORPORATION, PARETO ENERGY

Analyst Review

The microgrid market is highly competitive, owing to strong presence of existing vendors. Microgrid technology vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals as they have the capacity to cater to the global market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.

The microgrid market exhibits high growth potential in commercial and industrial sectors. The current business scenario is witnessing an increase in demand for energy, particularly in developing regions such as China and India, owing to surge in population and rise in demand for energy. Companies in this industry are adopting various innovative techniques, such as mergers and acquisitions to strengthen their business position in the competitive matrix.

The market growth is supplemented by proactive industrialization efforts and surge in manufacturing output, owing to technological advancements. These factors have allowed emerging markets to evolve as largest markets during the forecast period, both from the demand as well as the supply side. Public & private organizations have substantially invested in R&D activities and fabrication techniques to develop cost-effective microgrids. Asia-Pacific is the major revenue contributor to the global market, followed by Europe. The market growth in Asia-Pacific and Europe is expected to significantly increase during the forecast period. The microgrid market provides numerous growth opportunities to market players such as ABB, General Electric, Siemens, Eaton Corporation, and Honeywell. These companies are engaged in the process of product innovation, collaboration, and acquisition to expand their services across various regions. 

The key players profiled in the report include ABB, General Electric, Siemens, Eaton Corporation, Honeywell, Schneider Electric, S&C Electric, Spirae Inc., Exelon Corporation, and Pareto Energy .

Author Name(s) : Aishwarya Rajvaidya and NN Kundan | Sonia Mutreja

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Microgrid Market

Global Opportunity Analysis and Industry Forecast, 2020-2030