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Global Microgrid Market Outlook 2032: Global Opportunity and Demand Analysis, Market Forecast To 2032
- Published :
Report ID: EP0017
Pages: 169
Base Year: 2023
Format: PDF
Historical Date: 2019-2022
Market Research Report
Summary At A Glance
Description
Table of Contents
List Of Tables
List Of Figures
Research Methodology
Description
MARKET SCOPE:
The global Microgrid market is projected to grow significantly, registering a CAGR of 18.7% during the forecast period (2024 – 2032).
A microgrid is a localized and decentralized energy system that can operate independently or in conjunction with the main power grid. It typically consists of distributed energy resources (DERs) such as solar panels, wind turbines, energy storage systems (batteries), combined heat and power (CHP) systems, and advanced control systems. Microgrids are designed to generate, store, and distribute electricity to meet the needs of a specific community, facility, or geographic area. They can operate autonomously, enhancing energy resilience, reliability, and sustainability. Organizations and communities seek solutions to enhance energy resilience, ensuring a continuous power supply during grid outages or disruptions. The desire to incorporate renewable energy sources into the energy mix has led to increased interest in microgrids, which are well-suited for integrating solar, wind, and other clean energy technologies. Microgrids offer a degree of energy independence, allowing users to generate and manage their own electricity, reducing reliance on external power sources. Microgrids are deployed to provide reliable power to critical facilities such as hospitals, data centers, and emergency response centers. Microgrids are essential for providing electricity to remote areas and islands, where connecting to the main grid may be challenging or economically unfeasible. The emphasis on sustainability and reducing carbon emissions drives interest in microgrids, especially those incorporating renewable energy and energy-efficient technologies. Government incentives, subsidies, and supportive policies encourage the adoption of microgrids, aligning with broader energy and environmental goals.
MARKET OVERVIEW:
Driver: Increasing demand for modern grid technologies is driving the market growth.
Efforts to modernize aging grid infrastructure and enhance overall grid resilience are crucial components of the evolving energy landscape. As traditional power grids face challenges such as aging infrastructure, increased demand, and the need for greater flexibility, the integration of microgrids plays a significant role in complementing grid modernization efforts Microgrids contribute to grid modernization by providing localized power generation capabilities. Instead of relying solely on centralized power plants, microgrids enable distributed energy resources (DERs) like solar panels, wind turbines, and energy storage to generate electricity at or near the point of use. Microgrids help reduce transmission losses by generating and delivering electricity locally. Traditional power grids can experience significant energy losses during long-distance transmission. Microgrids, with their localized generation, minimize these losses, improving overall energy efficiency. Microgrids enhance grid reliability and resilience by providing a decentralized and flexible energy infrastructure. In the event of disruptions or outages in the main grid, microgrids can continue to operate autonomously, supporting critical loads and maintaining essential services.
Opportunities: Rise in Distributed Energy Resources (DERs) is anticipated for the market growth in the upcoming years.
The increasing integration of distributed energy resources (DERs) such as solar panels, wind turbines, and energy storage is a key trend in the energy sector. This trend is driven by various factors, including technological advancements, environmental concerns, and the desire for a more resilient and sustainable energy infrastructure. Solar panels and wind turbines are key components of distributed renewable energy generation. They convert sunlight and wind into electricity at or near the point of use. Energy storage, particularly in the form of batteries, plays a crucial role in managing the intermittency of renewable energy sources. Batteries store excess energy generated during periods of high renewable output and release it when needed. DERs enable decentralized power generation, allowing energy to be produced closer to where it is consumed. This reduces transmission losses and enhances the efficiency of the overall energy system. By incorporating solar panels, wind turbines, and energy storage at the point of use, businesses, communities, and individuals can enhance their energy independence and resilience. This is particularly valuable during grid outages or disruptions. The adoption of DERs supports the development of community-scale and distributed generation projects. Communities can generate their own electricity, fostering energy independence and local economic development. Ongoing advancements in renewable energy technologies, such as improved solar panel efficiency and the development of more cost-effective wind turbines, contribute to the increasing feasibility and attractiveness of DERs.
COVID IMPACT:
The COVID-19 pandemic has had various impacts on the energy sector, including the deployment and operation of microgrids. The specific effects can vary depending on regional responses, the nature of the microgrid applications, and the overall economic environment. The pandemic led to disruptions in construction activities and supply chain delays, affecting the deployment of microgrid projects. Lockdowns, social distancing measures, and restrictions on movement could have slowed down construction timelines. Economic uncertainties and financial challenges resulting from the pandemic may have affected the funding and investment landscape for microgrid projects. Investors and project developers may have faced challenges in securing financing for new or ongoing projects. The need for social distancing and lockdowns may have prompted changes in how microgrids are operated and managed. Remote monitoring and control systems became more crucial, and operators may have adopted digital technologies to manage and optimize microgrid performance from a distance. Changes in work patterns, with more people working from home, could have influenced energy demand patterns. Some commercial and industrial microgrid applications may have experienced shifts in load profiles, impacting the optimization of microgrid operations. The pandemic underscored the importance of resilient energy infrastructure. Institutions and critical facilities may have increased their focus on microgrids as a means to ensure a reliable and continuous power supply, especially for critical loads and essential services.
SEGMENTATION ANALYSIS:
Remote Power Systems segment is anticipated to grow significantly during the forecast period
Remote power systems and microgrids play a crucial role in providing reliable and sustainable electricity in areas where access to the main power grid is limited or non-existent. The market for remote power systems and microgrids has been growing, driven by various factors. Remote power systems are essential for off-grid applications, including rural electrification, remote industrial sites, and isolated communities. The need for electricity in areas without grid access, coupled with advancements in renewable energy technologies, drives the demand for remote power systems. Microgrids in remote areas often integrate renewable energy sources such as solar, wind, and hydropower to generate electricity locally. The push for clean energy and the decreasing costs of renewable technologies make microgrids with renewable integration economically viable and environmentally sustainable. Governments and organizations focus on rural electrification initiatives to bring power to remote and underserved areas.
The Institutional Sites segment is anticipated to grow significantly during the forecast period
Microgrids are increasingly being deployed at institutional sites to enhance energy resilience, reliability, and sustainability. Institutional sites, which include government facilities, educational campuses, healthcare institutions, and other public or private organizations, can benefit from microgrid solutions in various ways. Microgrids provide institutional sites with energy resilience by ensuring a continuous power supply during grid outages or disruptions. This is critical for facilities that house essential services, emergency response centers, or critical infrastructure. Hospitals, government offices, and other critical institutions can deploy microgrids to maintain operations during power interruptions, supporting patient care, emergency response, and essential services.
REGIONAL ANALYSIS:
The Asia Pacific region is set to witness significant growth during the forecast period.
The concept of microgrids is gaining traction globally, including in the Asia-Pacific region. Microgrids are localized energy systems that can operate independently or in conjunction with the main power grid. They often incorporate renewable energy sources, energy storage, and advanced control systems to provide resilient, sustainable, and decentralized power solutions. Microgrids are particularly relevant in remote and island communities where access to the main power grid may be limited or challenging. Microgrids enhance energy resilience in disaster-prone areas, providing critical infrastructure with a reliable power source during natural disasters. Countries in the Asia-Pacific, prone to events like typhoons and earthquakes, can deploy microgrids to ensure continuous power supply for emergency services, hospitals, and evacuation centers. Microgrids play a role in rural electrification initiatives, bringing electricity to off-grid or underserved rural areas. In parts of the Asia-Pacific region where rural electrification is a priority, microgrids help bridge the energy access gap, improving the quality of life and supporting economic activities. Microgrids are deployed in industrial zones and commercial areas to enhance energy reliability, reduce downtime, and manage electricity costs. In rapidly developing economies of the Asia-Pacific, microgrids offer industrial and commercial facilities a way to optimize energy use, integrate renewables, and ensure uninterrupted operations.
COMPETITIVE ANALYSIS
The global Microgrid market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
- Hitachi Energy Ltd
- General Electric Company
- In January 2024, GE Vernova’s Nuclear business, GE Hitachi, selected for UK Future Nuclear Enabling Fund.
- Siemens AG
- In May 2024, Siemens acquired Mass-Tech Controls’ EV division, expanding emobility offering in India. Acquisition to strengthen Siemens’ capability to address fast-growing demand for electric vehicle charging infrastructure in India, expand local market presence, enable creation of export hub
- Eaton Corporation PLC
- Honeywell International Inc.
- Toshiba Corp.
- Schneider Electric SE
- Standard Microgrid Inc.
- ENGIE EPS SA
- Electric Co.
Scope of the Report
- By Type
- Custom Microgrid
- Remote Power Systems
- Other Types
- By Application
- Institutional Sites
- Commercial Facilities
- Remote – Off-Grid Communities
- Others
- By Region
- North America (the United States & Canada)
- Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
- Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
- Rest of the World (the Middle East & Africa, Latin America, and Rest of The World)
Keys reasons to purchasing this report
- It provides a technological development map over time to understand the industry’s growth rate and indicates how the Microgrid market is evolving.
- The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Microgrid submarket will be the main driver of the overall market from 2024 to 2032.
- It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
- It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.
Table of Contents
- Executive Summary
- Market Snapshot
- Regional Analysis
- Segment Analysis
- Overview and scope
- Market Vision
- Market Definition
- Market Segmentation
- Market Vision
- Global Microgrid Market Overview By Region: 2019 VS 2023 VS 2032
- Global Microgrid Market Size by Regions (2019-2023) (USD Million)
- North America Microgrid Market Size by Country (2019-2023) (USD Million)
- Europe Microgrid Market Size by Country (2019-2023) (USD Million)
- Asia Pacific America Microgrid Market Size by Country (2019-2023) (USD Million)
- Rest of the World Microgrid Market Size by Country (2019-2023) (USD Million)
- Global Microgrid Market Size by Regions (2024-2032) (USD Million)
- North America Microgrid Market Size by Country (2024-2032) (USD Million)
- Europe Microgrid Market Size by Country (2024-2032) (USD Million)
- Asia Pacific Microgrid Market Size by Country (2024-2032) (USD Million)
- Rest of the World Microgrid Market Size by Country (2024-2032) (USD Million)
- Global Microgrid Market Size by Regions (2019-2023) (USD Million)
- Global Microgrid Market Dynamics
- Market Overview
- Market Drivers
- Market Restraints/ Challenges Analysis
- Market Opportunities
- PESTLE Analysis
- Porter’s Five Forces Model
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- The threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Value Chain Analysis/Supply Chain Analysis
- Covid-19 Impact Analysis on Global Microgrid Market
- Market Overview
** In – depth qualitative analysis will be provided in the final report subject to market
- Global Microgrid Market, By TYPE
- Overview
- Global Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Key Findings for Microgrid Market – By Type
- Custom Microgrid
- Remote Power Systems
- Other Types
- Global Microgrid Market, By Applications
- Overview
- Key Findings for Microgrid Market – By Applications
- Institutional Sites
- Commercial Facilities
- Remote – Off-Grid Communities
- Others
- Global Microgrid Market, By Region
- Key Findings For Microgrid Market- By Region
- Overview
- Global Microgrid Market, By Type
- Global Microgrid Market, By Application
- Global Microgrid Market- North America
- Overview
- North America Microgrid Market Size (2019 – 2032) (USD Million)
- North America Microgrid Market, By Type
- North America Microgrid Market, By Application
- North America Microgrid Market Size by Countries
- United States
- Canada
- Global Microgrid Market- Europe
- Overview
- Europe Microgrid Market Size (2019 – 2032) (USD Million)
- Europe Microgrid Market, By Type
- Europe Microgrid Market, By Application
- Europe Microgrid Market Size by Countries
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Global Microgrid Market – Asia Pacific
- Overview
- Asia Pacific Microgrid Market Size (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market, By Type
- Asia Pacific Microgrid Market, By Applications
- Asia Pacific Microgrid Market Size by Countries
- China
- Japan
- India
- Rest of Asia Pacific
- Global Microgrid Market- Rest of World
- Overview
- Rest of World Microgrid Market Size (2019 – 2032) (USD Million)
- Rest of World Microgrid Market, By Type
- Rest of World Microgrid Market, By Applications
- Rest of World Microgrid Market Size by Regions
- Middle East & Africa
- Latin America
- Rest Of The World
- Global Microgrid Market- Competitive Landscape
- Key Strategies Adopted by the Leading Players
- Recent Developments
- Investments & Expansions
- New End-User Launches
- Mergers & Acquisitions
- Agreements, Joint Ventures, and Partnerships
- Global Microgrid Market- Company Profiles
- Hitachi Energy Ltd
- Company Overview
- Financial Overview
- Product Offered
- Key Developments
- Siemens AG
- Eaton Corporation PLC
- Honeywell International Inc.
- Toshiba Corp.
- Schneider Electric SE
- Standard Microgrid Inc.
- ENGIE EPS SA
- Electric Co.
- Hitachi Energy Ltd
- Our Research Methodology
- Data Triangulation
- Data Sources
- Secondary Sources
- Primary Sources
- Assumptions/ Limitations For The Study
- Research & Forecasting Methodology
- Appendix
- Disclaimer
- Contact Us
List Of Tables
- Global Microgrid Historic Market Size By Regions (2019 – 2023) (USD Million)
- Global Microgrid Forecasted Market Size By Regions (2024-2032) (USD Million)
- Global Microgrid Market- Drivers
- Global Microgrid Market- Restraint /Challenges
- Global Microgrid Market- Opportunity Analysis
- Global Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Custom Microgrid (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Remote Power Systems (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Other Types (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Institutional Sites (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Commercial Facilities (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Remote – Off-Grid Communities (2019 – 2032) (USD Million)
- Global Microgrid Market Size By Remote – Others (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Type (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Custom Microgrid (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Remote Power Systems (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Others (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Institutional Sites (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Commercial Facilities (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Remote – Off-Grid Communities (2019 – 2032) (USD Million)
- North America Microgrid Market Size By Others (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Custom Microgrid (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Remote Power Systems (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Other Types (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Institutional Sites (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Commercial Facilities (2019 – 2032) (USD Million)
- Europe Microgrid Market Size By Others (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Custom Microgrid (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Remote Power Systems (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Other Types (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Institutional Sites (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Commercial Facilities (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Remote – Off-Grid Communities (2019 – 2032) (USD Million)
- Asia Pacific Microgrid Market Size By Others (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Custom Microgrid (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Remote Power Systems (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Other Types (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Institutional Sites (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Commercial Facilities (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Remote – Off-Grid Communities (2019 – 2032) (USD Million)
- Rest of World Microgrid Market Size By Others (2019 – 2032) (USD Million)
- Data Triangulation
List Of Figures
- Market Highlights
- Market Highlights By Region
- Global Microgrid Market Size By Type: 2019 VS 2032
- Global Microgrid Market Size by Applications: 2019 VS 2032
- Global Microgrid Market Size By Type (2019 – 2032) (USD Million)
- Global Microgrid By Custom Microgrid (USD Million 2019 – 2032)
- Global Microgrid By Remote Power Systems (USD Million 2019 – 2032)
- Global Microgrid By Other Types (USD Million 2019 – 2032)
- Global Microgrid Market Size By Applications (2019 – 2032) (USD Million)
- Global Microgrid By Institutional Sites (USD Million 2019 – 2032)
- Global Microgrid By Commercial Facilities (USD Million 2019 – 2032)
- Global Microgrid By Remote – Off-Grid Communities (USD Million 2019 – 2032)
- Global Microgrid By Others (USD Million 2019 – 2032)
- North America Microgrid Market Size (2019 – 2032) (USD Million)
- North America Microgrid By United States Revenue (USD Million) (2019 – 2032)
- North America Microgrid By Canada Revenue (USD Million 2019 – 2032)
- Europe Microgrid Market Size (2019 – 2032) (USD Million)
- Europe Microgrid By United Kingdom Revenue (USD Million) (2019 – 2032)
- Europe Microgrid By Germany Revenue (USD Million 2019 – 2032)
- Europe Microgrid By France Revenue (USD Million 2019 – 2032)
- Europe Microgrid By Italy Revenue (USD Million 2019 – 2032)
- Europe Microgrid By Spain Revenue (USD Million 2019 – 2032)
- Europe Microgrid By Rest Of Europe Revenue (USD Million 2019 – 2032)
- Asia Pacific Microgrid Market Size (2019 – 2032) (USD Million)
- Asia Pacific Microgrid By China Revenue (USD Million) (2019 – 2032)
- Asia Pacific Microgrid By Japan Revenue (USD Million 2019 – 2032)
- Asia Pacific Microgrid By India Revenue (USD Million 2019 – 2032)
- Asia Pacific Microgrid By Rest Of APAC Revenue (USD Million 2019 – 2032)
- Rest Of World Microgrid Market Size (2019 – 2032) (USD Million)
- Rest of World Microgrid By the Middle East & Africa Revenue (USD Million) ( 2019 – 2032)
- Rest of World Microgrid By Latin America Revenue (USD Million 2019 – 2032)
- Rest of World Microgrid By Rest Of The World Revenue (USD Million 2019 – 2032)
- Key Strategies Adopted By The Leading Players
- Secondary Sources
- Primary Research
- Global Microgrid Market – Research Methodology
Research Methodology
Primary and Secondary Research
In order to understand the market in detail we conduct primary and secondary research. We collect as much information as we can from the market experts through primary research. We contact the experts from both demand and supply side and conduct interviews to understand the actual market scenario. In secondary research, we study and gather the data from various secondary sources such as company annual reports, press releases, whitepapers, paid databases, journals, and many other online sources. With the help of the primary interviews, we validate the data collected from secondary sources and get a deep understanding on the subject matter. Post this our team uses statistical tools to analyses the data to arrive at a conclusion and draft it in presentable manner.
Market Size Estimations
Understanding and presenting the data collected is a crucial task. Market sizing is a critical part of the data analysis and this task is performed by using Top-down and bottom-up approaches. In this process, we place different data points, market information and industry trends at a suitable space. This placement helps us presume the estimated & forecast values for coming few years. We use several mathematical and statistical models to estimate the market sizes of different countries and segments. Each of this is further added up to outline the total market. These approaches are individually done on regional/country and segment level.
Data Triangulation
As we arrive at the total market sizes, the market is again broken down into segments and subsegments. This process is called as data triangulation and is implementable wherever applicable. This step not only helps us conclude the overall market engineering process, but also gives an assurance on accuracy of the data generated. The data is triangulated based on studying the market trends, various growth factors, and aspects of both demand and supply side.
