Microgrids Market: By Connectivity (Grid Connected, Off-Grid Connected), By Type (AC Microgrids, DC Microgrids, Hybrid Microgrids), By End User (Commercial and Industrial, Government, Healthcare, Remote, Utility, Others), And Region - Global Analysis of Market Size, Share & Trends For 2019-2021 And Forecasts To 2031
Microgrids Market to surpass USD 91.2 billion by 2031 from USD 17.2 billion in 2021 at a CAGR of 18.2% in the coming years, i.e., 2021-2031.
Microgrid is a decentralised group of electricity sources and loads that is normally connected to and synchronous with the traditional wide area synchronous grid (macrogrid), but can disconnect from the interconnected grid and operate independently in "island mode" as technical or economic conditions demand. Microgrids increase supply security within the microgrid cell and can provide emergency power by switching between the island and linked modes in this way. Another application is an off-grid microgrid, often known as an independent, stand-alone, or isolated microgrid. Local energy sources are best suited for microgrids where electricity transmission and distribution from a major centralised energy source is too far away and expensive to implement.
Global Microgrids Market to surpass USD 91.2 billion by 2031 from USD 17.2 billion in 2021 at a CAGR of 18.2% in the coming years, i.e., 2021-2031. Factors such as the increased focus on decarbonization by various end users and the government, rising demand for uninterruptible power supply, growing adoption of microgrids for rural electrification, and rising instances of cyberattacks on energy infrastructures are all contributing to the market's growth. Furthermore, the growing number of initiatives by governments around the world to stimulate the construction of microgrids is fueling the industry's growth.
On the basis of Connectivity, the global Microgrids Market is fragmented into Grid Connected, and Off-Grid Connected. During the forecast period, the grid linked segment is expected to have the highest CAGR. Several generators, sophisticated controls, and distribution networks, are all components of a grid-connected microgrid. They provide a number of advantages, including grid resiliency, greater power quality, and low environmental impact, all of which lead to rising demand. This growth of this segment can be attributed to the global development of utility-based grid networks, and also the large-scale connection of renewable energy sources like offshore wind.
Global Microgrids Market is classified on the basis of End User into Commercial and Industrial, Government, Healthcare, Remote, Utility, and Others. During the projected period, the commercial and industrial microgrid market is expected to develop at the fastest CAGR. The constant need for an uninterrupted energy supply to carry out seamless industrial operations to reduce downtime, boost worker productivity, and prevent equipment damages is responsible for the segment's growth. Increased government attempts to promote the use of clean energy and reduce greenhouse gas (GHG) emissions are also propelling the commercial and industrial microgrid market forward.
Growing Demand from the Remote Areas for Military Applications
Increased demand in rural places and backup for military sites, as well as severe government measures to minimise carbon footprints, are all key drivers influencing the worldwide microgrid market's growth. Microgrids also have high installation and maintenance costs. Furthermore, the growing demand for microgrids in the commercial and industrial sectors for stable and continuous power and electricity supply, as well as fast industrialization and rising power demand, has influenced market growth to some extent. During the forecast period, each of these factors is expected to have a significant impact on the worldwide microgrid market.
Rising Electrification Rate in the Developing Economies
The industry landscape will be bolstered by the rising need for a stable and reliable power supply, as well as rising electrification rates, particularly in developing economies. The business scenario will be fueled by the increasing penetration of distributed energy resources (DERs) as a result of rapid commercial and industrial expansion.
High Installation and Maintenance Costs associated with the Microgrids
Microgrids have greater initial expenses for installation and maintenance than traditional power grids, ranging from 25% to 30% more. They cover everything from the deployment of communication systems to the installation of smart metres, as well as the ongoing maintenance of the microgrid infrastructure. Smart metre installation prices are 50% higher than electric metre installation expenses.
Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis
Global Microgrids Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. During the projected period, APAC is expected to be the fastest-growing microgrid market. The high rate of rural electrification in numerous economies including India, Malaysia, and the Philippines has contributed to the market's rise in APAC. The demand for cost-effective microgrids in the region grew as a result of the enormous number of unconnected islands in Indonesia and the Philippines, as well as the absence of proper energy infrastructure in growing countries.
The operations of numerous microgrid hardware manufacturers, as well as the businesses of their suppliers and distributors, have been disrupted by COVID-19. In the medium term, the drop in export shipments, project delays, and poor domestic demand for microgrid hardware in compared to pre-COVID-19 levels is projected to have a negative impact on and slightly stagnant demand for the microgrid market.
Market size value in 2021
USD 17.2 billion
Revenue forecast in 2031
USD 91.2 billion
CAGR of 18.2% from 2021 to 2031
Base year for estimation
Revenue in USD million and CAGR from 2021 to 2031
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Connectivity, Type, End User, and Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Key companies profiled
Siemens AG, General Electric, S&C Electric Company, ABB Group, Schneider Electric SE, Engie Group, Honeywell International Inc., Echelon Corporation, Pareto Energy Limited, Toshiba Corporation, Duke Energy Corporation, Power Analytics Corporation, and Other Prominent Players.
Microgrids Market size was estimated at USD 17.2 billion in 2021 and is expected to reach USD 91.2 billion in 2031.
A microgrid is a self-contained, localised energy system that serves a specific area, such as a hospital, college campus, or business district. It is self-contained and does not require the assistance of a centralised grid.
The Grid Connected segment accounted for the largest Microgrids Market share.
Key players in the Microgrids Market include Siemens AG, General Electric, S&C Electric Company, ABB Group, Schneider Electric SE, Engie Group, Honeywell International Inc., Echelon Corporation, Pareto Energy Limited, Toshiba Corporation, Duke Energy Corporation, Power Analytics Corporation, and Other Prominent Players.
Industry development is predicted to be fueled by rising demand for reliable power and the increased deployment of microgrids for rural electrification.
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