Microgrid Market Size By Connectivity (Grid Connected, Off Grid), By Grid Type (AC Microgrid, DC Microgrid, Hybrid), By Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-Ion, Lead Acid, Flow Batteries, Flywheel), By Application (Healthcare, Educational Institutes, Military, Utility, Industrial/Commercial, Remote), Industry Analysis Report, Regional Outlook, Application Potential, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jun 2021  |  Report ID: GMI1187  |  Authors: Ankit Gupta, Riya Gupta

Report Format: PDF   |   Pages: 490   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Microgrid Market size exceeded USD 6 billion in 2020 and is anticipated to register over 27% CAGR between 2021 and 2027. A microgrid is a self-reliant energy system that serves an isolated or discrete geographic footprint, including a hospital complex, college campus and business centers. Rising uninterrupted and resilient power supply demand along with increasing electrification rate largely across the developing economies will foster the industry landscape. Rising penetration of distributed energy resources (DER’s) on account of rapid commercial and industrial development will fuel the business scenario.
 

Microgrid Market

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Rising renewable integration along with increasing self-sufficiency trend across the remote areas will drive the microgrid market outlook

Microgrid Market

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Grid connected microgrid market is estimated to surpass USD 24 billion by 2027. The capability of grid-connected microgrids to deliver peak demand support and enhance the system supply as well as stability across the large network failure will augment the business scenario. Growing customer inclination towards security of power supply coupled with development of Tier II & III cities, supported by government aided policies and guidelines will provide prospects for business expansion.
 

Rising renewable integration along with favorable government norms toward construction and deployment of solar and wind farms, combined heat and power systems across the commercial buildings, offices and healthcare centers will positively stimulate the off grid microgrid networks.
 

High compatibility with grid networks along with no requirement of power supply inverters will drive the AC microgrid industry trends

The AC microgrid market is estimated to register over 27% CAGR through 2027. Ability of this technology to provide lower transmission losses, minimal heat generation and effective high-end voltage levels across the network will sway the technology demand. In addition, these are highly compatible with grid networks and requires no inverters for the power supply which in turn propel the industry dynamics. Furthermore, rising installation of high voltage AC power networks along with deployment of large solar and wind farms connected with AC transmission lines will further sway the business scenario.
 

Shifting trends toward gas-based power generation will fuel the natural gas (NG) based microgrid industry

Favourable government norms and policies toward the integration of sustainable and efficient power generation sources will boost the natural gas (NG) powered microgrid infrastructure. Paradigm shift toward renewable power sources on account of low carbon emission and high incentives will complement the business scenario. For instance, in 2020, Germany municipal utility Stadtwerke Kiel inaugurated a new gas engine based 190 MW CHP plant which was built after the decommission of a coal fired 323 MW CHP plant. Developed and developing economies are focusing on the decommissioning of coal-based plants to minimize the carbon footprint across the globe which will further augment the technology demand.
 

Solar PV based microgrid market is estimated to surpass 1,500 MW capacity by 2027. Rapid industrialization and commercialization in line with the installation of large capacity based sustainable power generation facilities will foster the solar sourced microgrid networks. Growing demand for community-based network deployment across residential establishments and remote areas will further drive the product adoption.
 

Lithium-ion based microgrid industry is anticipated to grow owing to ongoing installation of renewable powered energy sources

Lithium-ion segment of micro grid market is estimated to upsurge at a rate of over 28% between 2021 and 2027. Large scale sustainable technology deployment including solar, hydro and wind energy has further augmented the enhancement of these systems. In addition, extensive R&D activities along with technological innovations and manufacturer inclination toward battery powered systems will facilitate the industry outlook.
 

Government emphasis toward reconstruction and revamp of transmission and distribution lines will positively influence the business trends

Industrial/Commercial sector across the micro grid market will surpass 250 MW capacity by 2027. Government efforts and mandates to reconstruct and revamp the existing T&D networks along with rising incentives to install energy efficient solutions will drive the business outlook. Industrial and commercial sector in the current scenario have been focusing toward deployment of smart solutions across the new as well as conventional grid infrastructure will positively sway the industry potential. Major government authorities are inclined to reduce the carbon emissions across the electrical networks which have further enhanced the requirement of grid modernization.
 

Asia Pacific microgrid market is estimated to surge on account of rising adoption of decentralized energy resources

Microgrid Market

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Asia Pacific microgrid market surpassed USD 3 billion in 2020 and is anticipated to grow at a CAGR of over 29% through 2027. Rising favorable norms and incentive by various countries to increase the sustainable energy mix across the country will drive the business landscape. In addition, regional carbon emission targets and increase usage of stand-alone power sources will foster the technology demand.
 

Ongoing strategic partnerships, contractual agreements and inorganic ventures will enhance the major industry presence

Despite of pandemic impact, various renewable powered projects were deployed across the region as per the schedule. In September 2020, the U.S. government introduced a guideline which stated the continuous flow of operational and maintenance work related to existing or developing grid and other critical infrastructure were to be considered below essential business activities and were allowed to function without any hinderance.
 

Eminent players functioning across the microgrid market includes Eaton, Siemens, GE, Caterpillar, Schneider Electric, HOMER Energy, Honeywell International, Toshiba Corporation, AMS, S&C Electric, Tesla, Hitachi ABB Power Grids, Spirae, General Microgrids, Lockheed Martin Corporation, Heila Technologies and Exelon Corporation.
 

Microgrid market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW’ & ‘USD’ from 2017 to 2027, for the following segments:

By Connectivity

  • Grid Connected
  • Off Grid

By Grid Type

  • AC Microgrid
  • DC Microgrid
  • Hybrid

By Power Source

  • Diesel generators
  • Natural Gas
  • Solar PV
  • CHP
  • Others

By Storage Device

  • Lithium-ion
  • Lead Acid
  • Flow Battery
  • Flywheels
  • Others

By Application

  • Healthcare
  • Educational Institutes
  • Military
  • Utility
  • Industrial/ Commercial
  • Remote
  • Others

 

Frequently Asked Questions (FAQ) :

Global market for Microgrid surpassed USD 6 billion in 2020 and will expand at a CAGR of 27% from 2021 to 2027.
Grid connected microgrid industry will register a revenue of USD 24 billion through 2027 owing to their capability to deliver peak demand support and enhance system supply and stability across large network failure.
AC microgrid business will record a CAGR of more than 27% through 2027 due to the ability of the technology to offer minimal heat generation, lower transmission losses, and effective high-end voltage levels across the network.
Lithium-ion based microgrid market size will grow at a rate of more than 28% from 2021 to 2027 propelled by large scale sustainable technology deployment comprising hydro, solar, and wind energy.

Premium Report Details

  • Published Date: Jun 2021
  • Pages: 490
  • Tables: 796
  • Charts / Figures: 35
  • Companies covered: 17
  • Countries covered: 24

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