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North America Microgrid Market Size By Connectivity (Grid Connected, Off Grid), By Grid (AC Microgrid, DC Microgrid, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-Ion, Lead Acid, Flow Battery, Flywheels), By Application (Healthcare, Educational Institutes, Military, Utility, Industrial/ Commercial, Remote), COVID-19 Impact Analysis, Country Outlook, Application Potential, Competitive Market Share & Forecast, 2022 – 2030

  • Report ID: GMI2833
  • Published Date: Nov 2022
  • Report Format: PDF

Industry Statistics

North America Microgrid Market size valued at USD 3 billion in 2021 and is projected to expand at more than 14% CAGR from 2022 to 2030.
 

With the electricity grid in the U.S. aging and the ongoing preparations for a net-zero future, modernized grid infrastructure development has become critical to increasing their resiliency. Based on data from the U.S. Energy Information Administration, the electricity grid connects over 145 million customers and 7,300 power plants with over 160,000 miles of high-voltage transmission or distribution lines. This strong dependence on electricity will stimulate the installation of microgrid networks since they can ensure a continuous supply of power during emergencies such as outages.
 

North America Microgrid Market

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In the U.S., government bodies have also been targeting to electrify remote locations and ensure reliable power supply through the maintenance of the central grid. Additionally, an upsurge in investments toward distributed electricity generation systems is also witnessed across the region, augmenting the use of advanced microgrid solutions. Despite this favorable growth environment, high costs of licensing and integration across the main grid may hinder industry expansion.
 

Rapid smart grid tech integration to foster demand for grid-connected solutions

The North America grid-connected microgrid market is slated to witness nearly 13.5% growth rate through 2030, given the rapid integration of smart grid technologies. As per data from the U.S. DOE, in 2018, investments in smart grid networks reached USD 6.4 billion, an increase from USD 3.4 billion in 2014. The implementation of the grid-connected microgrid design is further attributed to reduced transmission losses. In addition, the emphasis on effective management of load fluctuations and grid disturbances will enhance the development of grid-connected systems across the region.
 

DC microgrid systems to gain momentum owing to high voltage carrying capacity

The DC microgrids demand in North America is poised to record nearly 1.5-GW in capacity by 2030. A prominent reason promoting the escalating uptake of DC microgrid systems is the mounting integration of a variety of power-generating sources including diesel generators, CHP plants, and PV arrays. Moreover, these systems have a simpler control structure and higher voltage carrying capacity, among other favorable attributes, which will also drive the deployment of DC microgrid technologies.
 

Natural gas microgrids emerge as a key tool for sustainable power generation

North America Microgrid Market, By Power Source USD Million

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North America microgrid market value from the natural gas power source is anticipated to reach around USD 2.5 billion by 2030, due to the introduction of strict government norms to ensure efficient and sustainable power generation. For example, in 2021, the U.S. Biden administration announced an executive order to leverage the scale and procurement power of the nation to tackle the climate crisis through clean energy operations.
 

Preference for cost-effective power storage tech to push microgrid installations

The flow battery storage device segment is estimated to attain more than 15% gains through 2030, on account of the persistent introduction of research initiatives to design cost-effective storage technologies. As compared to alternatives, flow batteries exhibit higher efficiency and a longer life cycle. The strong focus on the development of affordable and energy-efficient solutions will thus proliferate the use of such power storage devices in the production of energy-efficient and economical products.
 

Investments in healthcare infrastructure to boost microgrid demand

U.S. Microgrid Market By Application (USD Million)

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The healthcare application is set to surpass 255-MW in capacity by 2030. The accelerating investment in reliable, sustainable, and safe power supply for critical healthcare operations and emergencies is among the major drivers for microgrid demand. Over the years, spending on healthcare infrastructure and the construction of temporary hospitals has also surged.
 

Canada to emerge as a prominent development hub for microgrid developers

Canada microgrid market is expected to grow at a CAGR of over 18% through 2030, impelled by the shifting preference toward clean energy networks. There has also been a strong focus on the development of reliable power supply infrastructure across the region. Furthermore, environmental concerns, emphasis on increasing grid reliability during extreme weather conditions, and rising autonomy will also amplify microgrid system demand for power generation across the country.
 

Grid technology innovations to remain a key growth strategy for industry participants

Top companies operating in the North American microgrid industry are General Electric, Eaton, ABB, Siemens, Schneider Electric, Honeywell, Caterpillar, Toshiba Corporation, Tesla, S&C Electric Company, Advanced Microgrid Systems, Helia Technologies, Hitachi Energy Ltd, General Microgrids, and Exelon Corporation. These leaders are focusing on product innovation and other strategies to expand their customer base and reinforce their presence in the market.
 

For example, in September 2022, Siemens unveiled the innovative technology behind the Smartflower MG, an educational microgrid in Canada. This innovative technique was intended to provide students a deeper understanding of green technology, grid management, data analytics, and solar power and allow the company to establish a strong footprint in the regional industry.
 

Impact of COVID-19 outbreak on industry trends

Despite the unprecedented challenges faced by several industries since the onset of the COVID-19 pandemic, the microgrid sector remains robust. This network has brought significant changes to the power sector in countries including the U.S., ensuring resilience amid the strong electricity demand from people working from home. Moreover, the surge in the number of coronavirus-infected patients has also made the system a life-saving asset in healthcare facilities, thereby adding impetus to industry growth during the pandemic.
 

The microgrid market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW” and “USD” from 2018 to 2030, for the following segments:

Market Insights, By Connectivity

  • Grid Connected
  • Off Grid

Market Insights, By Grid

  • AC Microgrid
  • DC Microgrid
  • Hybrid

Market Insights, By Power Source

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

Market Insights, By Storage Device

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

Market Insights, By Application

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

The above information has been provided for the following country:

  • U.S.
  • Canada
  • Mexico

 

Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

The market size of North America microgrid crossed USD 3 billion in 2021 and is set to depict over 14% CAGR through 2022-2030, due to the aging grid infrastructure.

The DC microgrid segment is expected to reach over 1.5-GW in capacity by 2030, owing to the integration of power-generating sources such as diesel generators, CHP plants, and PV arrays.

The Canada market is slated to grow at CAGR of over 18% CAGR through 2030, given the shifting preference toward clean energy networks and focus on power supply infrastructure development.

General Electric, Eaton, ABB, Siemens, Schneider Electric, Honeywell, Caterpillar, S&C Electric Company, Advanced Microgrid Systems, General Microgrids, and Exelon Corporation are some of the key players in the industry.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 15
  • Tables & Figures: 326
  • Countries covered: 3
  • Pages: 215

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