Microgrid Market size to exceed $25bn by 2026
Published Date: October 23, 2020 Authors: Ankit Gupta, Aditya Singh Bais
Microgrid Market size is expected to surpass USD 25 Billion by 2026, as reported in the latest study by Global Market Insights, Inc.
Microgrid industry is set to grow on account of shifting focus toward integration of smart grid and sustainable storage technologies. Stringent government norms to deploy clean energy sources coupled with increasing demand for reliable and continuous power supply will augment the business landscape. Favorable government policies along with ongoing electrification programs have further nourished the product landscape.
Large scale integration of renewable energy technologies coupled with expanding utility-based grid infrastructure has enhanced the development of off-grid systems. Strengthening policy framework coupled with the rapid technological enhancements including IoT enabled devices will foster the industry outlook. These systems are deployed in synchronization with main power grid and used to supply power across healthcare, manufacturing, and commercial applications.
COVID- 19 has impacted a wide range of infrastructural development and restructuring & renovation of projects, impacting the micro grid market growth. The outbreak has led governments to initiate full-scale lockdown obligating on their residents to stay indoors to decrease community transmission of coronavirus. This has impacted the overall operations across all verticals on account of complete shutdown in commercial and industrial establishments. However, development of specialized healthcare establishments with an aim to cater to the pandemic needs will positively sway the microgrid industry statistics.
Favorable government schemes including FIT and other related reforms will fuel the demand for grid-connected sustainability establishments, which in turn will stimulate AC microgrid market trends. The product offers vital advantages including lower transmission losses, lesser heat generation, and effective and flexible high-end voltage levels which will further boost the product demand.
Ongoing proliferation across solar industry will drive the technological adoption
The solar PV microgrid market is anticipated to reach over USD 3 billion by 2026. The industry is subjected to grow on account of significant decline in the cost of photovoltaic components and overall levelized cost of energy associated with solar installations. Favorable regulatory norms including FIT, subsidies, leveraging schemes, tax rebates, and investment tax credits have significantly soared solar adoption.
The stringent government norms toward reduction of greenhouse gas emissions favored by ongoing reforms pertaining to the energy security will augment the CHP adoption. Limited availability of land for landfills and incinerators along with the increasing consumer awareness toward waste management will stimulate the product demand. Expansion of transmission lines and rapid installation of utility based HVDC infrastructure will further amplify the business scenario.
Browse key industry insights spread across 430 pages with 797 market data tables & 36 figures & charts from the report, “Microgrid Market Analysis By Connectivity (Grid Connected, Off-Grid), Grid Type (AC Microgrid, DC Microgrid, Hybrid), Source (Diesel Generators, Natural Gas, Solar PV, CHP, Others), Storage (Lithium-Ion, Lead Acid, Flow Batteries, Flywheel, Others), Application (Healthcare, Educational Institutes, Military, Utility, Industrial/Commercial, Remote, Others), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Flywheels microgrid market will gain traction on account of upgradation of industries and commercial establishments
Flywheels microgrid demand will grow at a rate of over 25% owing to higher efficiency, low maintenance and longer life cycle. Increasing applicability across microgrid networks, transportation, UPS, and similar deployments will boost the industry landscape. Supportive regulatory reforms for expansion of small-scale industries and development of commercial establishments including educational institutions will energize the industry dynamics.
Growing emphasis toward the integration of wide-range frequency transmission links coupled with increasing concern for energy efficiency will accelerate the industrial microgrid market trends. Accelerating investments across SEZ areas along with robust growth in industrial activities across emerging economies will augment the technology adoption. Upsurge in funding by private and governmental organizations toward electrification programs will further complement the business statistics.
Increasing deployment of renewable technology will propel the Europe microgrid market size
Europe microgrid industry accounted for over USD 1 billion in 2019. The region is primarily focusing toward adoption of renewable energy including wind and solar on account of growing electricity demand along with increasing consumer awareness toward sustainable energy mix. Furthermore, technological advancement coupled with strict measures to reduce the dependency on conventional power generating systems will stimulate the industry landscape.
Notable players operating across microgrid market includes GE Alstom, Siemens, Eaton, ABB, Schneider Electric, Homer Energy, Caterpillar, Honeywell, Lockheed Martin, Hitachi, Toshiba, Exelon, Advanced Microgrid Solutions, Tesla and Viridity Energy Solutions. The companies are focusing toward overseas expansion including acquisitions and merger to enhance their business presence across the globe.