Microgrid Market: By Grid Type (Grid-Connected, Remote/ Island, Hybrid); By Component (Generation, Switch Gear, Controls, Cables, Software & Services); By Vertical (Government & Education, Residential & Commercial and others) & By Region - Forecast(2019 - 2025)

Report Code : ESR 0343 Format Type: PDF+ Excel Database

Microgrid Market Overview:

According to Itamar Orlandi, Head of Frontier Power Research, Bloomberg NEF, even in 136 years of the invention of world’s first utility by Thomas Alva Edison, the industry isn’t in a position to provide electricity to 14% of the global population. Moreover, in such a scenario, 700 million people will remain deprived of power by 2030[1].  So, the world is in dire need of renewable electricity which is opening up the microgrid market that was already valued to be $20 billion in 2018 as per this market research report. Furthermore, the market analyst estimates the global microgrid market growth (global CAGR) to be around a remarkable 12% during the forecast period of 2019-2025. 

In the Americas, most of the cities are considering microgrids in order to ensure continuous power supply. Additionally, the US military has an initiative, Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS). The mission of the program is to provide power to critical facilities in the event of a loss or attack. Furthermore, utilities are also perceiving the role of microgrids as an infrastructural requirement. Now, these factors are significantly driving the microgrid market in Americas which bears 36% of the regional microgrid market share, according to this report.  


Microgrid Market Outlook:

Microgrids are distribution systems with distributed energy sources such as microturbines, fuel cells, and photovoltaics (PV) and finds applications in community, industries, institutions, utilities, and military. However, the microgrid market is creating more opportunities in the healthcare sector, and WHO in association with the World Bank has also suggested micro-grid as an advantageous option, especially because it uses renewable energy sources (RES). Moreover, many rural healthcare facilities fall short of power because of which there is palatable demand for microgrids for the same. IndustryARC’s research analyst estimates the application CAGR of microgrids in the healthcare sector to be 14% through to 2025. 

Microgrid Market Growth Drivers:

  • The Rise in the Demand for Renewable Energy Sources for Power Generation –
According to the International Energy Agency (IEA), renewable sources will make up for two-thirds of the global power demand to 2040.  While the market is 25% today, it will catapult to 40% by 2040[2]. Furthermore, in a report by International Smart Grid Action Network, IEA forecasts that 60% of the future electrification required to reach the global electricity demand by 2030 will be fulfilled by microgrids along with other standalone systems. Now, this is a major factor that will make a positive impact on the microgrid market over the forecast period of 2019-2025. 

  • Industrialization and Population Growth –
Population Reference Bureau (PRB) estimates that the global population will be 9.9 billion by the year 2050, which is a staggering 29% growth as compared to today. Additionally, according to the Industrial Development Organization (IDO), UN, there is a demand for industrial development in order to provide the world population with affordable and sustainable goods[3].  Now, these two factors when combined leads to the need for a sustaining power source such as microgrids, which further opens up its market by many-folds. 

  • The Need for Reducing Carbon Footprints – 
Carbon sequestration has become an imperative action in the world in order to control global warming. Now, the conventional generation of electricity leads to perilous emission of carbon footprints. Many governments have incorporated programs for reducing carbon footprints and microgrid is one of the initiatives which is further propelling the market. 


Microgrid Market Challenges:

The major challenge detrimental to the microgrid market revenue is the reluctance shown by the industries that still prefer conventional electricity over microgrids due to a better return on investment in the former. However, with more stringent environmental laws and prevalent application in other sectors, the penetration of microgrids in the industrial sector is inevitable. 


Microgrid Market

Microgrid Market Key Players Perspective: 

ABB Ltd is one of the market leaders in microgrids that had the annual revenue of $34,312 million in the year 2017, which also attributed to their growth in the microgrid domain. Another key player in the microgrid market is Eaton Corporation PLC which has seen growth in the microgrid segment owing to the growing demand for the same.
 
Some other companies crusading for microgrid market share are General Electric, Siemens AG, Exelon Corporation, Honeywell Corporation, Homer Energy, S&C Electric, Schneider Electric, and Power Analytics.


Microgrid Market Trends –

  • In May 2018, Shell made strategic investments in microgrid company, GI Energy. Shell specifically mentioned the vision of a low-carbon future as a reason for the investment.
  • In October 2018, Siemens had announced its plans to acquire Russelectric, especially to strengthen its position in the microgrid market. 
  • In January 2019, CleanSpark – a microgrid company completed the acquisition of Pioneer Power Solutions, Inc. to meet the future demand for power. 

Microgrid Market Research Scope: 

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Microgrid market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of Microgrid market, and their specific applications in government, education, residential, and commercial sectors along with others.

Microgrid Market Report: Industry Coverage 

The report analyses the product demands on the bases of segmentation – Grid-connected, remote, island, and hybrid. Furthermore, the market is further segmented on the basis of components – Generation, switch, gear, controls, cables, software, and services. 

The Microgrid market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

  • North America: The U.S., Canada, Mexico
  • South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
  • Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
  • APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
  • Middle East and Africa: Israel, South Africa, Saudi Arabia
Reference:

https://about.bnef.com/blog/orlandi-solar-storage-path-achieving-uns-sustainable-development-goals/
https://www.iea.org/newsroom/news/2018/november/world-energy-outlook-2018-examines-future-patterns-of-global-energy-system-at-a-t.html
https://www.unido.org/sites/default/files/files/2017-11/IDR2018_FULL%20REPORT.pdf

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