Microgrid Market to Grow with a CAGR of 15.19% through 2028
Increasing demand for reliable and resilient power
supply and technological advancements are likely to drive the market in the
forecast period.
According to TechSci Research report, “Microgrid
Market – Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Microgrid Market stood at USD 12.08 billion
in 2022 and is anticipated to grow with a CAGR of 15.19% in the forecast period. for energy resilience and reliability across various
sectors. In an era marked by frequent and severe weather events, cybersecurity
threats, and aging grid infrastructure, businesses, communities, and critical
infrastructure facilities are seeking solutions to ensure continuous and
dependable power supply. Microgrids are well-suited to address this critical
need. They offer the capability to operate autonomously during grid outages,
seamlessly disconnecting from the main grid and relying on localized energy
resources such as solar panels, wind turbines, combined heat and power (CHP)
systems, and energy storage. This islanding capability ensures that essential
services, including hospitals, data centers, manufacturing facilities, and
military installations, can continue operating without disruption. The
increasing recognition of microgrids as a reliable solution for energy
resilience has led to their adoption across various sectors. Businesses are
investing in microgrids to safeguard against financial losses caused by power
outages, while communities are deploying microgrids to provide emergency
shelters and critical services during disasters. Furthermore, governments and
utilities are supporting microgrid development to enhance overall grid
resilience and minimize the impact of grid disturbances. As the need for energy
resilience continues to grow, the global microgrid market is expected to
flourish, with businesses and organizations recognizing microgrids as a crucial
tool to ensure uninterrupted power supply, reduce downtime, and protect against
the economic and social impacts of power disruptions.
The integration of renewable energy
sources and the pursuit of sustainability goals are significant drivers fueling
the global microgrid market. As the world grapples with climate change and the
need to reduce greenhouse gas emissions, there is a growing emphasis on
transitioning to clean and sustainable energy systems. Microgrids play a
pivotal role in this transition by enabling the seamless integration of
renewable energy sources such as solar, wind, and biomass into the energy mix.
They provide a platform for harnessing locally generated clean energy, reducing
reliance on fossil fuels, and mitigating environmental impacts. Businesses,
communities, and institutions are increasingly adopting microgrids to align
with sustainability objectives. Microgrid systems can optimize the use of
renewable energy, store excess energy for later use, and intelligently manage
energy flows to maximize efficiency. This results in reduced carbon footprints
and lower energy costs over time. Furthermore, governments and regulatory
bodies worldwide are promoting the adoption of microgrids as part of broader
renewable energy and sustainability initiatives. Financial incentives, tax
credits, and grants are often provided to encourage microgrid development,
particularly when renewable energy sources are central to the microgrid's
energy generation. The integration of renewables and sustainability goals not
only enhances environmental stewardship but also positions microgrids as a key
enabler of a cleaner, greener, and more resilient energy future. Consequently,
this driver is expected to continue propelling the growth of the global
microgrid market as industries and communities prioritize sustainable energy
solutions.
Browse over XX market data Figures spread
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Market.”
The Global Microgrid Market is segmented into type, consumption
pattern, power source, end user industry and region.
Based on type, The Grid Connected segment had the
largest market share in 2022 & expected to maintain in the forecast period.
Grid-connected microgrids have the advantage of being able to participate in energy
markets. They can sell excess electricity back to the main grid, participate in
demand response programs, and provide grid support services. This ability to
monetize excess energy and offer grid services makes them financially
attractive to commercial and industrial users. Grid-connected microgrids can
enhance the resilience of the existing electrical grid. In the event of a grid
outage or disturbance, these microgrids can seamlessly disconnect from the main
grid and continue to provide power to critical loads. This capability is
crucial for businesses and institutions that require uninterrupted power
supply.Grid-connected microgrids can optimize energy generation and consumption
by intelligently managing energy flows. They can use a combination of local
generation sources, such as solar and combined heat and power (CHP) systems,
along with energy storage, to minimize energy costs and reduce reliance on the
main grid during peak demand periods. Grid-connected microgrids can integrate
renewable energy sources, such as solar panels and wind turbines, into their
energy mix. This aligns with sustainability goals and environmental
regulations, making them an attractive choice for organizations committed to
reducing their carbon footprint.
Based on end user industry, The Industrial segment had the largest market share in 2022
and is projected to experience rapid growth during the forecast period. Industrial
facilities, such as manufacturing plants, data centers, chemical refineries,
and large-scale production units, are heavily reliant on a consistent and
uninterrupted power supply. Even momentary power disruptions can result in
significant financial losses, production downtime, and compromised safety.
Microgrids offer a dependable solution by providing continuous and reliable
power, ensuring that industrial processes remain operational.Energy costs
represent a substantial portion of the operational expenses for industrial
facilities. Microgrids allow industries to optimize energy generation and
consumption, which translates into significant cost savings. By integrating
renewable energy sources, energy storage systems, and combined heat and power
(CHP) technologies, industrial microgrids can reduce reliance on costly grid
power during peak demand periods and take advantage of lower-cost, locally
generated energy. The industrial sector prioritizes resilience and risk
mitigation. Microgrids are well-suited to provide enhanced energy resilience by
seamlessly transitioning to islanded mode during grid disruptions or
emergencies. This capability is critical for maintaining operations, protecting
valuable assets, and ensuring worker safety in environments where continuous
power is essential. Some industrial microgrids participate in grid support
services, such as demand response and frequency regulation. These services
allow industries to contribute to grid stability and earn revenue by adjusting
their energy consumption patterns or providing excess power to the grid during
times of high demand.
Major companies operating in the Global Microgrid Market
are:
- Schneider Electric SE
- Siemens AG
- Eaton Corporation plc
- General Electric Company
- ABB Ltd
- Honeywell International Inc.
- Robert Bosch GmbH
- Bloom Energy
- SunPower Corporation
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“The Global Microgrid market is expected to rise in
the upcoming years and register a significant CAGR during the forecast period. Microgrids
can provide reliable and resilient power supply in the event of a power outage
or grid failure. This is a major advantage in areas that are prone to natural
disasters or that have aging infrastructure. Microgrids can help to reduce
reliance on fossil fuels and improve energy efficiency. This is in line with
the global trend towards sustainability. Additionally, Governments in many
countries are providing support for the development of microgrids. This is
helping to drive the market growth. Also, Technological advancements in
microgrids, such as the use of renewable energy sources and energy storage
systems, are making them more cost-effective and efficient. This is also
driving the market growth. Therefore, the market of Microgrid is expected to
boost in the upcoming years.,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“Microgrid Market – Global Industry Size, Share, Trends,
Opportunity, and Forecast, Segmented
By Type (Grid Connected, Remote/Island, Hybrid), By Consumption Pattern (Urban
& Metropolitan, Semi-urban, Rural/Island), By Power Source (Natural Gas,
Diesel, Solar PV, Fuel Cell and Others), By End User Industry (Educational
Institutes, Military, Utilities, Industrial, Healthcare and Others), By
Region, By Competition Forecast
& Opportunities, 2018-2028F”, has evaluated the future growth potential of Global
Microgrid Market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the Global Microgrid Market.
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