Microgrid Market Report

Market Insights

"The global microgrid market size was estimated at USD 29.15 billion in 2022 and is likely to grow at a CAGR of 19% during 2023-2028 to reach USD 82.79 billion in 2028."

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A microgrid is a self-contained energy system that serves a small geographic area, such as a hospital, college campus, or corporate center. It typically consists of a small-scale power generation system, such as solar panels, wind turbines, or diesel generators, and may include energy storage, such as batteries or fuel cells, to provide power during periods of low or no generation.

Microgrids are designed to provide reliable and resilient power to communities, particularly in areas with unreliable or unstable grid infrastructure. They can also help to integrate renewable energy sources into the grid, reduce reliance on fossil fuels, and lower greenhouse gas emissions.

Market Dynamics

Market Drivers

The industry landscape will be bolstered by the rising need for a stable and reliable power supply, as well as rising electrification rates, primarily in developing economies. The business scenario will be fueled by the increasing penetration of distributed energy resources (DERs) as a result of rapid commercial and industrial expansion.

The rising instances of cyberattacks on energy infrastructures. Microgrids can help to improve grid resilience by providing a decentralized and distributed power system.

Government’s initiatives to encourage the development of microgrids. Governments around the world are providing financial incentives and regulatory support for the development of microgrids. These factors are expected to drive the growth of the market in the coming years.

Key Players

The following are the key players in the microgrid market (arranged alphabetically).

• AMS
• Caterpillar
• Eaton
• Exelon Corporation
• GE
• General Microgrids
• Heila Technologies
• Hitachi ABB Power Grids
• HOMER Energy
• Honeywell International
• Lockheed Martin Corporation
• S&C Electric
• Schneider Electric
• Siemens
• Spirae
• Tesla
• Toshiba Corporation.

Note: The above list does not necessarily include all the top players in the market.

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Market Segments' Analysis

Connectivity Trends

"The grid-connected segment accounted for the largest market share."

The market is segmented as grid-connected and off-grid.The grid-connected segment is expected to witness a significant growth rate in the market during the forecast period owing to the potential of the connected microgrids to handle peak demand, improve system supply, and maintain stability in the event of a large network breakdown. Furthermore, growing consumer demand for power supply security, together with the development of Tier II and III cities, backed by government regulations and guidelines, will give birth to opportunities for business growth.

Grid Trends

"The AC microgrid segment accounted for the largest market share."

The market is segmented as AC microgrid, DC microgrid, and hybrid. AC microgrid type is expected to register a high growth rate in the global microgrid market owing to its lower transmission losses, minimum heat generation, and effective high-end voltage levels across the network. Furthermore, it is extremely compatible with grid networks and does not require inverters for power delivery, propelling the industry dynamics. Also, the increasing deployment of high-voltage AC power networks, as well as big solar and wind farms connected to AC transmission lines, will positively influence the business environment.

Power Source Trends

"The natural gas segment accounted for the largest market share."

The market is segmented as diesel generators, natural gas, solar PV, CHP, and others. The natural gas power source seems to dominate the market during the forecast period. Rising carbon emission concerns, in addition to a major shift towards renewable energy sources, will influence industry revenue. Low carbon emissions, continuous power supply, great flexibility for quick deployment, and significant renewable integration will drive market demand.

Storage Device Trends

"The lithium-ion segment accounted for the largest market share."

The market is segmented as lithium-ion, lead acid, flow battery, flywheel, and others. The lithium-ion-based storage device segment is likely to dominate the market during the forecast period. The industry trend will be driven by effective performance, extended life cycles, high energy density, and a rising propensity for battery-powered devices. Additionally, the widespread adoption of sustainable energy systems with intensive research and development efforts will have a favorable effect on market expansion.

Application Trends

"The industrial/commercial segment accounted for the largest market share."

The market is segmented as healthcare, educational institutes, military, utility, industrial/commercial, remote, and others. The industrial/commercial application is estimated to account for the major share of the market during the forecast period. The industrial/commercial application is estimated to account for the major share of the market during the forecast period on account of the increasing government efforts and mandates to reconstruct and overhaul existing T&D networks, as well as increased incentives to install energy-efficient alternatives. In the current context, the industrial and commercial sectors are focusing on the implementation of smart solutions across new and traditional grid infrastructure, which will favorably influence industry potential.

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Regional Insights

"Asia-Pacific accounted for the largest market share."

Asia-Pacific is estimated to be the leading region in the global microgrid market during the forecast period. This regional market is driven by the rising favorable norms and incentives by various countries to pace up the sustainable energy mix. In addition, regional carbon emission targets and increased usage of stand-alone power sources will foster the technology demand over the forecast period. North and South Americas accounted for more than 35% market share in 2022.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players and those willing to enter the microgrid market.

What Deliverables Will You Get in this Report?

The microgrid market is segmented into the following categories.

By Connectivity Type

• Grid Connected
• Off Grid

By Grid Type

• AC Microgrid
• DC Microgrid
• Hybrid

By Power Source Type

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

By Storage Type

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

By Application Type:

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

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s microgrid market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].