Microgrid Market by Power (Combined Heat and Power, Diesel, Fuel Cell), Product (Grid connected, Hybrid, Remote), Application - Global Forecast 2024-2030
The Microgrid Market size was estimated at USD 35.24 billion in 2023 and expected to reach USD 37.90 billion in 2024, at a CAGR 8.30% to reach USD 61.60 billion by 2030.
The microgrid represents a group of distributed energy resources and a mesh of interconnected loads acting as a separate controllable unit of the main power grid. Microgrid offers resilience to overcome grid disturbances and power outages, improving customer reliability on power systems. The rising demand for renewable energy and stable global power supply raise the utilization of microgrid solutions. Cyber attacks on electricity infrastructure have created an increasing need for microgrid solutions to independently operate power grids in disaster situations. However, concerns regarding the high installation costs of microgrids may limit their adoption in the current market scenario. The market is expected to face challenges due to technological concerns encountered during the service of island-style microgrids. However, increasing R&D investments by the public and private sectors for developing advanced electrical infrastructure fuels the adoption of microgrid solutions. In addition, Government initiatives to encourage the development of microgrids aid in expanding renewable energy capacity in developing countries.
Regional Insights
The microgrid market in the Americas has been experiencing significant growth with growing concerns over climate change and increasing demand for clean and reliable energy sources. The United States and Canada strongly focus on modernizing energy infrastructure to increase resilience against natural disasters such as hurricanes, wildfires, and ice storms. The U.S. Department of Energy's Office of Electricity Delivery & Energy Reliability has allocated substantial funds to research and develop advanced microgrid technologies. Consequently, California, New York, Massachusetts, and Illinois have implemented policies supporting microgrid deployment. In addition, countries including Brazil, Chile, Mexico, and Colombia are investing heavily in integrating renewable energy generation into their existing electrical networks through microgrids. The growth of the microgrid market in the Asia-Pacific and Europe regions has been experiencing significant growth by various factors, such as increasing demand for reliable and stable power sources, growing emphasis on renewable energy integration, and rising implementation of supportive government policies. The European Union's 'Clean Energy Package' framework promotes local energy communities (LECs) and encourages investments toward innovative solutions, such as microgrids that offer flexibility and stability to electricity grids. In addition, Asia-Pacific witnessed the continued growth of the microgrid sector due to increasing demand for reliable power supply and rising governmental support promoting clean energy solutions. On the other hand, implementing government policies and initiatives plays an important role in promoting the adoption of microgrids in the MEA region. The African Development Bank (AfDB) actively supports rural electrification projects through its New Deal on Energy for Africa initiative. Similarly, Kenya and Nigeria have implemented regulatory frameworks encouraging private sector participation in off-grid power projects. Saudi Arabia and Jordan have set ambitious targets for renewable energy generation, which further boost the deployment of microgrids.
Market Insights
- Market Dynamics
The market dynamics represent an ever-changing landscape of the Microgrid Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.- Market Drivers
- Growing inclination toward adoption of renewable energy across economies
- Rising demand for stable and safe global power supply
- Increasing instances of cyber attacks on electricity infrastructure
- Market Restraints
- Concerns regarding high costs of microgrid
- Market Opportunities
- Increasing investments for development of advanced electric monitoring and controlling infrastructure
- Government initiatives to encourage development of microgrids
- Market Challenges
- Complexities in deployment and operation of microgrids
- Market Segmentation Analysis
- Power: Emerging potential of solar photovoltaic in microgrids
- Product: Burgeoning popularity of hybrid microgrids
- Application: Penetration of microgrids in the utility sector
- Market Disruption Analysis
- Porter’s Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Microgrid Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Microgrid Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Recent Developments- TROES Corp. Successfully Closes Pre-Series A Funding Round and Initiates Series A Financing, Demonstrating Strong Growth Potential in Energy Storage-Centered Microgrid Solutions
TROES Corp. has successfully concluded its Pre-Series A funding round and commenced Series A financing. This showcases the substantial growth potential of energy storage-focused microgrid solutions. The capital raised will be directed towards research and development initiatives, as well as the expansion of the company's global footprint.
Microgrid Solutions Provider Nuru Raises USD 40 Million
Nuru, a microgrid energy company, has recently secured USD 40 million in funding. This substantial investment will be utilized to advance Nuru's efforts in creating sustainable off-grid electricity solutions in Africa. Notably, the funding round was spearheaded by prominent existing investors such as Softbank's Vision Fund 2 and Good Energies. Furthermore, additional investments from Verdox, a New York-based firm, and Proparco, a French development finance institution, have further bolstered the total funding amount.
Cadiz Partners with Scale Microgrids to Develop Clean Energy Microgrids for Water Supply, Pipeline Project
Cadiz, Inc. has partnered with Scale Microgrids to develop clean energy microgrids for the Cadiz Water Conservation, Supply, and Storage Project in the Mojave Desert. The solar-hybrid microgrids integrate ground-mounted Solar PV, battery storage, and advanced, high-efficiency distributed generation. This partnership aims to reduce energy costs by more than 30%, ensure 100% uptime reliability, and decrease carbon emissions by over 75%. Cadiz can provide reliable, sustainable, and cost-effective water delivery by implementing Scale's clean energy microgrid design.
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Microgrid Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the Microgrid Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Bloom Energy Corporation, BoxPower Inc., Caterpillar Inc., CleanSpark, Inc., Cummins Inc., Eaton Corporation PLC, Emerson Electric Co., Enchanted Rock Holdings, LLC, Encorp, Enel X S.r.l., General Electric Company, Gridscape, Hitachi, Ltd., Honeywell International Inc., Hover Energy, LLC, Intel Corporation, Leclanché SA, Lockheed Martin Corporation, MAN Energy Solutions SE, Nidec Corporation, NRG Energy, Inc., Pareto Energy, Power Analytics Global Corporation, Powerhive, PowerSecure, Inc., S&C Electric Company, Saft Groupe SAS, Scale Microgrid Solutions LLC, Schneider Electric SE, Schweitzer Engineering Laboratories, Inc., Siemens AG, Spirae, LLC, Tesla, Inc., UL, LLC, and Veolia Environnement SA.
Market Segmentation & Coverage
This research report categorizes the Microgrid Market to forecast the revenues and analyze trends in each of the following sub-markets:- Power
- Combined Heat and Power
- Diesel
- Fuel Cell
- Natural Gas
- Solar Photovoltaic
- Product
- Grid connected
- Hybrid
- Remote
- Application
- Commercial
- Defense
- Education
- Government
- Utility
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
Please Note: PDF & Excel + Online Access - 1 Year
- Americas
- Market Drivers
- 1. Preface
- 1.1. Objectives of the Study
- 1.2. Market Segmentation & Coverage
- 1.3. Years Considered for the Study
- 1.4. Currency & Pricing
- 1.5. Language
- 1.6. Stakeholders
- 2. Research Methodology
- 2.1. Define: Research Objective
- 2.2. Determine: Research Design
- 2.3. Prepare: Research Instrument
- 2.4. Collect: Data Source
- 2.5. Analyze: Data Interpretation
- 2.6. Formulate: Data Verification
- 2.7. Publish: Research Report
- 2.8. Repeat: Report Update
- 3. Executive Summary
- 4. Market Overview
- 5. Market Insights
- 5.1. Market Dynamics
- 5.1.1. Drivers
- 5.1.1.1. Growing inclination toward adoption of renewable energy across economies
- 5.1.1.2. Rising demand for stable and safe global power supply
- 5.1.1.3. Increasing instances of cyber attacks on electricity infrastructure
- 5.1.2. Restraints
- 5.1.2.1. Concerns regarding high costs of microgrid
- 5.1.3. Opportunities
- 5.1.3.1. Increasing investments for development of advanced electric monitoring and controlling infrastructure
- 5.1.3.2. Government initiatives to encourage development of microgrids
- 5.1.4. Challenges
- 5.1.4.1. Complexities in deployment and operation of microgrids
- 5.2. Market Segmentation Analysis
- 5.2.1. Power: Emerging potential of solar photovoltaic in microgrids
- 5.2.2. Product: Burgeoning popularity of hybrid microgrids
- 5.2.3. Application: Penetration of microgrids in the utility sector
- 5.3. Market Trend Analysis
- 5.3.1. Supportive government initiatives and investments for microgrids in the Americas
- 5.3.2. Growing use of microgrids to meet energy demands for regional and rural areas across Asia-Pacific region
- 5.3.3. Expanding renewable energy sector and government support for the development of microgrids in EMEA region
- 5.4. Cumulative Impact of Russia-Ukraine Conflict
- 5.5. Cumulative Impact of High Inflation
- 5.6. Porter’s Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
- 5.7. Value Chain & Critical Path Analysis
- 5.8. Regulatory Framework Analysis
- 5.9. Client Customization
- 5.9.1. Technology Trends
- 6. Microgrid Market, by Power
- 6.1. Introduction
- 6.2. Combined Heat and Power
- 6.3. Diesel
- 6.4. Fuel Cell
- 6.5. Natural Gas
- 6.6. Solar Photovoltaic
- 7. Microgrid Market, by Product
- 7.1. Introduction
- 7.2. Grid connected
- 7.3. Hybrid
- 7.4. Remote
- 8. Microgrid Market, by Application
- 8.1. Introduction
- 8.2. Commercial
- 8.3. Defense
- 8.4. Education
- 8.5. Government
- 8.6. Utility
- 9. Americas Microgrid Market
- 9.1. Introduction
- 9.2. Argentina
- 9.3. Brazil
- 9.4. Canada
- 9.5. Mexico
- 9.6. United States
- 10. Asia-Pacific Microgrid Market
- 10.1. Introduction
- 10.2. Australia
- 10.3. China
- 10.4. India
- 10.5. Indonesia
- 10.6. Japan
- 10.7. Malaysia
- 10.8. Philippines
- 10.9. Singapore
- 10.10. South Korea
- 10.11. Taiwan
- 10.12. Thailand
- 10.13. Vietnam
- 11. Europe, Middle East & Africa Microgrid Market
- 11.1. Introduction
- 11.2. Denmark
- 11.3. Egypt
- 11.4. Finland
- 11.5. France
- 11.6. Germany
- 11.7. Israel
- 11.8. Italy
- 11.9. Netherlands
- 11.10. Nigeria
- 11.11. Norway
- 11.12. Poland
- 11.13. Qatar
- 11.14. Russia
- 11.15. Saudi Arabia
- 11.16. South Africa
- 11.17. Spain
- 11.18. Sweden
- 11.19. Switzerland
- 11.20. Turkey
- 11.21. United Arab Emirates
- 11.22. United Kingdom
- 12. Competitive Landscape
- 12.1. Market Share Analysis, 2023
- 12.2. FPNV Positioning Matrix, 2023
- 12.3. Competitive Scenario Analysis
- 12.3.1. TROES Corp. Successfully Closes Pre-Series A Funding Round and Initiates Series A Financing, Demonstrating Strong Growth Potential in Energy Storage-Centered Microgrid Solutions
- 12.3.2. Microgrid Solutions Provider Nuru Raises USD 40 Million
- 12.3.3. Cadiz Partners with Scale Microgrids to Develop Clean Energy Microgrids for Water Supply, Pipeline Project
- 12.3.4. Schneider Electric Introduces EcoStruxure Microgrid Flex
- 12.3.5. Gridscape to Develop Renewable Energy Microgrids for 30 Critical Facilities in California with EBCE
- 12.3.6. Schneider Electric and GreenYellow Join Forces To Provide Commercial And Industrial Microgrid Solutions Across Europe
- 12.3.7. Fluence, Siemens BESS-Powered Microgrid Takes Azores Island Closer To ‘a Sustainable Future’
- 12.3.8. ABB invests in Direct Current microgrid start-up Direct Energy Partners to accelerate energy transformation
- 12.3.9. Eaton helps AEP Ohio Develop First Microgrid For City Of Columbus To Support Resilient, Sustainable Water Infrastructure
- 12.3.10. Hover Energy acquires premier solar company, Shine Development Partners
- 12.3.11. Tesla-Backed Startup Launches Microgrid Powering 2 African Villages
- 12.3.12. Hover Energy’s 36 kW rooftop-Mounted Microgrid Combines Wind, Solar And Energy Storage
- 12.3.13. ABM Broadens Its Technical Solutions Capabilities With Acquisition of Rapidly Expanding RavenVolt
- 12.3.14. Siemens To Deploy First Microgrid Of Middle East In Doha
- 12.3.15. Scale Microgrid Solutions Acquires Three Community Solar Projects in Upstate New York
- 13. Competitive Portfolio
- 13.1. Key Company Profiles
- 13.2. Key Product Portfolio
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