Microgrid Control Systems Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Microgrid Control Systems Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Microgrid Control Systems Market size is expected to grow from USD 3.79 billion in 2023 to USD 6.91 billion by 2028, at a CAGR of 12.77% during the forecast period (2023-2028).

Continuous control and energy management improvements are expected to impact market growth positively. Price depreciation in both distributed renewable power and battery technologies, along with the technological advancements in energy management systems, has created more efficient renewable grid networks and advanced smart grid technologies.

With Microgrids now being deployed in many areas and integrated with new technologies, such as fuel cells, there is a need for efficient and reliable control systems that can handle the complexity of these new systems.

Thus, the need for effective and centralized Microgrid controllers is increasing. Due to their long-distance lines, traditional grids are deemed to be highly inefficient.

Also, Microgrids are highly efficient. With the increasing fuel and energy costs, the need for efficient systems is growing, which, in turn, is favoring the rate of adoption of Microgrid systems.

The Microgrid Control Systems Market is likely driven by rising investments in electric networks, renovation of the current grid networks, and expanding adoption of green energy sources globally.

However, higher implementation costs can hinder the growth of the market. With these systems being relatively new, there is also a constant requirement for maintenance, hence, the need for skilled labor to address technical issues. These factors are standing as roadblocks to market growth.

Microgrid Control System Market Trends

Grid-connected Segment Accounts for a Significant Share in the Market

Grid-connected or grid-tied is a completely connected grid network installed to provide energy in accordance with the requirements of the corresponding end-user—the distinct benefit of being a cost-effective solution.

Microgrid solutions have prompted most house owners and small-sized enterprises to prefer grid-connected microgrid systems to cater to their respective power requirements.

The presence of large-scale grid-tied microgrid networks in university campuses and the military and defense industry has led to an increased adoption rate of control systems in the market.

The upcoming developments toward the evolution of a connected environment have led to large-scale investment by manufacturers establishing a private network of power in case of a breakdown in regular sources.

The Asia-Pacific region is witnessing increased developmental activities regarding grid-connected technology with countries like Singapore and India. These countries are investing in installing grid-connected for efficient energy management.

The United States Occupies the Largest Market share

The rise of renewable energy and distributed generation systems is expected to drive the market over the forecast period.

The traditional grid market is under increasing pressure. At the same time, its aging infrastructure requires major overhauls. The US EPA (Environmental Policy Agency) has imposed unprecedented greenhouse gas regulations, further driving the integrated renewable energy microgrid control systems market.

The US Microgrid market is increasing, with capacity expected to hit 10 GW in 2022. The sector is developing quickly with rising energy prices, governmental support, and growing demand for uninterrupted services.

The rising governmental support in the form of funding and state-level resiliency programs has increased the demand from institutions or campus applications, making it a key driver for the US market growth.

The drop in energy storage prices is expected to lower the cost of integrating renewable energy. This factor is also expected to drive the adoption rate of Microgrids in larger communities and commercial and industrial sectors.

Microgrid Control System Industry Overview

The Microgrid Control Systems Market is moderately fragmented due to the large initial investments required to start a firm in the market. Some of the major companies in the market include ABB Group, Siemens AG, Hitachi Ltd, Eaton Corporation PLC, Princeton Power Systems, General Electric Corporation, Pareto Energy Ltd, Honeywell International Inc., Northern Power Systems Corporation, and Exelon Corporation, among others. Some key recent developments in the market include:

In March 2023, ABB invested in Direct Current microgrid start-up Direct Energy Partners to accelerate energy transformation. Direct Current (DC) energy networks will be crucial to the evolution of the energy industry, and this partnership enhances ABB's technological leadership in a significant future growth market. Direct Energy Partners' software platform automates the design and sourcing processes for DC Microgrids.

In August 2022, Engineering and management consulting firm Tetra Tech was implementing a 300kW future Microgrid for Oldham Council in Greater Manchester. ABB has announced the delivery of electrical distribution and control systems for it. The project's initial phase, scheduled to be finished by the spring of 2023, will incorporate solar photovoltaic panels, a 500kVA grid connection, EV charging stations, and the energy needs of an office building as heating provided by an air source heat pump.

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