Microgrid Market: Information by Type (Hardware, Software, Services), End-User (Commercial and Industrial, Remote, Institute and Campus), and Region — Forecast till 2029

Apr 09, 2020   Introduction The U.S. Department of Energy Microgrid Exchange encourages the development of an ideal microgrid that can disconnect from the grid and operate in both grid-connected or island mode. The microgrid market’s most prominent driver is the rapid growth of customized microgrid projects. The California Energy Commission is promoting technologies, business models, scale, and vendor landscape to support economically viable microgrids. Improvements in the energy industry have led to a ...
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Introduction

The U.S. Department of Energy Microgrid Exchange encourages the development of an ideal microgrid that can disconnect from the grid and operate in both grid-connected or island mode. The microgrid market’s most prominent driver is the rapid growth of customized microgrid projects. The California Energy Commission is promoting technologies, business models, scale, and vendor landscape to support economically viable microgrids. Improvements in the energy industry have led to a gradual shift from remote central power plants towards localized, distributed power plants, such as microgrids. Microgrids are resilient, flexible, permit efficient delivery of services, and easily isolate from larger grids.

Top-Benifits-of-MicrogridEvolution of Microgrids

The first microgrid was built by Thomas in the 19th century. It was the first commercial electrical power plant in the U.S., which powered about 400 lamps serving 82 customers. It used to steam and batteries to power generators and store the produced power. Edison’s invention became the base for traditional energy grid design serving millions of users today. The modern microgrid systems have evolved into multiple smaller energy resources such as solar panels, wind turbines, natural gas generators, and storage devices that supplies local areas with self-sustaining power.

In 2012, the Atlantic Hurricane Sandy left millions of people without power, which compelled the policymakers to use the potential of microgrids to re-connect the localities in Manhattan. Six months later, there were about 480 modern style microgrid projects, which rose to 1,842 in four years. Since then, many countries have adopted microgrids to improve energy efficiency and reduce the wire losses incurred by transmitting power. Additionally, governments across the globe are encouraging the use of combined heat and power as they are more efficient than centralized power plants.

Market Dynamics

Rising Awareness Regarding Green Energy: A Key Market Driver

Rising demand for clean energy as a secure and reliable source of global power supply is bolstering the market growth. Currently, the government of Australia is actively working to develop microgrids related to hardware, software, and services. Moreover, high connectivity, sophisticated controls, and higher reliability than remote microgrids is encouraging the development of utility-based grid networks.

High Risk of Cyber Threats: A Market Restraint

Low voltage, frequency, and power quality are surging the demand for battery tanks to store energy, which is hampering the market growth. Complexity in infrastructure including distribution of networks, power flow in one direction from utility to customers can be a drawback in market growth. Microgrids are hooked in the main power grid, which makes it difficult for service providers to partner with local utility centers due to the expensive cost of constructing microgrids. Cyber-security is another factor restricting the market growth.

Construction of Smart Cities: A Growth Opportunity

Microgrid systems offer lucrative opportunities in powering towns and communities in terms of providing energy security to hospitals and businesses. Governments across the globe are heavily investing in smart microgrids to build smart homes and smart cities. In line with this, power companies are allocating budgets for the integration of these systems that can balance fluctuations in the grid and create more efficient energy. Countries such as the U.S. and Canada are formulating initiatives to offer sustainable solutions to its citizens. On the other hand, India and Australia are emerging as favorable sites for future investment.

Hospitals: Key End Users of Microgrid Technology

The most prominent users of the microgrid market are commercial and industrial, remote, institutes and campuses sectors. The high cost of fossil fuels for electricity generation has deprived many regions of electricity. The International Energy Association estimates approximately 1 billion people in the world lack access to electricity, which is further raising the demand for microgrids.

Today, a wide range of businesses are demanding microgrids to enhance energy reliability, encourage green energy, and distribute affordable and efficient power to the customers. Apart from this, the increasing geriatric population in the U.S. is creating pressure on hospitals, healthcare networks, adult daycare, and nursing homes. Hospitals consume 2.5 times more energy than commercial buildings, which is further driving the demand for microgrids.

Regional Overview

North America: An Early Adopter of Microgrid Technology

In the U.S., the universities and research facilities are early adopters of microgrid technology. Shifting the focus of the education and healthcare sectors to reduce power outages drive the market growth. Princeton University, the University of Texas, and the University of California are some of the universities using microgrids in the U.S. Moreover, microgrids are primarily in demand across North America to train students to achieve climate change goals.

Europe: A Global Leader in Low-Carbon Energy

Finland to register remarkable growth in the microgrid market during the forecast period due to the rising adoption of mini-grid, nano-grid, and virtual power plants (VPPs). Europe is a global leader in low-carbon energy, where stringent regulations are bolstering the market growth.  Large-scale renewable energy development, such as offshore wind, is increasing the investment in transmission infrastructure, unlocking new opportunities for investors and utility companies. The Mediterranean Islands, the Canary Islands off the coast of Spain, and the Faroe Islands of Denmark are currently using microgrids in Europe.

Malaysia, Indonesia, and Myanmar at the Forefront of Asia-Pacific’s Microgrid Market

Microgrid applications offer lucrative growth opportunities on the island and hilly jungles of Southeast Asia. International development agencies and energy companies are turning to microgrid technology that includes solar panels, batteries, engine generators, and small gas turbines to serve the populations’ power demand. Thailand, Malaysia, and Vietnam are extending conventional grids into rural areas, as a low-cost alternative. Malaysia, Indonesia, and Myanmar lead in terms of microgrid adoptions as they serve about 75% of their off-grid population. General Electric has installed fast power generators in Indonesia to provide reliable electricity. As per the Manila Bulletin, the Pilipinas Shell Foundation plans to bring microgrids to 20 villages in the state of Palawan.

Government Investments in South America’s Microgrid Market

South America is the fastest-growing microgrid market. The Caribbean leads the regional market. Rising incidences of hurricanes and other natural disasters have compelled the governments in the region to invest in remote microgrids. For instance, the Puerto Rico Electric Power Authority is upgrading the island’s grid with multiple large-scale microgrids of 500 MW each to reduce power failures in the country. These mini-grids support clusters of critical transmission and distribution infrastructure to meet consumer demand of the current and future generations.

Rising Energy Demand in the Middle East and Africa

In the Middle East and Africa, renewable energy sources have been gaining traction in the last few years. Rising energy demand from the commercial and residential sectors is compelling power companies to integrate traditional grids into power microgrids. Recently, ABB installed microgrids at the Longmeadow factory in South Africa, to help industries secure their power supply and reduce pressure on fossil fuel consumption. In Kenya, microgrid provides reliable power supply to the International Red Cross center.

Key Players

  • ABB
  • General Electric
  • Siemens AG
  • Eaton Corporation Inc.
  • Schneider Electric SE
  • Honeywell International Inc.
  • HOMER Energy LLC
  • S&C Electric Company
  • Power Analytics Corporation
  • Exelon Corporation

Recent Developments

In September 2017, PanaHome Corporation, ENERES Co. Ltd, IBJ Leasing Co. Ltd., and the Public Enterprises Agency of the Hyogo Prefectural Government launched microgrid system that serves about 117 homes in Japan. The launch initiated the microgrid adoption in the region.

Microgrid Market Segmentation

By Type

  • Hardware
  • Software
  • Services

By End-User

  • Commercial and industrial
  • Remote
  • Institute and campus

By Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle East and Africa

Frequently Asked Questions (FAQs)

ABB, General Electric, Siemens AG, Eaton Corporation Inc., Schneider Electric SE, Honeywell International Inc., HOMER Energy LLC are the top players in Microgrid Market.
Rising demand for clean energy as a secure and reliable source of global power supply, rising awareness regarding green energy are the key factors expected to drive Microgrid Market during the forecast period.
North America is expected to hold the highest market share in Microgrid Market.
Hospitals End User Segment is expected to be the leading segment in Microgrid Market during the forecast period.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.

Introduction

The U.S. Department of Energy Microgrid Exchange encourages the development of an ideal microgrid that can disconnect from the grid and operate in both grid-connected or island mode. The microgrid market’s most prominent driver is the rapid growth of customized microgrid projects. The California Energy Commission is promoting technologies, business models, scale, and vendor landscape to support economically viable microgrids. Improvements in the energy industry have led to a gradual shift from remote central power plants towards localized, distributed power plants, such as microgrids. Microgrids are resilient, flexible, permit efficient delivery of services, and easily isolate from larger grids.

Top-Benifits-of-MicrogridEvolution of Microgrids

The first microgrid was built by Thomas in the 19th century. It was the first commercial electrical power plant in the U.S., which powered about 400 lamps serving 82 customers. It used to steam and batteries to power generators and store the produced power. Edison’s invention became the base for traditional energy grid design serving millions of users today. The modern microgrid systems have evolved into multiple smaller energy resources such as solar panels, wind turbines, natural gas generators, and storage devices that supplies local areas with self-sustaining power.

In 2012, the Atlantic Hurricane Sandy left millions of people without power, which compelled the policymakers to use the potential of microgrids to re-connect the localities in Manhattan. Six months later, there were about 480 modern style microgrid projects, which rose to 1,842 in four years. Since then, many countries have adopted microgrids to improve energy efficiency and reduce the wire losses incurred by transmitting power. Additionally, governments across the globe are encouraging the use of combined heat and power as they are more efficient than centralized power plants.

Market Dynamics

Rising Awareness Regarding Green Energy: A Key Market Driver

Rising demand for clean energy as a secure and reliable source of global power supply is bolstering the market growth. Currently, the government of Australia is actively working to develop microgrids related to hardware, software, and services. Moreover, high connectivity, sophisticated controls, and higher reliability than remote microgrids is encouraging the development of utility-based grid networks.

High Risk of Cyber Threats: A Market Restraint

Low voltage, frequency, and power quality are surging the demand for battery tanks to store energy, which is hampering the market growth. Complexity in infrastructure including distribution of networks, power flow in one direction from utility to customers can be a drawback in market growth. Microgrids are hooked in the main power grid, which makes it difficult for service providers to partner with local utility centers due to the expensive cost of constructing microgrids. Cyber-security is another factor restricting the market growth.

Construction of Smart Cities: A Growth Opportunity

Microgrid systems offer lucrative opportunities in powering towns and communities in terms of providing energy security to hospitals and businesses. Governments across the globe are heavily investing in smart microgrids to build smart homes and smart cities. In line with this, power companies are allocating budgets for the integration of these systems that can balance fluctuations in the grid and create more efficient energy. Countries such as the U.S. and Canada are formulating initiatives to offer sustainable solutions to its citizens. On the other hand, India and Australia are emerging as favorable sites for future investment.

Hospitals: Key End Users of Microgrid Technology

The most prominent users of the microgrid market are commercial and industrial, remote, institutes and campuses sectors. The high cost of fossil fuels for electricity generation has deprived many regions of electricity. The International Energy Association estimates approximately 1 billion people in the world lack access to electricity, which is further raising the demand for microgrids.

Today, a wide range of businesses are demanding microgrids to enhance energy reliability, encourage green energy, and distribute affordable and efficient power to the customers. Apart from this, the increasing geriatric population in the U.S. is creating pressure on hospitals, healthcare networks, adult daycare, and nursing homes. Hospitals consume 2.5 times more energy than commercial buildings, which is further driving the demand for microgrids.

Regional Overview

North America: An Early Adopter of Microgrid Technology

In the U.S., the universities and research facilities are early adopters of microgrid technology. Shifting the focus of the education and healthcare sectors to reduce power outages drive the market growth. Princeton University, the University of Texas, and the University of California are some of the universities using microgrids in the U.S. Moreover, microgrids are primarily in demand across North America to train students to achieve climate change goals.

Europe: A Global Leader in Low-Carbon Energy

Finland to register remarkable growth in the microgrid market during the forecast period due to the rising adoption of mini-grid, nano-grid, and virtual power plants (VPPs). Europe is a global leader in low-carbon energy, where stringent regulations are bolstering the market growth.  Large-scale renewable energy development, such as offshore wind, is increasing the investment in transmission infrastructure, unlocking new opportunities for investors and utility companies. The Mediterranean Islands, the Canary Islands off the coast of Spain, and the Faroe Islands of Denmark are currently using microgrids in Europe.

Malaysia, Indonesia, and Myanmar at the Forefront of Asia-Pacific’s Microgrid Market

Microgrid applications offer lucrative growth opportunities on the island and hilly jungles of Southeast Asia. International development agencies and energy companies are turning to microgrid technology that includes solar panels, batteries, engine generators, and small gas turbines to serve the populations’ power demand. Thailand, Malaysia, and Vietnam are extending conventional grids into rural areas, as a low-cost alternative. Malaysia, Indonesia, and Myanmar lead in terms of microgrid adoptions as they serve about 75% of their off-grid population. General Electric has installed fast power generators in Indonesia to provide reliable electricity. As per the Manila Bulletin, the Pilipinas Shell Foundation plans to bring microgrids to 20 villages in the state of Palawan.

Government Investments in South America’s Microgrid Market

South America is the fastest-growing microgrid market. The Caribbean leads the regional market. Rising incidences of hurricanes and other natural disasters have compelled the governments in the region to invest in remote microgrids. For instance, the Puerto Rico Electric Power Authority is upgrading the island’s grid with multiple large-scale microgrids of 500 MW each to reduce power failures in the country. These mini-grids support clusters of critical transmission and distribution infrastructure to meet consumer demand of the current and future generations.

Rising Energy Demand in the Middle East and Africa

In the Middle East and Africa, renewable energy sources have been gaining traction in the last few years. Rising energy demand from the commercial and residential sectors is compelling power companies to integrate traditional grids into power microgrids. Recently, ABB installed microgrids at the Longmeadow factory in South Africa, to help industries secure their power supply and reduce pressure on fossil fuel consumption. In Kenya, microgrid provides reliable power supply to the International Red Cross center.

Key Players

  • ABB
  • General Electric
  • Siemens AG
  • Eaton Corporation Inc.
  • Schneider Electric SE
  • Honeywell International Inc.
  • HOMER Energy LLC
  • S&C Electric Company
  • Power Analytics Corporation
  • Exelon Corporation

Recent Developments

In September 2017, PanaHome Corporation, ENERES Co. Ltd, IBJ Leasing Co. Ltd., and the Public Enterprises Agency of the Hyogo Prefectural Government launched microgrid system that serves about 117 homes in Japan. The launch initiated the microgrid adoption in the region.

Microgrid Market Segmentation

By Type

  • Hardware
  • Software
  • Services

By End-User

  • Commercial and industrial
  • Remote
  • Institute and campus

By Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle East and Africa

Frequently Asked Questions (FAQs)

ABB, General Electric, Siemens AG, Eaton Corporation Inc., Schneider Electric SE, Honeywell International Inc., HOMER Energy LLC are the top players in Microgrid Market.
Rising demand for clean energy as a secure and reliable source of global power supply, rising awareness regarding green energy are the key factors expected to drive Microgrid Market during the forecast period.
North America is expected to hold the highest market share in Microgrid Market.
Hospitals End User Segment is expected to be the leading segment in Microgrid Market during the forecast period.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.