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Microgrid Market Report by Energy Source (Natural Gas, Combined Heat and Power, Solar Photovoltaic (PV), Diesel, Fuel Cell, and Others), Application (Remote Systems, Institution and Campus, Utility/Community, Defence, and Others), and Region 2024-2032

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    Report

  • 140 Pages
  • January 2024
  • Region: Global
  • IMARC Group
  • ID: 5936249
The global microgrid market size reached US$ 32.1 billion in 2023. The market is projected to reach US$ 74.5 billion by 2032, exhibiting a growth rate (CAGR) of 9.8% during 2023-2032. The growing demand for enhanced energy security, along with the need for reliable power, rising need for cleaner and more sustainable energy sources, and increasing demand for cost-effective energy systems are some of the major factors propelling the market.

A microgrid is a localized and small-scale energy system that generates, distributes, and manages electricity independently or in conjunction with the main power grid. It typically includes a combination of renewable energy sources, energy storage devices, and conventional generators. It can operate autonomously or disconnect from the main grid during power outages or emergencies and ensure a reliable and continuous power supply to a specific area or facility. As it is highly flexible and can be customized to meet unique energy needs, the demand for microgrid is increasing across the globe.

At present, the rising adoption of microgrids, as they promote energy efficiency, reduce reliance on fossil fuels, and enhance grid resilience, is bolstering the growth of the market. In line with this, increasing concerns about reducing greenhouse gas (GHG) emissions around the world are strengthening the growth of the market. Moreover, governing agencies of various countries are encouraging the adoption of microgrids by offering several incentives, which is contributing to the growth of the market. In addition, advancements in microgrid technology, such as improved control systems, energy storage solutions, and grid management software, are offering lucrative growth opportunities to industry investors. Furthermore, the rising demand for resilient infrastructure during natural disasters and cybersecurity threats is supporting the growth of the market. Apart from this, the increasing adoption of energy systems that have low transmission losses is impelling the growth of the market.

Microgrid Market Trends/Drivers

Rising demand for enhanced energy security

The rising demand for enhanced energy security and reliability in various industries, communities, and critical facilities is bolstering the growth of the market. Traditional centralized power grids are vulnerable to disruptions from natural disasters, cyberattacks, and equipment failures, resulting in costly downtime and potential safety risks. On the other hand, microgrids offer a solution by providing a decentralized, self-sufficient energy system that can seamlessly disconnect from the main grid during outages. These grids use advanced control systems to detect grid disturbances and autonomously switch to island mode while ensuring an uninterrupted power supply. This capability is especially crucial for critical infrastructure like hospitals, data centers, and military bases, where continuous power is vital for survival.

Increasing need for cleaner and more sustainable energy sources

The increasing need for cleaner and more sustainable energy sources is contributing to the growth of the market. In addition, these grids are ideally suited to incorporate renewable energy generation, such as solar panels and wind turbines. They can effectively balance the intermittent nature of renewables with energy storage systems and ensure a stable power supply. Apart from this, this integration of renewables assists in reducing reliance on fossil fuels, lowering greenhouse gas (GHG) emissions, and aligns with the sustainability goals. Furthermore, the rising demand for microgrids due to the declining costs of solar and wind technologies is propelling the growth of the market.

Growing demand for cost-effective energy systems

The escalating demand for cost-effective energy systems to reduce the operational costs of a business is impelling the growth of the market. In line with this, microgrids allow organizations to generate power locally and efficiently, reducing the need to purchase expensive electricity from the grid. By optimizing the use of renewable energy sources, combined with energy storage and efficient demand management, these grids can significantly lower operational costs. Apart from this, for remote and off-grid applications, such as mining operations or rural communities, these grids provide an affordable and sustainable solution to access electricity and eliminate the need for expensive long-distance power transmission infrastructure, which is offering a positive market outlook.

Microgrid Industry Segmentation:

The report provides an analysis of the key trends in each segment of the global microgrid market report, along with forecasts at the global and regional levels for 2023-2032. The report has categorized the market based on energy source and application.

Breakup by Energy Source:

  • Natural Gas
  • Combined Heat and Power
  • Solar Photovoltaic (PV)
  • Diesel
  • Fuel Cell
  • Others

Combined heat and power represent the largest market segment

The report has provided a detailed breakup and analysis of the market based on the energy source. This includes natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell, and others. According to the report, combined heat and power represented the largest segment. Combined heat and power (CHP), also known as cogeneration, is a dynamic solution that simultaneously produces electricity and utilizes the waste heat generated during the electricity generation process for heating or cooling purposes. CHP is predominantly fueled by natural gas, but it can utilize a range of energy sources, such as biomass, biogas, and even waste heat from industrial processes. This versatility makes it a highly efficient and sustainable option for both energy generation and thermal management. In addition, it offers enhanced energy efficiency as compared to traditional power generation methods. Furthermore, there is a rise in the demand for CHP grids in hospitals, universities, and industrial complexes due to their ability to enhance energy resilience, reduce energy bills, and contribute to sustainability goals is propelling the growth of the market.

Breakup by Application:

  • Remote Systems
  • Institution and Campus
  • Utility/Community
  • Defence
  • Others

Remote systems account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes remote systems, institution and campus, utility or community, defence, and others. According to the report, remote systems represented the largest segment. Remote systems are designed to provide electricity to areas that are geographically isolated or where access to the central power grid is impractical or cost-prohibitive. These remote systems are typically deployed in locations, such as off-grid communities, remote industrial sites, mining operations, and remote research stations. They play a critical role in addressing the energy needs of these isolated regions, improving the quality of life for residents, and supporting essential industrial processes. They can utilize renewable energy sources like solar panels and wind turbines, often combined with energy storage solutions, to generate clean and sustainable electricity and minimize environmental impact.

Breakup by Region:

  • North America
  • Asia-Pacific
  • Europe
  • Middle East and Africa
  • Latin America

North America exhibits a clear dominance, accounting for the largest microgrid market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia-Pacific, Europe, the Middle East and Africa, and Latin America. According to the report, North America accounted for the largest market share.

North America held the biggest market share due to the presence of well-developed energy infrastructure. Apart from this, the rising awareness about maintaining sustainability is contributing to the growth of the market in the region. In line with this, increasing advancements in microgrid technology are propelling the growth of the market. Besides this, favorable government initiatives are supporting the growth of the market in the North America region.

Competitive Landscape

Key players are improving the technologies of these grids by developing more efficient energy storage solutions, advanced control systems, and integrated renewable energy sources to enhance the performance and resilience of the product. Additionally, they are closely working with their clients to design and implement customized solutions tailored to specific energy needs and objectives. This involves assessing the unique requirements of each customer, such as industrial facilities, communities, or commercial properties, and designing these grids accordingly. Moreover, companies are developing grid-interactive microgrids that can both support local loads and provide grid services, such as frequency regulation and grid stabilization. They are also developing cost-effective and sustainable solutions that can operate independently and reliably in challenging environments.

Competition Analysis

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
  • Lockheed Martin Corporation
  • ABB Ltd
  • General Electric Company (GE)
  • Eaton Corporation PLC
  • Siemens AG

Recent Developments:

In 2022, Lockheed Martin signed a contract to build the first megawatt-scale, long-duration energy storage system for the U.S. army. Department of Defense (DoD). GridStar® Flow will be installed at Fort Carson, Colorado for the U.S. army. It is an innovative redox flow battery that stores power generated from renewable energy sources and dispatches it to electric grids during peak demand or unanticipated electricity loss.

In March 2023, ABB partnered with Direct Energy Partners (DEP), a start-up using digital technology to accelerate adoption of direct current (DC) microgrids. This partnership focuses on local energy generation and distribution with scalable DC microgrids that reduce overall energy and operating costs.

In March 2022, Siemens AG announced the deployment of the Middle East’s first microgrid that is designed for industrial use that allow Qatar Solar Energy (QSE) to lower carbon emissions, reduce the cost of electricity, and provide a more stable power supply.

Key Questions Answered in This Report

1. How big is the microgrid market?
2. What is the future of microgrids?
3. What are the key factors driving the global microgrid market?
4. What has been the impact of COVID-19 on the global microgrid market?
5. What is the breakup of the global microgrid market based on the energy source?
6. What is the breakup of the global microgrid market based on the application?
7. What are the key regions in the global microgrid market?
8. Who are the microgrid market players?

Table of Contents

1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Microgrid Market
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Breakup by Application
5.5 Market Breakup by Energy Source
5.6 Market Breakup by Region
5.7 Market Forecast
5.8 SWOT Analysis
5.8.1 Overview
5.8.2 Strengths
5.8.3 Weaknesses
5.8.4 Opportunities
5.8.5 Threats
5.9 Value Chain Analysis
5.9.1 Raw Material Suppliers
5.9.2 Sub-Components and Sub-Systems Manufacturers
5.9.3 Microgrid Manufacturers
5.9.4 Microgrid Control
5.9.5 Power Distribution
5.9.6 End-Use Industries
5.10 Porters Five Forces Analysis
5.10.1 Overview
5.10.2 Bargaining Power of Buyers
5.10.3 Bargaining Power of Suppliers
5.10.4 Degree of Competition
5.10.5 Threat of New Entrants
5.10.6 Threat of Substitutes
6 Market Breakup by Energy Source
6.1 Natural Gas
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Combined Heat and Power
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Solar Photovoltaic (PV)
6.3.1 Market Trends
6.3.2 Market Forecast
6.4 Diesel
6.4.1 Market Trends
6.4.2 Market Forecast
6.5 Fuel Cell
6.5.1 Market Trends
6.5.2 Market Forecast
6.6 Others
6.6.1 Market Trends
6.6.2 Market Forecast
7 Market Breakup by Application
7.1 Remote Systems
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Institution and Campus
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Utility/Community
7.3.1 Market Trends
7.3.2 Market Forecast
7.4 Defence
7.4.1 Market Trends
7.4.2 Market Forecast
7.5 Others
7.5.1 Market Trends
7.5.2 Market Forecast
8 Market Breakup by Region
8.1 North America
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Asia Pacific
8.2.1 Market Trends
8.2.2 Market Forecast
8.3 Europe
8.3.1 Market Trends
8.3.2 Market Forecast
8.4 Middle East and Africa
8.4.1 Market Trends
8.4.2 Market Forecast
8.5 Latin America
8.5.1 Market Trends
8.5.2 Market Forecast
9 Microgrid Manufacturing Process
9.1 Product Overview
9.2 Raw Material Requirements
9.3 Manufacturing Process
9.4 Key Success and Risk Factors
10 Competitive Landscape
10.1 Market Structure
10.2 Key Players
10.3 Profiles of Key Players
10.3.1 Lockheed Martin Corporation
10.3.1.1 Company Overview
10.3.1.2 Description
10.3.1.3 Product Portfolio
10.3.1.4 Financials
10.3.1.5 SWOT Analysis
10.3.2 ABB Ltd
10.3.2.1 Company Overview
10.3.2.2 Description
10.3.2.3 Product Portfolio
10.3.2.4 Financials
10.3.2.5 SWOT Analysis
10.3.3 General Electric Company (GE)
10.3.3.1 Company Overview
10.3.3.2 Description
10.3.3.3 Product Portfolio
10.3.3.4 Financials
10.3.3.5 SWOT Analysis
10.3.4 Eaton Corporation PLC
10.3.4.1 Company Overview
10.3.4.2 Description
10.3.4.3 Product Portfolio
10.3.4.4 Financials
10.3.4.5 SWOT Analysis
10.3.5 Siemens AG
10.3.5.1 Company Overview
10.3.5.2 Description
10.3.5.3 Product Portfolio
10.3.5.4 Financials
10.3.5.5 SWOT Analysis
List of Figures
Figure 1: Global: Microgrid Market: Major Drivers and Challenges
Figure 2: Global: Microgrid Market: Sales Value (in Billion US$), 2018-2023
Figure 3: Global: Microgrid Market: Breakup by Energy Source (in %), 2023
Figure 4: Global: Microgrid Market: Breakup by Application (in %), 2023
Figure 5: Global: Microgrid Market: Breakup by Region (in %), 2023
Figure 6: Global: Microgrid Market Forecast: Sales Value (in Billion US$), 2024-2032
Figure 7: Global: Microgrid Industry: SWOT Analysis
Figure 8: Global: Microgrid Industry: Value Chain Analysis
Figure 9: Global: Microgrid Industry: Porter’s Five Forces Analysis
Figure 10: Global: Microgrid (Natural Gas) Market: Sales Value (in Million US$), 2018 & 2023
Figure 11: Global: Microgrid (Natural Gas) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 12: Global: Microgrid (Combined Heat and Power) Market: Sales Value (in Million US$), 2018 & 2023
Figure 13: Global: Microgrid (Combined Heat and Power) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 14: Global: Microgrid (Solar Photovoltaic-PV) Market: Sales Value (in Million US$), 2018 & 2023
Figure 15: Global: Microgrid (Solar Photovoltaic-PV) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 16: Global: Microgrid (Diesel) Market: Sales Value (in Million US$), 2018 & 2023
Figure 17: Global: Microgrid (Diesel) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 18: Global: Microgrid (Fuel Cell) Market: Sales Value (in Million US$), 2018 & 2023
Figure 19: Global: Microgrid (Fuel Cell) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 20: Global: Microgrid (Other Energy Sources) Market: Sales Value (in Million US$), 2018 & 2023
Figure 21: Global: Microgrid (Other Energy Sources) Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 22: Global: Microgrid Market (Applications in Remote Systems): Sales Value (in Million US$), 2018 & 2023
Figure 23: Global: Microgrid Market Forecast (Applications in Remote Systems): Sales Value (in Million US$), 2024-2032
Figure 24: Global: Microgrid Market (Applications in Institution and Campus): Sales Value (in Million US$), 2018 & 2023
Figure 25: Global: Microgrid Market Forecast (Applications in Institution and Campus): Sales Value (in Million US$), 2024-2032
Figure 26: Global: Microgrid Market (Applications in Utility/Community): Sales Value (in Million US$), 2018 & 2023
Figure 27: Global: Microgrid Market Forecast (Applications in Utility/Community): Sales Value (in Million US$), 2024-2032
Figure 28: Global: Microgrid Market (Applications in defence): Sales Value (in Million US$), 2018 & 2023
Figure 29: Global: Microgrid Market Forecast (Applications in defence): Sales Value (in Million US$), 2024-2032
Figure 30: Global: Microgrid Market (Other Applications): Sales Value (in Million US$), 2018 & 2023
Figure 31: Global: Microgrid Market Forecast (Other Applications): Sales Value (in Million US$), 2024-2032
Figure 32: North America: Microgrid Market: Sales Value (in Million US$), 2018 & 2023
Figure 33: North America: Microgrid Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 34: Asia Pacific: Microgrid Market: Sales Value (in Million US$), 2018 & 2023
Figure 35: Asia Pacific: Microgrid Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 36: Europe: Microgrid Market: Sales Value (in Million US$), 2018 & 2023
Figure 37: Europe: Microgrid Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 38: Middle East and Africa: Microgrid Market: Sales Value (in Million US$), 2018 & 2023
Figure 39: Middle East and Africa: Microgrid Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 40: Latin America: Microgrid Market: Sales Value (in Million US$), 2018 & 2023
Figure 41: Latin America: Microgrid Market Forecast: Sales Value (in Million US$), 2024-2032
Figure 42: Microgrid System: Interconnections Between Major Sub-Components and Sub-Systems of a Microgrid
List of Tables
Table 1: Global: Microgrid Market: Key Industry Highlights, 2023 and 2032
Table 2: Global: Microgrid Market Forecast: Breakup by Energy Source (in Million US$), 2024-2032
Table 3: Global: Microgrid Market Forecast: Breakup by Application (in Million US$), 2024-2032
Table 4: Global: Microgrid Market Forecast: Breakup by Region (in Million US$), 2024-2032
Table 5: Microgrid: Sub-Components and Sub-Systems Requirements
Table 6: Global: Microgrid Market: Competitive Structure
Table 7: Global: Microgrid Market: Key Players

Companies Mentioned

  • Lockheed Martin Corporation
  • ABB Ltd
  • General Electric Company (GE)
  • Eaton Corporation PLC
  • Siemens AG

Methodology

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Table Information