Asia Pacific Microgrid Market: Current Analysis and Forecast (2024-2032)
Emphasis on Component (Software and Services and Hardware); Type (AC, DC, and Hybrid); Connectivity (Grid-Connected and Off-Grid); Power Source (Combined Heat and Power, Natural Gas, Diesel, Solar PV, Fuel Cell, and Others); Storage (Lithium-ion microgrid, Lead Acid, Flow Batteries, Flywheels, and Others); Application (Healthcare, Educational Institutes, Military, Utility, Industrial/Commercial, Remote, and Others) and Country
Asia Pacific Microgrid Market Size & Forecast
The Asia Pacific microgrid market was valued at USD 13,612.82 million and is expected to grow at a strong CAGR of around 23.7% during the forecast period (2024-2032) owing to the rising demand for clean energy in the region and the growing government support for the adoption of microgrids to provide energy in rural areas.
Asia Pacific Microgrid Market Analysis
The microgrid market is experiencing rapid growth across Asia as countries look to boost resilient power supplies and integrate more renewable energy sources. Many Asia Pacific nations like India, China, and Indonesia see soaring electricity demand from industrialization and urbanization. At the same time, extreme weather is stressing aging utility grids. Furthermore, Numerous countries have established favorable policies, mandates, subsidies, and other initiatives to drive microgrid investments for renewable integration, energy access, and resilience. For example, India has a Microgrid Initiative for Campus and Rural Opportunities to support 10,000 microgrids. Additionally, in 2022, Solaren Sustainable Energies commissioned one of the largest renewable microgrids in Southeast Asia, a 7 MW solar-plus-storage system in Compostela Valley, Philippines, serving over 20,000 households. With growing drivers and stakeholder support, microgrids are poised to play an increasingly vital role in transforming energy systems across this pivotal region.
Asia Pacific Microgrid Market Trends
Growing Government Support
The prominent trend of government support for microgrids in Asia Pacific, particularly after 2021, is a significant development aimed at promoting resilient and sustainable energy systems. Microgrids are localized energy systems that can operate independently from the main grid, integrating various distributed energy resources such as renewable energy sources, energy storage systems, and controllable loads. They offer enhanced reliability, resilience, and potential cost savings by reducing reliance on the traditional centralized grid. Government support for microgrids has been gaining momentum in Asia Pacific, driven by factors such as the need for reliable and resilient energy infrastructure, the transition towards cleaner energy sources, and the potential economic benefits of local energy production.
- In 2022, the Indian government announced plans to install microgrids in rural areas to address electricity access challenges and promote clean energy solutions.
- The Japan sixth Strategic Energy Plan, released in October 2021, set a target for renewables to account for 36-38% of Japan’s energy mix by 2030.
- In December 2022, the country announced its plan to restart nuclear power plants to help address its shortage of energy and pursue low-carbon development.
China Dominated the Asia Pacific microgrid market.
Within Asia Pacific, China holds a major share of the market. The major factors boosting the market’s growth are the growing demand for clean energy in the region, growing sales of electric vehicles, and the heavy investment made by the government and private players. Additionally, technological advances in the microgrid sector have moved the market forward in the foreseeable future.
The Asia Pacific microgrid market is valued at 13,612.82 million in 2023 and is expected to reach 86,752.74 million at a CAGR of 23.7. China is actively promoting, developing, and deploying microgrids to enhance energy security, increase renewable energy utilization, and reduce carbon emissions. In 2023, China’s clean energy sector, which includes renewable energy sources like solar, wind, hydro, etc., contributed an estimated 9.0% to the country’s GDP, up from 7.2% in 2022. Additionally, the Chinese government has launched the “National Renewable Energy Microgrid Demonstration Program” to promote the construction of microgrids in remote and rural areas, and the “New Infrastructure” program, part of China’s 14th Five-Year Plan, emphasizes the development of microgrids and integrated energy systems. Major manufacturing hubs like Guangdong, Jiangsu, and Zhejiang provinces are leading in installing solar and wind power capacity, indicating high renewable usage in industrial activities.
Asia Pacific Microgrid Industry Overview
The microgrid market is competitive as well as concentrated, with the presence of very few Asia Pacific and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are ABB, General Electric, Siemens AG, Eaton Corporation Inc., Schneider Electric SE, Honeywell International Inc., Caterpillar, Toshiba Corporation, Hitachi Energy Ltd, and General Microgrids.
Asia Pacific Microgrid Market News
- The Chinese government has launched the “National Renewable Energy Microgrid Demonstration Program” to promote the construction of microgrids in remote and rural areas, and the “New Infrastructure” program, part of China’s 14th Five-Year Plan, emphasizes the development of microgrids and integrated energy systems.
- In 2022, Tata Power and Small Industries Development Bank of India (SIDBI) joined hands to launch an innovative program that will see 1,000 green energy enterprises established throughout the nation. This initiative will support the Government of India’s vision of Atmanirbhar Bharat by fostering sustainable entrepreneurship models across the nation, leading to the empowerment of rural entrepreneurs.
- In September 2023, NHOA Energy, a subsidiary of NHOA Group specializing in energy storage solutions, effectively completed the installation of a 107MWh energy storage system for Taiwan Cement Group (“TCC Group”) at the Yingde Plant in Guangdong province, China.
Asia Pacific Microgrid Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report briefly reviews overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The Asia Pacific microgrid market can be customized per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Asia Pacific Microgrid Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the Asia Pacific microgrid market were the three major steps undertaken to create and analyze the adoption of microgrids in major countries. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Asia Pacific microgrid market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the microgrid market through company internal sources such as annual reports and financial statements, performance presentations, press releases, etc., and external sources including journals, news and articles, government publications, competitor publications, sector reports, third-party databases, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the microgrid market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. The report includes major segments: components, connectivity, type, power source, storage, and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the microgrid market. Further, we performed factor analysis using dependent and independent variables such as component, connectivity, type, power source, storage, and application of the microgrid market. A thorough study was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Asia Pacific microgrid market.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Asia Pacific microgrid market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques, i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets of Asia Pacific. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the microgrid market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the Asia Pacific microgrid market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with Key Opinion Leaders (KOLs), including Top-Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Primary research input was consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Asia Pacific microgrid market. Data was split into several segments and sub-segments after studying various parameters and trends in the areas of component, connectivity, type, power source, storage, and application in the Asia Pacific microgrid market.
The main objective of the Asia Pacific Microgrid Market Study
The current & future market trends of the Asia Pacific microgrid market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the microgrid market in terms of value (USD) and the current and forecast market size of different segments and sub-segments.
- The study’s segments include components, connectivity, type, power source, storage, and application.
- Define and analyze the regulatory framework for the microgrid
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast microgrid market size for the major region.
- The report studies major countries and regions, including China, Japan, India, and the Rest of Asia Pacific.
- Company profiles of the microgrid market and the growth strategies adopted by the market players to sustain the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the Asia Pacific microgrid market's current market size and growth potential?
Q2: What are the driving factors for the growth of the microgrid market?
Q3: Which segment has the largest share of the microgrid market by type?
Q4: What are the emerging technologies and trends in the microgrid market?
Q5: Which country will dominate the microgrid market?
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