Europe 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
Europe Microgrid Market Size & Forecast
The Europe Microgrid Market was valued at USD 2,975.98 Million and is expected to grow at a strong CAGR of around 17.3% during the forecast period (2024-2032) owing to the rising demand for the clean energy from the region and the growing government support for the adoption of microgrids to provide energy in the rural areas.
Europe Microgrid Market Analysis
The Europe microgrid market is experiencing significant progress in the forecast period. The growing necessity to upgrade the aging infrastructure and implement off-grid electricity is driving the demand for the installation of microgrids. Additionally, the government’s focus on renewable energy and the increasing need for flexibility in microgrids, which can be connected to various power sources like solar, natural gas, hydro, etc., for electricity generation in Europe, are leading to the deployment of microgrids. Moreover, governments in countries such as Germany, The UK, and France are investing in microgrids to boost the proportion of renewable energy in the power generation mix and decrease greenhouse gas emissions. Additionally, the rapid switch to electric vehicles in Europe has increased EV charging stations, many of which use microgrids. This trend is expected to continue, further driving down microgrid demand. For instance, in 2023, the UK Mint launched a new multi-resource microgrid energy center. The multi-technology microgrid includes solar, wind, combined heat and power, and dual chemistry battery storage. Furthermore, the rapid switch to electric vehicles in Europe has increased EV charging stations, many of which use microgrids. This trend is expected to continue, further driving down microgrid demand. Microgrids facilitate the integration of renewable energy technologies, such as solar and wind power, into the energy mix. This aligns with Europe’s commitment to reducing greenhouse gas emissions and transitioning to a more sustainable energy system. These factors, combined with ongoing investments and government initiatives, are expected to continue driving the growth of the microgrid market in Europe.
Europe Microgrid Market Trends
Growing Government Support
The prominent trend of government support for microgrids in Europe, 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 Europe, 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.
- Clean Energy for All Europe’s Package 1: Adopted in 2019, this package helps to decarbonize the EU’s energy system in line with the Europe Green Deal objectives. The package includes 8 new laws, including the Energy Performance of Buildings Directive and the Renewable Energy Directive. Each EU country is required to establish integrated 10-year national energy and climate plans (NECPs) for 2021-30.
- Europe Green Deal and Fit for 55 Plan: Launched in 2020 and 2021, respectively, these initiatives aim to cut CO2 emissions by 55 percent by 2030 (from 1990 levels) and achieve net-zero emissions by 2050.
- REPowerEU Plan: Announced in early 2022, this plan introduced measures to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition.
Europe Dominated the Europe Microgrid Market
The Europe microgrid market was valued at 2,975.98 million in 2023 and is expected to reach 11,722.83 million at a CAGR of 17.3%. The growing necessity to upgrade the aging infrastructure and implement off-grid electricity is driving the demand for the installation of microgrids. Additionally, the government’s focus on renewable energy and the increasing need for flexibility in microgrids, which can be connected to various power sources like solar, natural gas, hydro, etc., for electricity generation in Europe are leading to the deployment of microgrids. Moreover, governments in countries such as Germany, the UK, France, and the rest of Europe are investing in microgrids to boost the proportion of renewable energy in the power generation mix and decrease greenhouse gas emissions. As a result, various initiatives such as The REPowerEU Plan build on the ‘Fit for 55’ package and aim at frontloading decarbonization efforts through energy efficiency and renewable energy actions to phase out the dependence on Russian fossil fuels. Therefore, the Commission proposed to increase the EU’s 2030 renewable target to 45%, which implies a substantial acceleration in the deployment of renewable sources. It is projected that between 2020 and 2030, the share of wind and solar energy in installed power production capacities in the EU will increase from 33% to 67%.
Europe Microgrid Industry Overview
The microgrid market is competitive as well as concentrated, with the presence of very few Europe 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 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.
Europe 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 Europe microgrid market can further be customized as 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 Europe Microgrid Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the Europe microgrid market were the three major steps undertaken to create and analyze microgrid adoption 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 conducted with industry experts across the value chain of the Europe 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 for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the 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 Europe 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 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 Europe. 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 Europe 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 was employed to complete the overall market estimation and arrive at precise statistical numbers for each segment and sub-segment of the Europe 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 Europe microgrid market.
The main objective of the Europe Microgrid Market Study
The current & future market trends of the Europe 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.
- Major countries and regions studied in the report include Germany, the UK, France, Italy, Spain, and the rest of Europe.
- 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 Europe 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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