India Microgrid Market: Current Analysis and Forecast (2024-2032)

Report Description

India Microgrid Market Size & Forecast

The India Microgrid Market was valued at USD 2,298.09 Million and is expected to grow at a strong CAGR of around 26.3% 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.

India Microgrid Market Analysis

India’s microgrid market is experiencing rapid growth as countries look to boost resilient power supplies and integrate more renewable energy sources. Many Indian states, such as Uttar Pradesh, Maharashtra, and Bihar, 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. With growing drivers and stakeholder support, microgrids are poised to play an increasingly vital role in transforming energy systems across this pivotal region.

 India Microgrid Market Trends

Growing Government Support

The noteworthy trend of government backing for microgrids in India, particularly post-2021, represents a significant advancement aimed at fostering robust and sustainable energy systems. Microgrids are localized energy systems capable of functioning independently from the primary grid, incorporating diverse distributed energy resources like renewable energy sources, energy storage systems, and controllable loads. They provide improved dependability, resilience, and potential cost savings by reducing dependence on the conventional centralized grid. The momentum behind government support for microgrids in India has been driven by factors such as the necessity for reliable and resilient energy infrastructure, the shift towards cleaner energy sources, and the potential economic advantages 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.

• In 2022, NTPC-Simhadri will develop a standalone fuel cell-based 50kW microgrid pilot project with green hydrogen. This will be India’s first green hydrogen-based energy storage project.

North India Dominated the India Microgrid Market

The microgrid market in North India is poised for significant growth, driven by government initiatives, investments, and new facilities. As the region grapples with energy access challenges, microgrids are emerging as a viable solution, offering millions of people a reliable, sustainable, and decentralized energy source. For instance, in 2024, The Uttar Pradesh government aims to meet 40% of its energy demand through solar and other alternate clean energy sources in the coming years. In January 2024, the state announced plans to invest ₹1 lakh crore in 125 clean energy projects. Moreover, the Ministry of New and Renewable Energy (MNRE) has launched the “Decentralized Renewable Energy (DRE) Scheme,” which aims to promote off-grid renewable energy systems, including microgrids. The government has also set a target of electrifying 1,000 villages through off-grid renewable energy solutions. Therefore, the growing government initiatives drive the microgrid market.

India Microgrid Industry Overview

The microgrid market is competitive and concentrated, with very few Indian and international 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.

India Microgrid Market News

• 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 nationwide. This initiative will support the Government of India’s vision of Atmanirbhar Bharat by fostering sustainable entrepreneurship models across the nation and empowering rural entrepreneurs.

India 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 India 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.

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Research Methodology

Research Methodology for the India Microgrid Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the India microgrid market were the three major steps undertaken to create and analyze microgrid adoption in India. 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 India 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 across India’s 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 India 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 India. 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 India 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, 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 India microgrid market. Data was split into several segments and sub-segments after studying various parameters and trends in component, connectivity, type, power source, storage, and application in the India microgrid market.

The main objective of the India Microgrid Market Study

The current & future market trends of the India 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 analysis of 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 regions in India, including North India, South India, East India, and West India.
• Company profiles of the microgrid market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

You can also purchase parts of this report. Do you want to check out a section wise
price list?

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