Microgrid Market: Current Analysis and Forecast (2021-2027)

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Emphasis on Connectivity (Grid Connected, Off Grid); Grid Type (AC Microgrid, DC Microgrid, Hybrid); Power Source (Diesel generators, Natural Gas, Solar PV, Combined Heat and Power (CHP), and Others); Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels, Others); Application (Healthcare, Educational Institutes, Military, Utility, Industrial/ Commercial, Remote, Others); Region and Country

Published:

Jul-2021

Pages:

142

Table:

52

Figure:

92

Report ID:

UMEP21317

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Report Description
Table of content
Research Methodology

Report Description

Global Microgrid Market was valued US$ 28.6 billion in 2019 and is expected to grow at a significant CAGR of 12.6% during the forecast period (2021-2027). Microgrid is an autonomously operating traditional energy grid i.e., it is like a local energy grid but has control capability and can disconnect from the grid to operate autonomously. According to the U.S. Department of Energy Microgrid Exchange Group, a microgrid is a group of connected loads and energy sources within clearly defined electrical boundaries and acts like a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid which enables it to operate in both grid-connected and island-mode. With the falling cost of solar energy and its environmental benefits, most microgrids nowadays are being designed to supply electricity with a combination of solar power and battery storage. Grids connects businesses, homes and other buildings to a central power source which allows the working of appliances like electronics, heating/cooling systems etc. Due to this when a part of the grid needs to be repaired, everyone is affected. Microgrids help in this aspect. Microgrids can break off from the main grid and work on its own local energy in times of crisis like power outages and storms.

The main driver of this market growth is its ability to produce clean energy. Microgrids can be powered by renewable technologies such as wind systems, solar systems, microturbines, hybrid systems and combustion turbines. Microgrids can be integrated with these renewables technologies to reduce the carbon footprints on the environment. Several governments worldwide are taking initiatives to reduce the carbon footprints on the environment, for example, the Government of Delhi, India started a transition to zero-emission vehicles in 2020, aiming to have 25% of all newly registered vehicles to be EVs by 2024, which number is currently 0.2%. A few drawbacks that the microgrid market can encounter include the initial setting up cost and the high maintenance cost of microgrids. The setting up costs of microgrid are 25-30% higher than the traditional grids.

Mean Normalized Microgrid Costs (US$/MW), United States, 2018

ABB, General Electric Company, Siemens AG, Eaton Corporation Inc, Schneider Electric SE, Honeywell International Inc., HOMER Energy LLC, S&C Electric Company, Power Analytics Corporation, and Exelon Corporation are some of the prominent players operating in the Global Microgrid market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Connectivity, Off Grid segment holds the major share”

Based on connectivity, the global microgrid market is segmented into Grid Connected and Off Grid. Amongst connectivity, the off-grid segment of the global microgrid market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027. Usage of off-grid microgrid systems is gaining popularity as its need for power outage in remote areas is growing. There is an increasing demand for power infrastructure in the rural areas and due to which it is easiest to install off grid microgrids to enhance the already built-up infrastructures in these regions.

“Amongst Grid Type, AC Microgrid segment holds the major share”

Based on grid type, the global microgrid market is segmented into AC Microgrid, DC Microgrid and Hybrid. Amongst grid type, AC microgrid accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. AC microgrids can lower transmission losses with minimal heat generation and have effective high-end voltage levels across the network. This is likely to sway the demand for this technology. Additionally, these are also highly compatible with grid networks and do not need any invertors for power supply. Moreover, they can be deployed with large solar and wind farms which may further enhance their market growth.

“Amongst Power Source, Natural Gas segment holds the major share”

Based on power source, the global microgrid market is segmented into Diesel generators, Natural Gas, Solar PV, CHP, and Others. The natural gas segment generated revenue of US$ XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of US$ XX billion by 2027F. Government policies are favoring the integration of efficient and sustainable power generation to boost the natural gas (NG) powered microgrid infrastructure. Shifting towards renewable power sources and lowering their carbon footprint is boosting the use of natural gas microgrids.

“Amongst Storage Device, Lithium-Ion segment holds the major share”

Based on storage device, the global microgrid market is segmented into Lithium-ion, Lead Acid, Flow Battery, Flywheels, and Others. Amongst storage device, the lithium-ion segment of the global microgrid market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027. Batteries are an important part of the microgrid system as they improve the performance, generator efficiency and system reliability. These storage devices can minimize the fuel consumption. Until recently, lead-acid storage devices were considered the most economical and were the most popular.

“Amongst Application, Industrial/Commercial segment holds the major share”

Based on application, the global microgrid market is segmented into Healthcare, Educational Institutes, Military, Utility, Industrial/ Commercial, Remote, and Others. Amongst application, industrial/commercial segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. The growing efforts of the government to revamp and reconstruct the existing T&D networks along with the installation of energy efficient solutions will help drive the business outlook. For example, State grid of Liu Zhenya of China has nearly 1 million employees and 1.1 billion customers and has plans to connect the entire world with transmission lines, starting with Asia.

“North America represents one of the largest markets of Global Microgrid market”

For a better understanding of the market dynamics of the Global Microgrid market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC) and Rest of the World. North America dominated the market and grabbed around XX% market share owing to increasing adoption of renewable energy across the world.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, 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:

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 connect with us to get a report that completely suits your requirements.

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 1.1.Market Definitions 
 1.2.Objective of the Study 
 1.3.Limitation  
 1.4.Stake Holders 
 1.5.Currency Used in Report 
 1.6.Scope of the Global Microgrid Market Study
 2.1.Research Methodology for the Global Microgrid Market
  2.1.1.Main Objective of the Global Microgrid Market
 6.1.Grid Connected 
 6.2.Off Grid
 7.1.AC Microgrid 
 7.2.DC Microgrid 
 7.3.Hybrid
8.1.Diesel generators 
 8.2.Natural Gas  
 8.3.Solar PV  
 8.4.CHP  
 8.5.Others
9.1.Lithium-ion  
 9.2.Lead Acid  
 9.3.Flow Battery 
 9.4.Flywheels  
 9.5.Others
10.1.Healthcare  
 10.2.Educational Institutes 
 10.3.Military  
 10.4.Utility  
 10.5.Industrial/ Commercial 
 10.6.Remote  
 10.7.Others
11.1.NORTH AMERICA MICROGRID MARKET
  11.1.1.United States of America
  11.1.2.Canada 
  11.1.3.Rest of North America
 11.2.EUROPE MICROGRID MARKET
  11.2.1.United Kingdom
  11.2.2.Germany 
  11.2.3.France 
  11.2.4.Spain  
  11.2.5.Italy 
  11.2.6.Rest of Europe
 11.3.ASIA-PACIFIC MICROGRID MARKET
  11.3.1.China 
  11.3.2.Japan 
  11.3.3.India 
  11.3.4.Australia 
  11.3.5.Rest of Asia-Pacific
 11.4.REST OF THE WORLD MICROGRID MARKET
12.1.Drivers  
 12.2.Challenges  
 12.3.Impact Analysis 
 12.4.Opportunity
15.1.Demand Side Analysis 
 15.2.Supply Side Analysis 
  15.2.1.Top Product Launches
  15.2.2.Top Business Partnerships
  15.2.3.Top Business Expansions, Investments and Divestitures
  15.2.4. Top Merger and Acquisitions
18.1.ABB  
 18.2.General Electric Company
 18.3.Siemens AG  
 18.4.Eaton Corporation Inc  
 18.5.Schneider Electric SE  
 18.6.Honeywell International Inc.
 18.7.HOMER Energy LLC 
 18.8.S&C Electric Company 
 18.9.Power Analytics Corporation
 18.10.Exelon Corporation 

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global Microgrid market were the three major steps undertaken to create and analyze the adoption of Global Microgrid in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Global 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 the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Global Microgrid through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Global Microgrid market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as connectivity, grid type, power source, storage device, and application. Further regional & country-level analyses were conducted to evaluate the overall adoption of Microgrid 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 Global Microgrid. Further, we conducted factor analysis using dependent and independent variables such as increasing global temperature and changing government policies. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Microgrid sector across the globe.

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 Global 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., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (US$) and the adoption rate of Global Microgrid across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Global 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 the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Global Microgrid market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Global Microgrid market.

The main objective of the Global Microgrid Market Study

The current & future market trends of Global Microgrid were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were 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 as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Global Microgrid in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of type and their subtypes
  • Define and analysis of the regulatory framework for the Global Microgrid industry
  • 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 market size of the Global Microgrid market for the major regions
  • Major regions studied in the report include North America (the U.S, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Others), and the Rest of the World
  • Company profiles of the Global 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