Microgrid demand is expected to grow at a double-digit CAGR of 15% between 2023 and 2033. The global microgrids market is expected to reach US$ 98 billion by 2033, from US$ 24 billion in 2023.
A microgrid is a localised and decentralised energy system that can function independently or in cooperation with the main power grid. It is made up of distributed energy resources (DERs), which include solar panels, wind turbine generators, and energy storage devices like batteries. A microgrid's key characteristic is its capacity to operate autonomously, allowing it to withdraw from the main grid during outages or emergencies while still supplying power to its local area.
Microgrids are intended to improve the dependability, resilience, and efficiency of power delivery, particularly in situations where the main grid may be unavailable or unstable. They can work independently during power outages or emergencies, assisting important facilities such as hospitals, military posts, schools, and isolated towns.
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The lower operating costs of microgrids impact their adoption in the utilities, healthcare, and industrial sectors as well. The demand for microgrids is primarily driven by increased industrialisation and the growing need for dependable electrical power, particularly in rural communities.
The focus on decarbonisation in many industries has boosted market expansion. The government's support for microgrid systems as a means of reducing cyberattacks on electricity infrastructure has increased demand for them.
In many businesses, there is a great need for a reliable power supply. In developing economies, the 'more is better' mentality of electric power supply has been practiced for a long time. A rise in natural disasters and the requirement for a backup power grid are driving up demand in the industry.
Key Takeaways from Market Study:
- The global microgrids market is valued at US$ 24 billion in 2023.
- The market is projected to surge at a CAGR of 15% over the next ten years.
- Worldwide demand for microgrids is predicted to reach a market value of US$ 98 billion by 2033.
- Deployment of off-grid connected microgrids is set to rise at a CAGR of 10% over the next ten years.
- The microgrids market in the United States stands at US$ 5 billion in 2023.
- The market in Germany is predicted to increase at 14% CAGR through 2033.
“Grid-connected microgrid demand has been spurred by the expansion of distributed energy resources such as solar panels and energy storage devices. In rural and urban locations where access to the primary grid is restricted, grid-connected microgrids are becoming more popular,” says a Fact.MR analyst
Analysis by Country
North America continues to rule the microgrids sector.
"Increasing Usage of Captive Power-Generating Methods in Industrial Sectors"
North America, which accounts for 40% of worldwide sales in 2023, is at the top of the market.
Market expansion is being driven by government authorities' increased efforts to develop energy-efficient electricity solutions. Microgrids are a desirable choice for enhancing energy availability because of the increase in natural resource projects in the area.
It is projected that the widespread use of captive power-generating methods in the industrial sectors will significantly reduce reliance on the power grid under the supervision of the government. It is anticipated that the established mining and processing facilities will increase demand for microgrids.
Winning Strategy:
According to the most recent industry report by Fact.MR, a market research and competitive intelligence firm, top market players are spending in R&D to improve microgrid technology. This included improvements to energy storage technologies, smart grid management systems, and the incorporation of renewable energy sources like solar and wind into microgrid networks.
· To improve microgrid operations and efficiency, prominent firms are developing innovative energy management software. This software enabled real-time monitoring, control, and optimisation of energy flow in the microgrid.In 2021, Siemens Smart Infrastructure launched the Sentron 3NA COM LV HRC. It offers integrated connection and functionality.
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