HOME Top Market Reports Microgrid Market by Grid Type (Grid-Connected, Remote/ Island, Hybrid), Component (Generation, Switch Gear, Controls, Cables, Software & Services), Power Source (Fuel Cell, CHP, Renewables), Vertical, and Geography - Global Forecast to 2022

Microgrid Market by Grid Type (Grid-Connected, Remote/ Island, Hybrid), Component (Generation, Switch Gear, Controls, Cables, Software & Services), Power Source (Fuel Cell, CHP, Renewables), Vertical, and Geography - Global Forecast to 2022

By: marketsandmarkets.com
Publishing Date: March 2016
Report Code: SE 2881

 

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The microgrid market is estimated to reach USD 34.94 Billion by 2022, at a CAGR of 10.9% between 2016 and 2022. The base year used for study is 2015 and the forecast period considered is between 2016 and 2022. This report provides a detailed analysis of the microgrid market based on grid-type, component, power source, vertical, and region. It has been estimated that the remote/ island grid type of microgrid solution would hold a large share in the microgrid market. However, the market for residential & commercial vertical, which includes healthcare, telecom, and rural electrification scope in villages and residential areas, is expected to grow at a high CAGR between 2016 and 2022.

The research methodology used to estimate and forecast the microgrid market begins with capturing data on key vendor revenues and power generation capacity through secondary research. The vendor offerings are also taken into consideration to determine the market segmentation. The top-down procedure was employed to arrive at the overall market size of the global microgrid market from the average power generated (in MW) globally and the average project price of microgrids in USD/MW. After arriving at the overall market size, the total market was split into several segments and sub-segments which are then verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives. This data triangulation and market breakdown procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments.

Microgrid Market

To know about the assumptions considered for the study, download the pdf brochure

This report provides valuable insights regarding ecosystem of this market such as product manufacturers and suppliers, distributors, energy consultants, component suppliers, engineering procurement and commissioning (EPCs), and standardization and testing firms. This study answers several questions for the stakeholders, primarily which market segments to focus on in the next two to five years for prioritizing the efforts and investments.

Target Audience:

  • Microgrid systems integrators and developers
  • Transmission system operators
  • Energy storage vendors
  • Smart grid software vendors
  • Solar PV companies
  • Government agencies
  • Utilities
  • Investor community

Key players operating in this market are ABB Ltd. (Switzerland), Anbaric Transmission (U.S.), Eaton Corp plc (Ireland), Exelon Corp. (U.S.), General Electric (U.S.), Honeywell International, Inc. (U.S.), Northern Power Systems Corp. (U.S.), NRG Energy, Inc. (U.S.), Pareto Energy (U.S.), Siemens AG (Germany), and Spirae, Inc. (U.S.).

Scope of the Report:

This research report categorizes the global microgrid market based on grid-type, component, power source, vertical, and region.

Global Microgrid Market, By Grid-Type

  • Grid-connected
  • Remote/ island
  • Hybrid

Global Microgrid Market, By Component

  • Generation
  • Switchgear
  • Controls
  • Cable
  • Software & Services

Global Microgrid Market, By Power Source

  • Fuel Cell
  • CHP
  • Renewables
    • PV Cells
    • Wind-Based
    • Others

Global Microgrid Market, By Vertical

  • Government & Education
    • Institution & Research Organization
    • Government Organization
  • Residential & Commercial
    • Residential
    • Healthcare
    • Others
  • Industrial
  • Military
  • Utility

Global Microgrid Market, By Region

  • Americas
  • Europe
  • APAC
  • RoW

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per a company’s specific needs. The following customization options are available for the report:

  • Geographic Analysis
    • Comprehensive coverage of regulations followed in each region (the Americas, APAC, and Europe)
  • Company Information
    • Detailed analysis and profiling of additional market players (up to five)

Table Of Contents

1 Introduction (Page No. - 15)
    1.1 Study Objectives
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency & Pricing
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown Of Primaries Interviews
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions
           2.4.1 Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insight (Page No. - 31)
    4.1 Increasing Opportunities in the Residential & Commercial Vertical is Expected to Drive the Microgrid Market During the Forecast Period
    4.2 Microgrid Market: By Grid Type, in Terms Of Capacity
    4.3 China Dominates the Overall Microgrid Market in 2015
    4.4 Americas Held the Largest Market Share in the Microgrid Market in 2015
    4.5 Renewable Power Source in Microgrid Market
    4.6 Life Cycle Analysis, By Geography

5 Market Overview (Page No. - 35)
    5.1 Market Segmentation
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Growing Demand for Scalable and Economic Grid Control
                    5.2.1.2 Cheap and Clean Energy Storage Options
                    5.2.1.3 Shift Towards Remote Grids in the Military Segment
           5.2.2 Restraints
                    5.2.2.1 High Cost Of Microgrids
           5.2.3 Opportunities
                    5.2.3.1 Rural Electrification Projects in Africa and APAC
           5.2.4 Challenges
                    5.2.4.1 Complex Planning and Design
                    5.2.4.2 Policy, Regulation and Standards
                    5.2.4.3 Lack Of Proper Training

6 Industry Trends (Page No. - 44)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Porter’s Five Forces Analysis
           6.3.1 Intensity Of Competitive Rivalry
           6.3.2 Threat Of Substitutes
           6.3.3 Bargaining Power Of Buyers
           6.3.4 Bargaining Power Of Suppliers
           6.3.5 Threat Of New Entrants
    6.4 Regulatory Landscape

7 Microgrid Market, By Grid Type (Page No. - 54)
    7.1 Introduction
    7.2 Grid-Connected Type
    7.3 Remote/ Island Type
    7.4 Hybrid Type

8 Microgrid Market, By Component (Page No. - 63)
    8.1 Introduction
    8.2 Generation
    8.3 Switch Gear
    8.4 Controls
    8.5 Cable
    8.6 Software & Services

9 Microgrid Market, By Power Source (Page No. - 67)
    9.1 Introduction
    9.2 Fuel Cell
    9.3 CHP
    9.4 Renewables
           9.4.1 PV Cells
           9.4.2 Wind-Based
           9.4.3 Others

10 Microgrid Market, By Vertical (Page No. - 76)
     10.1 Introduction
     10.2 Government & Education
             10.2.1 Institution & Research Organization
             10.2.2 Government Organization
     10.3 Residential & Commercial
             10.3.1 Residential
             10.3.2 Healthcare
             10.3.3 Others
     10.4 Industrial
     10.5 Military
     10.6 Utility

11 Geographic Analysis (Page No. - 91)
     11.1 Introduction
     11.2 Americas
             11.2.1 North America
                        11.2.1.1 Northeast Blackout Of 2003 is One Of the Factors Which Created the Need for Implementing Microgrids in North America
                        11.2.1.2 U.S.
                                     11.2.1.2.1 The Market in the U.S. Undergoing Changes and Developments Especially in the Power Supply Sector
                        11.2.1.3 Rest Of North America
             11.2.2 Latin America
                        11.2.2.1 Increased Support and Adoption Of Renewable Power Grids Observed Recently in the Market in Latin America
                        11.2.2.2 Brazil
                                     11.2.2.2.1 A Highly Potential Country for Microgrid Deployment
                        11.2.2.3 Rest Of Latin America
     11.3 Europe
             11.3.1 Western Europe
                        11.3.1.1 Support Schemes Initiated By the Renewable Energy Act in Europe Help to Promote Adoption Of Microgrids
                        11.3.1.2 Germany
                                     11.3.1.2.1 Heavy Investments Being Carried Out in the Microgrid Market in Germany Beyond F.I.T Schemes
                        11.3.1.3 France
                                     11.3.1.3.1 The Microgrid Market in France Expected to Grow Moderately During the Forecast Period
                        11.3.1.4 U.K.
                                     11.3.1.4.1 The U.K.: One Of the Leading Market for Microgrids in Western Europe
                        11.3.1.5 Rest Of Western Europe
             11.3.2 Eastern Europe
                        11.3.2.1 Russia
                                     11.3.2.1.1 Russia: Huge Potential Market for Off-Grid Systems
                        11.3.2.2 Rest Of Eastern Europe
             11.3.3 Rest Of Europe
                        11.3.3.1 Growing Interest for Improved Power Quality is Leading the Market in Rest Of Europe Towards Microgrids
     11.4 APAC
             11.4.1 Development Of the Industrial Sector and Power Infrastructure is Also Expected to Drive the Microgrid Market in APAC
             11.4.2 India
                        11.4.2.1 The Government Of India to Develop Nine High Capacity Green Transmission Corridors
             11.4.3 China
                        11.4.3.1 China: Leading Country in the Global Microgrid Market
             11.4.4 Australia
                        11.4.4.1 Several Initiatives Being Taken Up By Arena to Drive the PV Cells Market
             11.4.5 Rest Of APAC
                        11.4.5.1 The Indonesian Government-Led Initiative to Build Energy-Independent Islands
     11.5 Rest Of the World
             11.5.1 Heavy Investments Being Made By India and China in the RoW Mining Market
             11.5.2 Middle East
                        11.5.2.1 Deployment Of Microgrids in Middle East Countries to Increase in the Long Run
             11.5.3 Africa
                        11.5.3.1 Increasing Number Of Rural Electrification Projects in Africa

12 Competitive Landscape (Page No. - 116)
     12.1 Overview
     12.2 Market Ranking for Microgrid Market
     12.3 Competitive Scenario
     12.4 Recent Developments
             12.4.1 Partnership/ Collaboration/ Agreement
             12.4.2 New Product Launches
             12.4.3 Expansions
             12.4.4 Mergers & Acquisitions

13 Company Profiles (Page No. - 122)
(Overview, Products and Services, Financials, Strategy & Development)*
     13.1 Introduction
     13.2 ABB Ltd.
     13.3 Eaton Corporation PLC
     13.4 General Electric
     13.5 Siemens AG
     13.6 Exelon Corporation
     13.7 Honeywell International, Inc.
     13.8 NRG Energy, Inc.
     13.9 Anbaric Transmission, Llc
     13.10 Pareto Energy
     13.11 Spirae, Inc.
     13.12 Northern Power Systems Corp.

*Details on Overview, Products and Services, Financials, Strategy & Development Might Not Be Captured in Case Of Unlisted Companies.

14 Appendix (Page No. - 146)
     14.1 Insights Of Industry Experts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing Rt: Real-Time Market Intelligence
     14.5 Available Customizations
     14.6 Related Reports


List Of Tables (77 Tables)

Table 1 Microgrid Market Segmentation, By Grid Type
Table 2 Microgrid Market Segmentation, By Component
Table 3 Microgrid Market Segmentation, By Power Source
Table 4 Microgrid Market Segmentation, By Vertical
Table 5 Increase in Demand for Scalable and Economic Grid Control is Propelling the Growth Of Microgrid Market During the Forecast Period
Table 6 High Financial Cost Of Distributed Energy Resources to Act as A Restraint for the Microgrid Market
Table 7 Increase in the Number Of Rural Electrification Projects is A Huge Opportunity for the Microgrid Market
Table 8 Function & Stakeholders in A Microgrid Value Chain
Table 9 Porter’s Five Forces Analysis: Threat Of Substitutes Likely to Have Minimum Impact on the Overall Market
Table 10 Microgrid Market: Regulatory Landscape
Table 11 Microgrid Market, By Grid Type, 2013–2022 (USD Billion)
Table 12 Microgrid Market, By Grid Type, 2013–2022 (IN GW)
Table 13 Market for Grid-Connected Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 14 Government & Education: Market for Grid-Connected Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 15 Residential & Commercial: Market for Grid-Connected Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 16 Market for Remote/ Island Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 17 Government & Education: Market for Remote/ Island Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 18 Residential & Commercial: Market for Remote/ Island Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 19 Market for Hybrid Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 20 Government & Education: Market for Hybrid Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 21 Residential & Commercial: Market for Hybrid Microgrids, By Vertical, 2013–2022 (USD Billion)
Table 22 Microgrid Market, By Component, 2013–2022 (USD Billion)
Table 23 Microgrid Market, By Power Source, 2013–2022 (USD Billion)
Table 24 Microgrid Market, By Power Source, 2013–2022 (IN GW)
Table 25 Market for Fuel Cell Of Power Source, By Region, 2013–2022 (USD Billion)
Table 26 Market for CHP Of Power Source, By Region, 2013–2022 (USD Billion)
Table 27 Microgrid Market, By Renewable Power Source, 2013–2022 (USD Billion)
Table 28 Microgrid Market, By Renewable Power Source, 2013–2022 (IN GW)
Table 29 Market for Renewables Of Power Source, By Region, 2013–2022 (USD Billion)
Table 30 Market for PV Cells Of Renewables, By Region, 2013–2022 (USD Billion)
Table 31 Market for Wind-Based Source Of Renewables, By Region, 2013–2022 (USD Billion)
Table 32 Market for Others Of Renewables, By Region, 2013–2022 (USD Billion)
Table 33 Microgrid Market, By Vertical, 2013–2022 (USD Billion)
Table 34 Microgrid Market, By Government and Education Vertical, 2013–2022 (USD Billion)
Table 35 Market for Government & Education Vertical Of Microgrids, By Grid Type, 2013–2022 (USD Billion)
Table 36 Market for Government & Education Vertical Of Microgrids, By Region, 2013–2022 (USD Billion)
Table 37 Market for Institution & Research Vertical Of Government & Education, By Grid Type, 2013–2022 (USD Billion)
Table 38 Market for Government Organization Vertical Of Government & Education, By Grid Type, 2013–2022 (USD Billion)
Table 39 Microgrid Market, By Residential & Commercial Vertical, 2013–2022 (USD Billion)
Table 40 Market for Residential & Commercial Vertical Of Microgrids, By Grid Type, 2013–2022 (USD Billion)
Table 41 Market for Residential & Commercial Vertical Of Microgrids, By Region, 2013–2022 (USD Billion)
Table 42 Market for Residential Vertical Of Residential & Commercial, By Grid Type, 2013–2022 (USD Billion)
Table 43 Market for Healthcare Vertical Of Residential & Commercial, By Grid Type, 2013–2022 (USD Billion)
Table 44 Market for Others Of Residential & Commercial Vertical, By Grid Type, 2013–2022 (USD Billion)
Table 45 Microgrid Market, By Industrial Vertical, 2013–2022 (USD Billion)
Table 46 Market for Industrial Vertical Of Microgrids, By Region, 2013–2022 (USD Billion)
Table 47 Microgrid Market, By Military Vertical, 2013–2022 (USD Billion)
Table 48 Market for Military Vertical Of Microgrids, By Region, 2013–2022 (USD Billion)
Table 49 Microgrid Market, By Utility Vertical, 2013–2022 (USD Billion)
Table 50 Market for Utility Vertical Of Microgrids, By Region, 2013–2022 (USD Billion)
Table 51 Microgrid Market, By Region, 2013–2022 (USD Billion)
Table 52 Microgrid Market, By Region, 2013–2022 (IN GW)
Table 53 Microgrid Market in the Americas, By Vertical, 2013–2022 (USD Billion)
Table 54 Microgrid Market in the Americas, By Power Source, 2013–2022 (USD Billion)
Table 55 Microgrid Market in the Americas, By Renewable Power Source, 2013–2022 (USD Billion)
Table 56 Americas: Microgrid Market, By Region, 2013–2022 (USD Billion)
Table 57 North America: Microgrid Market, By Geography, 2013–2022 (USD Billion)
Table 58 Latin America: Microgrid Market, By Geography, 2013–2022 (USD Billion)
Table 59 Microgrid Market in Europe, By Vertical, 2013–2022 (USD Billion)
Table 60 Microgrid Market in Europe, By Power Source, 2013–2022 (USD Billion)
Table 61 Microgrid Market in Europe, By Renewable Power Source, 2013–2022 (USD Billion)
Table 62 Europe: Microgrid Market, By Region, 2013–2022 (USD Billion)
Table 63 Western Europe: Microgrid Market, By Geography, 2013–2022 (USD Billion)
Table 64 Eastern Europe: Microgrid Market, By Geography, 2013–2022 (USD Billion)
Table 65 Microgrid Market in APAC, By Vertical, 2013–2022 (USD Billion)
Table 66 Microgrid Market in APAC, By Power Source, 2013–2022 (USD Billion)
Table 67 Microgrid Market in APAC, By Renewable Power Source, 2013–2022 (USD Billion)
Table 68 APAC: Microgrid Market, By Geography, 2013–2022 (USD Billion)
Table 69 Microgrid Market in RoW, By Vertical, 2013–2022 (USD Billion)
Table 70 Microgrid Market in RoW, By Power Source, 2013–2022 (USD Billion)
Table 71 Microgrid Market in RoW, By Renewable Power Source, 2013–2022 (USD Billion)
Table 72 RoW: Microgrid Market, By Region, 2013–2022 (USD Billion)
Table 73 Market Ranking Of the Top 5 Players in the Microgrid Market, 2014
Table 74 Partnership/ Collaboration/ Agreement, 2013–2015
Table 75 New Product Launch, 2013–2015
Table 76 Partnerships & Joint Ventures, 2013–2014
Table 77 Mergers & Acquisitions, 2012–2015


List Of Figures (68 Figures)

Figure 1 Research Design
Figure 2 Market Size Estimation Methodology: Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Top-Down Approach
Figure 4 Data Triangulation
Figure 5 Remote/ Island Grid Type is Expected to Grow at the Highest Rate Between 2016 and 2022
Figure 6 The Microgrid Market in the APAC Region, in Terms Of Capacity (IN GW), is Expected to Grow at the Highest Rate Between 2016 and 2022
Figure 7 The Market for Solar PV Cells Expected to Hold the Largest Market Share During the Forecast Period in Terms Of Capacity
Figure 8 Residential & Commercial Vertical is Expected to Grow at the Highest Rate During the Forecast Period
Figure 9 The Microgrid Market in APAC, in Terms Of Value, is Expected to Grow at the Highest CAGR Between 2016 and 2022
Figure 10 Significant Increase in Demand for Microgrid Solution
Figure 11 Grid-Connected Type to Register the Highest CAGR in Microgrid Market, in Terms Of Capacity, During the Forecast Period
Figure 12 Residential & Commercial Vertical to Hold the Largest Market Share in APAC Till 2022
Figure 13 India Expected to Witness the Highest Growth Rate During the Forecast Period
Figure 14 Renewable Power Source Estimated to Grow at the Highest CAGR Between 2016 and 2022
Figure 15 Microgrid Market is Currently in the Growth Stage in APAC Region
Figure 16 Microgrid Market Segmentation, By Region
Figure 17 Increase in Demand for Economic and Cheap Energy Storage Options Expected to Spur the Demand for Microgrid Market
Figure 18 ABB Project List: Microgrids Installed Over the Years
Figure 19 Decline in the Levelized Cost Of Electricity (LCOE) for Wind & Solar PV in the Last Five Years
Figure 20 Remote/ Island Microgrids: in Growth Phase for the Year, 2015
Figure 21 Value Chain Analysis (2015): Major Value Added During the Manufacturing & Integration Phase
Figure 22 High Competitive Rivalry Observed as Per Porter’s Five Forces Analysis in the Microgrid Market (2015):
Figure 23 Microgrid Market: Porter’s Five Forces Analysis
Figure 24 Intensity Of Competitive Rivalry: Growing Competition in the Market Owing to the Increase in the Number Of Players
Figure 25 Threat Of Substitutes: Impact Likely to Be Moderate Due to High Substitute Product Cost
Figure 26 Bargaining Power Of Buyers: Impact Likely to Be Moderate Due to Increasing Consumer Acceptance & Adoption
Figure 27 Bargaining Power Of Suppliers: Ability to Provide Reliable & High Quality Microgrid Solutions Would Drive the Supplier Market in the Future
Figure 28 Threat Of New Entrants: Moderate Capital Requirement is A Key Factor Behind Low Threat Of New Entrants
Figure 29 Microgrid Market, By Grid Type
Figure 30 Grid Connected Type Of Microgrid is Expected to Grow at the Highest Rate Between 2016 and 2022
Figure 31 Residential & Commercial Vertical to Grow at the Highest Rate in the Hybrid Microgrid Market Between 2016 and 2022
Figure 32 Microgrid Market Segmentation: By Component
Figure 33 Microgrid Market Segmentation: By Power Source
Figure 34 Renewable Power Sources are Expected to Grow at the Highest Rate Between 2016 and 2022
Figure 35 Segmentation: Renewables
Figure 36 Microgrid Market Segmentation: By Vertical
Figure 37 Residential & Commercial Vertical Expected to Grow at the Highest Rate Between 2016 and 2022
Figure 38 Segmentation: Government & Education Vertical
Figure 39 Segmentation: Residential & Commercial Vertical
Figure 40 Remote/ Island Grid Type to Grow at the Highest Rate in the Industrial Vertical Between 2016 and 2022
Figure 41 Microgrid Market Segmentation: By Geography
Figure 42 Geographic Snapshot: APAC Expected to Register the Highest Growth Rate During the Forecast Period
Figure 43 India Estimated to Grow at the Highest Rate Between 2016 and 2022 in the Overall Microgrid Market
Figure 44 Regions Covered in Americas Microgrid Market
Figure 45 Americas Market Snapshot: Increasing Demand for Reliable and Secure Power Supply is Driving the Market
Figure 46 Regions Covered in Europe Microgrid Market
Figure 47 Regions Covered in APAC Microgrid Market
Figure 48 APAC Market Snapshot: Rural Electrification is the Main Factor Driving the Demand for Microgrids in This Region
Figure 49 Regions Covered in RoW Microgrid Market
Figure 50 Key Growth Strategies Adopted By the Top Companies, 2013–2016
Figure 51 Eaton Corporation PLC Grew Rapidly Between 2012 and 2014
Figure 52 Market Evaluation Framework - Partnership/ Collaboration/ Agreement Fuelled Growth and Innovation Between 2013 and 2015
Figure 53 Battle for Market Share: Partnership/ Collaboration/ Agreement Was the Key Strategy
Figure 54 Geographic Revenue Mix Of Top Market Players
Figure 55 ABB Ltd.: Company Snapshot
Figure 56 ABB Ltd.: SWOT Analysis
Figure 57 Eaton Corporation : Company Snapshot
Figure 58 Eaton Corporation : SWOT Analysis
Figure 59 General Electric: Company Snapshot
Figure 60 General Electric : SWOT Analysis
Figure 61 Siemens AG: Company Snapshot
Figure 62 Siemens AG.: SWOT Analysis
Figure 63 Exelon Corp.: SWOT Analysis
Figure 64 Honeywell International, Inc.: Company Snapshot
Figure 65 NRG Energy, Inc.: Company Snapshot
Figure 66 Northern Power Systems Corp.: Company Snapshot
Figure 67 Marketsandmarkets Knowledge Store Snapshot
Figure 68 Marketsandmarkets Knowledge Store: Semiconductor & Electronics Industry Snapshot

The microgrid market is estimated to reach USD 34.94 Billion by 2022, at a CAGR of 10.9% between 2016 and 2022. Growing demand for scalable and economic grid controls, cheap and clean energy storage options, and shift towards remote grids in the military segment are the factors driving the microgrid market positively.

Among the grid-types available, remote grid-type is expected to grow at the highest rate in the microgrid market. The heavy decline in prices of solar PV and wind power sources has resulted in the drop of overall power generation cost, when compared to centralized power grids. This is the key reason behind the growth of remote/ island microgrids.

The market for residential & commercial vertical is expected to grow at a high CAGR during the forecast period. The need for continuous and uninterrupted supply of power and electricity in healthcare vertical and increasing demand for rural electrification projects in the markets in India and Africa is a key reason behind the sharp growth.

Microgrid Market

The market in the APAC region is expected to grow at the highest CAGR during the forecast period. The key reason behind a sharp growth in the APAC region can be attributed to the increasing demand of rural electrification projects and rapidly growing mining vertical in the Indian market. With the increase in investments, large numbers of plants are expected to be set up, which require microgrid solutions for power transmission and distribution, which is directly expected to impact the growth of the overall market.

Higher financial cost of distributed energy resources compared to generation in centralized power stations is one of the key restraining factors in the microgrid market. One of the greatest challenges to the widespread acceptance and uptake of microgrid technologies is the general lack of familiarity of the basic concepts behind them. Also, the microgrid concept is relatively new; as a result, it is not surprising that the regulatory framework for integration of microgrids into the wider grid is still being developed. However, major markets where microgrids are being invested presently are villages and remote areas, which do not have direct access to electricity, acts as a major opportunity for the market.

Key players in this market are focused on partnership, collaboration, and agreements followed by new product launches to increase their revenue. ABB Ltd. is one of the leaders in the microgrid market. The company focuses on new projects and partnerships to maintain their presence in the market all over the world. The company also has a huge customer base with long-term contracts. For instance, in September 2015, ABB installed an integrated solar-diesel microgrid at Johannesburg, South Africa, that would help to maximize the use of clean solar energy and ensure uninterrupted power supply. ABB has also recently entered into a partnership with Samsung SDI in March 2015, to promote microgrid solutions globally.

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