Microgrids are small, self-contained power grids that can operate independently of the main power grid. They are made up of distributed energy resources (DERs), such as solar panels, wind turbines, and battery storage, as well as conventional generators. Microgrids can provide a variety of benefits, including improved reliability, resilience, and sustainability.
The global microgrid market is expected to experience attractive growth through 2028. The market is being driven by a number of factors, including the increasing demand for reliable and resilient power, the rise of DERs, and government policies that support the development of microgrids.
According to Stratview Research, the global microgrid market is expected to reach USD 82.79 billion by 2028. The report also predicts that the market will grow at a CAGR of 19% during the forecast period from 2023 to 2028.
Market Drivers
The increasing demand for reliable and resilient power is one of the key drivers of the microgrid market. Power outages are becoming more frequent and severe, and microgrids can provide a reliable source of power in the event of an outage. Microgrids are also more resilient to natural disasters and other disruptions than traditional power grids.
The rise of DERs is another key driver of the microgrid market. DERs, such as solar panels and wind turbines, are becoming more affordable and efficient, and they are being deployed in increasing numbers. Microgrids can integrate DERs into the power grid, which can help to improve the efficiency and reliability of the grid.
Government policies are also supporting the development of microgrids. Many governments are providing financial incentives for the development of microgrids, and they are also enacting regulations that make it easier to develop and deploy microgrids.
Market Segmentation
The microgrid market is segmented by connectivity, grid, power source, storage device, application and region. By application, the market is segmented into commercial and industrial, utility, and military. The commercial and industrial segment is expected to be the largest market in the coming years. This is due to the increasing demand for reliable and resilient power in commercial and industrial settings.
By connectivity, the market is segmented into grid-connected microgrids and off-grid microgrids. The grid-connected microgrid segment is expected to be the largest market in the coming years. This is due to the fact that grid-connected microgrids can provide backup power in the event of a power outage.
By geography, the market is segmented into North America, Europe, Asia Pacific, and the Middle East and Africa. Asia Pacific is expected to be the largest market in the coming years.
Key Players
The key players in the microgrid market include General Electric, Siemens, Eaton, Schneider Electric, Honeywell International, HOMER Energy, and Power Analytics Corporation. These companies are investing heavily in the development of microgrids and are expanding their product offerings.
Market Outlook
The microgrid market is a rapidly growing market with a lot of potential. The market is being driven by a number of factors, including the increasing demand for reliable and resilient power, the rise of DERs, and government policies that support the development of microgrids. The market is expected to grow significantly in the coming years.
Attractive Growth
The microgrid market is expected to experience attractive growth through 2028. The market is expected to grow at a CAGR of 19% from 2023 to 2028. This growth is being driven by a number of factors, including the increasing demand for reliable and resilient power, the rise of DERs, and government policies that support the development of microgrids.
Conclusion
The microgrid market is a rapidly growing market with a lot of potential. The market is being driven by a number of factors, including the increasing demand for reliable and resilient power, the rise of DERs, and government policies that support the development of microgrids. The market is expected to grow significantly in the coming years.
