Microgrid Market Report Scope & Overview:

The Microgrid Market size was valued at USD 32.10 billion in 2023 and is expected to grow to USD 128.33 billion by 2031 and grow at a CAGR of 18.91 % over the forecast period of 2024-2031.

A microgrid is an energy system with linked loads and scattered energy supplies that operate in parallel with or independently from the main power grid. It increases the reliability and resilience of the electric grid, improves its efficiency and stability, and reduces peak loads, fuel consumption, and congestion. The rising emphasis on rural electrification is also financially advantageous to important enterprises in the industry.

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The use of microgrids has a number of advantages, including the modernisation of the grid, the incorporation of distributed energy generation sources, including renewable energy, and the incorporation of numerous smart grid technologies. As well as it aids in supplying local loads with energy from nearby sources, which lowers transmission and distribution losses and boosts system effectiveness overall. Microgrids complement microgrids by managing the erratic nature of local renewable energy sources providing supplementary services to bulk power systems and sensitive loads from sources.

MARKET DYNAMICS

KEY DRIVERS:  

• Government initiatives to reduce carbon footprint and ensure reliable power supply

• The continued need for electricity in the medical and defense sectors

Rising power outages in urban and rural areas might seriously harm hospitals and military installations by disrupting power supply. Electricity is required for many things in hospitals, including lighting, heating, cooling, and life support systems including ventilators, dialysis machines, oxygen monitoring devices, and others. Since hospitals are open round-the-clock and any power outage could endanger a patient's life, a reliable electrical supply becomes an absolute necessity. As microgrids can combine and manage several energy sources while monitoring and managing energy supply, many hospitals are transitioning from diesel generators to microgrid-based power backups.

RESTRAIN:

• High cost of maintenance

• Interconnections between grids are complicated

OPPORTUNITY: 

•  Growing Technological development in renewable energy

• Underdeveloped manufacturing facilities

• Governments are becoming more supportive

CHALLENGES:

• The maintenance cost is very high

• High installation costs and operational difficulties

This problem arises when a microgrid is employed in place of a conventional grid. For microgrids to function properly, system engineers, monitoring systems, and relays must all be used. This can significantly increase the installation expenses of a microgrid when compared to the other grid.  The greater levels of dependability and power quality and can store, convert, and recycle energy.

IMPACT OF RUSSIA-UKRAINE WAR

For cities all around Ukraine, reliable access to energy supply has grown to be a key problem as winter approaches. Russia has launched rounds of missile and drone attacks against Ukraine's energy infrastructure since October. According to Ukrainian officials, up to 40% of the country's electrical infrastructure has been damaged, and about 30% of its power plants have been destroyed. assaults on energy. Infrastructure and generating facilities have been damaged throughout the war, but the most recent escalation has seriously compromised the operational integrity and resilience of the power grid. Under these circumstances, Ukraine has implemented measures to cut back on its use of electricity, including planned blackouts in Kyiv and other significant cities throughout the nation. It's likely that this winter will have sporadic power. EU nations anticipate that the most recent attacks will new generation of refugees as well as present refugees have been advised to spend the winter abroad. Military activities are also at risk from power outages, especially if communication cables are compromised.

KEY MARKET SEGMENTATION

By Offering

• Hardware

  • Power Generators

  • Energy Storage Systems

  • Controllers

• Software

• Services

 By Connectivity

• Grid Connected

• Off-grid Connected

By Power Source

• Natural Gas

• Solar PV

• Combined Heat and Power

• Diesel

• Fuel Cell

• Others

By Pattern

• Urban/Metropolitan

• Semiurban

• Rural/island

By Microgrids

• AC Microgrids

• DC Microgrids

• Hybrid Microgrids

By Power Rating

• Less than 1 MW

• 1 MW to 5 MW

• 5 MW to 10 MW

• More than 10 MW

By End Use

• Commercial & Industrial

• Remote Areas

• Military

• Government

• Utilities

• Institutes & Campuses

• Healthcare

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REGIONAL ANALYSIS

In 2022, North America held the top spot in the worldwide market and contributed more than 35.0% of total sales. It is anticipated that the high adoption rate of captive power-generating techniques in the industrial and municipal sectors of the United States will have a significant influence on lowering dependency on the government-controlled power supply. The legislative support for encouraging domestic investment is anticipated to be a key driver of the economy, as is the bright prognosis for the manufacturing and construction industries in major economies like China and India.

Asia Pacific is anticipated to see a substantial growth rate, Between 2023 and 2030. The regulatory support for encouraging domestic investment is anticipated to be one of the main driving forces behind the good prognosis for the manufacturing and construction industries in the major countries, including China and India. The market for microgrids is expanding throughout the Middle East and Africa as a result of the desire to increase energy security and lessen reliance on conventional fuel sources. Microgrids are being invested in by nations like Saudi Arabia and the United Arab Emirates.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• To manage the complexity of grid systems, Siemens announced a grid software suite in May 2022. Siemens Smart Infrastructure has created an open, modular software suite.

• For an Engineering, Procurement, and Construction (EPC) contract from Empire Offshore Wind in March 2022, GE Renewable Energy's Grid Solutions collaborated with BOND Civil & Utility Construction to design and construct an onshore digital substation for Empire Wind 1, New York's first offshore wind farm.

• The EcoStruxure Energy Hub, a scalable self-service Internet of Things (IoT) software as a service (SaaS) solution that makes it easier to manage digitalized electrical and energy systems, was introduced by Schneider Electric in April 2022.

• The newest grid-edge protection technology, the VacuFuse II Self-Resetting Interrupter, was introduced by S&C Electric Company in January 2022.

• Siemens and Atos worked together on a sizable smart grid management project for Morocco's National Office of Electricity and Drinking Water (ONEE) in December 2021.   

KEY PLAYERS

The Major Players are GENERAL ELECTRIC, EATON CORPORATION, SIEMENS, PARETO ENERGY, HONEYWELL, SPIRAE INC., S&C ELECTRIC, ABB Group, EXELON CORPORATION, Schneider Electric, and other players

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