Microgrid Control Systems Market Outlook 2031
The global microgrid control systems market size was valued at around USD 26.60 Billion in 2022 and is expected to reach USD 75.26 Billion by 2031, expanding at a CAGR of around 12.25% during the forecast period, 2023-2031. The growth of the market is attributed to the increasing improvements in control and energy management.
Microgrid refers to a group of electricity users with a local source of supply, which is usually attached to a centralized national grid and function independently. Grid connects houses, businesses, and other buildings to central sources of power. The whole interconnected network affects when a part of the grid needs repair. Microgrids, though they operate while connected to the grid, can operate independently when needed.
Microgrids can be powered by batteries, generators, or renewable energy resources depending upon its requirements. Microgrids aid in strengthening grid resilience, mitigating grid disturbances, and function as a grid resource. Microgrids provide backups for the grid, which allows communities to be energy independent and environmentally friendly.
Microgrid control systems are control and information systems that provide necessary functionality to ensure the generation and distribution of energy at minimal operational costs.
Microgrid Control Systems Market Trends, Drivers, Restraints, and Opportunities
- Technological advancements in energy management systems are expected to drive the market during the forecast period.
- Rising demand for backup solutions in in developing and underdeveloped countries fuels the microgrid control systems market.
- Growing adoption of microgrid control systems by industries to reduce carbon emission and cost of operations boosts the market.
- High cost associated with installation and maintenance of microgrid control systems and lack of skilled labor needed for those systems are anticipated to hamper the growth of the market during the coming years.
- Lack of awareness regarding technological advancements in microgrid control systems hinders the growth of the market.
- Growing industrial sector is expected to offer growth opportunities to the key market players during the projected years.
Scope of The Microgrid Control Systems Market Report
The report on the global microgrid control systems market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Microgrid Control Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Off-Grid, On-Grid, and Hybrid), Components (Software and Hardware), Ownership (Private and Public), and Applications (Industrial, Cities & Municipalities, Utilities, Military & Defense, Campuses & Institutions, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Hitachi, Ltd.; Borqs Technologies, Inc.; Siemens AG; ABB Group; General Electric Corporation; Eaton Corporation PLC; Princeton Power Systems; Honeywell International, Inc.; Northern Power Systems, Inc.; Exelon Corporation; Schneider Electric SE; ONTECH Electric Corporation; and Others
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Microgrid Control Systems Market Segment Insights
On-grid segment drives the market
Based on types, the market is divided into off-grid, on-grid, and hybrid. The on-grid segment is expected to boost the market during the forecast period, as they are cost-effective, reliable, and energy-efficient than other types of microgrids. The off-grid segment is anticipated to expand during the forecast period, due to growing electrification of rural and remote areas across the globe.
Software segment boosts the market
On the basis of components, the market is bifurcated into software and hardware. The software segment is projected to drive the market during the forecast period, owing to its crucial role in predicting, managing, monitoring, and improving demand and supply of energy for microgrid networks.
The private segment holds a key market share
In terms of ownership, the market is divided into private and public. The private segment is estimated to expand significantly during the forecast period, due to growing demand for primary energy and rising government initiative beneficial for private players. Increasing demand for domestic and household electricity is anticipated to boost the private segment in the coming years.
Commercial & industrial segment register a high CAGR
Based on applications, the market is segregated into industrial, cities & municipalities, utilities, military & defense, campuses & institutions, and others. The industrial segment is projected to drive the market during the forecast period, as industries around the globe are adopting measures to reduce carbon emission and optimize their energy consumption. Industries are adopting microgrid systems to reduce their energy costs and operation costs, which aid in the expansion of the industrial segment.
Asia Pacific dominates the market
In terms of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, due to growing investments in smart microgrid control infrastructure, rising dependency on sustainable sources for power generation, and modernization of electrical works in the region.
Developing countries in Asia Pacific are importing new technologies to improve their microgrid control systems, which aids in the expansion of the market. The market is North America is anticipated to expand during the forecast period, owing to increasing smart grid activities and growing usage of sustainable sources in power production in the region.
Segments
The global microgrid control systems market has been segmented on the basis of
Types
Components
Ownership
Applications
- Industrial
- Cities & Municipalities
- Utilities
- Military & Defense
- Campuses & Institutions
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Hitachi, Ltd.
- Borqs Technologies, Inc.
- Siemens AG
- ABB Group
- General Electric Corporation
- Eaton Corporation PLC
- Princeton Power Systems
- Honeywell International, Inc.
- Northern Power Systems, Inc.
- Exelon Corporation
- Schneider Electric SE
- ONTECH Electric Corporation
- Others
Competitive Landscape
The global microgrid control systems market is moderately fragmented with the presence of key players such as Hitachi, Ltd.; Borqs Technologies, Inc.; Siemens AG; ABB Group; General Electric Corporation; Eaton Corporation PLC; Princeton Power Systems; Honeywell International, Inc.; Northern Power Systems, Inc.; Exelon Corporation; Schneider Electric SE; ONTECH Electric Corporation; and others, who use business strategies such as acquisitions, collaborations, mergers, product launches, and partnerships to strengthen their hold on the market.
- For example, in September 2021, Borqs Technologies, Inc., a provider of Internet of Things (IoT) software and integrated products, signed a term to acquire 51% of stakes in Holu Hou Energy, LLC, a provider for innovative microgrid functions. In November 2021, Siemens AG partnered with Fluence Energy to aid the island of Madeira, Portugal to gain energy independence and grid resilience.