Microgrid Market Size, Share, Industry & Opportunities 2031

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Microgrid Market Size, Share, Industry & Opportunities 2031

Microgrid Market Size, Share, Industry & Opportunities 2031

Segments - Microgrid Market by Types (Grid-connected, Hybrid, and Remote Grid), Power Sources (Natural Gas, Solar PV, Combined Heat & Power (CHP), Fuel Cells, and Diesel), Offerings (Hardware and Software & Services), Applications (Healthcare, Defense, Educational Institutes, Industrial, Commercials, Remote, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

Author : Raksha Sharma

Fact-checked by : Vineet Pandey

Editor : Swapnil Hedau

Report Description

Microgrid Market Outlook 2031

The global microgrid market size was valued at USD 33.88 billion in 2022 and is expected to reach USD 79.89 billion by 2031, expanding at a CAGR of 10% during the forecast period, 2023–2031.

The growth of the market is attributed to the rising demand for sustainable energy, increasing incidences of cyberattacks on energy systems, increasing demand for a dependable and secure global power supply, and expanding global deployment of microgrids for rural electrification are all driving market expansion.

A microgrid is a small set of synchronized electrical sources and loads that are connected to the main power system. In island mode, the microgrid can be separated from the main grid and run independently. Microgrids, otherwise known as small-scale power grids, can be used in associated with a wide variety of renewable energy sources such as solar, wind, and waste-to-energy.

Furthermore, batteries or solar panels can be used to power them. Microgrids connected to the main power source provide a more stable source of electricity since they minimize the impacts of the power grid on localized disasters. Power demand has decreased dramatically as a result of the lockdowns imposed due to Covid-19 in several countries, as most industrial and commercial operations have paused.

Microgrid Market Trends, Drivers, Restraints, and Opportunities

High installation costs and the lack of regulatory frameworks for microgrid operations are estimated to hamper the market expansion.
Microgrids offer a range of green power generation technologies that are becoming more preferred around the world as individuals become more conscious of clean energy is estimated to spur market growth in the coming years.
During the forecast period, government initiatives, planned projects, and private investment are expected to propel the global microgrid market.
Microgrids are anticipated to produce environmental and environmental benefits through the use of automation as dispersed energy resources are introduced into the power system, offering the profitable potential for the market to create immense opportunities for the market players.
Possessing high rates of rural electrification, which provides an opportunity for the microgrid industry to expand.

Scope of Microgrid Market Report

The report on the global microgrid market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes	Details
Report Title	Microgrid Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Base Year	2022
Historic Data	2016–2021
Forecast Period	2023–2031
Segmentation	Types (Grid-connected, Hybrid, and Remote Grid), Power Sources (Natural Gas, Solar PV, Combined Heat & Power (CHP), Fuel Cells, and Diesel), Offerings (Hardware and Software & Services), and Applications (Healthcare, Defense, Educational Institutes, Industrial, Commercials, Remote, and Others)
Regional Scope	Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report	Toshiba Corp.; Standard Microgrid Inc.; Siemens AG; Schneider Electric SE; S&C Electric Co., Honeywell International Inc.; Hitachi Ltd; General Electric Company; ENGIE EPS SA; and Eaton Corporation PLC

Global Microgrid Market Segment Insights

Grid-connected segment is projected to hold a large market share

Based on types, the global microgrid market is divided into grid-connected, hybrid, and remote grid. The grid-connected segment is expected to hold a key share of the market during the forecast period owing to the expansion of utility-based grid networks, as well as the widespread usage of renewable energy sources like offshore wind. Grid-connected microgrids provide enhanced grid resiliency and power quality. They have a low environmental effect, which drives demand for clean energy.

Natural gas segment is expected to grow at a significant pace

On the basis of power sources, the market is segmented into natural gas, solar PV, combined heat & power (CHP), fuel cells, and diesel. The natural gas segment is expected to account for a key share of the market in the coming years due to natural gas is the most common energy generation source used by microgrids since it emits fewer carbon emissions than oil or coal-fired electricity.

Software segment is projected to account for a key market share

In terms of offerings, the global microgrid market is bifurcated into hardware and software & services. The software segment is expected to constitute a key share of the market during the forecast period owing to the software solution is aimed at campuses, institutions, infrastructures, and utilities that require advanced monitoring, administration, and optimization of distributed energy at a low cost without having to manage and maintain on-site IT equipment. Microgrid software as a service is a microgrid control system that is hosted remotely.

Remote segment is anticipated to register at a rapid CAGR

Based on applications, the market is segregated into healthcare, defense, educational institutes, industrials, commercials, remote, and others. The remote segment is expected to represent a key share of the market in the coming years due to the rising adoption of microgrids in remote places. Governments across the world are progressively investing in the expansion of power infrastructure to deliver low-cost and clean electricity.

As a consequence, the need for microgrids in rural places has increased. Microgrids are power plants that are set up in remote places to create, manage, and control distributed energy resources, allowing for resource optimization.

North America is anticipated to dominate the market

On the basis of regions, the global microgrid market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market at an impressive CAGR during the forecast period. The regional market growth can be attributed to the explosive growth of microgrids in the defense sector, as well as remote networks to boost cyber-attack protection.

Segments

The global microgrid market has been segmented on the basis of

Types

Grid-connected
Hybrid
Remote Grid

Power Sources

Natural Gas
Solar PV
Combined Heat & Power (CHP)
Fuel Cells
Diesel

Offerings

Hardware
Software & Services

Applications

Healthcare
Defense
Educational Institutes
Industrial
Commercials
Remote
Others

Region

Asia Pacific
North America
Latin America
Europe
Middle East & Africa

Key Players

Toshiba Corp.
Standard Microgrid Inc.
Siemens AG
Schneider Electric SE
S&C Electric Co.
Honeywell International Inc.
Hitachi Ltd
General Electric Company
ENGIE EPS SA
Eaton Corporation PLC

Competitive Landscape

Key players competing in the global microgrid market include Toshiba Corp.; Standard Microgrid Inc.; Siemens AG; Schneider Electric SE; S&C Electric Co., Honeywell International Inc.; Hitachi Ltd; General Electric Company; ENGIE EPS SA; and Eaton Corporation PLC.

Some of these players are adopting several business strategies including acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to increase their market shares.

Global Microgrid Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Microgrid Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Microgrid Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Microgrid Market - Supply Chain
  4.5. Global Microgrid Market Forecast
     4.5.1. Microgrid Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Microgrid Market Size (000â€™ Units) and Y-o-Y Growth
     4.5.3. Microgrid Market Absolute $ Opportunity
5. Global Microgrid Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Microgrid Market Size and Volume Forecast by Types
     5.3.1. Grid-connected
     5.3.2. Hybrid
     5.3.3. Remote Grid
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Microgrid Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. Microgrid Market Size and Volume Forecast by Applications
     6.3.1. Healthcare
     6.3.2. Defense
     6.3.3. Educational Institutes
     6.3.4. Industrial
     6.3.5. Commercials
     6.3.6. Remote
     6.3.7. Others
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Microgrid Market Analysis and Forecast by Region
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by Region
     7.2.2. Y-o-Y Growth Projections by Region
  7.3. Microgrid Market Size and Volume Forecast by Region
     7.3.1. North America
     7.3.2. Latin America
     7.3.3. Europe
     7.3.4. Asia Pacific
     7.3.5. Middle East and Africa (MEA)
  7.4. Absolute $ Opportunity Assessment by Region
  7.5. Market Attractiveness/Growth Potential Analysis by Region
  7.6. Global Microgrid Demand Share Forecast, 2019-2026
8. North America Microgrid Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
  8.2. North America Microgrid Market Size and Volume Forecast by Country
     8.2.1. U.S.
     8.2.2. Canada
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. North America Microgrid Market Size and Volume Forecast by Types
     8.4.1. Grid-connected
     8.4.2. Hybrid
     8.4.3. Remote Grid
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. North America Microgrid Market Size and Volume Forecast by Applications
     8.7.1. Healthcare
     8.7.2. Defense
     8.7.3. Educational Institutes
     8.7.4. Industrial
     8.7.5. Commercials
     8.7.6. Remote
     8.7.7. Others
  8.8. Basis Point Share (BPS) Analysis by Applications
  8.9. Y-o-Y Growth Projections by Applications
  8.10. Market Attractiveness/Growth Potential Analysis
     8.10.1. By Country
     8.10.2. By Product Type
     8.10.3. By Application
  8.11. North America Microgrid Demand Share Forecast, 2019-2026
9. Latin America Microgrid Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Latin America Average Pricing Analysis
  9.2. Latin America Microgrid Market Size and Volume Forecast by Country
      9.2.1. Brazil
      9.2.2. Mexico
      9.2.3. Rest of Latin America
   9.3. Absolute $ Opportunity Assessment by Country
  9.4. Latin America Microgrid Market Size and Volume Forecast by Types
     9.4.1. Grid-connected
     9.4.2. Hybrid
     9.4.3. Remote Grid
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Latin America Microgrid Market Size and Volume Forecast by Applications
     9.7.1. Healthcare
     9.7.2. Defense
     9.7.3. Educational Institutes
     9.7.4. Industrial
     9.7.5. Commercials
     9.7.6. Remote
     9.7.7. Others
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. Market Attractiveness/Growth Potential Analysis
     9.10.1. By Country
     9.10.2. By Product Type
     9.10.3. By Application
  9.11. Latin America Microgrid Demand Share Forecast, 2019-2026
10. Europe Microgrid Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Europe Average Pricing Analysis
  10.2. Europe Microgrid Market Size and Volume Forecast by Country
     10.2.1. Germany
     10.2.2. France
     10.2.3. Italy
     10.2.4. U.K.
     10.2.5. Spain
     10.2.6. Russia
     10.2.7. Rest of Europe
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Europe Microgrid Market Size and Volume Forecast by Types
     10.4.1. Grid-connected
     10.4.2. Hybrid
     10.4.3. Remote Grid
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Europe Microgrid Market Size and Volume Forecast by Applications
     10.7.1. Healthcare
     10.7.2. Defense
     10.7.3. Educational Institutes
     10.7.4. Industrial
     10.7.5. Commercials
     10.7.6. Remote
     10.7.7. Others
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Market Attractiveness/Growth Potential Analysis
     10.10.1. By Country
     10.10.2. By Product Type
     10.10.3. By Application
  10.11. Europe Microgrid Demand Share Forecast, 2019-2026
11. Asia Pacific Microgrid Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Asia Pacific Average Pricing Analysis
  11.2. Asia Pacific Microgrid Market Size and Volume Forecast by Country
     11.2.1. China
     11.2.2. Japan
     11.2.3. South Korea
     11.2.4. India
     11.2.5. Australia
     11.2.6. Rest of Asia Pacific (APAC)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Asia Pacific Microgrid Market Size and Volume Forecast by Types
     11.4.1. Grid-connected
     11.4.2. Hybrid
     11.4.3. Remote Grid
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Asia Pacific Microgrid Market Size and Volume Forecast by Applications
     11.7.1. Healthcare
     11.7.2. Defense
     11.7.3. Educational Institutes
     11.7.4. Industrial
     11.7.5. Commercials
     11.7.6. Remote
     11.7.7. Others
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Market Attractiveness/Growth Potential Analysis
     11.10.1. By Country
     11.10.2. By Product Type
     11.10.3. By Application
  11.11. Asia Pacific Microgrid Demand Share Forecast, 2019-2026
12. Middle East & Africa Microgrid Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Middle East & Africa Average Pricing Analysis
  12.2. Middle East & Africa Microgrid Market Size and Volume Forecast by Country
     12.2.1. Saudi Arabia
     12.2.2. South Africa
     12.2.3. UAE
     12.2.4. Rest of Middle East & Africa (MEA)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Middle East & Africa Microgrid Market Size and Volume Forecast by Types
     12.4.1. Grid-connected
     12.4.2. Hybrid
     12.4.3. Remote Grid
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Middle East & Africa Microgrid Market Size and Volume Forecast by Applications
     12.7.1. Healthcare
     12.7.2. Defense
     12.7.3. Educational Institutes
     12.7.4. Industrial
     12.7.5. Commercials
     12.7.6. Remote
     12.7.7. Others
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Market Attractiveness/Growth Potential Analysis
     12.10.1. By Country
     12.10.2. By Product Type
     12.10.3. By Application
  12.11. Middle East & Africa Microgrid Demand Share Forecast, 2019-2026
13. Competition Landscape
  13.1. Global Microgrid Market: Market Share Analysis
  13.2. Microgrid Distributors and Customers
  13.3. Microgrid Market: Competitive Dashboard
  13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     13.4.1. Toshiba Corp.
     13.4.2. Standard Microgrid Inc.
     13.4.3. Siemens AG
     13.4.4. Schneider Electric SE
     13.4.5. S&C Electric Co.