Microgrid Market by Offering (Hardware- Power Generation & Energy Storage System, Software, and Service), Connectivity (Grid Connected and Remote/ Island), Grid Type (AC, DC, and Hybrid Microgrid), Vertical & Geography - Global Forecast to 2022
The microgrid market was valued at USD 16.58 billion in 2015 and is expected to reach USD 38.99 billion by 2022, at a CAGR of 12.45% during the forecast period. The market growth can be attributed to several factors such as growing demand for automated grid system and enhancement in microgrid connectivity through integration of IoT. The major restraints for the microgrid market are the high initial cost of installation and land acquisition and registration complications for solar PV installation in rural areas.
“The market for healthcare is expected to grow at a high rate during the forecast period”
Hospitals are an essential facility leveraging the advantages of the microgrid. The microgrid system provides significant economic and environmental benefits to the most advanced healthcare facilities. It has the ability to optimize the energy consumption for any type of facility, and this brings particular value to public facilities such as hospitals, which use mass quantities of power to maintain daily operations without risking an outage. The increasing need for uninterrupted power supply in the healthcare vertical is the key factor contributing to the growth of this market.
“The market in APAC is expected to grow at the highest rate during the forecast period”
Rise in microgrid installations in Africa and APAC for rural electrification projects and rapidly growing mining vertical in the Indian market, along with investments made by both national and international companies such as ABB, Siemens, GE, and Schneider Electric, are some of the key factors contributing to the growth of the microgrid market in APAC. The countries considered in APAC are China, Japan, India, Australia, and Rest of APAC. The Americas holds the largest share of the microgrid market as there is strong support for microgrid development from the U.S. and Canadian governments. Additionally, many big players and the start-ups in this region are investing more for technological enhancement of microgrid.
Breakdown of primary participants’ profile by different parameters:
- By Company Type: Tier 1—50%, Tier 2—33%, and Tier 3—17%
- By Designation: C Level—50%, Director Level—33%, and Others—17%
- By Region: Americas—67%, Europe—16%, and APAC—17%
Research Coverage:
In this report, various segments such as offering, connectivity, grid type, vertical, and geography have been covered. The report also discusses the drivers, restraints, opportunities, and challenges for the market. It gives a detailed view of the market across four main regions: the Americas, Europe, APAC, and RoW. Porter’s five forces analysis has been included in the report, along with the description of each force and its impact on the market.
Reasons to Buy the Report:
- This report includes the statistics pertaining to the microgrid market in terms of offering, connectivity, grid type, vertical, and geography, along with their respective market size (in terms of value for the hardware segment).
- Porter’s five forces analysis, value chain analysis, and key strategies adopted by the market players have been provided for the microgrid market.
- Major drivers, restraints, opportunities, and challenges for the microgrid market have been provided in detail in this report.
- The report includes illustrative segmentation, analysis, and forecast for the microgrid market based on its segments and subsegments.
1.1 OBJECTIVES OF THE STUDY
1.2 MARKET DEFINITION
1.3 STUDY SCOPE
1.3.1 MARKETS COVERED
1.3.2 YEARS CONSIDERED FOR THE STUDY
1.4 CURRENCY
1.5 LIMITATIONS
1.6 STAKEHOLDERS
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
2.1.1.1 Major secondary sources
2.1.1.2 Key data from secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 Primary interviews with experts
2.1.2.2 Breakdown of primaries
2.1.2.3 Key data from primary sources
2.1.3 SECONDARY AND PRIMARY RESEARCH
2.1.3.1 Key industry insights
2.2 MARKET SIZE ESTIMATION
2.2.1 BOTTOM-UP APPROACH
2.2.1.1 Approach for capturing market share by bottom-up analysis (demand side)
2.2.1.2 Approach for capturing market share with the help of various players in the value chain of the microgrid market
2.2.2 TOP-DOWN APPROACH
2.2.2.1 Approach for capturing market share by top-down analysis (supply side)
2.3 MARKET BREAKDOWN AND DATA TRIANGULATION
2.4 RESEARCH ASSUMPTIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES IN THE MICROGRID MARKET
4.2 MICROGRID MARKET, BY OFFERING
4.3 AMERICAS HELD THE LARGEST SHARE OF THE MICROGRID MARKET IN 2016
4.4 CHINA HELD THE LARGEST SHARE OF THE MICROGRID MARKET IN APAC IN 2016
4.5 MICROGRID MARKET, BY CONNECTIVITY
5 MARKET OVERVIEW
5.1 MARKET SEGMENTATION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Growing demand for automated grid systems
5.2.1.2 Reduced carbon footprint
5.2.1.3 Enhancement in microgrid connectivity through integration of IoT
5.2.1.4 Advantages of low-cost and clean energy storage
5.2.2 RESTRAINTS
5.2.2.1 High installation cost of microgrids
5.2.2.2 Utility franchise rights for connecting multisite microgrids
5.2.2.3 Land acquisition and registration complications pertaining to solar PV installations in rural areas
5.2.3 OPPORTUNITIES
5.2.3.1 Increase in microgrid installations for rural electrification projects in Africa and APAC
5.2.3.2 Growing demand for microgrids in the healthcare and military sectors
5.2.4 CHALLENGES
5.2.4.1 Complex design and processes
5.2.4.2 Technological risks associated with the installation and implementation of microgrids
5.2.4.3 Interoperability and compatibility
5.2.4.4 Policies, regulations, and standards
6 INDUSTRY TRENDS
6.1 VALUE CHAIN ANALYSIS
6.2 PORTER’S FIVE FORCES ANALYSIS
6.2.1 INTENSITY OF COMPETITIVE RIVALRY
6.2.2 THREAT OF SUBSTITUTES
6.2.3 BARGAINING POWER OF BUYERS
6.2.4 BARGAINING POWER OF SUPPLIERS
6.2.5 THREAT OF NEW ENTRANTS
6.3 SAFETY, ISLANDING, AND ENERGY STORAGE STANDARDS
6.3.1 UL STANDARDS
6.3.1.1 UL 1741 Standard
6.3.1.2 UL 9741 Standard
6.3.1.3 UL 62109 Standard
6.3.2 IEEE STANDARDS
6.3.2.1 IEEE Standard 1547
6.3.2.2 IEEE Standard 2030
6.3.3 IEC STANDARDS
6.3.3.1 IEC 61850 Standard
6.3.3.2 IEC 61724 Standard
6.3.3.3 IEC 61727 Standard
6.4 REGULATORY STANDARDS
7 MICROGRID MARKET, BY OFFERING
7.1 INTRODUCTION
7.2 HARDWARE
7.2.1 SWITCHGEARS
7.2.2 POWER INVERTERS
7.2.3 SMART METERS
7.2.4 RECIPROCATING ENGINES
7.2.5 ENERGY STORAGE SYSTEMS AND POWER GENERATORS
7.2.5.1 Power generators
7.2.5.1.1 Fuel cells and diesel gensets
7.2.5.1.2 CHP and micro-CHP
7.2.5.1.3 Microturbines
7.2.5.1.4 Renewables
7.2.5.1.4.1 PV cells
7.2.5.1.4.2 Wind based
7.2.5.1.4.3 Others
7.2.5.2 Energy storage systems
7.2.5.2.1 Lithium-ion batteries
7.2.5.2.2 Lead-acid batteries
7.2.5.2.3 Flywheels
7.2.5.2.4 Flow batteries
7.2.5.2.5 Others
7.3 SOFTWARE
7.3.1 SOFTWARE AS A SERVICE
7.4 SERVICES
7.4.1 ENGINEERING AND DESIGN
7.4.2 MONITORING AND CONTROL
7.4.3 OPERATIONS AND MAINTENANCE
8 MICROGRID MARKET, BY CONNECTIVITY
8.1 INTRODUCTION
8.2 GRID CONNECTED
8.3 REMOTE/ISLAND
9 MICROGRID MARKET, BY GRID TYPE (QUALITATIVE CHAPTER)
9.1 INTRODUCTION
9.2 AC MICROGRID
9.3 DC MICROGRID
9.4 HYBRID
10 MICROGRID MARKET, BY VERTICAL
10.1 INTRODUCTION
10.2 HEALTHCARE
10.3 EDUCATIONAL INSTITUTIONS
10.4 INDUSTRIAL
10.4.1 STEEL
10.4.2 MINING
10.4.3 OTHERS
10.5 MILITARY
10.6 ELECTRIC UTILITY
10.6.1 URBAN ELECTRIFICATION
10.6.2 RURAL ELECTRIFICATION
10.7 OTHERS
11 GEOGRAPHIC ANALYSIS
11.1 INTRODUCTION
11.2 AMERICAS
11.2.1 STRONG SUPPORT FROM GOVERNMENT
11.2.2 NORTH AMERICA
11.2.2.1 Government mandates to install solar (PV) microgrids in the healthcare sector
11.2.2.2 US
11.2.2.2.1 Increasing investments to enhance operations in the solar industry to drive the adoption of microgrids
11.2.2.3 Rest of North America
11.2.2.3.1 Focus on the development of microgrid technology
11.2.3 LATIN AMERICA
11.2.3.1 Increasing deployment of remote microgrids driving market growth
11.2.3.2 Brazil
11.2.3.2.1 Increasing use of microgrids in the residential sector
11.2.3.3 Rest of Latin America
11.2.3.3.1 Huge growth opportunities for the microgrid market in the future
11.3 EUROPE
11.3.1 R&D PROJECTS SHAPING THE FUTURE OF THE MICROGRID MARKET IN EUROPE
11.3.1.1 Russia
11.3.1.1.1 Increasing focus on expanding the microgrid market
11.3.1.2 Germany
11.3.1.2.1 Large investments in grid projects
11.3.1.3 France
11.3.1.3.1 Investments in the software microgrid market
11.3.1.4 UK
11.3.1.4.1 Steps taken by Government of UK to reduce greenhouse emission by 80% till 2050 driving the microgrid market
11.3.1.5 Rest of Europe
11.3.1.5.1 Increased demand for photovoltaic plants
11.4 APAC
11.4.1 INCREASE IN INSTALLATION OF MICROGRIDS DUE TO THE RISING DEMAND FOR ENERGY
11.4.2 INDIA
11.4.2.1 Increasing adoption of microgrids in rural areas
11.4.3 CHINA
11.4.3.1 Several initiatives by various companies
11.4.4 AUSTRALIA
11.4.4.1 Several initiatives by ARENA to drive the PV cells market
11.4.5 JAPAN
11.4.5.1 Expanding microgrid facilities
11.4.6 REST OF APAC
11.4.6.1 Huge potential for off-grid system
11.5 REST OF THE WORLD
11.5.1 HIGH DEMAND FOR MICROGRIDS IN INDUSTRIAL APPLICATIONS
11.5.2 MIDDLE EAST
11.5.2.1 Developing utility-scale solar power sources to increase the adoption of microgrids
11.5.3 AFRICA
11.5.3.1 Increasing number of microgrid projects
12 COMPETITIVE LANDSCAPE
12.1 OVERVIEW
12.2 MARKET RANKING ANALYSIS: MICROGRID MARKET
12.3 COMPETITIVE SCENARIO
12.4 RECENT DEVELOPMENTS
12.4.1 PARTNERSHIPS/AGREEMENTS/JOINT VENTURES/COLLABORATIONS
12.4.2 PRODUCT LAUNCHES
12.4.3 EXPANSIONS
12.4.4 MERGERS AND ACQUISITIONS
13 COMPANY PROFILES
(Company at a Glance, Recent Financials, Products & Services, Strategies & Insights, & Recent Developments)*
13.1 INTRODUCTION
13.2 ABB LTD.
13.3 GENERAL ELECTRIC
13.4 EATON CORPORATION PLC
13.5 SIEMENS AG
13.6 EXELON CORPORATION
13.7 SCHNEIDER ELECTRIC
13.8 CATERPILLAR INC.
13.9 POWER ANALYTICS CORPORATION
13.10 HOMER ENERGY LLC
13.11 S&C ELECTRIC COMPANY
13.12 KEY INNOVATORS
13.12.1 TESLA MOTORS INC.
13.12.2 STEAMA CO., LTD.
13.12.3 GREEN ENERGY CORP.
13.12.4 ADVANCED MICROGRID SOLUTIONS
13.12.5 GENERAL MICROGRIDS, INC.
13.12.6 VIRIDITY ENERGY, INC.
*Details on company at a glance, recent financials, products & services, strategies & insights, & recent developments might not be captured in case of unlisted companies.
14 APPENDIX
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
14.7 AUTHOR DETAILS
Table 1 MICROGRID MARKET SEGMENTATION, BY OFFERING
Table 2 MICROGRID MARKET SEGMENTATION, BY CONNECTIVITY
Table 3 MICROGRID MARKET SEGMENTATION, BY GRID TYPE
Table 4 MICROGRID MARKET SEGMENTATION, BY VERTICAL
Table 5 ESTIMATED COST OF A 2MW MICROGRID
Table 6 PORTER’S FIVE FORCES ANALYSIS: THREAT OF SUBSTITUTES LIKELY TO HAVE A MINIMUM IMPACT ON THE OVERALL MARKET
Table 7 MICROGRID MARKET: REGULATORY LANDSCAPE
Table 8 MICROGRID MARKET, BY OFFERING, 2013–2022 (USD BILLION)
Table 9 MICROGRID MARKET, BY HARDWARE, 2013–2022 (USD BILLION)
Table 10 MICROGRID MARKET FOR HARDWARE, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 11 MICROGRID MARKET FOR SWITCHGEARS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 12 MICROGRID MARKET FOR POWER INVERTERS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 13 MICROGRID MARKET FOR SMART METERS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 14 MICROGRID MARKET FOR RECIPROCATING ENGINES, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 15 MICROGRID MARKET FOR ENERGY STORAGE SYSTEMS AND POWER GENERATORS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 16 MICROGRID MARKET, BY ENERGY STORAGE SYSTEMS AND POWER GENERATORS, 2013–2022 (USD BILLION)
Table 17 MICROGRID MARKET FOR FUEL CELLS AND DIESEL GENSETS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 18 MICROGRID MARKET FOR CHP AND MICRO-CHP, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 19 MICROGRID MARKET FOR MICROTURBINES, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 20 MICROGRID MARKET FOR RENEWABLES, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 21 MICROGRID MARKET, BY RENEWABLE, 2013–2022 (USD BILLION)
Table 22 MICROGRID MARKET FOR BATTERIES, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 23 MICROGRID MARKET, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 24 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY OFFERING, 2013–2022 (USD BILLION)
Table 25 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY HARDWARE, 2013–2022 (USD BILLION)
Table 26 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY ENERGY STORAGE SYSTEM AND POWER GENERATOR, 2013–2022 (USD BILLION)
Table 27 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY VERTICAL, 2013–2022 (USD BILLION)
Table 28 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 29 MICROGRID MARKET FOR GRID-CONNECTED MICROGRIDS, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 30 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY OFFERING, 2013–2022 (USD BILLION)
Table 31 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY HARDWARE, 2013–2022 (USD BILLION)
Table 32 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY ENERGY STORAGE SYSTEM AND POWER GENERATOR, 2013–2022 (USD BILLION)
Table 33 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY VERTICAL, 2013–2022 (USD BILLION)
Table 34 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 35 MICROGRID MARKET FOR REMOTE/ISLAND MICROGRIDS, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 36 MICROGRID MARKET, BY VERTICAL, 2013–2022 (USD BILLION)
Table 37 MICROGRID MARKET FOR HEALTHCARE, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 38 MICROGRID MARKET FOR HEALTHCARE, BY REGION, 2013–2022 (USD BILLION)
Table 39 MICROGRID MARKET FOR EDUCATIONAL INSTITUTIONS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 40 MICROGRID MARKET FOR EDUCATIONAL INSTITUTIONS, BY REGION, 2013–2022 (USD BILLION)
Table 41 MICROGRID MARKET FOR INDUSTRIAL VERTICAL, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 42 MICROGRID MARKET FOR INDUSTRIAL VERTICAL, BY REGION, 2013–2022 (USD BILLION)
Table 43 MICROGRID MARKET, BY INDUSTRIAL VERTICAL, 2013–2022 (USD BILLION)
Table 44 MICROGRID MARKET FOR STEEL INDUSTRY, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 45 MICROGRID MARKET FOR STEEL INDUSTRY, BY REGION, 2013–2022 (USD BILLION)
Table 46 MICROGRID MARKET FOR MINING INDUSTRY, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 47 MICROGRID MARKET FOR MINING INDUSTRY, BY REGION, 2013–2022 (USD BILLION)
Table 48 MICROGRID MARKET FOR OTHER INDUSTRIAL VERTICALS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 49 MICROGRID MARKET FOR OTHER INDUSTRIAL VERTICALS, BY REGION, 2013–2022 (USD BILLION)
Table 50 MICROGRID MARKET FOR MILITARY VERTICAL, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 51 MICROGRID MARKET FOR MILITARY VERTICAL, BY REGION, 2013–2022 (USD BILLION)
Table 52 MICROGRID MARKET FOR ELECTRIC UTILITY VERTICAL, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 53 MICROGRID MARKET FOR ELECTRIC UTILITY VERTICAL, BY REGION, 2013–2022 (USD BILLION)
Table 54 MICROGRID MARKET, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 55 MICROGRID MARKET FOR URBAN ELECTRIFICATION, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 56 MICROGRID MARKET FOR URBAN ELECTRIFICATION, BY REGION, 2013–2022 (USD BILLION)
Table 57 MICROGRID MARKET FOR RURAL ELECTRIFICATION, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 58 MICROGRID MARKET FOR RURAL ELECTRIFICATION, BY REGION, 2013–2022 (USD BILLION)
Table 59 MICROGRID MARKET FOR OTHER VERTICALS, BY CONNECTIVITY, 2013–2022 (USD BILLION)
Table 60 MICROGRID MARKET FOR OTHER VERTICALS, BY REGION, 2013–2022 (USD BILLION)
Table 61 MICROGRID MARKET, BY REGION, 2013–2022 (USD BILLION)
Table 62 MICROGRID MARKET IN AMERICAS, BY VERTICAL, 2013–2022 (USD BILLION)
Table 63 MICROGRID MARKET IN AMERICAS, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 64 MICROGRID MARKET IN AMERICAS, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 65 MICROGRID MARKET IN AMERICAS, BY REGION, 2013–2022 (USD BILLION)
Table 66 MICROGRID MARKET IN NORTH AMERICA, BY COUNTRY/REGION, 2013–2022 (USD BILLION)
Table 67 MICROGRID MARKET IN LATIN AMERICA, BY COUNTRY/REGION, 2013–2022 (USD BILLION)
Table 68 MICROGRID MARKET IN EUROPE, BY VERTICAL, 2013–2022 (USD BILLION)
Table 69 MICROGRID MARKET IN EUROPE, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 70 MICROGRID MARKET IN EUROPE, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 71 MICROGRID MARKET IN EUROPE, BY COUNTRY/REGION, 2013–2022 (USD BILLION)
Table 72 MICROGRID MARKET IN APAC, BY VERTICAL, 2013–2022 (USD BILLION)
Table 73 MICROGRID MARKET IN APAC, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 74 MICROGRID MARKET IN APAC, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 75 MICROGRID MARKET IN APAC, BY COUNTRY/REGION, 2013–2022 (USD BILLION)
Table 76 MICROGRID MARKET IN ROW, BY VERTICAL, 2013–2022 (USD BILLION)
Table 77 MICROGRID MARKET IN ROW, BY INDUSTRIAL, 2013–2022 (USD BILLION)
Table 78 MICROGRID MARKET IN ROW, BY ELECTRIC UTILITY, 2013–2022 (USD BILLION)
Table 79 MICROGRID MARKET IN ROW, BY REGION, 2013–2022 (USD BILLION)
Table 80 MARKET RANKING OF THE TOP 5 PLAYERS IN THE MICROGRID MARKET, 2015
Table 81 PARTNERSHIPS/AGREEMENTS/JOINT VENTURES/COLLABORATIONS, 2014–2016
Table 82 PRODUCT LAUNCHES, 2015–2016
Table 83 EXPANSIONS, 2014–2016
Table 84 MERGERS AND ACQUISITIONS, 2015–2016
Microgrids are distributed, small-scale versions of the centralized conventional grid systems. A microgrid’s distinguishing feature is its ability, to separate and isolate itself from the utility grid (macrogrid) seamlessly with little or no disruption to the loads within the system, and automatically reconnect as and when required.
The word Microgrid has been around in the energy industry for quite some time; however, the market has just begun witnessing its large projects and widespread adoption. There has been a significant increase of microgrid-based electricity supply, which is primarily due to the execution of several microgrid projects across the world. The market is set to grow at a double digit CAGR from 2014 to 2022 to reach a total installed capacity of microgrid over 14.9GW. Major growth drivers are aging energy infrastructure, vulnerability of energy infrastructure to cyber threats, growing energy demand, need for reliable and secure power, and incentives and stimuli from various governments.
Amongst the generation source, diesel gensets and fuel cells constitute the largest segment of the microgrid installed capacity as of 2013. While market for PV, CHP, wind, and other renewable sourcesbased microgrid is likely to grow and will constitute more than XX% of the total generation capacity by 2022.
For all the benefits that microgrid delivers, scale, technology, and power sources prove to be limiting factors for efficient and secure power surety. Despite the heightened interest, investment, and technology developments, there are still significant technological barriers.
Despite technical immaturity, utility reluctance, and absence of clear cut revenue structure, the future for microgrids looks promising. The market presents an opportunity for small and big utility players, industrial and residential communities that could leverage microgrids to optimize their energy costs with an added advantage of selling energy back to the grid during periods of peak demand.
The off-Grid microgrid is likely to grow at a higher rate for next five years, while the hybrid microgrid is expected to consolidate its growth and emerge as the market with a highest growth rate. Due to benefits such as no access to the utility grid and being energy self-sufficient, off-grid solar systems can be cheaper than extending power lines in certain remote areas. These benefits make off-grids an attractive option for single-owner campus environments, commercial areas, and defense bases.
In this report, the global microgrid market is broadly segmented into campus/institutional, defense and military, commercial, and others. The campus based microgrid has the highest market share of XX% as of 2013; however, the commercial segment is forecast to continue growing at the highest CAGR of XX% from 2014 to 2022. The campus/institutional sector comprising universities, government buildings, and research institutions is the prime segment in the global microgrid market. Government facilities that serve health and public safety functions require extremely high energy reliability that microgrids can provide.
Similarly, research and educational institutions require microgrids to protect equipment during power fluctuations. This segment will always provide opportunities for the microgrid market either in present year and the future years. The second most attractive opportunity for the microgrid market can be from the commercial segment, as the segment is expected to witness more demand in the coming years due to increasing use of microgrids in oil and gas plants, automotive factories, and paper mills.
North America (comprising the U.S. and Canada) has the largest installed capacity while APAC region is forecast to grow at a higher rate. In countries such as China and India, remote and rural regions still confront power supply issues and high expenses inhibit the expansion of electrical grids in these countries. These countries are dedicated to renewable energy expansion and have completed many microgrid projects, with a number of them underway.
The market size of Asia-Pacific when compared in terms of value is expected to grow at the highest rate in the next eight years, at a CAGR of XX%. The growth of the microgrid market in the Asia-Pacific region is propelled by factors such as government incentives for energy efficiency and the large scale infrastructure development in this region.
The competitive landscape of the market presents a very interesting picture, where a large number of small players have become a force to reckon with. Big players including the utility and software giants are venturing into the market and have earned big projects. Some of the key players in the microgrid market include ZBB Energy Corporation (U.S.), Chevron Energy (U.S.), Siemens AG (Germany), Echelon Corporation (U.S.), Mera Gao Power (India), Spirae Inc. (U.S.), GE Energy (U.S.), ABB Limited (Switzerland), Power Analytics Corporation (U.S.), Virdity Energy (U.S.), Pareto Energy, Ltd. (U.S.), and Microgrid Energy, LLC (U.S.) among others.
