According to the latest report by IMARC Group, titled "Microgrid Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028," the global microgrid market size reached US$ 28.9 Billion in 2022. Microgrid refers to an energy system that is generally used for electricity supply across a discrete geographic footprint. It is considered to be the smaller version of power grids and mainly comprises fuel cells, wind turbine generators and microturbines, battery storage systems and photovoltaic generators. As a result, it helps in improving the operation and stability of the regional electric grid, reducing congestion, fuel utilization and peak loads, and increasing reliability and resilience in an energy-efficient manner. Due to the shifting inclination towards distributed and localized generation systems, there has been a considerable rise in the adoption of microgrids across the globe.
Global Microgrid Market Trends:
The global market is primarily driven by the rising demand for electricity. This is supported by the increasing investments by public and private agencies in infrastructural development projects. Moreover, continual technological advancements, such as the widespread integration of forecasting algorithm with microgrids that helps in predicting the demand of loads and the power generated by the microgrid network, are providing an impetus to the market growth. Along with this, the escalating environmental concerns are favoring the market growth across multiple countries. Also, the rising fundings activities by the governments of several nations for establishing biopower, wind and solar energy farms are positively influencing the market growth. Furthermore, the increasing adoption of microgrids across the defense sector due to the rising incidences of cyber-terrorism is creating a positive outlook for the market. Other factors, including the growing need for rural electrification, rapid industrialization and extensive research and development (R&D) activities conducted by key players, are further projected to drive the market growth. On account of the aforementioned factors, the market is anticipated to reach a value of US$
54.1 Billion by 2028, growing at a CAGR of
10.89% during 2023-2028.
- On the basis of the energy source, the market has been segmented into natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell and others. Amongst these, combined heat and power is currently dominating the market segment.
- Based on the application, the market has been segregated into remote systems, institution and campus, utility/community, defense and others. Currently, remote systems hold the majority of the total market share.
- On the basis of the region, the market has been divided into North America, Asia Pacific, Europe, the Middle East and Africa and Latin America. Presently, North America holds the leading position in the market.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market. Some of the key players are Lockheed Martin Corporation, ABB Ltd, General Electric Company (GE), Eaton Corporation PLC, and Siemens AG.
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