The latest report by IMARC Group, titled “Microgrid Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, finds that the global microgrid market reached a value of US$ 17 Billion in 2017. Microgrids are integrated energy systems used to generate, distribute and regulate the flow of electrical power. They have the ability to store energy locally either in parallel or in isolation from the electric grids. Microgrids can be used to generate energy from both the renewable and the non-renewable sources. In addition, they also help in increasing the efficiency of the electric delivery system by reducing energy losses in transmission and distribution. On account of this, these systems are installed to increase the reliability of power distribution, reduce costs and encourage economic growth.
Highlights of the global microgrid market:
- The increasing usage of renewable sources is the key factor driving the growth of the market.
- Remote systems account for the majority of the total market share.
- North America dominates the market, holding the majority of the global share.
Microgrids can be used as a composition of multiple energy generation sources, such as solar, wind, biomass, geothermal, and fossil fuel, to generate and supply electricity to a local community, university, or a military base. This is anticipated to be the major driver of the microgrid market. Additionally, the lack of access to reliable grid electricity due to low electrification in the rural areas is another factor boosting the demand for microgrids. Moreover, increased need to strengthen energy security, rapidly increasing industrialization, requirement of enhanced technologies for power generation and distribution, and infrastructure development are some of the other factors facilitating the market growth. According to the report, the global microgrid market is further expected to reach a value of US$ 33 Billion by 2023, exhibiting a CAGR of 11.5% during 2018-2023.
The market is segmented on the basis of energy source into natural gas, combined heat and power, Solar Photovoltaic (PV), and diesel. On the basis of application, the market is segregated into remote systems, institutional and campus, utility/community, defense and others, wherein remote systems account for the largest share. Region-wise, North America currently represents the leading market globally. Other major regions include Asia Pacific, Europe, Middle East and Africa, and Latin America. On evaluating the competitive landscape of the market, it is found that the key players are Lockheed Martin, ABB Ltd., General Electric, Eaton Corporation and Siemens.
The report by IMARC Group has examined the global microgrid market on the basis of:
- Natural Gas
- Combined Heat and Power
- Solar Photovoltaic (PV)
- Fuel Cell
- Remote Systems
- Institution and Campus
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
- Lockheed Martin
- ABB Ltd
- General Electric
- Eaton Corporation
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