According to the latest report by IMARC Group, titled “Microgrid Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026,” the global microgrid market size reached US$ 24.2 Billion in 2020. A microgrid is a low-voltage electricity distribution network with the potential of operating autonomously and in parallel with the main power grid. It assists in providing power backup during emergencies like main grid failure and natural calamity. It can be powered using distributed generators or renewable sources, such as solar panels, small hydro, geothermal, and combined heat and power (CHP) systems, which help reduce overall electricity generation costs. As it is a reliable and eco-friendly source of electricity, it is gaining traction around the world.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Microgrid Market Trends:
With the growing instances of cyber-attacks, there is a rise in the need for security of networks and continuous power supply across research labs and the defense sector. This, in confluence with the advantages offered by microgrids like the ability to perform under island mode, is propelling the growth of the market. Besides this, numerous technological advancements, such as the introduction of control and dispatch strategies, improvement in load management and integration with inverter interfaced distributed generation systems, are contributing to the market growth. Furthermore, governing agencies of different countries are undertaking initiatives to generate a minimum percentage of electricity from renewable energy sources. Other major factors, including the increasing utilization of microgrids in electrification projects, coupled with the shifting inclination towards more localized and distributed generation systems, are anticipated to drive the market. Looking forward, the market value is projected to reach US$ 43.7 Billion by 2026, expanding at a CAGR of 10.1% during the forecast period (2021-2026).
- Based on the energy source, the market has been classified into fuel cells, natural gas, solar photovoltaic (PV), combined heat and power, diesel, and others. At present, natural gas holds the largest market share.
- On the basis of the application, the market has been segmented into remote systems, institutions and campuses, utility/community, defense, and others. Presently, remote systems account for the majority of the total market share.
- Region-wise, the market has been divided into North America, Asia Pacific, Europe, Middle East and Africa, and Latin America. Amongst these, North America enjoys the leading market position.
- The competitive landscape of the market has been examined, with some of the key players being ABB Asea Boveri Brown Ltd., Lockheed Martin Corporation, General Electric Company, Eaton Corporation plc, and Siemens AG.
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