Global Microgrid Market to Reach US$ 54.1 Billion by 2028, Strengthened by Escalating Demand for Remote Off-Grid Power Networks

IMARC Group’s latest report, titled “Microgrid Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028,” finds that the global microgrid market size reached US$ 28.9 Billion in 2022. Microgrids are self-sufficient localized grids that serve a discrete geographic footprint and can operate parallelly or independently from the primary power grid. They generally consist of fuel cells, battery storage systems, wind turbine generators and microturbines, and photovoltaic generators to supply electricity to consumers. Since they are more efficient and considered the smaller version of traditional power grids, they can be combined with different renewable sources, including solar, wind power, small hydro, geothermal, waste-to-energy, and combined heat and power (CHP) systems. They aid in enhancing the operation and stability of the electric grid, improving reliability, and decreasing congestion, fuel consumption, and peak loads. Over the years, microgrids have gained immense traction across the globe as they can strengthen grid resilience, help mitigate grid disturbances, and serve as a grid resource for faster system response and recovery.

Global Microgrid Market Trends:

The escalating demand for remote off-grid power networks, especially from the defense sector, islands, data centers, and industrial mines, represents the primary factor driving the market growth. This is further strengthened by the growing need for clean energy generation and a self-sufficient source of power generation during a crisis or grid disconnection. In addition, governments of various nations are taking favorable initiatives to establish biopower, solar, and wind energy farms due to rising environmental concerns. Along with this, the shifting focus toward rural electrification and decarbonization has augmented the demand for microgrids for reliable and uninterrupted power supply. Moreover, there is a significant rise in electricity consumption owing to the increasing residential and commercial construction activities. In line with this, extensive investments by public and private agencies in infrastructure development projects have catalyzed market growth. Furthermore, numerous technological advancements, such as the integration of forecasting algorithm with microgrids that helps predict the load demand and the power generated by the microgrid network have propelled the market growth. Other factors, including the development of smart cities, rising incidences of cyberattacks on energy infrastructures, rapid industrialization, and ongoing research and development (R&D) activities, are also creating a positive market outlook. Looking forward, IMARC Group expects the market value to reach US$ 54.1 Billion by 2028, expanding at a CAGR of 10.89% during 2023-2028.

Market Summary:

• Based on the energy source, the market has been classified into natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell, and others. Currently, combined heat and power represent the largest market segment.
• On the basis of the application, the market has been divided into remote systems, institution and campus, utility/community, defense, and others. Amongst these, remote systems account for the majority of the market share.
• Region-wise, North America holds the leading position in the market. Other major regions include Asia Pacific, Europe, Middle East and Africa, and Latin America.
• The competitive landscape of the market has also been analyzed, with some of the key players being Lockheed Martin Corporation, ABB Ltd, General Electric Company (GE), Eaton Corporation PLC, and Siemens AG.

Report Scope:

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