Microgrid Market to Reach US$ 33 Billion by 2023by IMARC Group Market Research Reports
Microgrid refers to a group of interconnected localised sources of electricity that operates along with a traditionally centralised electricity grid. It has the potential to disconnect itself from the grid, in order to operate autonomously in the island-mode for easing the grid disturbances. A microgrid supports flexibility as it helps in generating, supplying and distributing power in case of an emergency. Moreover, it can derive energy from non-renewable and renewable sources like solar energy, biomass, tidal power, hydropower and geothermal. Microgrid acts as a mediator amidst power generation and power consumption sources, resulting in an increased efficiency, reduction in the production of carbon footprints and diminishing losses incurred in the process of transmission.
Driven by environmental benefits, the global microgrid market has been growing continuously over the past few years. According to research analysts at IMARC Group, this market was worth US$ 17 Billion in 2017. It is further anticipated to grow at a CAGR of 11.5% during 2018-2023, reaching US$ 33 Billion by 2023.
Government Initiatives to Improve Older Grid Infrastructure
Microgrid is one of the most efficient means for providing continuous supply of power due to which it finds applications in various sectors. One of the primary factors influencing the microgrid market is the growing need for procuring a better power system. A constant increase in the prices of energy, mass electrification, aging infrastructure and climatic changes are positively influencing the global microgrid market size. Owing to this, government of several countries are taking initiatives on improving their grid infrastructure. Moreover, the military sector consumes huge amounts of energy and they have started resorting to self-sufficient means of sustaining energy by using microgrids. Rapid advancements in technology coupled with development of energy storage systems is complementing the microgrid market outlook. However, there is still a considerable amount of energy loss during the process of transmission and distribution. This is one of the hindrances which is impeding the growth of the microgrid market.
Combined Heat and Power Represents the Largest Energy Source Segment
On the basis of energy source, the market is segmented as natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell and others. Combined heat and power is the most popular energy source, accounting for the largest market share. In comparison to the conventional methods, these systems allow better utilisation of energy.
Remote Systems to Dominate the Market
Based on application, the microgrid market is segregated into remote systems, institution and campus, utility/community, defense and others. Amongst these, remote systems represent the largest segment as they provide power to islands, industrial mines and military installations. While the majority of remote systems were initially powered via diesel, smarter combustion technologies are now widely replacing diesel.
North America Holds the Largest Market Share
On a geographical front, the global microgrid market has its presence in several countries across the globe. North America enjoys the leading position in the market owing to the rapidly rising application of microgrids in the defense industry. Apart from this, initiatives of the American government for implementing energy efficient power back-up solutions is further proliferating the market growth in this region. North America is followed by Asia Pacific, Europe, Latin America, and Middle East and Africa.
The global microgrid market is essentially fragmented in nature with the several players competing against each other for acquiring majority of the total global market share. Some of the top key players operative in the market include Lockheed Martin Corporation, Eaton Corporation PLC, ABB Limited and Siemens AG.
Created on Aug 24th 2018 02:09. Viewed 901 times.
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