The global microgrid market size is expected to reach USD 224.34 billion by 2030, registering a CAGR of 17.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. The improvement in manufacturing sectors of emerging markets including Mexico, China, and India as a result of favorable government policies to attract investments is expected to promote market growth.
Microgrid differs from conventional electrical distribution systems as it acts as a close proximity medium between the power generation and power consumption sources which results in increasing efficiency and reducing transmission losses. These systems perform dynamic control over energy sources by enabling autonomous as well as automatic self-healing operations.
The rising importance of captive electricity generation as a key alternative to the regulated power supply by municipal regulators in mining and mechanical engineering sectors is expected to have a strong impact. Furthermore, the rising production output of unconventional sources including shale gas in the U.S. and Canada as a result of high utilization of fracking technology is expected to ensure access of natural gas as a power source over the next eight years.
Microgrid Market Report Highlights
• The Combined Heat & Power (CHP) power source segment dominated the global market and accounted for more than 37.0% of the overall revenue share in 2023. Shifting preference from conventional Separate Heat & Power (SHP) system to energy generation from single fuel is expected to have a substantial impact on the segment growth.
• The grid-connected product segment dominated the global market and accounted for more than 65.0% of the overall revenue share in 2023. The rising popularity of smart micro-grid-connected PV systems to provide electricity to consumers by reducing transmission losses is expected to have a substantial impact.
• North America led the global market and accounted for more than 35.0% of the overall revenue share in 2023. The high adoption rate of captive power generation methods in the industrial and municipal sectors of the U.S. for reducing reliance on the government-controlled power supply is expected to have a substantial impact.
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• The global oil and gas security market size was estimated at USD 26.4 billion in 2023 and is projected to grow at a CAGR of 5.5% from 2024 to 2030. The persistent threat of terrorism and cyber-attacks targeting oil and gas infrastructure is driving the demand for oil & gas security, thus fueling the growth of the market.
• The global distribution boards market size was estimated at USD 4.72 billion in 2023 and is expected to expand at a CAGR of 5.2% from 2024 to 2030. An increasing demand for electricity across various sectors, including residential, commercial, and industrial applications is driving the demand for distribution boards, thus fueling the growth of the distribution boards market.
Microgrid Market Segmentation
Grand View Research has segmented the global microgrid market on the basis of on power source, product, application, and region:
Microgrid Power Source Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
• Natural Gas
• CHP
• Solar PV
• Diesel
• Fuel Cell
• Others
Microgrid Product Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
• Remote
• Grid Connected
• Hybrid
Microgrid Application Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
• Government
• Education
• Commercial
• Utility
• Defense
• Others
Microgrid Regional Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o Germany
• Asia Pacific
o China
o India
• Central & South America
o Brazil
• Middle East & Africa
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