Microgrid Market: Top Drivers, Global Opportunities & More

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Microgrid Market Top Drivers, Global
Opportunities More
Despite a drop of around 4.47 metric tons per
person, electricity production accounted for
roughly 37 of global emissions in 2020. The year
2021 witnessed a further 5 growth in power
consumption, majorly due to the growing
population. As a result, the demand for robust
energy generation systems has gained prominence
globally. Microgrid technology has proven as an
ideal solution to integrate renewable sources and
offer emergency power by switching between island
and linked modes. Our research report indicates
the global microgrid market to advance with a
CAGR of 10.73 during the forecast period
2022-2028. Among all, solar microgrids have
gained popularity as cost-effective integrated
networks that generate and supply clean
electricity for longer and support economic
development. For instance, Californias Taylor
Farms partnered with Bloom Energy, Ameresco Inc,
and Concept Clean Energy to deploy a microgrid
with 2 MW of solar power to operate a
450,000-square facility.
Expansion in Industry Verticals to build Power
Resilience Since a microgrid prevents millions in
outage costs and enables effective critical
infrastructure functioning, their adoption across
sectors has mounted. This has triggered a robust
rush in project development. As per the
International Energy Agency, energy demand is
anticipated to increase by 40 by 2040,
encouraging an expansion of distributed power
systems across industry verticals such
as
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• The commercial microgrid has emerged as the
  fastest growing category in the industrial
  vertical segment due to the growing reliance on
  renewable sources. Several companies opt for
  hybrid electric structures as they limit
  interruptions and continue operation despite
  system breakdown. For instance, in 2020,
  AlphaStuxure partnered with John F. Kennedy
  International Airport to deploy microgrid
  technology to capture and convert solar or wind
  sources into electricity.
• Estimates suggest that the healthcare category
  captures the highest share in the industry
  vertical segment. These facilities require a high
  energy supply for daily business, making power
  outages lethal for patient security. Microgrids
  have taken center stage in optimizing various
  power components and establishing reliable power
  supply. For instance, the Indian Institute of
  Science installed a 5.2 kW microgrid plant as a
  backup power source. Hence, the medical sectors
  power supply advancement majorly drives the
  market.
• Advancements in technology have influenced
  governments to boost funding for hybrid and
  mobile grid solutions for military applications.
  The US military is among the major forces
  supporting the North America microgrid market
  expansion. For example, the countrys army
  announced microgrid installation across 130
  locations by 2035. Presently, the government and
  its partners are investing in on-site renewable
  production units, microgrids, and battery storage
  to strengthen military operations.
• The studied markets growth in the educational
  institute category is primarily attributed to the
  rising initiatives to demonstrate efficient
  energy-saving measures. The pre-existence of
  combined heat and power (CHP) systems is another
  factor responsible for its robust adoption in
  schools, universities, and colleges. For
  instance, 10 renewable microgrids were deployed
  across schools in Puerto Rico, which proved
  beneficial during severe weather conditions or
  grid failures. In this regard, grid-connected
  microgrids determine economic viability for
  academic institutes.
• Smart City Initiatives A New Pathway
• According to the UN, approximately 55 of the
  worlds population resides in urban settings,
  which is expected to reach around 68 by 2050.
  This increases overall power demand. Globally,
  Asia-Pacific power consumption has soared
  immensely, with China and India accounting for
  the highest demand. This has compelled
  governments to invest in smart city development,
  pushing for rapid uptake of digital technologies
  to meet the high demand. These aspects largely
  support the Asia-Pacific microgrid market.
• For instance, the HOMER hybrid optimization
  software by the US Department of Energy beats the
  technical complexities of energy planning and
  creates programs to qualify island microgrid
  projects for funding. Besides, the Indian and the
  US governments invested in new research on smart
  energy grids and energy storage to improve the
  efficiency of electric infrastructure. Such
  initiatives create new pathways for contenders,
  contributing heavily to the studied market.

Future Outlook IoT Integration to create High
Demand
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In line with robust energy demand, IoT
amalgamation with microgrids is expected to
expand their capabilities for remote management.
From load balancing to moderating line voltage,
the internet of things significantly reduces
losses in the system and inspection times by
isolating fault locations. Additionally, if a
microgrid generates more power than required,
this technology helps users sell the excess
energy to a utility, creating a new income
source. The IoT is a strategic necessity for
digitally transforming industrial operations,
which may create ample opportunities for the
global microgrid market over the forecast period.
FAQs Q1) What is the size of the microgrid
market? The global microgrid market was valued at
23.26 billion in 2021 and is estimated to reach
46.21 billion by 2028. Q2) Which are the major
end-users in the microgrid market? The commercial
and healthcare sectors are among the major
end-users in the microgrid market.