Global Microgrids Market to Reach $46 B by 2026, China to be at $12 B

Global market for microgrids estimated at US$27 billion in the year 2020, is projected to reach a revised size of US$46.5 billion by 2026, growing at a CAGR of 9.3% over the period, according to a new report.

Key highlights of the “Microgrids: Global Market Trajectory & Analytics” report are given below:

Global Micro Grids Market to Reach $46.5 Billion by 2026

Grid Connected, one of the segments analyzed in the report, is projected to grow at a 10.2% CAGR to reach US$35.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Off-Grid Connected segment is readjusted to a revised 7.3% CAGR for the next 7-year period.

This segment currently accounts for a 33.2% share of the global Micro Grids market. As investments in renewable energy rises, the demand for both grid connected and off-grid connected segments are expected to witness strong demand.

With traditional utilities stretched to the breaking point due to rapid population growth, urbanization and demands of the digital age, microgrids are the future of smart and distributed energy generation and distribution. Growing complexity of ICT infrastructures and widespread deployment of high density computing infrastructures have reduced the tolerance of business processes and systems to power outages.

With the potential risk of power failures being IT system breakdown, loss of critical data, inability to provide customer services and business losses, among others, demand for sophisticated power distribution solutions will remain strong thus benefiting the adoption of microgrids.

There is increased establishment of microgrids in areas rich in green sources of power such as photovoltaic (PV) and wind power. Independent microgrids are also growing in popularity because unlike grid connected systems there are no complex government permits and cooperation with utilities required.

The U.S. Market is Estimated at $6.6 Billion in 2021, While China is Forecast to Reach $12.1 Billion by 2026

The Micro Grids market in the U.S. is estimated at US$6.6 Billion in the year 2021. The country currently accounts for a 22.4% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$12.1 Billion in the year 2026 trailing a CAGR of 10.7% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.1% and 7.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.8% CAGR while Rest of European market (as defined in the study) will reach US$13.2 Billion by the end of the analysis period. Frequent power outages have become an unfortunate norm globally.

While the phenomenon is more rampant across developing economies, developed regions are not alien to power outages, with the US experiencing more outages in comparison to other developed nations. The rise in microgrids established with the purpose of ensuring grid independence and leveling out power inconsistencies will therefore drive demand for microgrids.

Renewable microgrids are especially important for developing countries like India with vast geographic lands and poor electrification in rural areas. Solar microgrids are especially on the rise in developing countries where a large of portion of the population has no access to a power grid.

The report focuses on select market players, such as ABB, GE’s Grid Solutions, Hitachi ABB Power Grids, Siemens, Tesla, and Toshiba Corporation. It analyses key contemporary market trends and drivers: Rise in Power Outages & Undesirable Impact of Power Outages on Modern Digitalized Enterprises Pin Hopes on Microgrids to End Black Outs; Bad Weather Conditions Accelerating Risk of Power Outages; Focus on Decentralized Energy Generation Drives Deployment of Microgrids; Rise of Smart Cities Drives the Focus on Engineering Microgrids to Achieve Slated Energy Goals; The Rise of Blockchain Microgrids, a Major Trend of Note; COVID-19 Expedited Decarbonization Efforts; etc.