A microgrid is a confined group of electrical sinks (loads) and sources that usually operates synchronous with and connected to the conventional centralized grid but can disconnect and sustain operation independently as economic and/or physical conditions dictate.
The Microgrid Automation market is expected to grow at a CAGR of 11.4 % to reach US$ 80.66 Bn in 2032.
.jpg "The Global Microgrid Automation Market 2022-2032 (USD Billion)")
The global Microgrid automation market size is anticipated to reach over USD 8 billion by 2025. This can be attributed to the growing adoption of digitization across numerous energy and utility industries and an increase in the need to bring efficiency across energy transmission and distribution channels. Moreover, an increase in demand from consumers for flexible and reliable distribution of energy is also fuelling the demand for microgrid automation.
The operation of microgrids enables various advantages to the utilities and customers such as minimization of total energy consumption, enhanced energy, enhancement of reliability of supply, reduced environmental impact, along with network operational benefits. The network operational benefits further comprise loss reduction, voltage control, the security of supply, congestion relief, and others. Microgrids have been projected as a novel distribution infrastructure within the concept of the smart grid, proficient to leverage the integration of huge numbers of small-sized distributed energy resources into the LV energy distribution systems. The growing adoption of digital technologies by energy and utility industries in developing economies such as India, China, and Japan are anticipated to provide major growth opportunities for the market in upcoming years.
Microgrid Automation Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | US$ 80.66 Bn |
| Growth Rate | CAGR of 11.4 % during 2022-2032 |
| Segment Covered | Type, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | ABB (Switzerland), GE (US), Eaton (Ireland), Schneider Electric (France), Honeywell (US), Exelon Corporation (US), S&C Electric (US), Power Analytics Corporation (US), Siemens (Germany), and Microgrid Energy LLC (US) |
Key Segment Of The Microgrid Automation Market
By Verticals (USD Billion)
• Public Sector
• Healthcare
• Telecom
• Manufacturing
By Type, (USD Billion)
• Off-grid
• Connected Grid
• Hybrid Grid
By Technology, (USD Billion)
• Power Technology
• Component Technology
Regional Overview, (USD Billion)
North America
• US
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
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The application of the microgrid automation market Commercial, Residential, and Defence.
The market value of microgrid automation market in 2032 was US$ 80.66 Bn .
The microgrid is determined as an independent power operator, a cluster of distributed energy resources or interconnected loads inside specific electrical boundaries that provide the power supply. Also, a microgrid acts as a representative of a particular major grid. Moreover, a microgrid can disconnect and connect from the entire grid to operate on the island as well as both grid-connected mode.
Furthermore, the smart city initiatives are rising globally, especially in countries such as China, the U.S., India, Japan, and other countries of Asia-Pacific. For instance, this year under the Ministry of Housing and Urban Affairs, the department of Smart City Mission is expected to roll out the Smart City Mission 2.0. Hence, such factors are anticipated to provide major opportunities for the market in the upcoming years. However, the microgrid automation market does have several challenges that include deployment costs and regulations, which are anticipated to impede the growth of the microgrid automation market. On the contrary, the majority of hospitals, military bases, and educational campuses/universities are deploying microgrid technologies that are allowing them to become energy self-sufficient in case of power outages. Therefore, such factors are anticipated to drive the market growth in forthcoming years.
Component Segment
On the basis of Component, the market is categorized into inverter and storage. The storage segment dominated the overall Microgrid automation market and is expected to maintain its position over the forecast period 2020 -2025. However, the inverter segment is anticipated to accumulate the highest CAGR of over 18% during the forecast period.
Technology Segment
Based on technology, the market is segmented into the fuel cell, CHP, and others. The market for CHP seized the highest revenue in 2019. However, the fuel cell technology is anticipated to gather the market growth of nearly 23% during the forecast period.
Application Segment
On the basis of Application, the market is bifurcated into commercial, residential, and defense. In 2019, the commercial segment captured the highest market revenue and is anticipated to dominate the microgrid automation market throughout the forecast period. On the contrary, the residential segment is projected to accumulate the highest CAGR during the forecast period.
.png "Global Microgrid Automation Market by Commercial 2018-2025 (USD Billion)")
Asia-Pacific dominated the global microgrid automation market in 2019 and is expected to dominate the market throughout the forecast period 2020–2025. The growth of this region is mainly accredited to the increasing smart city initiatives and growing spending by various governments on the energy & utility sector in this region. Also, the presence of conventional energy and grid infrastructure is also expected to provide market growth opportunities in the upcoming years in this region. Moreover, North America is anticipated to be the second major market shareholder during the forecast period due to the presence of major market players in the region.
.png "Microgrid automation market by Asia-Pacific 2018-2025 (USD Billion)")
Moreover, North America is anticipated to be the second major market shareholder during the forecast period due to the presence of major market players in the region.
The major players of the global microgrid automation market are ABB Group, AEG Power Solutions, Echelon Corporation, GE, Honeywell, Lockheed Martin Corporation, Phono Solar Technology Co., Schneider Electric, Siemens AG, and Wipro. Moreover, the other potential players in the microgrid automation market are Chevron Energy, Viridity Energy, Pareto Energy, Microgrid Energy, and Spirit.
As of 2019, the Microgrid automation market is consolidated with the existence of established global and domestic players across the globe. In addition, the established companies are coming up with new innovative microgrid automation solutions and services. For instance, In April 2019, ABB announced a partnership with Rolls-Royce on advanced automation and microgrid technology. With this partnership, both companies are planning to offer energy-efficient and innovative microgrid solutions for industrial, utility, and commercial sectors.