A new Transparency Market Research report states that the global microgrid market stood at US.8 bn in 2013 and is expected to reach US.1 bn by 2020. It is expected to expand at a whopping CAGR of 20.70 % between 2014 and 2020. The title of the report is “Microgrid Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020”.
As per the report, the global microgrid market is fuelled by the economic development and the rapid industrialization witnessed globally. In addition, the technical, direct and indirect economic, social, and environmental advantages related to the usage of microgrids will further stimulate the market. The factors such as the growing demand for energy and the development in the technologies of renewable energy have also impacted the market positively. On the other hand, the factors such as the absence of an adequate regulatory framework and the increasing cost of development along with operational challenges are amongst the chief factors that may pose a negative impact on the growth of the market for microgrids.
On the basis of product, the market is segmented into remote (off-grid) and grid-tied (grid connected). Amongst these, grid-tied microgrids are able to operate with or without a connection with the main grid, while off-grid microgrids are autonomous systems manufactured for utilization within areas that lack proper grid infrastructure.
On the basis of application, the microgrid market is segmented into community and utility, campus and institutions, defense and military, commercial and industrial, and remote islands. Amongst these, the segment of campus and institutions is predicted to lead the market in the forecast horizon. This is owing to the rising government funding to enable growth of renewable energy sources at institutions and campuses. On the other hand, as per the report, the demand for microgrids within remote islands will rise at a swift rate in forthcoming years.
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In terms of geography, the microgrid market is segmented into Europe, North America, Asia Pacific, and Rest of the World (RoW). The segment of defense and military is poised to be the biggest user of microgrids and is predicted to fuel growth within the region of North America. This is due to the requirement for enhanced energy reliability and security within the defense and military sector of this region. On the other hand, the regions of Europe and Asia Pacific are also likely to use microgrids extensively in the coming years. This is due to the increasing count of investments made for restructuring energy mixes. In addition, the backing from supportive regulatory policies will also fuel the demand for microgrids within these two regions.
As per the report, the nations that haven’t invested in microgrids as yet will emerge as chief targets for the prime players operating in the market in forthcoming years. Viridity Energy, Inc., Schneider Electric, S&C Electric Company, Honeywell International, Inc., GE Energy Management, ABB, Echelon Corporation, ZBB Energy Corporation, Toshiba Corporation, Pareto Energy, Siemens AG, Chevron Corporation, and Power Analytics Corporation, among others are the key players dominant in the market for microgrids.