Microgrid: Key market research findings
- The Americas dominate the market geographically
- Remote segment accounts for a majority of the market’s revenue
- Key vendors – ABB, GE-Alstom Energy, Lockheed Martin, Schneider Electric, and Siemens
Technavio’s market research analysts predict the global market for microgrids to grow at a CAGR of around 23% in terms of installed capacity by 2020. The need for an effective power system that is better than traditional grids is augmenting the demand for microgrids on a global scale. A microgrid is a composition of multiple energy generation sources such as solar, biomass, geothermal, and fossil fuel that are used to generate and supply electricity to a local community, university, or a military base among others. It is connected to the grid as a single point of load and is usually accompanied by energy storage systems that address the intermittency of the renewables. During 2015, the Americas accounted for around 43% of the overall market share to become the dominant shareholder in the global microgrid market. The rise in the number of initiatives from the US government for the implementation of energy-efficient power solutions will fuel the growth of the microgrid market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the microgrid segments based on the application.
“Currently, the demand for microgrids from the military applications segment is on an upsurge. Microgrids act as a means to provide uninterrupted power to mission-critical loads and to supply power to military establishments, especially in remote locations. The military sector consumes high amount of energy. As a result, efforts to become self-sufficient in the military sector is triggering an increase in investments made on microgrid projects at military bases and the deployment of mobile microgrids in the field,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
According to our analysts, the remote segment will account for almost 44% of the overall market revenue to continue its dominance as the key revenue generating vertical of the global market for microgrids in 2020. Microgrids are specially designed for remote systems as they need a specified amount of electricity to operate efficiently. Rising use of remote microgrids can lower the total electricity generation cost as they reduce fossil fuel consumption and guarantee a longer lifetime for their equipment. The growing demand for electricity and the rising expansion rate of conventional electricity grids are factors that will positively influence the growth of this segment over the next four years.
The key vendors in the global microgrid market include ABB, GE-Alstom Energy, Lockheed Martin, Schneider Electric, and Siemens. The global microgrid market is highly fragmented with various vendors providing services to power utilities. Several vendors offer various sets of microgrid enabling technologies, while others provide control, energy management, and analytical applications. The key vendors in the market provide specialized and highly sophisticated microgrid enabling and control technologies. The vendors have a large portfolio of microgrid technologies and services, which covers a wide range of industries. These solutions can be customized and scaled according to the customer’s requirements.
A more detailed analysis is available in the Technavio report, Global Microgrid Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
