Innovation, Evolution of Microgrid Technologies Boosting Market Growth

April 09, 2018

WELLESLEY, Mass., April 09, 2018 – As emerging technology becomes cheaper, along with more flexible and reliable, microgrids are poised to become an integral part of the global energy industry transformation, especially in developing countries where access to electricity is limited. In a new report, Microgrids: Technologies and Global Markets, BCC Research estimates the global microgrid market to reach $12.7 billion in 2017 and $31.2 billion in 2022, indicating a compound annual growth rate (CAGR) of 19.6%.

Microgrids, quickly emerging as the least costly innovative technology to supplement or replace a central power grid, have spurred many industrial suppliers, utility companies and energy manufacturers to strategize their potential. Because solar panel prices have fallen, the distributed products have become cheaper than running diesel generators alone for backup power. The microgrid market is therefore undergoing a transformation from a niche application that is intended for military bases, telecommunication base stations, remote communities, national grid extenders which is a grid modernization tool for utilities, cities, communities and public institutions.

The microgrid market is heating up quickly, with deployments occurring around the world in a variety of application segments and sizes. The industry is moving into the next phase of project development, focusing on how to develop projects on fully commercial terms. The microgrid market continues to evolve, accompanied by innovative solutions. Greater creativity in the public policy and business model arenas and increased government support will be key growth factors.

Research Highlights

  • The grid-connected microgrid market is expected to reach $13.3 billion in 2022 with a 19.3% CAGR.
  • The Asia-Pacific region is forecasted to be the global leader in terms of growth through 2022.
  • To achieve universal electricity access by 2030, microgrid and off-grid adoption will need to double. Off-grid solutions are forecast to supply 50% to 60% of the additional generation needed to achieve this initiative by 2030.

“A number of key strategic factors should be in place: standardization, the ability to offer a microgrid as a total solution, along with the alignment among the manufacturer, the customer, the utility company and the regulators and other authorities. When these three strategic elements are combined with an effective design that is in-sync with the needs of the market, companies can reduce high entry costs and uncertainties and reap the benefits of their flexibility. In this report, we examine some of the underlying drivers affecting adoption and share our perspectives on what strategic choices suppliers should consider to increase their chances of greater market adoption and, thereby, profitability within the microgrid market,” said Christopher Maaram,BCC Research analyst and author of the report.

Editors/reporters requesting analyst interviews should contact steven.cumming@bccresearch.com.

Microgrids: Technologies and Global Markets( EGY147A )
Publish Date: Mar 2018    

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