The global Microgrid Market size is projected to reach a CAGR of 18.7% from 2023-2030.
A microgrid is a self-reliant, localized energy system that serves a specific area including a hospital complex, college campus, and business centers. It can operate autonomously without any support from a centralized grid. A smart microgrid can also function when connected to the main grid and even when it is not connected to the main grid, it acts as an electrical island. It helps in the reduction of harmful emissions resulting in optimal use of renewable resources, improved efficiency, and long-term predictable energy cost.
Growth in demand for reliable and secured power supply in commercial and industrial sectors across the globe, coupled with government initiatives taken to reduce carbon footprint is expected to fuel the microgrid market growth. Moreover, the rapid adoption of software across various end-user segments including commercial, industrial, government, and healthcare to manage and control distributed energy resources with integrated weather and load forecasting is also expected to boost the market during the forecast period. Furthermore, factors such as growth in the development of smart cities, increase in demand, growth of rugged loT, and rise in adoption of ruggedized computers are expected to drive the growth of the market in the future.
On the other hand, the high production cost of rugged devices acts as a major barrier and hampers market growth. Additionally, the Lack of a well-defined regulatory policy framework is another restraint of the microgrid market. Ambiguous state laws pose a major obstacle in the path of microgrid deployment.
The COVID-19 pandemic has impacted the society and overall economy across the globe. The impact of this outbreak has grown day by day which affects the supply chain. This has created uncertainty in the stock market; decreased business confidence, a slow supply chain, and increased panic among customers. European countries under lockdown have suffered a major loss of business and revenue due to the shutdown of manufacturing units in the region. Operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, which led to a decrease in the growth of the microgrid market in 2020. According to the microgrid market trends, the COVID-19 pandemic has severely impacted the global manufacturing and industrial sectors as production facilities have stalled, which, in turn, led to significant demand in industries.
The microgrid market is rapidly growing as the demand for reliable and sustainable energy solutions increases. With the advancement of technology and increasing investments, microgrids are becoming more cost-effective and efficient. The market is driven by factors such as government initiatives and policies, the need for energy security, and the rising adoption of renewable energy sources. However, there are still challenges that need to be addressed, such as integration issues, regulatory hurdles, and high initial costs. Despite these challenges, the microgrid market is expected to continue its growth trajectory in the coming years. As more businesses and communities recognize the benefits of microgrids, the market is likely to become more competitive, leading to further innovation and advancements in the field.
North America to Dominate the Market
