Microgrid Control System Market Size to grow at a CAGR of 13.05% To 2024
Posted by Mayur Yeole on March 25th, 2021
According to Market Research Future (MRFR), the global microgrid control system market size is estimated to reach USD 3.84 billion, with a CAGR of 13.05% from 2019 to 2024 (forecast period). The report includes a detailed analysis of the effect of the Covid-19 pandemic on the global microgrid control system market.
Microgrid Control system is a combination of distributed energy technologies and smart software that tracks, forecasts, and optimizes energy supply and energy demand. Microgrid contributes to grid modernization, incorporates intelligent grid technologies and encourages customer engagement through demand side management. Microgrid ensures that electricity is supplied during a power outage and blackout situations. The growing need for electrification in rural areas has led to a high adoption rate of microgrid control systems.
Major factors propelling the growth of the global market for microgrid control systems include growing investment in electric networks, refurbishing existing grids, and rising carbon emissions concerns. As per the Emissions Gap Report, global carbon emissions will hit 44 gigatonnes of CO2 by 2020, dropping to 40 gigatonnes by 2025 and then to 22 gigatonnes by 2050.
In addition, the global microgrid control systems market is estimated to grow significantly during the assessment period due to an increase in the adoption of renewable energy sources. As per Bloomberg New Energy Finance (BNEF), investment in clean technology in 2018 amounted to USD 138.2 billion, which boosted demand for electricity. This will push the market for microgrid monitoring. In addition, according to IEA, renewable energy sources have the largest share of investment in power generation, with an annual investment of approximately USD 350 billion. Countries around the globe are shifting their focus to renewable power generation. For example, the Chinese government intends to spend USD 360 billion on renewable energy by 2020, increasing the demand for the country's microgrid control system. Increasing electrification projects would act as an opportunity for the market for microgrid control systems. Nevertheless, the high cost of installing and maintaining the microgrid control system may inhibit the growth of the market.
The global microgrid control system market is expected to see significant growth during the assessment period due to the growing need for efficient transmission and distribution and the development of key industries such as manufacturing and construction. As per the India Brand Equity Foundation (IBEF), rising electrification will lead to an increase in power consumption of 1,847 TWh in India by 2022.
The global market for microgrid control system has been segmented based on grid type, ownership, and component.
Based on grid type, the global microgrid control system market has been segmented into on-grid and off-grid. The off-grid segment is predicted to dominate the market. This is because the off-grid microgrids are primarily used to provide power sources for developing countries such as rural areas in the Asia Pacific and the Middle East & Africa.
Based on ownership, the global market for microgrid control system has been divided into public and private. The private segment is estimated to register higher growth during the forecast period. This is because investments in electrification projects that deploy microgrid technologies are on the rise, supporting private players to invest in the microgrid control system.
Based on components, the global microgrid control system market has been divided into hardware and software.
Based on region, the global microgrid control system market share has been segmented into Asia Pacific, North America, Europe, the Middle East & Africa, and South America.
The Asia Pacific has the largest share in the market for microgrid control system due to higher investment in smart grid infrastructure development, modernization and upgrade of electrical grids, increasing dependence on renewable power sources, and recent infrastructure activities. China has the highest installed generation and distribution capacity in the region owing to the high demand for electric power supply, leading to increased demand for microgrid control systems. Likewise, expanding electrification projects in countries like India, Australia, and Indonesia will boost the growth of the microgrid control system in the Asia Pacific.
North America is anticipated to be the second-largest microgrid control systems market. The US is expected to lead the market in North America due to rising smart grid activities and increasing investment in renewable sources.
The key participants identified by MRFR operating in the global microgrid control system market are Eaton Corporation (Ireland), Schneider Electric (France), Power Secure, Inc. (US), Siemens (Germany), Emerson (US), Spirae (US) Etap (US), ABB (Switzerland), S&C Electric Company (US), Schweitzer Engineering Laboratories (US), Woodward, Inc. (US), Ontech Electric Corporation (China), and General Electric (US).
Like it? Share it!
About the AuthorMayur Yeole
Joined: February 8th, 2021
Articles Posted: 565
More by this author