The global demand for energy is expected to increase by 30% between 2017 and 2040, with renewable sources of energy to contribute 40% of the increase in primary demand. To meet with the growing demand for energy, numerous new power projects are expected to be implemented across the globe, resulting in added concerns for grid stability. Countries across the globe are increasing the deployment of distributed power source, or microgrids, to reduce the overdependence on power grids and prevent power blackouts during natural calamities. Microgrids are similar to primary power grids, but smaller in size with low capacities. They are referred as distributed electric grids that can be operated and controlled depending on the requirements. Asia-Pacific has been experiencing increased demand for microgrids, majorly owing to factors, such as increased rural electrification programs in developing countries and development of commercial microgrids in advanced nations. Furthermore, government policies, such as Feed-in-Tariffs, are expected to further supplement the growth during the forecast period.
Supportive Government Policies Driving the Market
Owing to the vast benefits offered, governments across the globe have supported the deployment of microgrids in the form of fiscal and legislative incentives. In order to promote energy conservation, carbon emissions reduction, as well as structural reform of energy supply, many countries in the European Union, along with countries, like the United States, Japan, etc., have issued relevant policies and support plans to promote the development of microgrid projects. At the same time, China’s Thirteenth Five Year Plan for Electricity Development also incorporated microgrids as an essential way of energy restructuring. A similar investment is also expected to increase in other countries as well during the forecast period, in turn, supplementing the microgrid market.
Integration with Wholesale Power Market Driving Demand in Europe
The integration of microgrids with wholesale power market is a big boost for the development of microgrid network in Europe. The widespread network of microgrid can be integrated with the power network, and the owners of the microgrid can execute the trading activities. The region with power surplus can supply electricity to power deficit region by trading electricity in the power market, which is a big boost for the power sector, in turn, increasing the uptake of microgrid projects in the European region.
Japan to Witness High Demand in Asia-Pacific
As part of Japan’s policies to boost energy efficiency and power generation from renewable sources, the country’s sustained efforts toward smart grid deployment is expected to supplement the microgrid market in the Asia-Pacific region. To increase resiliency against natural disasters, Japanese cities are moving away from large-scale power toward microgrids. Higashi-Matsushima, a coastal city that was stricken by the 2011 earthquake and tsunami, is leading the switch. Supported by the country’s national resilience program, the city has constructed a large number of microgrids and has decentralized renewable power generation. Similar initiatives are also expected to increase in other cities of Japan, along with small microgrid connectivity, as Japan aims to move forward with the objective of preventing blackouts and minimizing damages during natural disasters.
Key Developments in the Market
- September 2017: PanaHome Corporation, ENERES Co. Ltd, IBJ Leasing Co. Ltd., and the Public Enterprises Agency of the Hyogo Prefectural Government announced the launch of microgrid system powering 117 homes in Japan.
- June 2017: InfraCo Africa committed USD 3.5 million to Standard Microgrid to expand delivery of off-grid solar in Zambia.
Major Players: ABB Ltd, Siemens AG, Honeywell International Inc., Schneider Electric SE, Toshiba Corporation, General Electric Company, Eaton Corporation Plc, Standard Microgrid, Inc., Princeton Power Systems, Inc., and S&C Electric Co., among others.
Reasons to Purchase the Report
- Current and future microgrid market outlook in the developed and emerging countries
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Countries that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in excel)
Customization of the Report
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast Until 2023
3.3 Recent Trends and Developments
3.4 Government Rules and Regulations
4. Market Dynamics
5. Value Chain Analysis
6. Industry Attractiveness - Porter’s Five Force Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Products & Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Type
7.1.1 Customer MicroGrid or True Micro Grid
7.1.2 Remote Power Systems
7.2 By Applicaation
7.2.1 Institutional/Campus Sites (Hospitals, Universities, etc.)
7.2.2 Commercial/Industrial Facilities
7.2.3 Remote “off grid” Communities
7.2.4 Others (Military Bases, Data Centers, Municipalities)
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1.5 Rest of Asia-Pacific
8.2 North America
8.2.1 United States
8.2.3 Rest of North America
8.3 South Africa
8.3.3 Rest of South Africa
8.4.2 United Kingdom
8.4.5 Rest of Europe
8.5 Middle East & Africa
8.5.1 Saudi Arabia
8.5.2 South Africa
8.5.5 Rest of Middle East & Africa
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Development, and Analyst View)
9.1 ABB Ltd.
9.2 Siemens AG
9.3 Honeywell International Inc.
9.4 Schneider Electric SE
9.5 Toshiba Corporation
9.6 General Electric Company
9.7 Eaton Corporation PLC
9.8 Standard Microgrid, Inc.
9.9 Princeton Power Systems, Inc.
9.10 S&C Electric Co.
10. Competitive Landscape
10.1 Mergers & Acquisitions
10.2 Joint Ventures, Collaborations and Agreements
10.3 Strategies Adopted by Leading Players
11.1 Contact Us
(*List of companies is not exhaustive)
(**Subject to availability on public domain)