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$11.5 Billion Microgrid Controller Markets - Global Forecast to 2027: Increasing Need for Reliable, Uninterrupted Power Supply to Drive Market Growth
Global Microgrid Controller Market
Dublin, Nov. 09, 2022 (GLOBE NEWSWIRE) -- The "Microgrid Controller Market by Connectivity (Grid Connected, Off-grid Connected), Offering (Hardware, Software, Services), End-use application (Commercial & Industrial, Remote Areas, Utilities) and Geography - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The global microgrid controller market size is estimated to be USD 4.2 Billion in 2022 and is projected to reach USD 11.5 Billion by 2027, at a CAGR of 22.3%
There is an increasing global demand for reliable and secure power supply. Widespread industrialization and urbanisation are fuelling the demand for energy storage systems. Government initiatives to reduce carbon footprint; the convergence of IoT enhancing microgrid connectivity; and the advantages of cheap and clean energy storage are the major driving factors for the global microgrid controller market.
Grid connected segment of the microgrid controller market expected to grow at a higher CAGR during the forecast period
During the forecast period, grid-connected microgrids will lead the microgrid controller market. Expansion of utility grid transmission lines and surge in use of renewable power sources are some of the major factors contributing towards the growth of this segment.
Grid-connected microgrids usually have higher reliability than remote/island microgrids; they can produce power within their distribution circuits as well as import it from utility sources. Grid-connected microgrids enable renewable energy generation without expensive grid reinforcements. They improve the efficiency and resiliency of the power generated and reduce carbon footprints.
Software segment is likely to witness higher growth between 2022 and 2027
Microgrid controller software segment is expected to witness fastest growth by 2027. Microgrid software is mainly used for modelling variable sources of energy, such as solar and wind, with variable thermal loads. Software such as supervisory control and data acquisition (SCADA), energy management, generator and load management, and system reconfiguration software are used in microgrids to allow the simulation and optimization of resources.
Highly specialised software's are used by microgrid designers to model the technical performance of microgrids. These software helps in simplify technical and economic factors involved in a microgrid project and compare the cost and feasibility of different configurations of hardware.
The military is the third largest end-use application due to the wide use of microgrids for energy security and resiliency
Microgrids are used in the military sector to ensure an uninterrupted electricity supply in military establishments and bases in case of main grid outages.
Several military microgrid projects are being carried out globally in collaboration with well-established companies such as General Electric, Lockheed Martin, Boeing, and Honeywell International Inc., as well as small specialties technology firms such as Spirae and Power Analytics. Microgrids provide the ultimate emergency backup power source and can function independently from the grid, enhancing the physical security and cybersecurity of a nation's military bases.
Energy resilience and security are the main concerns of military establishments because military forces of different countries are increasingly using microgrids, which generate electricity from renewable energy sources. For instance, in February 2019, Schneider Electric expanded its microgrid project at Marine Corps Air Station (MCAS), Miramar, Goa (India), to boost the grid resilience of this facility.
The US is likely to dominate the overall microgrid market in the Americas region between 2022 and 2027
The US dominated the microgrid controller market in the Americas in 2021 and is expected to continue its dominance by 2027. The growing deployment of sustainable energy sources to reduce the dependence on existing electricity networks is expected to positively impact the growth of the microgrid controller market in the country.
Increasing investments in using clean energy sources for electricity generation are also fuelling the growth of the microgrid controller market. For instance, in February 2021, the United States House of Representatives introduced H.R.1512, the Climate Leadership and Environmental Action for its Nation's Future Act.
The CLEAN Future Act authorizes a total of USD 565 billion in spending over the next decade to reach decarbonization goals specifically, to achieve net-zero greenhouse gas (GHG) emissions by 2050 and limit temperature increases to 1.5C. H.R.1512's budget includes several billions of dollars in microgrid funding.
Competitive landscape
Schneider Electric (France), General Electric (US), ABB (Switzerland), Siemens (Germany), Schweitzer Engineering Laboratories (US), Eaton Corporation (Ireland), Honeywell International (US), Caterpillar Inc. (US), S&C Electric (US), and Power Analytics (US) are the key players in the microgridcontroller market. These top players have strong portfolios of products and services and a presence in both mature and emerging markets.
Premium Insights
Increasing Need for Reliable, Uninterrupted Power Supply to Drive Market Growth
Hardware to Hold Largest Market Share Between 2022 and 2027
Grid-Connected Microgrids to Account for Larger Market Share from 2022 to 2027
Commercial & Industrial Segment to Account for Largest Market Size During Forecast Period
Market Dynamics
Drivers
Decarbonization Being Increasingly Emphasized by Different End-users and Governments
Optimization of Energy Assets and Improved Efficiency of Microgrids Using Microgrid Controllers
Growing Need for Reliable, Uninterrupted Power Supply
Surge in Use of Microgrids for Rural Electrification
Restraints
High Cost of Microgrid Controllers
Dynamic Government Policies, Regulations, and Standards Worldwide
Opportunities
Increase in Number of Microgrid Projects for Different Industries
Rise in Energy Demand and Need for Expansion of Renewable Energy in Asia-Pacific
Growing Investor Interest in EaaS Business Model to Minimize Costs
Encouragement from Governments to Develop Microgrid Projects
Modernization of Aging Grid Infrastructure
Challenges
Interoperability and Compatibility Issues due to a Large Number of Components/Devices
Operational, Technological, and Security Risks Associated with Microgrids
Key Technology Trends
Blockchain-based Microgrids/Blockchain Microgrids
Smart Microgrids
Advent of AI-based Microgrids
Company Profiles
Key Players
Schneider Electric
General Electric
ABB
Siemens
Eaton Corporation
Schweitzer Engineering Laboratories
Honeywell International Inc.
Caterpillar Inc.
S&C Electric Company
Power Analytics Corporation
Other Players
Cummins Inc.
Tesla Energy (Subsidiary of Tesla)
Emerson Electric Co.
Princeton Power Systems
Spirae LLC
Homer Energy
Hitachi Energy
Pareto Energy
Opus One Solutions
Encorp
Qinous
Powerhive
Advanced Microgrid Solutions
Go Electric
Green Energy Corp
For more information about this report visit https://www.researchandmarkets.com/r/ixrrtw
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