Dublin, June 10, 2021 (GLOBE NEWSWIRE) -- The "Microgrid Control System Market - Forecasts from 2021 to 2026" report has been added to ResearchAndMarkets.com's offering.
The microgrid control system market is projected to expand at a CAGR of 6.58% over the forecast period to reach US$2,519.922 million in 2026 from US$1,612.666 million in 2019.
Microgrid Control System (MCS) enables distribution grid operators to integrate and optimize energy assets to reduce the overall energy cost for a local distribution grid, also known as a Microgrid. The MCS provides a simple yet effective solution to integrate fossil fuel-based Distributed Energy Resources (DERs), renewable DERs, and energy storage to optimize the operation of a local microgrid to minimize the total cost of operation. Rising investments in transmission and distribution infrastructure are one of the major drivers of the microgrid control systems market. Growing energy demand and lack of space availability due to increasing urbanization, growing population base, and growth in renewable power generation are the factors boosting the demand for microgrid control systems.
Favorable government initiatives and policies to expand electricity access in remote areas will continue to drive the growth of the microgrid control system market during the forecast period. In the United States, the Department of Energy Microgrid Initiative considers microgrids as a key building block for a smart grid and has established microgrid Research and Development as a key focus area. Microgrids are being installed in many areas and are integrated with new technologies, such as fuel cells. This in turn is creating a need for efficient and reliable control systems that can efficiently handle these complex new systems. Thus, the demand for efficient microgrid controllers is increasing, globally. In addition. The microgrid systems are cost-efficient, as, unlike the traditional systems they do not require fuel and energy, the cost of which has been on a rise.
Grid-connected or grid-tied is a connected grid network, which is installed to provide energy along with the requirement of the end-user. The grid network has the advantage of being a cost-effective solution, among the other available micro-grid solutions. This cost-effectiveness has increased the demand for grid solutions among house owners and small-sized enterprises to cater to their power-related requirements. By grid, the off-grid segment will witness significant market growth between 2019 and 2024 owing to the growing electrification of remote areas, especially in developing economies.
Growth Factors: Increasing demand in Industrial Applications
According to the United States Environmental Protection Agency, industries account for more than 23% of global carbon emissions. To reduce energy costs as well as carbon emissions, industries around the globe are adopting measures to reduce CO2 emissions and operating costs by optimizing their energy consumption. Thus, the demand for microgrid systems is expected to be on a rise as adopting these systems will increase efficiency and reduce energy costs, carbon emissions, and operating costs. Several industries are further employing storage systems in the microgrid to backup supplies and to reduce costs by selling surplus power, this, in turn, will propel the market growth.
Rising demand for backup solutions
Power blackouts and electricity outages are extremely prevalent in developing and underdeveloped countries. For instance, India roughly faces a daily power outage of 30,000 MW. In comparison to the traditional backup solutions, microgrids provide a more efficient backup solution. Microgrids are capable of providing backup supply for longer durations and can work independently without the main grid. Industries and households both are expected to shift towards microgrid backup solutions, which will fuel the market growth for microgrid control systems.
Restraints: High maintenance cost
Microgrid control systems are relatively new in the market due to which they might require constant maintenance. The cost of regularly maintaining the systems will be high as that will require skilled labor, which will increase the operating cost of the system. Thus, the high cost of maintenance may hinder market growth.
Impact of COVID-19
The novel coronavirus pandemic resulted in increasing the demand for domestic and household electricity as people started spending more time at home. This increased the electricity demand, globally which in turn resulted in increasing the demand for microgrid control systems. Also, the demand for microgrid backup solutions increased as people started working from home which required them to be well equipped with electricity. However, the demand for industrial power in many industries such as manufacturing, aviation, transportation, etc. dropped significantly, which hampered the market growth. With the ease of nationwide restrictions, the market for microgrid control systems is expected to bounce back during the forecast period.
Prominent/major key market players in the Microgrid Control System Market include Eaton Corporation plc, Siemens AG, General Electric Company, Hitachi, Ltd, Exelon Corporation, Honeywell International Inc. Spirae, LLC, Woodward, Inc. PowerSecure, Inc., and Schneider Electric. The players are implementing various growth strategies to gain a competitive advantage over their competitors in this market. For instance, Siemens AG, in January 2019, introduced dual microgrid controllers for decentralized energy installations of any size. These controllers can handle complex applications that manage small-scale decentralized energy installations.
Key Topics Covered:
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Microgrid Control System Market Analysis, By Component
6. Microgrid Control System Market Analysis, By Grid
7. Microgrid Control System Market Analysis, By Ownership
8. Microgrid Control System Market Analysis, By Geography
For more information about this report visit https://www.researchandmarkets.com/r/11aaqy
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