Microgrid Market Share

North American Market Forecast

The market share of microgrid in North America, amongst the market in all the other regions, is projected to be the largest with a share of about 38% by the end of 2037. The growth of the market can be attributed majorly to the increasing need for reliable and uninterrupted power supply, especially in remote and rural areas, and the increasing popularity of renewable energy sources such as solar and wind energy. Additionally, the government's supportive initiatives and incentives towards the development of smart grids in the region is also driving the regional market growth. It is estimated that approximately 9,000 electric generating units with a combined generating capacity of more than 1 million megawatts connect to more than 600,000 miles of transmission lines through the U.S. electric grid. Moreover, the increasing number of microgrid projects, and the growing emphasis of governments to build a clean future and support the natural resources sectors in the region is projected to drive regional market growth in the coming years.

APAC Market Statistics

The Asia Pacific microgrid market is estimated to be the second largest, registering a share of about 31% by the end of 2037. The growth of the market can be attributed majorly to the rapid electrification of rural areas in several Asian countries, namely India, Malaysia, and the Philippines, and rising development activities to improve the electricity infrastructure. For instance, Maharashtra Energy Development Agency issued a tender for a 29.4 KW microgrid project for Maharashtra, India in 2019. The worth of the project is evaluated to exceed INR 6,140,000 and provide electricity to more than three villages in that region. Further, the high demand for power in rural areas is anticipated to drive the microgrid market in the region. An average of 39 kWh of electricity is consumed by rural households in India each month, according to a survey. Rural areas often lack access to reliable power grids, which makes them prime candidates for microgrid systems. Compared to centralized power grids, microgrids are more dependable, cost-efficient, and enable rural communities to generate and store their own energy.

Europe Market Forecast

Further, the microgrid market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2037. The increasing focus of the governments of the European countries on the development of smart grids and the rising demand for power from both, the residential and commercial sectors are the primary factors that are fueling growth in the microgrid market in Europe. Also, in November 2021, the United Kingdom earned a microgrid project to serve the people and businesses of Grove Park in Lewisham East, incorporating a 500kW renewable energy system and energy storage system, as well as smart grid management. Additionally, the high rates of energy losses experienced in the traditional power systems are encouraging the adoption of microgrids, as these systems can help reduce the energy losses and provide a more efficient power supply. This, in turn, is further propelling the growth of the microgrid market in Europe.