DC Grid Connected Microgrid Market Analysis

DC Grid Connected Microgrid Market Analysis

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Based on application, the remote application is anticipated to cross more than USD 8 billion by 2032. Rising adoption of renewable energy for power generation in remote areas due to limited access to conventional energy sources is spurring demand for solutions that can seamlessly integrate with these resources, avoiding energy losses associated with conversion, thereby strengthening product growth. Furthermore, building energy infrastructure in remote areas is often prohibitively expensive due to difficult terrain and long distances from centralized power grids thereby fostering DC microgrid adoption as a cost-effective solution.
 

Based on power source, the natural gas segment is set to grow at a CAGR of over 20.3% through 2032, owing to resource abundance, ensuring a steady and secure fuel supply, which is critical for long-term power planning. Increasing adoption of affordable power sources offering significant cost savings in the long term are set to boost natural gas demand. Furthermore, improving push to overcome challenges faced by decentralization energy systems such as continuous, stable and reliable power supply, especially in microgrids that may operate in isolated, or off-grid environments are additional factors driving power source demand.
 

Asia Pacific DC grid connected microgrid market is likely to exceed USD 12.8 billion by 2032. Rising government investments in renewable energy and decentralized power systems to reduce reliance on fossil fuels, for instance, China’s 14th Five-Year Plan emphasizes building new energy systems that include microgrids, and India’s National Smart Grid Mission aims to integrate microgrids into its power infrastructure, stimulating product adoption. Increasing natural disasters such as typhoons, tsunamis, and earthquakes in the region are boosting product demand due to their ability to operate independently from the main grid, providing critical power in post-disaster scenarios.
 

In the U.S., increasing challenges with grid reliability, including frequent blackouts caused by extreme weather events, wildfires, and aging infrastructure are driving market growth. For instance, States such as California and Texas, which have seen massive disruptions due to wildfires and winter storms, respectively, are at the forefront of microgrid adoption. Rising support from the U.S. government, through programs such as the Federal Energy Regulatory Commission (FERC) Order 2222 to support the inclusion of distributed energy resources (DERs) are creating growth opportunities for product demand.