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Europe Grid Connected Microgrid Market Size
Europe Grid Connected Microgrid Market was valued at USD 3.8 billion in 2023 and is anticipated to grow at a CAGR of over 15.9% from 2024 to 2032. It is a localized energy system that operates in conjunction with the main utility grid while also having the capability to operate independently or in island mode during grid outages or emergencies. It consists of distributed energy resources (DERs) such as solar photovoltaic (PV) panels, wind turbines, energy storage systems (ESS), and backup generators, all interconnected through an intelligent control system.
Growing penetration of intermittent renewable energy sources into the energy mix will influence the demand for flexible and resilient grid solutions. Rising trend towards decentralization in European energy systems, driven by advancements in technology, changing consumer preferences, and regulatory reforms will create growth opportunities. Furthermore, the proliferation of demonstration projects, pilot initiatives, and research efforts across the region is expected to increase commercial product deployment and scalability.
Report Attributes | Details |
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Base Year: | 2023 |
Market Size in 2023: | USD 3.8 Billion |
Forecast Period: | 2024 - 2032 |
Forecast Period 2024 - 2032 CAGR: | 15.9% |
2032 Value Projection: | USD 16.4 Billion |
Historical Data for: | 2021 to 2023 |
No. of Pages: | 1,500 |
Tables, Charts & Figures: | 20 |
Segments covered: | Grid Type, Power Source, Storage Device, Application and Country |
Growth Drivers: |
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Pitfalls & Challenges: |
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Increasing frequency of extreme weather events and grid disruptions is growing the emphasis on enhancing energy resilience thereby stimulating the decentralized solution demand for providing localized power generation and storage capabilities. Rising emergence of energy communities and supportive regulatory frameworks, including the EU's Clean Energy Package towards boosting these communities growth will strengthen the connected grid deployment.
Europe Grid Connected Microgrid Market Trends
Rising digitization of energy systems with advanced solutions including IoT sensors, cloud computing, and artificial intelligence will transform the grid connected solutions into intelligent and data driven networks thereby expanding to wider applications, driving the business scenario. Additionally, rising financial incentives, such as government grants, subsidies, tax incentives, and feed-in tariffs, will uplift investment in microgrid infrastructure and renewable energy generation thereby improving the product penetration.
Europe Grid Connected Microgrid Market Analysis
![Europe Grid Connected Microgrid Market Size, By Grid Type, 2022-2032 (USD Billion) Europe Grid Connected Microgrid Market Size, By Grid Type, 2022-2032 (USD Billion)](https://cdn.gminsights.com/image/rd/energy-mining-oil-and-gas/europe-grid-connected-microgrid-market-size-by-grid-type-2024-2032.webp)
Based on grid type, AC grid segment is likely to cross more than USD 8.5 billion by 2032. Its interconnection features with the existing grid infrastructure, enabling bi-directional power flow and facilitating the exchange of electricity between the microgrid and the main grid is a significant factor driving the business outlook. Furthermore, rising demand for grids with scalability and flexibility to adapt to changing energy requirements, optimize energy management, and support the integration of emerging technologies will augment the industry landscape.
![Europe Grid Connected Microgrid Market Share, By Power Source, 2023 Europe Grid Connected Microgrid Market Share, By Power Source, 2023](https://cdn.gminsights.com/image/rd/energy-mining-oil-and-gas/europe-grid-connected-microgrid-market-share-by-power-source-2024-2032.webp)
Based on power source, the Solar PV segment is set to grow at a CAGR of over 16.8% through 2032. The declining costs of these power sources coupled with advancements in technology and economies of scale are making them increasingly cost-competitive compared to traditional sources, will strengthen the product demand. Furthermore, rising requirement for sources with energy security and enhanced resilience during grid outages, natural disasters, or other emergencies will stimulate the business statistics.
![France Grid Connected Microgrid Market, 2022-2032 (USD Million) France Grid Connected Microgrid Market, 2022-2032 (USD Million)](https://cdn.gminsights.com/image/rd/energy-mining-oil-and-gas/france-grid-connected-microgrid-market-2024-2032.webp)
France grid connected microgrid market is projected to surpass USD 2.9 billion by 2032. Rising implementation of ambitious renewable energy policies and initiatives including the Energy Transition for Green Growth Law and the Multiannual Energy Program (PPE) to comply with renewable energy targets and provide incentives will influence the grid technology deployment. Furthermore, growing energy demand from various sectors is driving the demand for reliable, efficient, and sustainable energy solutions will boost the business landscape.
Extreme climatic conditions, grid outages, and natural disasters in the U.S. in the recent years has improved the demand for resilient and reliable energy infrastructure thereby boosting the product deployment. Rising advancements in the field of energy storage, smart grid technologies, and microgrid controls by key players is set to strengthen the product penetration across various applications including military installations, universities, hospitals, and communities.
Europe Grid Connected Microgrid Market Share
![Europe Grid Connected Microgrid Company Market Share Europe Grid Connected Microgrid Company Market Share](https://cdn.gminsights.com/image/rd/energy-mining-oil-and-gas/europe-grid-connected-microgrid-company-market-share-2024-2032.webp)
Eminent market players are improving collaboration with technology providers, energy companies, research institutions, and government agencies to enable access to complementary technologies, expertise, and resources, market penetration, and the development of integrated solutions that address evolving customer requirements. Key players are also expanding their product portfolios to offer a comprehensive range of solutions including advanced microgrid controllers, energy management systems, renewable energy integration solutions, and energy storage technologies to enhance market reach.
Europe Grid Connected Microgrid Market Companies
Eminent players operating in the Europe grid connected microgrid industry are:
- ABB
- Advanced Energy Industries
- Emerson
- FlexGen
- General Electric
- Hitachi Energy Ltd.
- Honeywell International Inc
- PowerSecure
- Princeton Power Systems
- Siemens AG
- Schweitzer Engineering Laboratories, Inc.
- S&C Electric Company
- Schneider Electric
- Tesla
Europe Grid Connected Microgrid Industry News
- In April 2023, Schneider Electric and GreenYellow have teamed up to provide microgrid solutions in commercial and industrial sectors in Europe. Their collaboration involves analyzing data like load profiles and energy demand to design tailored microgrid solutions that optimize efficiency. This partnership offers extensive support to businesses looking to integrate microgrids into their operations.
- In March 2021, Iberdrola, Spain’s leading power company, has unveiled a USD 45 billion investment plan to enhance US power grids over the next three years. As part of this strategy, Iberdrola will install microgrids in remote areas, aiming to upgrade and expand the country's energy infrastructure.
This Europe Grid Connected Microgrid Market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MW & USD Billion” from 2021 to 2032, for the following segments:
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Market, By Grid Type
- AC
- DC
- Hybrid
Market, By Power Source
- Diesel Generators
- Natural Gas
- Solar PV
- CHP
- Others
Market, By Storage Device
- Lithium-ion
- Lead Acid
- Flow Battery
- Flywheels
- Others
Market, By Application
- Healthcare
- Educational Institutes
- Military
- Utility
- Industrial/ Commercial
- Remote
- Others
The above information has been provided for the following countries:
- Germany
- France
- UK
- Russia
- Spain
- Italy
- Denmark
Frequently Asked Questions (FAQ) :