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North America Microgrid Market Size
North America Microgrid Market size was valued USD 4.8 Billion in 2023 and is anticipated to grow at a CAGR of 10.3% up to 2032. It is a localized energy system that integrates various energy sources such as solar panels, wind turbines, and batteries with traditional grid infrastructure, capable of operating independently or in conjunction with the main grid. This self-contained network can generate, distribute, and manage electricity, offering resilience, flexibility, and the ability to optimize energy usage within a specific geographical area or community.
Rising technological advancements and innovations in renewable energy generation, energy storage systems (ESS), and advanced microgrid controllers to enhance the efficiency, reliability, and integration capabilities of solutions will augment the business statistics. Growing initiatives such as state-level mandates, incentives, and procurement programs to promote investments in resilient and sustainable energy infrastructure are set to influence product demand.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 4.8 Billion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2024 - 2032 CAGR: | 10.3% |
| 2032 Value Projection: | USD 12.6 Billion |
| Historical Data for: | 2021 – 2023 |
| No. of Pages: | 100 |
| Tables, Charts & Figures: | 40 |
| Segments covered: | Grid Type, Connectivity, Power Source, Storage Device, Application and Country |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Increasing concerns over grid reliability and resilience against natural disasters, extreme weather events, and cyber threats in line with rising sustainability and carbon reduction goals to reduce GHG emissions will augment the product adoption. Improving demand for cost saving solutions through peak demand management, energy arbitrage, and optimized utilization of DERs are additional factors driving the market growth.
North America Microgrid Market Trends
Growing adoption of energy independent and secured solutions in remote or island communities, where connection to the main grid is costly or unreliable will complement the product demand. Increasing electric vehicle demand to support rapid EV charging stations, increasing electricity demand from charging fleets, and optimize charging schedules to minimize grid impacts is set to propel the market growth.
North America Microgrid Market Analysis
Based on power source, the market is segmented into diesel generators, natural gas, solar PV, CHP, and others. CHP is anticipated to grow by more than USD 5.1 billion by 2032 on account of its high energy efficiency, reduced fuel consumption, and lower operating costs. Furthermore, its resilience and reliability provide localized power generation and thermal energy supply which helps the system to operate independently or in conjunction with renewable energy sources and energy storage systems during grid outages or disruptions stimulating the source adoption. Increasing adoption of power source with reduced greenhouse gas emissions and reduced environmental impact compared to traditional solutions will drive the industry scenario.
Based on storage device, the North America microgrid market is segmented into lithium-ion, lead acid, flow battery, flywheels and others. Lithium ion segment is set to grow at a CAGR of over 11.8% by 2032 due to their high energy storage efficiency, enabling them to store electricity generated from renewable sources such as solar and wind with minimal energy loss. Increasing advancements in battery technology to reduce cost per kilowatt-hour (kWh) in line with rising demand for high scalability systems allows modular expansion according to energy storage requirements, optimizing upfront investment and operational expenses which will uplift the business growth. Moreover, longer operational lifespan and less maintenance compared to traditional lead acid batteries are additional factors stimulating the product demand.
The U.S. microgrid market is anticipated to grow by more than USD 9.8 billion by 2032. Rising investments in renewable energy generation, energy storage systems (ESS), smart grid technologies, and microgrid controllers to enhance the efficiency, reliability, and integration capabilities of solutions will complement the industry landscape. Growing supportive regulatory frameworks and government policies coupled with federal incentives such as investment tax credits (ITC), grants, and loan programs incentivize investments in microgrid projects that enhance energy reliability, integrate renewable energy sources, and support grid modernization goals will drive the business scenario.
North America Microgrid Market Share
Eminent players are focusing on developing advanced microgrid solutions that integrate renewable energy sources, energy storage systems, smart grid technologies, and advanced control systems to diverse customer needs across residential, commercial, and industrial sectors. New companies are establishing regional offices, distribution channels, and service centers to provide localized support and meet regional energy demands. Furthermore, they adapt their product offerings to comply with local regulations, grid standards, and customer preferences, thereby enhancing market penetration and customer satisfaction.
North America Microgrid Market Companies
Eminent players operating in the microgrid industry are:
- ABB
- Advanced Microgrid Systems
- Caterpillar
- Eaton
- General Microgrids
- General Electric
- Honeywell
- Helia Technologies
- Hitachi Energy Ltd
- S&C Electric Company
- Schneider Electric
- Siemens AG
- Tesla
- Toshiba Corporation
Microgrid Industry News
- In March 2023, ABB announced a strategic partnership with Direct Energy Partners (DEP), a startup focused on advancing DC microgrid adoption through digital technology. ABB's venture capital unit, ABB Technology Ventures (ATV), will make a minority investment in Direct Energy Partners as part of this collaboration. The partnership aims to strengthen the company's technology leadership in future market growth.
- In September 2022, Siemens Canada and the Saskatoon Industry Education Council introduced the Smartflower Microgrid at a High School. This microgrid powers classrooms, offers real-time data on electricity production and energy absorption, and provides curriculum resources on green technology, data analytics, solar power, and grid management.
North America microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2032, for the following segments:
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By Grid Type, 2021 – 2032 (USD Billion & MW)
- AC Microgrid
- DC Microgrid
- Hybrid
By Connectivity, 2021 – 2032 (USD Billion & MW)
- Grid Connected
- Off Grid
By Power Source, 2021 – 2032 (USD Billion & MW)
- Diesel Generators
- Natural Gas
- Solar PV
- CHP
- Others
By Storage Device, 2021 – 2032 (USD Billion & MW)
- Lithium-ion
- Lead Acid
- Flow Battery
- Flywheels
- Others
By Application, 2021 – 2032 (USD Billion & MW)
- Healthcare
- Educational Institutes
- Military
- Utility
- Industrial/ Commercial
- Remote
- Others
The above information has been provided for the following countries:
- U.S.
- Canada
- Mexico
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