Published Date: November 18, 2022
North America Microgrid Market size is set to cross USD 11 billion by 2030, according to a new research report by Global Market Insights Inc.
Rising adoption of renewable energy technologies will be a primary factor propelling microgrid control system installation. Investments in solar, natural gas, and other clean energy technologies have increased significantly to address emission targets. Based on the U.S. Energy Information Administration, in 2020, solar accounted for 3% of the electricity generation in the U.S. and is projected to reach 20% by 2050. These factors will support the development of electric systems, including microgrids, to generate renewable power. Moreover, the emphasis on distributed power generation and central grid stability will augment microgrid network expansion across the region.
The off-grid connectivity segment in the North America microgrid market is expected to witness significant growth during the forecast period. This is a result of the mounting adoption of self-generating facilities in industrial sectors such as pulp and paper, petrochemicals, and refineries. In addition, investments in decentralized energy technologies have also surged considerably, in an effort to ensure grid reliability.
In terms of grid, the AC microgrid segment recorded around USD 1.5 billion in 2021. Key parameters such as effective and flexible high-end voltage levels, less heat generation, and low transmission losses are influencing system demand. AC microgrids are also compatible with varied power storage devices. Furthermore, ease of control and monitoring are some of the major attributes bolstering the adoption of this microgrid.
North America microgrid market from the diesel power source segment is poised to depict more than 13% CAGR through 2030. Rapid industrialization and the strong demand for high-power output generators in industrial establishments are some of the key growth drivers. While renewable-powered grids are gaining traction, microgrids with larger loads are more reliant on diesel generators, due to the requirement for energy reliability and density. The construction of large-capacity power generation plants will therefore promote diesel-powered microgrid installation.
Based on the storage device, the lithium-ion segment accounted for USD 1.5 billion in 2021. Compared to lead-acid counterparts, lithium-ion batteries maintain efficient performance and improve the life cycle of microgrids. The overall costs of this battery are also declining rapidly. These factors, along with the innovations in power storage technology, are also slated to stimulate its adoption as a reliable energy storage solution for microgrid systems.
Browse key industry insights spread across 215 pages with 298 market data tables & 28 figures & charts from the report, “North America Microgrid Market Size By Connectivity (Grid Connected, Off Grid), By Grid (AC Microgrid, DC Microgrid, Hybrid), By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device (Lithium-Ion, Lead Acid, Flow Battery, Flywheels), By Application (Healthcare, Educational Institutes, Military, Utility, Industrial/ Commercial, Remote), COVID-19 Impact Analysis, Country Outlook, Application Potential, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/north-america-microgrid-market
North America microgrid market from the industrial/commercial applications is predicted to observe growth rate of over 14% through 2030, owing to rapid industrialization. Government bodies have also been introducing favorable reforms for renewables in industrial and commercial establishments. Additionally, these sectors have been emphasizing smart power flow control networking strategies and on-site sustainable power generation, which are also likely to contribute to the growth of microgrid developers in the region.
U.S. microgrid market size surpassed more than USD 2.5 billion in 2021, given the rapid increase in investor-owned utility projects. The regional power sector has shifted from a centralized system toward a distributed system. To ensure uninterrupted energy supply and effectively manage costs, the deployment of smart technologies has accelerated, providing customers reliability and flexibility. The growing focus on the establishment of utility distribution solutions is thus adding impetus to microgrid network expansion in the country.
Top companies operating in the industry are Schneider Electric, Honeywell, Caterpillar, Toshiba Corporation, Tesla, Advanced Microgrid Systems, Helia Technologies, Hitachi Energy Ltd, General Microgrids, and Exelon Corporation, among others. These leaders are focusing on business expansions and other key strategies to reinforce their presence in the industry.
Ankit Gupta, Abhishek Chopra