Microgrid As A Service Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 2024-2028

Microgrid As A Service Market Size 2024-2028

The microgrid as a service market size is forecast to increase by USD 8.66 billion at a CAGR of 16.83% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing demand for reliable and sustainable energy solutions. Key trends driving market expansion include rapid advances in technology and the integration of renewable energy sources. However, reluctance to adopt microgrid technology due to high upfront costs and regulatory challenges remains a major hurdle. The market is expected to witness substantial growth in the coming years as these challenges are addressed through innovative financing models and regulatory frameworks. Additionally, the microgrid as a service model offers benefits such as cost savings, improved energy efficiency, and enhanced grid resilience, making it an attractive option for businesses, data centers, and communities in North America and beyond. The market analysis report provides a comprehensive assessment of these trends and challenges, offering valuable insights for stakeholders looking to capitalize on the growing opportunities In the market.

What will be the Size of the Microgrid As A Service Market During the Forecast Period?

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• The market is experiencing significant growth as educational universities, hospitals, and remote localities seek energy resiliency and reliability to meet their unique energy needs. These organizations aim to reduce their reliance on traditional electric companies and the energy grid, particularly in areas prone to power outages or transmission losses. Microgrids offer cleaner energy goals through the integration of renewable energy sources, such as hydro, solar, and wind energy, and energy storage solutions.
• Real-time data streaming, processing, and monitoring infrastructure enable these systems to optimize energy use and adapt to changing energy demands. Human intervention and automated controls ensure the efficient operation of microgrids, minimizing the need for long-distance distribution lines and reducing transmission losses. Public benefits from microgrids include improved energy security, reduced greenhouse gas emissions, and potential cost savings. The market is expected to continue growing as more organizations recognize the advantages of microgrids in meeting their energy requirements.

How is this Microgrid As A Service Industry segmented and which is the largest segment?

The microgrid as a service industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Service Type
  • Software as a service
  • Monitoring and control services
  • Engineering and design services
• Type
  • Remote
  • Grid-connected
  • Networked
• Geography
  • APAC
    • China
    • India
    • Japan
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Service Type Insights

• The software as a service segment is estimated to witness significant growth during the forecast period.

Microgrid as a Service (MaaS) enables microgrid owners to manage their systems more effectively with a single point of accountability, minimizing project risks and ensuring safer, more reliable, and power-efficient operations. Siemens AG, a leading industrial manufacturing company in Europe, offers MaaS for various sectors, including utilities, universities, enterprises, and communities. Their solution, located at Siemens' data center off-site, simplifies microgrid software management. It caters to the energy needs of these entities, promoting energy resiliency and reliability. Siemens' MaaS supports cleaner energy goals by integrating renewable energy sources such as hydro, solar, and wind energy into grid systems. The solution facilitates real-time data streaming, processing, storage, and monitoring infrastructure, allowing for human intervention when necessary.

By reducing transmission losses and emissions, MaaS contributes to public benefits and infrastructure projects, making it an essential component of the renewable energy landscape.

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The Software as a service segment was valued at USD 2.39 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 47% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in Asia Pacific is projected to experience significant growth due to increasing urbanization and industrialization In the region. This expansion is driven by substantial investments in microgrid infrastructure and the escalating demand for reliable and uninterrupted power supplies. Countries like the Philippines, heavily reliant on coal and oil imports for energy needs, face challenges in establishing a centralized power system due to geographical constraints and vulnerability to natural disasters. Microgrids offer resilience and reliability, particularly in remote localities and critical institutions such as educational universities, hospitals, and enterprises. These systems enable the integration of renewable energy sources like hydro, solar, and wind, contributing to cleaner energy goals and emissions reduction.

Energy companies and public institutions are increasingly adopting microgrids to mitigate transmission losses and provide real-time data streaming, processing, storage, and monitoring infrastructure. This infrastructure enhances human intervention capabilities, ensuring efficient energy use and reducing summer cooling costs. The US Department of Energy (DOE) is funding various programs to promote microgrid innovation and connectivity, enabling real-time insights and infrastructure projects for a more sustainable energy future.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise In the adoption of Microgrid As A Service Industry?

Growing demand for microgrids is the key driver of the market.

• Microgrids have emerged as a promising solution to address the challenges of energy reliability and resiliency, particularly in remote localities and critical institutions such as educational universities and hospitals. These microgrids enable these entities to meet their energy needs with cleaner energy sources, including hydro, solar, and wind energy while reducing emissions and improving energy use efficiency. Microgrids offer real-time data streaming, processing, storage, and monitoring infrastructure, allowing for human intervention when necessary. This technology is essential in areas prone to power outages, ensuring continuity of operations and public benefits. Electric companies are increasingly investing in microgrids to enhance grid systems' reliability and reduce transmission losses.
• Renewable energy sources, such as solar and wind energy, are becoming more cost-effective, making microgrids an attractive option for enterprises. The energy storage capacity of microgrids plays a crucial role in providing energy during power outages and peak demand periods, reducing summer cooling costs and insulation barrier requirements. The US Department of Energy (DOE) has funded several programs to accelerate the product innovation and deployment of microgrids. Microgrids provide real-time insights into energy use and offer connectivity to the traditional energy grid when available. The technicalities of microgrids, including solar panels and energy storage, require ongoing research and development to optimize their performance and reduce costs.

What are the market trends shaping the Microgrid As A Service Industry?

Rapid advances in technology is the upcoming market trend.

• The market is experiencing significant growth due to the increasing energy needs of various sectors such as educational universities, hospitals, and remote localities. These institutions require energy solutions that offer resiliency and reliability, which microgrids provide through real-time data streaming, processing, storage, and monitoring infrastructure. The shift towards cleaner energy goals is another driving factor, with electric companies and enterprises seeking to reduce emissions and improve the efficiency of their energy use. Microgrids enable the integration of renewable energy sources like hydro, solar, and wind energy into the grid systems, reducing transmission losses and providing energy storage solutions. The declining costs of renewable energy and the increasing awareness of the benefits of microgrids are expected to boost the market's growth.
• Moreover, microgrids offer human intervention capabilities, enabling users to manage their energy use and summer cooling costs more effectively. The US Department of Energy (DOE) has launched several funded programs to promote product innovation and infrastructure projects In the microgrid sector. The market's growth is further driven by the need for reliable energy sources during power outages and the potential for energy savings through efficient energy management.

What challenges does the Microgrid As A Service Industry face during its growth?

Reluctance in the adoption of microgrid technology is a key challenge affecting the industry growth.

• The market is experiencing significant growth due to the increasing energy needs of various sectors, including educational universities, hospitals, and remote localities. These institutions and communities seek energy resiliency and reliability, aligning with their cleaner energy goals. Electric companies face challenges in meeting these demands through the existing energy grid due to transmission losses and the intermittency of hydro, solar, and wind energy. MaaS offers a solution through real-time data streaming, processing, storage, and monitoring infrastructure. Energy storage and renewable energy sources like solar panels play a crucial role in this model. Human intervention is minimal, ensuring efficient energy use and emissions reduction.
• Enterprises, especially those in critical sectors, are increasingly adopting MaaS to mitigate power outages and reduce electric bills. The infrastructure projects associated with MaaS require connectivity and real-time insights for optimal performance. The US Department of Energy (DOE) has funded various programs to promote product innovation and awareness. As energy storage technologies become more affordable and efficient, MaaS is poised to revolutionize the energy landscape, offering significant public benefits.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, microgrid as a service market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ABB Ltd.
• Aggreko Plc
• AIO Systems Ltd.
• Anbaric Development Partners LLC
• Canopy Power
• Capstone Green Energy Corp.
• Duke Energy Corp.
• Eaton Corp. Plc
• Emerson Electric Co.
• Enchanted Rock LLC
• ENGIE SA
• General Electric Co.
• General MicroGrids
• Metco Engineering
• NRG Energy Inc.
• Pareto Energy
• Schneider Electric SE
• Siemens AG
• Spirae LLC
• Tech Mahindra Ltd.
• Tesla Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Microgrids, autonomous local power systems that can operate independently from the main electricity grid, have gained significant attention in recent years due to their ability to provide energy resiliency and reliability. These systems, which can be integrated with various renewable energy sources such as hydro, solar, and wind, offer numerous benefits for a range of energy consumers. Microgrids are particularly valuable for institutions with unique energy needs, such as educational universities and hospitals. In remote localities, where access to the main power grid may be limited or unreliable, microgrids can provide a critical energy solution. By generating and storing energy on-site, these institutions can reduce their reliance on traditional electric companies and mitigate the risks associated with power outages.

Moreover, microgrids align with the cleaner energy goals of many organizations. By utilizing renewable energy sources, microgrids can help reduce emissions and contribute to a more sustainable energy mix. The real-time data streaming, processing, and storage capabilities of microgrids enable enterprises to optimize their energy use and monitor infrastructure performance with greater accuracy and efficiency. The microgrid market is driven by several factors, including the increasing awareness of energy resiliency and reliability, the technicalities of grid systems, and the need for emissions reduction. The integration of renewable energy sources into the grid infrastructure has also been a significant factor In the growth of the microgrid market.

Furthermore, the microgrid market is characterized by ongoing product innovation and infrastructure projects. The development of advanced energy storage technologies, such as batteries and capacitors, has enabled microgrids to provide more consistent power and improve their overall efficiency. The integration of human intervention and monitoring infrastructure has also enhanced the capabilities of microgrids, allowing for greater control and flexibility. The microgrid market is expected to continue growing as more organizations recognize the benefits of these systems. The ability to provide real-time insights into energy usage and infrastructure performance, as well as the potential for cost savings through energy optimization, make microgrids an attractive solution for enterprises looking to reduce their energy bills and improve their overall energy management.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the Microgrid As A Service industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the microgrid as a service market growth of industry companies

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