Enjoy complimentary customisation on priority with our Enterprise License!
The microgrid as a service market size is estimated to grow at a CAGR of 14.53% between 2022 and 2027. The market size is forecast to increase by USD 6,322.98 million. The growth of the market depends on several factors, such as the growing demand for microgrids, the increasing government support the growing need for better power systems, and the several benefits of microgrids as a service.
This report extensively covers market segmentation by service type (software as a service, monitoring, and control services, and engineering and design services), type (remote, grid-connected, and networked), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Microgrid as a Service Market Forecast 2023-2027
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Some of the main issues associated with the power industry include aging infrastructure, climate change, rising energy costs, and mass electrification. Several developed countries have established power infrastructures that are facing outages due to aging.
Moreover, hierarchical power is followed by traditional grids where power is generated at a central location and then transmitted to substations through transmission lines, distribution lines, and finally to the end-users. As a result, any issues on one part of the system have a chain reaction on the rest of the system, thereby affecting the reliability of the grid. Therefore, there is an increasing demand for traditional grids in order to overcome such challenges. Hence, such factors are driving the market growth during the forecast period.
The changes in microgrids are significantly revolutionizing the electricity utility businesses they are changing the foundation of the electricity sector. There have been significant advancements in technology that have resulted in the development of compact energy storage systems, advanced control systems, and efficient renewable power generation sources.
Moreover, the decreasing cost of power generation has fuelled the use of decentralized power systems including microgrids. As a result, it is fuelling the popularity of microgrid technologies among consumers. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
There has been a continuous increase in the adoption of energy storage technologies due to the decline in the cost of renewables and energy storage technologies. The main advantage of energy storage technologies is that they enable customers to generate their own power independently, thereby making them less dependent on the grid.
Moreover, the operation of microgrids is different from that of the traditional business model of electricity generation it is significantly impacting the investments and grid operation of grid power companies. Utilities are subjected to provide a universal service with limited resources to all their customers at a standard price, and when a customer decides to go off-grid or use the grid only as a backup, it results in revenue losses for power companies. As a result, the cost will be borne by the remaining customers that depend on the grid that depends on the grid. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The software as a service segment is estimated to witness significant growth during the forecast period. The main advantage of the software as a service segment is that the microgrid owners have a single point of accountability and minimal risk of project delays and failures. As a result, it is a safer, more reliable, and power-efficient microgrid system which is significantly fuelling the adoption of this segment. There are several market players that offer microgrid software-as-service operating in the global microgrid as a service.
Get a Customised Report as per your requirements for FREE!
The software as a service segment was the largest segment and was valued at USD 2,129.70 million in 2017. For example, Siemens AG, a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe offers microgrid software-as-service, especially for utilities. The main feature of this product is that it is designed in such a way that managing software easier for microgrid users such as universities, companies, manufacturers, communities, and utilities. This is mainly done by locating microgrid software and related hardware at a Siemens data center off-site. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on type, the segment is classified into remote, grid-connected, and networked. The remote segment operates perpetually in island mode due to a lack of nearby transmission or distribution (T& D) infrastructure that is both accessible and reasonably priced. It is also known as off-grid microgrids. Renewable energy sources, such as wind and solar provide the microgrid operator with a more cost-effective and environmentally friendly DER solution for these remote scenarios. There is an increasing adoption of remote segments across rural areas due to its numerous advantages. One of the main advantages of this segment is that it can own the microgrid and use it as a DER, giving those remote customers the same level of dependability as non-remote customers. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 46% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors that is significantly contributing to the global microgrid as a service market in APAC is the expanding urbanization and industrialization in the region. In addition, the growth of the market in the region is fuelled by significant investments in microgrid infrastructure and the rising demand for a constant, uninterrupted, and dependable supply of power and electricity. For instance, the Philippines is heavily relying on imports for its energy needs, such as coal for the power industry and oil for the transport industry. Remote communities and areas with no grid connection across 7,000 islands rely on generators that burn expensive fuels to supply power. Such challenges can be resolved by powering the islands with renewable-based power systems such as microgrids. hence, such factors are driving the market growth in APAC during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global microgrid as a service market witnessed a significant slowdown due to the halt in the operations of businesses of market players in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of business activities by market players. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers microgrids as a service for energy storage, solar generation, and hydrogen.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
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., and Tesla Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The microgrid as a service market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Microgrid As A Service Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.53% |
Market growth 2023-2027 |
USD 6,322.98 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.04 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., and Tesla Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.