Newer applications market research firm IndustryARC has released a new report highlighting factors driving the global microgrid industry.
The overall microgrid market growth is estimated to be 12% during the forecast period 2019-2025
According to the study, the rising demand for enhanced microgrid connectivity with affordable and clean energy storage is accelerating the market growth.
The University of California claims savings of more than $8 million annually on energy costs after the adoption of a microgrid.
The market is being driven by continued innovation within the distributed energy resources segment, especially on technologies such as micro and combustion turbines and hybrid and wind systems.
Such technologies are being integrated with microgrids to further reduce carbon emissions.
The emergence of new IoT solutions is enabling the integration and the evolution of the microgrid industry.
In addition, government initiatives to expand renewable energy portfolios, to reduce emissions and address energy poverty is heavily and positively impacting on the microgrid market.
The industry is expected to play a leading role in improving energy access to approximately 1.1 billion people in the world without access to electricity.
For instance, India has set a target to reduce carbon emissions by 33% to 35% by 2030 from 2005 levels, in line with the 2016 Paris Climate Change agreement.
Markets such as the demand response and the renewable energy, which are posed to grow by 10% and by 12% through 2021 and 2025, respectively are driving the microgrid industry.
The installed base of renewable energy is expected to reach approximately 1,731GW by 2021.
The International Smart Grid Action Network and the International Energy Agency forecasts that 60% of the future electrification required to reach the global electricity demand by 2030 will come from microgrids.
America is expected to hold 35% of the overall market share, whilst Latin America is one of the most emerging markets for smart microgrid investment.