The global microgrid capacity will grow by 21.4% per annum between 2019 and 2028, according to a new study conducted by Navigant Research.
The total microgrid capacity is expected to increase from 3.5GW to 20GW over the next decade.
Peter Asmus, research director with Navigant Research, said: “The total global market for microgrids in 2019 is estimated at $8.1 billion and expected to near $40 billion by 2028.
“While different market segments have shifted in prominence over the years, what has remained consistent is overall growth across all five major regions profiled.”
The Asia Pacific remains the largest overall market for microgrids, with remote segments making up the majority opportunity.
Other key study findings include:
- The market continues to grow globally, but it is not yet a smooth ride to widespread viability.
- Microgrid technologies continue to drop in cost and controls functionality to improve.
- Regulatory barriers and long project development cycles continue to frustrate efforts to move this market fully into the mainstream.
- North America remains the top market for grid-tied microgrids whilst Latin America is the fastest-growing market due in part to the major island-wide microgrid programme in Puerto Rico.