A Detailed Analysis of Microgrid as a Service Market on the Basis of Engineering & Design Services, Monitoring & Control Services, & Software as a Service
Industry: Semiconductor Electronics
Published Date: May-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 250
Report ID: PMRREP33451
Newly released report on microgrid as a service industry by Persistence Market Research (PMR) reveals that global sales of market in 2022 were held at US$ 2.4 billion. With an 11.1% projected CAGR from 2022 to 2032, the market is expected to reach a US$ 7 billion valuation by the end of the forecast period.
| Attributes | Details |
|---|---|
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Microgrid as a Service Market Size (2022) |
US$ 2.4 billion |
|
Estimated Market Value (2032) |
US$ 7 billion |
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Value-based CAGR (2017 to 2022) |
14.4% |
|
Forecast CAGR (2022 to 2032) |
11.1% |
|
Key Companies Covered |
|
The software as a service in the microgrid as a service industry is expected to be a significant revenue-generating product and is projected to surge at a CAGR of over 10.9% from 2022 to 2032.
Microgrid as a service consists of distributed energy resources (DERs) such as solar panels, wind turbines, batteries, and generators, as well as smart control systems that optimize energy generation and consumption.
Microgrids are designed to provide reliable, resilient, and cost-effective energy supply to a specific geographic area, such as a university campus, military base, or industrial park. They can improve energy efficiency, increase energy security, and reduce greenhouse gas emissions.
The microgrid-as-a-service market is projected to expand due to a wide range of factors such as growing interest in renewable energy sources like solar and wind power. These are highly remunerative methods to reduce carbon emissions and combat climate change.
Microgrid can be utilized to integrate these sources into the energy mix, making them a popular choice for organizations looking to reduce their carbon footprint.
Around 3.2 TW of energy was produced from renewable sources in 2021 which increased to around 3.5 TW in 2022. It is projected that by 2030, the world will produce around 6 TW of energy from renewable sources which is around 35% of global energy production.
Microgrid as a service provider can use renewable energy sources such as solar, wind, hydro, and bioenergy to power their microgrid. Thus, customers can benefit from a sustainable and environmentally friendly energy supply, which is becoming increasingly important as the world transitions to a low-carbon economy.
With the increase in the demand for renewable energy around the world, the demand for microgrid as a service is projected to increase during the assessment period.
Microgrid-as-a-service models likewise offer cost savings when compared to traditional utility models by reducing energy waste, improving energy efficiency, and leveraging renewable energy sources. This makes microgrid an attractive option for businesses and communities looking to cut costs.
Microgrid can provide backup power during outages and other emergencies, making them a reliable source of energy for critical facilities like hospitals, data centers, and military bases. Microgrid can also offer a decentralized approach to power generation and distribution, which can increase energy security and reduce the risk of centralized grid failures.
As per the report by Persistence Market Research (PMR), a market research and competitive intelligence provider, historically, during 2017 to 2022, the value of the microgrid as a service industry increased by around 14.4% CAGR.
With an absolute dollar opportunity of US$ 4.6 billion during the forecast period, the market is projected to reach a US$ 7 billion valuation by 2032.
With the advent of several wireless and IoT technologies, microgrid performance can be enhanced with real-time data processing, storage, streaming, and monitoring infrastructure, further eliminating human intervention. Producers are now also leveraging microgrid capabilities, primarily to decrease reliance on a long-distance distribution lines and thereby reduce transmission losses.
Widespread deployment of renewable energy such as solar, hydro, and wind power, along with continued expansion of utility-based grid infrastructure, are driving the growth of grid systems. Decreasing cost of energy storage and important reduction in emissions are the key factors projected to increase market share.
Asia Pacific had a microgrid as a service industry size of US$ 1.1 billion in 2021 and reached a market size of US$ 1.2 billion in 2022. Asia Pacific is likely to have a microgrid as a service industry worth US$ 3.6 billion in 2032. The historical CAGR between 2017 and 2022 is 52%. The forecasted CAGR till 2032 is expected to be 51.9%.
Asia Pacific is a predominant producer of renewable energy in the world producing around 1,091 GW of energy from renewable sources in 2017 which increased to around 1711 GW in 2022. With a rapid increase in renewable energy around the world the demand for microgrid as a service is projected to surge as microgrid-as-a-service provider can tailor their microgrid solutions to meet the specific needs of their customers.
This includes sizing the microgrid to match the customer's energy demand, choosing the most appropriate renewable energy sources, and providing additional services such as energy demand management and grid stability, thus, expanding the market during the assessment period.
What makes the USA a Hub for Microgrid as a Service?
The microgrid as a service industry in the United States is expected to surge to be worth US$ 1 billion with an absolute dollar growth of US$ 623.9 million by 2032. The United States has grown at a CAGR of 11.1 % from 2017 to 2021 and is projected to surge at a CAGR of 9.9 % from 2022 to 2032.
The United States produces a significant amount of its energy around 717 TWh in 2017 from around 772 TWh in 2022. The country is aiming to produce around 30% of its energy from renewable sources by 2030.
As microgrid as a service can be used to provide communities or facilities with reliable, low-carbon energy services with the increase in the demand for renewable energy the demand for microgrid as a service is projected to increase therefore expanding the market during the assessment period.
What is the Demand Outlook for Microgrid as a Service in United Kingdom?
The microgrid as a service industry in the United Kingdom is projected to surge at a worth of US$ 169.6 million with an absolute dollar growth of US$ 100.9 million by 2032. The United Kingdom has grown at a CAGR of 9.7% from 2017 to 2021 and is expected to rise at a CAGR of 9.5%
The United Kingdom produced around 109 TWh of energy from renewable energy in 2017 which increased to around 122 TWh by 2021. The country has aimed to double its renewable energy capacity by 2030.
Market growth in the United Kingdom is expected due to several government initiatives. For instance, in January 2020, Pecan Street, in partnership with Concurrent Design, developed a residential microgrid called Energy Switch as part of a DOE-funded program. The program was a fast-paced year-long growth plan that comprised two months of demonstrations and culminating in NREL performance verification.
How is Microgrid as a Service Market Shaping Up for China?
The microgrid as a service industry in China is expected to surge to be worth US$ 1.9 billion with an absolute dollar growth of US$ 1.3 billion till 2032. China has grown at a CAGR of 16.6% from 2017 to 2021 and is projected to rise at a CAGR of 12.6 % from 2022 to 2032.
China is a predominant producer of renewable energy in the world with around 1870 TWh produced in 2017 which increased to around 2388 TWh in 2021. With the rapid adoption of renewable energy in the country the demand for microgrid as a service is projected to increase as microgrid.
Residential and commercial developments feature large, flat open roofs suitable for solar panel installation, helping businesses significantly reduce their electricity bills in China. Rooftop solar-based microgrid, not only can generate clean power, but also provides an isolation barrier that helps reduce cooling costs in the summer.
What Makes Japan a Promising Microgrid as a Service Market?
The microgrid as a service industry in Japan is expected to rise to US$ 1.2 billion with an absolute dollar growth of US$ 765.4 million by 2032. Japan has grown at a CAGR of 14.7% from 2017 to 2021 and is estimated to develop at a CAGR of 11.3 % by 2032.
In 2017, Japan produced around 6.5% of its energy from renewable sources which increased to 22% in 2021. The country has been investing heavily to achieve 30% of its energy generation from renewable energy by 2030. With the increase in the demand for renewable energy in the country, the demand for microgrid as a service is projected to increase therefore expanding the market during the assessment period.
Why is South Korea Considered a Prominent Microgrid as a Service Market?
The microgrid as a service industry in South Korea is expected to surge to be worth US$ 454.1 million with an absolute dollar growth of US$ 301.9 million till 2032. South Korea has grown at a CAGR of 15.9 % from 2017 to 2021 and is anticipated to rise at a CAGR of 11.5 % from 2022 to 2032.
South Korea is a prominent country that has invested heavily in renewable energy in the country. In 2017, 4% of the energy produced in the country was derived from renewable sources which increased to 7% in 2021. The country is aiming to achieve around 20% of its energy produced from renewable energy by 2030.
With the increase in the demand for renewable energy in the country, the demand for microgrid as a service is projected to rise therefore expanding the market during the assessment period.
Which Grid Type is Projected to Lead Sales in the Microgrid as a Service Market?
The remote/islanded type of microgrid as a service is projected to witness significant growth as it has grown at a CAGR of 14.2 % from 2017 to 2022 and is projected to develop at a CAGR of 11.0% from 2022 to 2032.
The remote/islanded type of microgrid refers to a microgrid system that is isolated from the leading grid and serves a specific geographic area or community. This type of microgrid is typically found in areas where the grid infrastructure is unreliable, or where it is not feasible to connect to the key grid due to geographical or economic reasons.
The remote/islanded microgrid system operates independently from the key grid and is managed by a local operator. This operator is responsible for monitoring the microgrid's energy generation, storage, and consumption, and ensuring that the system is operating efficiently and reliably.
The remote/islanded microgrid has several benefits, including providing reliable and affordable power to communities, reducing carbon emissions by replacing diesel generators with renewable energy sources, and providing a reliable backup power source in case of outages.
Which Segment on the basis of Service Type is Expected to be Highly Lucrative?
Software as a service segment in microgrid as a service industry is projected to witness significant growth at a CAGR of 14.0 % from 2017 to 2021. It is expected to continue accelerating at 10.9% from 2022 to 2032.
Software as a Service (SaaS) can be integrated into microgrid as a service (MaaS) to provide additional benefits to users. By leveraging SaaS, MaaS providers can offer advanced energy management tools that allow end-users to monitor and optimize their energy usage.
SaaS provides remote monitoring and management of microgrid systems. This allows MaaS providers to monitor the performance of microgrid systems in real-time and proactively identifies and addresses issues before they become critical.
Thus, integrating SaaS into MaaS can provide end-users with advanced energy management tools, additional services, and improved reliability and performance of microgrid systems. This can help increase the adoption of microgrid systems and support the transition to a more sustainable and resilient energy system.
The market players are investing heavily in expanding their presence and product portfolios around the world. The companies are also focusing on partnerships and collaborations to augment their market positions.
The key players in the market include Northern Power Systems Corp., Pareto Energy, Anbaric Transmission, Siemens AG, Eaton Corp. PLC, Spirae, General Electric, ABB Ltd, Aggreko, Caterpillar Inc., Schneider Electric
For instance,
| Attributes | Details |
|---|---|
|
Microgrid as a Service Market Size (2022) |
US$ 2.4 billion |
|
Estimated Size (2032) |
US$ 7 billion |
|
Value-based CAGR (2017 to 2021) |
14.4 % |
|
Forecast CAGR (2022 to 2032) |
11.1% |
|
Key Companies Covered |
|
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Service Type:
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To know more about delivery timeline for this report Contact Sales
The global market size of microgrid as a service was worth US$ 2.1 billion in 2021.
The global market for microgrid as a service is projected to cross US$ 2.4 billion by 2022-end.
The valuation of the microgrid as a service industry in 2032 is projected to be US$ 7 billion.
The CAGR of the microgrid as a service industry over the last 4 years is 14.4%.
The projected CAGR for microgrid as a service industry is 11.1% during the forecast period.
