A new report released by research firm Global Market Insights states that the global microgrid market will record a 27% compound annual growth between 2021 and 2027.
The report highlights trends likely to shape the microgrid market between 2021 and 2027, with the need to integrate renewable energy technologies as one of the main driving forces.
The need to lower greenhouse gas emissions is pushing energy stakeholders to integrate more renewable energy resources hence driving the microgrid market. More and more governments are enacting regulations stipulating reductions in carbon emissions, a driving force for the deployment of microgrid solutions.
In addition, the growing demand for off-grid electricity in developing economies such as Africa and South-East Asia, where governments and multinational utility companies are rallying towards improving energy access to energy-poor households is a huge driver to microgrid deployments.
The lack of effective electric networks, current lags, voltage fluctuations, and grid failure have been primary concerns driving the remote microgrid industry across developing regions.
Ongoing grid modernization coupled with the installation of advanced and sustainable generation sources across the network will propel the industry scenario such that revenue generation within the sector will hit $33 billion by 2027, according to the study.
Technology developers are investing heavily in research and development to launch advanced, stable and resilient infrastructure across the grid. For instance, in North America where grid networks are often affected by harsh weather conditions, advanced microgrid solutions are increasingly becoming an option to power communities and critical facilities such as hospitals, police and rescue service providers such as firefighters.
The market in Canada is expected to grow significantly due to a strong regulatory and community focus on the integration of sustainable electric networks and reliable power supply infrastructure. Environmental concerns, local revenue opportunities or cost management, and increased autonomy are a few factors driving technological adoption across Canada.
At the same time, the rising demand for combined or hybrid integrated grid networks is expected to foster the hybrid-based microgrid network globally.
Despite environmental concerns to increase the use of renewables to mitigate climate change, the report states that the diesel generator-sourced microgrid market will grow to record over $11 billion in revenue by 2027. Rapid industrialisation coupled with the adoption of large-capacity energy generation facilities will propel the demand for diesel generators across the networks. Ongoing demand for heavy-duty power generators across industrial sectors will further sway product adoption. Low installation costs, when compared to its auxiliary sources, will complement the industry statistics.