Microgrid Control System Market: Overview
- The need of a reliable and secure power supply system across the world is boosting the global microgrid control system market. Microgrid ensures the supply of electricity during power failure and blackout situations. Additionally, it shares load and provides additional support when connected to the main grid. Increase in demand for electrification of rural areas has boosted the adoption rate of microgrid control systems.
- Price drop in distributed renewable power and battery technologies; and technological advancements in energy management systems have led to the creation of more efficient renewable grid networks. This has resulted in advancement in smart grid technologies. The usage of electric power distribution systems has been rising across the globe due to the increase in demand for electric vehicles and distributed energy resources such as stored energy and renewable sources.
Key Drivers and Restraints of Microgrid Control System Market
- Increase in concerns about carbon emission, and advancement in IoT as well as communication technologies are the major drivers of the global microgrid control system market. Rise in usage of microgrid control systems in large power plants and manufacturing industry are also influencing the global microgrid control system market. Increase in clean energy projects and growth in adoption of renewable energy sources across the world are likely to boost the global microgrid control system market in the near future.
- High cost associated with the installation and maintenance of the microgrid control system could pose a serious threat to the global microgrid control system market. Therefore, small manufacturing companies are seeking cost-effective solutions of constant power supply. High cost of microgrid control systems can easily be overcome by the immense advantages offered by them to consumers. These include reliable power supply, increased power generation capacity, and emphasis on renewable energy generation. Rise in government investment in microgrid control systems is likely to drive the global microgrid control system market.
Global Microgrid Control System Market: Segmentation
- The global microgrid control system market can be segmented based on type and application
- Based on type, the microgrid control system market can be classified into grid-connected, off-grid, and hybrid. The grid-connected segment accounts for significant share if the global market, as grid connected microgrids offer more advantages than off-grid microgrids.
- In terms of application, the microgrid control system market can be categorized into utilities, cities & municipalities, defense, and industrial. The utilities segment held major share of the global market in 2020 owing to rise in global government investments in microgrid control systems in utilities.
Global Microgrid Control System Market: Regional Segmentation
- In terms of region, the global microgrid control system market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America is the leading region of the global microgrid control system market due to the increase in emphasis on grid modernization. The U.S. is estimated to be the major country of the microgrid control system market in North America owing to the rise in investment in upgrade of the grid technology in the country. The market in Canada has been expanding owing to the increase in smart grid projects in the country. Implementation of stringent government regulatory framework is likely to further drive the market in North America.
- Asia Pacific also presents key opportunities for the market. India and China are prominent countries in terms of demand for microgrid control systems in Asia Pacific
- Europe is also a lucrative region of the global microgrid control system market. It is in the process of massive power grid modernization investments. For instance, TenneT, the transmission operator in the Netherlands and Germany, plans to invest up to € 6 Bn over the next three to five years. The company is developing new connections, as well as strengthening and expanding its grid and upgrading its system operations to meet the EU’s new target to minimize emissions by up to 55% by 2030.
COVID-19 Impact on Global Microgrid Control System Market
- The COVID-19 pandemic has adversely affected the global microgrid control system market. Distribution system operators across the globe have suffered low demand for electricity, waiving of interest of bills, and bans on disconnection during lockdowns. Hence, they have delayed most initiated projects for power infrastructure. Non-critical investments have also been suspended. However, relief packages announced by various governments after lockdowns are likely to lead to quick recovery of the microgrid control system market in the near future.
Key Players in Market
The global microgrid control system market is likely to witness fierce completion owing to the presence of several new and established players. Market collaboration and new product launch are some of strategies adopted by the top players to increase their penetration. Prominent players operating in the microgrid control system market include:
- ABB Group
- Siemens AG
- Hitachi, Ltd
- Eaton Corporation PLC
- Princeton Power Systems
- General Electric Corporation
- Schneider
- Honeywell International, Inc.
- ETAP
- S&C Electric
Global Microgrid Control System Market: Research Scope
Global Microgrid Control System Market, by Type
- Grid-connected
- Off-grid
- Hybrid
Global Microgrid Control System Market, by Application
- Utilities
- Cities & Municipalities
- Defense
- Industrial
- Others
Global Microgrid Control System Market, by Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Russia & CIS
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
