The overall Microgrid controller market is expected to grow from USD 10 billion in 2020 to USD 19.8 billion by 2027, at a CAGR of 15.1% from 2020 to 2027. The accelerating adoption of microgrids for reliable, & secure power supply, the fundamental shift towards the usage of renewable energy sources to reduce carbon footprint, increasing investment by governments on microgrid projects, and optimization of energy assets and enhanced efficiency of microgrids by using microgrid controllers are the major factors contributing to the growth of the global microgrid controller market.
The overall microgrid controller market is expected to grow from USD xx billion in 2020 to USD xx billion by 2027, at a CAGR of xx % from 2020 to 2027. Microgrid controller enables the installation of a microgrid by controlling dispersed energy resources as well as loads in a predetermined electrical system for maintaining acceptable frequency and voltage. Rise in the installations of distributed renewable and non-renewable energy resource, emerging utility-scale energy storage, demand response, and plug-in hybrid electric vehicle use have been creating unprecedented opportunities for the electric distribution system. Technological leaps further strive to transform the utility operational model, which will remain an influential driver for the microgrid controller market. Demand for microgrid controller has been on a surge in industries for maintaining power stability in critical loads, detecting electrical disturbances, and providing a response to those disturbances in the least possible time. Focus on business sustainability has geared the power plant owners towards the adoption of microgrid controller as conservation of the environment becomes a priority.
The accelerating adoption of microgrids for reliable, & secure power supply, the fundamental shift towards the usage of renewable energy sources to reduce carbon footprint, increasing investment by governments on microgrid projects, and optimization of energy assets and enhanced efficiency of microgrids by using microgrid controllers are the major factors contributing to the growth of the global microgrid controller market.
In addition to this, modernization of infrastructure across the global to acquire smart city capabilities is leading to an increase in the demand for microgrids, which in turn, is strengthening the demand for microgrid controllers in the coming years. The strong demand for microgrid from the utility, government, and military sector across the globe, rising emphasis on the development of smart cities, especially in the developing economies, followed by the growing necessity to upgrade the existing old grid infrastructure will create innumerable growth opportunities for the market. However, on the other hand, the high cost of microgrids and the implementation of stringent government regulations are some factors that will hamper the growth of the market.
Major vendors in the global microgrid controller market are Schneider Electric (France), General Electric (US), ABB (Switzerland), Siemens (Germany), Schweitzer Engineering Laboratories (US), Eaton Corporation (Ireland), Honeywell International (US), Lockheed Martin (US), S&C Electric (US), and Power Analytics (US).
The global market for microgrid controller is estimated to grow at a significant rate during the forecast period from 2019 to 2025. The geographical analysis of the market is done for North America, Europe, Asia-Pacific, and the rest of the world.
North America followed by Europe is expected to dominate the microgrid controller market from 2019 to 2025 owing to the government initiatives that have encouraged the microgrid installations in the region. Furthermore, high concentration of market players in the region and availability of proficient technical expertise propel the demand for microgrid controller in the region.
Based on the region, the Asia-pacific region is projected to grow at a higher CAGR in the global Microgrid Controller market over the forecast period. The continuous expansion in the industrial sector and the development of power infrastructure, especially in China, Japan, and India, are boosting the growth of the market in this region. Asia-pacific is one of the potential markets for microgrid controller systems. The electricity demand in the Asia-pacific is increasing faster than the expansion of traditional electricity grids, which further fuels the growth of the market.