Microgrid Monitoring Systems Market

Microgrid Monitoring Systems Market Outlook

Global microgrid monitoring systems market is worth around US$472 Mn in 2022 and will exceed the valuation of US$1,328.8 Mn by the end of 2029. Between 2022 and 2029, the microgrid monitoring systems market is expected to witness a robust 15.9% CAGR.

Microgrid Monitoring Systems Market to Witness Robust Growth in Adoption as Renewable Energy Sector Grows Stronger

Major power interconnections can now be developed regionally and between continents thanks to the Global Energy Interconnection (GEI), which was proposed to modernize electricity networks. The goal is to the use of renewable energy technology to meet the world's shooting energy needs. Wherever a steady power source is needed, microgrids have proven to be an ideal solution. The viability of monitoring systems is a key consideration when calculating the carbon footprint of renewable energy. This is expected to drive the growth of microgrid monitoring systems market. Several lenders, and investors continue to seek improved standards for microgrid monitoring system eligibility.

Systems for monitoring microgrids in real time and regulating all equipment in accordance with their requirements for safe and reliable operation are known as microgrid monitoring systems. The components of microgrid monitoring systems include a wide range of manufactured and configured goods as well as monitoring solutions that are standardised and put together with necessary auxiliary hardware. It is extremely expected that the global microgrid monitoring systems market would have a robust growth outlook due to the widespread application of microgrid monitoring systems in military microgrids, campus microgrids, community microgrids, and distant microgrids. Military microgrids frequently use adoption for monitoring and inspection purposes.

Renewable Power Grid-integration Projects to Fuel Growth of Microgrid Monitoring Systems Market

Declining costs of renewable energy technologies and battery storage, increased focus of smart grids & asset management, increased government commitment to universal electrification, and improving policy frameworks will drive the expansion of microgrid monitoring systems market in the next few years. Asset management remains the key driver for growth in deployment of microgrid monitoring systems. Globally, more than 2,000 planned microgrid projects represent 24,000 MW of proposed, under development, and operational power capacity. Microgrid (and solar home system) solutions powered by renewables already provide electricity to nearly 90 million people. To achieve universal electricity access by 2030, the current pace of expansion will have to double. It is estimated that off-grid solutions will supply 50-60% of the additional generation needed to achieve universal electricity access by 2030. This is expected to benefit service providers of hardware and software solutions related to microgrid monitoring systems.

The microgrid monitoring systems market is highly capital-intensive. This is one of the major restraints facing market participants. High capital investment poses a barrier to new market entrants. Well-established players such as Siemens AG and Caterpillar, Inc. possess high capital required to harness large-scale microgrid monitoring systems. Shortages of skilled labour required for installation of microgrid monitoring system components persist. Emergence of smart microgrids in developed countries creates competition in the microgrid monitoring systems market.

Demand for Software Likely to Expand in Microgrid Monitoring Systems Market

Based on type, the global microgrid monitoring systems market is segregated into hardware and software. In 2021, hardware segment dominated and constituted more than 60% of the global microgrid monitoring systems market. Hardware in microgrid monitoring systems comprises PXI communication systems, control interface equipment, and industrial personal computers. Software programs in microgrid monitoring systems have four functions: collecting data, uploading data, receiving commands, and controlling devices.

Extensive R&D activities related to microgrid monitoring systems are being carried out to increase electricity generation facilities. In terms of CAGR, software is projected to be an attractive segment during the forecast period, owing to increase in expenditure on the development of new software for real-time monitoring of microgrids. Electrification and development of remote or underdeveloped areas offers expansion opportunities to the microgrid monitoring systems market.

Application at Remote Areas Leading Segment, Military Microgrid to Grow Lucrative in Microgrid Monitoring Systems Market

Based on application, the global microgrid monitoring systems market is segregated into community, institution, utility, remote, commercial/industrial, and military. In 2021, remote segment dominates and constitutes more than 42% of the global microgrid monitoring systems market. High share of the segment can be attributed to higher costs of these services as compared to other services. Remote microgrids provide uninterruptible backup power for critical infrastructure in remote locations such as villages, forest areas, and offshore locations. Remote microgrid systems provide uninterruptible backup power for critical infrastructure. Rapid rise in demand for power is bolstering microgrid monitoring system sales across the globe. These grids not only improve the power supply reliability but also reduce the pressure on energy conservation and environmental protection.

The microgrid investment accelerator (MIA) would aid in enhancing investments in energy access and renewable energy microgrid deployment in emerging, underserved markets. MIA is an innovative energy access investment vehicle that provides both for-profit and non-profit capital management services. The military microgrid segment is expected to expand at a higher growth rate. Military microgrid is projected to be an attractive segment in global microgrid monitoring systems market during the forecast period owing to the rise in expenditure on data related to security and defence purpose to retain national interests. Microgrids offer an alternative for ensuring power reliability by integrating and automating distributed energy resources. More recently, truly self-sufficient microgrids are becoming more and more attractive as renewable energy costs decline and energy storage technology continues to advance.

Asia Pacific Stores Massive Potential to Outweigh North America’s in Microgrid Monitoring Systems Market

North America dominated the microgrid monitoring systems market in 2021 owing to rising investments in microgrid network, especially for the integration of renewable power sources. North America constituted 36.3% share of the global microgrid monitoring systems market in 2021. In the US and Canada, major power consumer economies are looking for alternative energy sources to avoid the impact of higher fossil fuel consumption. Continuously increasing demand of microgrids with high penetration of distributed energy generators, mainly renewable energy sources, is modifying the traditional structure of electric distribution grid.

Currently, Asia Pacific is the most attractive region in microgrid monitoring systems market. Demand for microgrid monitoring systems in Asia Pacific is expected to surpass that in North America by 2024 end. The renewable energy market in India showcased healthy growth in and post-2017. Escalating need for safe and secure electricity generation, transmission, and distribution in India, and China is expected to drive the microgrid monitoring systems market in the region to new heights. Toshiba is one of the key players in Asia Pacific’s microgrid monitoring systems market.

Several countries in Middle East and Africa have been experiencing political unrest. The Middle East and Africa region has more than 3GW microgrid installed capacity and currently secures the third place in the microgrid monitoring systems market, after North America, and Asia Pacific. Countries in MEA are expected to add more capacity in the next few years, which is likely to propel demand for microgrid monitoring solutions, thereby benefiting microgrid monitoring systems market.

Global Microgrid Monitoring Systems Market: Competitive Landscape

Key players partaking in global microgrid monitoring systems market competition include GE, Mitsubishi Heavy Industries, Ltd., Siemens AG, Toshiba Corporation, ABB Ltd., Eaton Corporation, Power Analytics Corporation, Exelon Corporation, Schneider Electric SE, Caterpillar Inc., and HOMER Energy LLC.

Recent Notable Developments

• In 2022, Caterpillar microgrid powers hydroponics in UAE. Caterpillar dealer Al-Bahar supplied a hybrid microgrid to power a hydroponic farm in the United Arab Emirates
  
  
• In May 2022, UL, a global safety science leader and developer of standard-setting renewable energy modeling software, announced the release of HOMER® Front, a licensable web-based software platform for designing and optimizing complex utility-scale energy storage systems - whether standalone or in combination with solar or wind energy

The Global Microgrid Monitoring Systems Market is Segmented as Below:

By Type Coverage 

• Hardware
• Software

By Application Coverage    

• Community
• Institution
• Utility
• Remote
• Commercial/Industrial
• Military

By Geographical Coverage 

• North America
• U.S.
• Canada
• Europe
• Russia
• France
• UK
• Germany
• Italy
• Rest of Europe
• Asia Pacific
• China
• Australia
• India
• ASEAN
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Leading Companies       

• GE
• Mitsubishi Heavy Industries, Ltd.
• Siemens AG
• Toshiba Corporation
• ABB Ltd.
• Eaton Corporation
• Power Analytics Corporation
• Exelon Corporation
• Schneider Electric SE
• Caterpillar Inc.
• HOMER Energy LLC

Inside This Report You Will Find:

1. Executive Summary
2. Market Overview
3. Price Trends Analysis
4. Global Microgrid Monitoring Systems Market Outlook, 2018 - 2029
5. North America Microgrid Monitoring Systems Market Outlook, 2018 - 2029
6. Europe Microgrid Monitoring Systems Market Outlook, 2018 - 2029
7. Asia Pacific Microgrid Monitoring Systems Market Outlook, 2018 - 2029
8. Latin America Microgrid Monitoring Systems Market Outlook, 2018 - 2029
9. Middle East & Africa Microgrid Monitoring Systems Market Outlook, 2018 - 2029
10. Competitive Landscape
11. Appendix

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