Microgrids

Technavio study: Microgrid market to grow nearly 13 percent annually until 2025

Dec. 6, 2021

North America to contribute 28% of the $19.50 billion growth expected in the forecast period

The global microgrid market is expected to grow at a compound annual rate of 12.86% until 2025, says a report by Techanvio Research.

The market is expected to grow by $19.50 billion until 2025, with 28% of this growth coming from North America.In the U.S., favorable factors supporting the growth of microgrids deployment include initiatives by the government to implement energy-efficient power solutions, like providing funding and grants.

Worldwide, governments have recognized the resilience that microgrids offer, especially during natural calamities. For instance, in 2012, when the US was hit by Hurricane Sandy, millions of people, as well as several medical centers and other critical setups, were left without power. This has led to the introduction of initiatives to support microgrids growth.

However, the installation and generation of power from microgrids is a tedious and expensive process, involving new and advanced technologies. The high cost of implementation impedes the growth of this market.

While installing microgrids can be expensive, there is no fixed cost for microgrids because most of these are built on existing infrastructure and then custom-fitted to suit customer requirements.

Besides China and the U.S., the key consumer countries for market growth are China, Australia and the Russian Federation.

About the Author

EnergyTech Staff

Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

He can be reached at [email protected].

EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.