Global Microgrid Capacity Is Expected to Experience a Compound Annual Growth Rate of 21% Over the Next Decade
Asia Pacific is expected to continue to be the largest overall market for microgrids, with remote segments making up the majority opportunity
A new report from Navigant Research analyzes regional microgrid capacity, implementation spending, and business model type, providing global forecasts, segmented by region and market type, through 2028.
The global market for microgrids continues to grow, but it is not yet a smooth ride to widespread viability. Although microgrid technologies have dropped in cost, and controls functionality has improved, regulatory barriers and long project development cycles continue to frustrate efforts to move this market fully into the mainstream. However, significant progress has been made in the last decade and is expected to continue. Click to tweet: According to a new report from @NavigantRSRCH, total global microgrid capacity is expected to grow from 3.5 GW in 2019 to nearly 20 GW in 2028 at a compound annual growth rate of 21.4%.
“The total global market for microgrids in 2019 is estimated at $8.1 billion and expected to near $40 billion by 2028,” says Peter Asmus, research director with Navigant Research. “While different market segments have shifted in prominence over the years, what has remained consistent is overall growth across all five major regions profiled.”
According to the report, Asia Pacific is expected to continue to be the largest overall market for microgrids, with remote segments making up the majority opportunity. North America remains the top market for grid-tied microgrids, as a flurry of projects identified in 2019 increased starting point capacity levels in 2019 beyond those previously forecast. Meanwhile, Latin America is the fastest growing market due in part to the major island-wide microgrid program in Puerto Rico.
The report, Microgrids Overview, forecasts regional capacity, implementation spending, and business model type by six primary market segments: campus/institutional, commercial and industrial (C&I), community, remote, utility distribution, and military (US only). The study provides an analysis of market drivers, barriers, and technology issues. Global market forecasts, segmented by region and market type, extend through 2028. An Executive Summary of the report is available for free download on the Navigant Research website.
*The information contained in this press release concerning the report, Microgrids Overview, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant - a Guidehouse company undertakes any obligation to update any of the information contained in this press release or the report.