All Reports
4Q 2023

Microgrid Markets

Market Drivers, Barriers, Value Chain, and Key Market Segment Forecasts, 2023-2032

Customers in all business segments are increasingly evaluating the benefits of microgrids as retail electricity rates rise, costs for distributed energy resources continue to decline, and adverse events causing grid outages (e.g., natural disasters) increase in frequency.

Decarbonization efforts have created a focus on microgrids that leverage renewable energy generation plus energy storage with a fossil fuel backup generator, all managed by a localized control system capable of operating the assets in concert with or islanded from the utility grid. At the same time, resilience and automation trends have created a market for smart genset-based microgrids that provide enhanced backup solutions and, increasingly, support to the grid. Integrators and developers are also focused on offering innovative financing mechanisms to consumers for projects that are not financed through the host’s or developer’s balance sheet. This can allow developers to offer their solutions with no upfront capital requirement for the consumer via an energy as a service (EaaS) type contract in which system ownership and operation are outsourced to the integrator or developer.

This Guidehouse Insights report forecasts market potential, including deployments and spending, for all major microgrid segments (commercial and industrial, community, campus/institutional, stationary military base, remote, and utility distribution microgrids) over a 10-year forecast period through 2032. Forecasts are broken down by global region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) as well as business model (EaaS, government, owner financing, utility rate base, and other).

Pages 42
Tables | Charts | Figures 30
  • Where is the most microgrid capacity deployed globally?
  • Why are some microgrid segments more attractive in certain regions?
  • What are the latest technological innovations driving microgrid market growth?
  • What are the challenges impeding further microgrid market growth?
  • What can policymakers, investors, and utilities do to encourage further adoption of microgrids?
  • What are the business models behind remote microgrid projects?
  • Microgrid and smart grid technology companies
  • Microgrid project developers
  • Smart grid hardware and software providers
  • Large industrial power users
  • Government agencies
  • Military agencies
  • NGOs
  • Investor community

1. Executive Summary

1.1    Microgrid Definition

1.2    Market Trends

1.3    Global Outlook

2. Market Issues

2.1    Market Drivers

2.1.1   Falling Costs for Energy Storage Systems

2.1.2   Innovations in Control and Management Technologies

2.1.3   Socioeconomic Benefits of Microgrids

2.1.4   Rise of Modular/Containerized Microgrid Solutions

2.1.4.1 Schneider Electric Case Study

2.1.5   Increase in Smart Genset Microgrids

2.1.5.1 Enchanted Rock Case Study

2.1.6   Evolving Microgrid Financing

2.2    Market Barriers

2.2.1   Lack of Consensus around the Value of Resilience

2.2.2   Controller Costs, Performance, and Compatibility

2.2.3   Challenges Related to the Selection of Microgrids

2.2.4   Lack of Streamlined Interconnection Processes

2.3    Regional Analysis

2.3.1   North America

2.3.2   Europe

2.3.3   Asia Pacific

2.3.4   Latin America

2.3.5   Middle East & Africa

3. Industry Value Chain

3.1    Value Chain Overview

3.1.1   Component Manufacturers

3.1.2   Controls Providers

3.1.3   Developers

3.1.4   System Integrators

3.1.5   Engineering, Procurement, and Construction

3.1.6   Operations and Maintenance

3.2    Competitive Landscape

3.2.1   Microgrid Integrators

3.2.1.1 Schneider Electric

3.2.1.2 Siemens

3.2.1.3 GE Vernova

3.2.1.4 Enchanted Rock

3.2.1.5 PowerSecure

3.2.2   Business Model Evolution

4. Market Forecasts

4.1    Forecast Methodology

4.1.1   Microgrid Capacity Estimates

4.1.2   Microgrid Implementation Spending Estimates

4.2    Global Market Overview

4.3    Major Microgrid Application Segments

4.3.1   Commercial and Industrial Microgrids

4.3.2   Community Microgrids

4.3.3   Campus/Institutional Microgrids

4.3.4   Remote Microgrids

4.3.5   Utility Distribution Microgrids

4.4    Microgrid Business Models

5. Conclusions and Recommendations

5.1    Three Major Takeaways

5.2    Recommendations

5.2.1   Microgrid Developers

5.2.2   Government and Financial Institutions

5.2.3   Power Utilities and Grid Operators

5.2.4   End Users

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study

10. Sources, Methodology and Notes

  • Annual Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual Microgrid Capacity Additions and Implementation Spending by Segment, World Markets: 2023-2032
  • Annual C&I Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual Community Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual Campus/Institutional Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual Remote Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual UDM Microgrid Capacity Additions and Implementation Spending by Region, World Markets: 2023-2032
  • Annual Microgrid Implementation Spending by Business Model, World Markets: 2023-2032
  • Financing Structure for Microgrids
  • Microgrid Value Chain
  • Annual Microgrid Capacity Additions by Region, World Markets: 2023-2032
  • Annual Microgrid Implementation Spending by Region, World Markets: 2023-2032
  • Annual Microgrid Capacity Additions by Segment and Region, World Markets: 2023-2032
  • Annual Microgrid Implementation Spending by Segment and Region, World Markets: 2023-2032
  • Annual Microgrid Capacity Additions by Segment, World Markets: 2023-2032
  • Annual Microgrid Implementation Spending by Segment, World Markets: 2023-2032
  • Annual Campus/Institutional Microgrid Capacity Additions by Region, World Markets: 2023-2032
  • Annual Campus/Institutional Microgrid Implementation Spending by Region, World Markets: 2023-2032
  • Annual C&I Microgrid Capacity Additions by Region, World Markets: 2023-2032
  • Annual C&I Microgrid Implementation Spending by Region, World Markets: 2023-2032
  • Annual Community Microgrid Capacity Additions by Region, World Markets: 2023-2032
  • Annual Community Microgrid Implementation Spending by Region, World Markets: 2023-2032
  • Annual Remote Microgrid Capacity Additions by Region, World Markets: 2023-2032
  • Annual Remote Microgrid Implementation Spending by Region, World Markets: 2023-2032
  • Annual UDM Capacity Additions by Region, World Markets: 2023-2032
  • Annual UDM Implementation Spending by Region, World Markets: 2023-2032
  • Annual Microgrid Capacity Additions by Business Model, World Markets: 2023-2032
  • Annual Microgrid Implementation Spending by Business Model, World Markets: 2023-2032
  • CEO 360 Degree View
  • Microgrid Market Share Comparison by Region, World Markets: 2023 & 2032
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