Microgrid Controller Market

Global Microgrid Controller Market Size (2024 to 2029)

The size of the global microgrid controller market was valued at USD 5.56 billion in 2023 and is expected to grow at a CAGR of 24.2% from 2024 to 2029 and be worth USD 20.41 billion by 2029 from USD 6.91 billion in 2024.

Microgrid controllers enable the installation of a microgrid by controlling the dispersed energy resources as well as the loads in a predetermined electrical system to maintain an acceptable frequency and voltage. Coordinating the integration and distribution of loads and locally distributed energy resources, providing ancillary services to the grid, and smooth disconnection and reconnection of the grid are some of the major functions of microgrid controllers.

Global Microgrid Controller Market Drivers:

The growing demand for reliable power supply is spurring the growth of the microgrid controller market. The popularity of microgrids has increased notably in recent years and the adoption of microgrids has significantly grown in remote areas. As per the projections, the global microgrid capacity is anticipated to reach 20,000 MW by 2025. The rise of distributed installations of renewable and non-renewable energy resources, energy storage at the scale of emerging utilities, and rising demand for plug-in hybrid electric vehicles are propelling the growth of the microgrid controller market. For instance, distributed energy resources are anticipated to hold 30% of the global electricity capacity by 2025. Technological advancements are also striving to transform the operating model of utilities, which is contributing to the growth of the microgrid controller market. The demand for microarray controllers in industries to maintain power stability at critical loads, detect electrical disturbances and respond to such disturbances in the shortest possible time is growing exponentially and fueling the growth rate of the global market.

Continued improvements in energy control and management are expected to have a positive impact on microgrid controller market growth. The depreciating prices of distributed renewable energy and battery technologies, along with technological advances in energy management systems, have created more efficient renewable grids, as well as advanced smart grid technologies. With microgrids deployed in many fields and integrated with new technologies, such as fuel cells, there is a need for efficient and reliable control systems capable of handling the complexity of these new systems. Therefore, the need for efficient and centralized microgrid controllers is increasing. Due to their long-distance lines, traditional networks are considered very inefficient. Also, microarrays are very efficient. As fuel and energy costs increase, the need for efficient systems increases, which in turn promotes the adoption rate of microgrid systems.

An increasing number of initiatives from the governments of several countries for energy security is supporting global market growth. For instance, the government of the U.S. allotted USD 1 billion for microgrid projects focusing on energy security. Factors such as the growing usage of microgrids in commercial and industrial applications, increasing demand for off-grid power and advancements in energy storage techniques are further promoting global market growth.

Global Microgrid Controller Market Restraints:

High initial costs for microgrid installations are majorly hampering the growth of the global market. Installing a microarray controller means rearranging components and devices, which is a huge cost. There is reluctance among power plant owners to employ a microgrid controller, as long-standing operational, technological and safety risks prevail. Furthermore, the imposition of aggressive policies legislated by the government, lack of standardization, lack of sufficient knowledge about microgrid technologies among energy professionals, technological complexities and regulatory issues are impeding the growth of the global market.

REPORT COVERAGE:

This research report on the global microgrid controller market has been segmented and sub-segmented based on connectivity, offering, vertical and region.

Global Microgrid Controller Market - By Connectivity:

• Grid Connected
• Off Grid/Remote/Islanded

Based on connectivity, the grid connectivity segment had 64.7% of the global market share in 2023 and is estimated to grow at a healthy CAGR during the forecast period owing to the growing adoption of microgrids for grid resiliency, demand response and renewable energy integration. The U.S. tops in the number of grid-connected microgrid deployments, holding 4 in 10.

The off-grid segment captured a substantial share of the global market in 2023 and is expected to register a promising CAGR during the forecast period as these drivers are more reliable. Isolated microgrids are designed to operate independently, without connection to the main network. Microgrids connected to the grid have higher reliability than isolated microgrids because they are connected to the main electrical grids.

Global Microgrid Controller Market - By Offering:

• Hardware
• Software
• Services

Based on offering, the hardware dominated the market in 2023 and is expected to grow at a steady CAGR during the forecast period owing to factors such as technological advancements, scalability requirements, and the need for resilient hardware solutions. The key market participants such as ABB, Schneider Electric, and Siemens have been putting significant efforts in addressing the growing need for hardware components in the installations of microgrids worldwide.

The software segment is another promising segment and held 36.9% of the global market share in 2023 and is expected to register a healthy CAGR during the forecast period owing to their increasing use to monitor, forecast, manage and optimize energy supply and demand for micro-grid arrangements. GE Power, Schneider Electric, and Honeywell are the leading providers of software solutions for microgrid controllers.

Global Microgrid Controller Market - By Vertical:

• Government
• Utilities
• Commercial
• Industrial
• Educational Institutes
• Military & Defense
• Healthcare
• Others (Small Residential Communities, Townships and Villages)

Based on the vertical, the industrial segment had 31.1% of the global market share in 2023 and is expected to grow at a healthy CAGR during the forecast period. The growth of the industrial segment is primarily driven by the growing need for reliable and self-sustaining power solutions in industrial settings.

The commercial segment occupied 18.9% of the global market share in 2023 and is estimated to register a prominent CAGR during the forecast period. Factors such as rapid adoption in commercial buildings for energy efficiency and grid independence are driving the growth of the commercial segment in the global market.

The utilities segment is anticipated to grow at a steady CAGR during the forecast period.

Global Microgrid Controller Market – By Region:

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus

North America led the market and held 36.4% of the global market share in 2023 and the domination of the North American region is anticipated to continue throughout the forecast period owing to government initiatives that have encouraged microgrid installations in the North American region, high concentration of market players in the region and the availability of competent technical knowledge. High adoption of grid reliability initiatives, regulatory support and renewable energy integration are further propelling the growth of the North American market. The U.S. and Canada hold the major share of the North American market.

Europe is a prominent regional market for microgrid controllers and accounted for 28.4% of the global market share in 2023 and is expected to grow at a healthy CAGR during the forecast period. Factors such as rising emphasis on sustainability, energy independence, regulatory frameworks, clean energy goals by the European Union, transition to renewable energy and grid resilience are driving the growth of the European market.

The microgrid controller market in the Asia-Pacific is expected to progress at the fastest CAGR during the forecast period due to the increase in the number of rural electrification projects in developing countries such as India and Bangladesh. China, Japan, Australia and India are predicted to hold the largest share of the APAC market during the forecast period.

KEY MARKET PARTICIPANTS:

Companies playing a notable role in the global microgrid controller market include ABB Ltd, Eaton Corporation, Emerson Electric Co, General Electric Power, HOMER Energy LLC, Honeywell International Inc., Lockheed Martin Corporation, Pareto Energy Ltd., Power Analytics Corporation, Princeton Power Systems, S&C Electric Company, Schneider Electric SE, Schweitzer Engineering Laboratories, Inc., Siemens AG and Spirae LLC.

RECENT HAPPENINGS IN THE MARKET:

• Emerson (NYSE: EMR), a worldwide innovation and designing organization, today dispatched computerization innovation for utilities and autonomous force makers that inexorably rely upon an assortment of fuel sources, environmentally friendly power and administration to the market of quickly developing microgrids. Its new Ovation OCC100 secluded regulator cost-successfully expands Emerson's demonstrated Ovation ™ control innovation by overseeing power stream from an assortment of sources to guarantee nonstop, solid creation for these arising ventures. This versatile and little impression innovation is additionally appropriate for basic water and wastewater applications.
• Enel X, the Enel Group's high-level energy administrations business line, and the energy management organization Eaton reported today intends to create microgrids in Puerto Rico. The underlying venture will be remembered for site sunlight-based power creation and battery stockpiling at Eaton's Arecibo plant, which produces circuit breakers utilized in homes, structures and an assortment of modern applications.
• ABB declared a secluded and versatile attachment and play microgrid solution to satisfy the developing worldwide need for adaptable innovation in the developing appropriated power generation market.
• ABB and Rolls-Royce declared a worldwide association in microgrid innovation and progressed automation. Together, the two organizations will offer an inventive and energy proficient microgrid solution for utility, business and modern organizations.