Market drivers include advances in controllers and declining costs for distributed energy resources (DER), including energy storage technologies
BOULDER, Colo., Jan. 10, 2024 /PRNewswire/ — A new report from Guidehouse Insights explores the global microgrid market.
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. According to a new report from Guidehouse Insights, total annual implementation spending to deploy new microgrids is projected to grow at a compound annual growth rate (CAGR) of 18.0% from 2023 to 2032, reaching $55.3 billion by 2032, with Asia Pacific as the leading market in terms of total spending.
“The microgrid market is gaining traction globally as power supply resilience becomes more important to end users. 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,” says Dan Power, research analyst with Guidehouse Insights. “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.”
Advances in controllers and declining costs for distributed energy resources (DER), including energy storage technologies, are driving market growth. Lack of energy access for rural populations around the world is seen as a key opportunity for microgrid expansion. Although supply chain issues may affect cost trends, Guidehouse Insights anticipates overall progress in microgrid adoption globally, according to the report.
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.
The report, Microgrid Markets, analyzes 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 outlook period through 2032. Analyses 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). An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 17,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Microgrid Markets, is a summary and reflects the current expectations of Guidehouse Insights 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 Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]
SOURCE Guidehouse Insights
