NEW YORK, June 27, 2024 /PRNewswire/ — The global energy storage for microgrids market size is estimated to grow by USD 2.09 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 22.79% during the forecast period. Increasing government support and microgrid energy storage installation projects is driving market growth, with a trend towards advancements in technology. However, high implementation costs poses a challenge. Key market players include ABB Ltd., AEG Power Solutions BV, Aquion Energy, AT and T Inc., Beacon Power Systems, David MacBrayne Ltd., EnerSys, General Electric Co., GS Yuasa International Ltd., Hitachi Ltd., LG Corp., Mitsubishi Heavy Industries Ltd., Morimura Bros Inc., Panasonic Holdings Corp., S and C Electric Co., Samsung Electronics Co. Ltd., Shell plc, Sumitomo Electric Industries Ltd., Toshiba Corp., and TotalEnergies SE.
Technavio has announced its latest market research report titled Global energy storage market for microgrids 2024-2028
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2018 – 2022 |
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Segment Covered |
Application (Remote, Community and utility, Institution and campus, and Military), Battery Type (Lithium-ion batteries and Lead-acid batteries), and Geography (North America, APAC, Europe, South America, and Middle East and Africa) |
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Region Covered |
North America, APAC, Europe, South America, and Middle East and Africa |
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Key companies profiled |
ABB Ltd., AEG Power Solutions BV, Aquion Energy, AT and T Inc., Beacon Power Systems, David MacBrayne Ltd., EnerSys, General Electric Co., GS Yuasa International Ltd., Hitachi Ltd., LG Corp., Mitsubishi Heavy Industries Ltd., Morimura Bros Inc., Panasonic Holdings Corp., S and C Electric Co., Samsung Electronics Co. Ltd., Shell plc, Sumitomo Electric Industries Ltd., Toshiba Corp., and TotalEnergies SE |
Key Market Trends Fueling Growth
The energy storage market for microgrids is experiencing significant growth due to the increasing installation of microgrids where central grids fail to meet power demands. Advanced technologies are enhancing energy production quality, leading to the development of flexible and scalable microgrids. Hybrid microgrids, combining renewables, fossil fuels, and energy storage, are a major advancement. The US DOE’s R&D program aims to make microgrids an integral part of the future electricity delivery system by 2035, focusing on reliability, resilience, decarbonization, and affordability. Expect new technologies to enable microgrids to work in tandem with the power utility distribution grid and transition seamlessly to autonomous power system mode.
The Energy Storage for Microgrids market is experiencing significant growth due to the increasing demand for reliable and sustainable power solutions. Key players in this sector include Capacity, Corpower, Solar, Commodity, Power, Transport, Markets, Agilitude, Demand, Manufacturing, Grid, and Vehlco. Trends in this market include the use of redox flow batteries, lithium-ion batteries, and lead-acid batteries. The demand for energy storage in microgrids is driven by the need for energy independence and the ability to store excess renewable energy for later use. Additionally, the integration of electric vehicles into the grid is expected to further boost the market. The capacity to store energy is crucial for the efficient operation of microgrids and the integration of renewable energy sources.
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Market Challenges
Microgrids, which offer improved reliability and power quality compared to traditional centralized grids, come with higher implementation costs. These expenses include smart meter installation, communication system deployment, and microgrid control systems. Solar PV arrays, batteries, and CHP systems used in microgrids are more expensive than standard centralized power facilities. Integration of various microgrid components with other technologies also increases production costs. Compliance with mandatory utility grid interconnection standards, such as IEEE 1547 and 2030 in the US, adds to the cost. These factors pose a significant challenge to the growth of the energy storage market for microgrids.
Microgrids are becoming increasingly popular for providing reliable and sustainable power to various industries and communities. However, integrating energy storage systems into microgrids poses certain challenges. One challenge is the high cost of energy storage technologies like batteries. Another challenge is the need for efficient energy management systems to optimize the use of stored energy and ensure grid stability. Additionally, the size and complexity of energy storage systems can make installation and maintenance difficult and expensive. Furthermore, the interconnection of microgrids with the main power grid requires regulatory compliance and standardization. Despite these challenges, the benefits of energy storage for microgrids, such as improved grid resilience and renewable energy integration, make it a worthwhile investment for the future.
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Segment Overview
This energy storage for microgrids market report extensively covers market segmentation by
Application
1.1 Remote
1.2 Community and Utility
1.3 Institution and Campus
1.4 Military
Battery Type
2.1 Lithium-ion Batteries
2.2 Lead-acid Batteries
Geography
3.1 North America
3.2 APAC
3.3 Europe
3.4 South America
3.5 Middle East and Africa
1.1 Remote- The Energy Storage for Microgrids market is growing due to the increasing deployment of remote microgrid systems. These systems, often used in villages without grid access or limited power, have an average capacity of 10 kW. India, Indonesia, and Bangladesh are key markets. Solar and wind energy sources are used, but excess power goes to waste without energy storage. Storage systems capture excess power for later use, reducing fuel costs and meeting peak demand. Industrial applications also drive demand. Solar panels’ declining costs and energy storage advances enable clean energy microgrids. The market is expected to grow significantly as the demand for electricity increases faster than conventional grid expansion.
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Research Analysis
In the context of the evolving energy landscape, the Energy Storage For Microgrids Market plays a pivotal role in enhancing grid reliability and resilience. Solar and wind energy, key contributors to the low-carbon economy, face intermittency challenges. Energy storage solutions, such as stationary batteries, address this issue by providing consistent power supply. The transportation and industry sectors, as well as buildings and agriculture, can benefit from microgrids and energy storage. Commodity markets for kilowatthours and gigawatts continue to evolve, with energy capacity from electrified powertrains and consumer electronics adding to the demand. Commodity trading in the transportation market and stationary market further fuels the growth of energy storage for microgrids. Demand management and electric vehicle adoption also contribute to the increasing importance of energy storage in microgrids. Photovoltaics and other renewable energy sources are integrated with energy storage to ensure a stable power supply and improve overall grid performance.
Market Research Overview
The Energy Storage for Microgrids market refers to the technologies and solutions that enable the storage and release of energy in decentralized power grids. These systems play a crucial role in ensuring grid reliability and stability, particularly in remote areas and during power outages. The market is driven by the increasing adoption of renewable energy sources, such as solar and wind, which generate intermittent power. Energy storage solutions for microgrids include batteries, flywheels, and pumped hydro storage, among others. The market is expected to grow significantly due to the increasing demand for reliable and sustainable power supplies, as well as government initiatives and incentives to promote renewable energy and energy storage. The use of advanced control systems and IoT technologies is also expected to drive market growth by improving the efficiency and performance of energy storage systems.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Application
Remote
Community And Utility
Institution And Campus
Military
Battery Type
Lithium-ion Batteries
Lead-acid Batteries
Geography
North America
APAC
Europe
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
