Global Microgrid as a Service (MaaS) Market - 2022-2029
Microgrid as a service (MaaS) market size was worth US$ YY million in 2021 and is estimated to show significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 15.6% within the forecast period (2022-2029).
Microgrids-as-a-Service (MaaS) is a brand-new, industry-leading financing method that allows businesses to establish microgrids with no upfront costs. Microgrids-as-a-Service eliminates the financial risk and complexity, allowing more microgrids to be built.
MaaS suppliers arrange financing and operation and maintenance agreements in addition to offering hardware and software, making microgrid deployment a comprehensive option. The microgrid-as-a-service (MaaS) model is experiencing rapid expansion, owing to its cost advantages over older methods.
The underperformance of existing grids with outdated infrastructures is a crucial success element pulling the microgrid-as-a-service sector forward. With government funds, U.S. Department of Energy has launched the Smart Grid Investment Grant (SGIG) program to speed up the transition from traditional electric transmission networks to modernized systems.
Growing technological advancements to fulfill electricity demand has escalated the market share for MaaS
Growing technological advancements to fulfill electricity demand has escalated the market share for MaaS
Global energy consumption is expected to rise by roughly 56% by 2040, according to US Energy Information Administration (EIA). Furthermore, due to increased industry and urbanization, energy consumption is increasing rapidly, which is not met entirely by major networks. These gaps translate into business possibilities for microgrid companies looking to expand their power supply services.
According to the EIA, India and China are undergoing rapid industrial expansion and by 2040, they will account for half of the world's total increase in energy consumption. Industrial development in these countries and U.S. is propelling the global energy industry and boosting the demand for the microgrid.
Thus, companies are investing in microgrids as a service technology that overcomes the growing demand for microgrids due to increased electricity demand. Several technological improvements have been directed toward enhancing the performance of battery inverters to ensure a microgrid's uninterrupted power supply.
Manufacturers in the microgrid-as-a-service industry are looking to create battery technology with larger power outputs to enter deeper into end-user sectors with their models. Initiatives like the Clean Power Plan (CPP), which aims to reduce carbon emissions, are opening the way to grow renewable energy sources like biopower, wind power and solar power. The performance of microgrids can be optimized by real-time data streaming, processing, storage and monitoring infrastructure, which eliminates any human intervention, especially with the development of wireless and IoT technologies.
Manufacturers can also use MaaS's capabilities to lessen reliance on long-distance distribution lines, lowering transmission losses. The combination of Blockchain technology and MaaS will help to increase transaction trust. Market participants will benefit from integrating this technology with microgrids since they will be able to manage payments more conveniently and securely.
The complexity of MaaS leads to the generation of various challenges, thus hurdling the growth of the technology
The microgrid-as-a-service approach has been regarded as complicated since its start. The complicated planning and design of microgrids and integration sensors, controllers, resolvers and encoders add to the system's complexity.
The deployment of such a complicated system necessitates competent personnel; nevertheless, a shortage of specialists might have a long-term influence on adoption rates. Besides that, stringent government regulations related to microgrids and the rising adoption rate of individually-owned microgrids are expected to stifle the microgrid-as-a-service market's spectacular growth.
Furthermore, because of two important factors: expensive upfront CAPEX and OPEX requirements and mandated conformance to regulatory regulations, the MaaS market faces a low risk of new competitors. In addition, the lack of understanding among end-users and the increasing structure complexity are two main roadblocks to the microgrid as a service (MaaS) market's growth. Thus, throughout the projection period, the micro-grid as a service (MaaS) market is likely impeded by the complexity of planning and development and a lack of public awareness.
COVID-19 Impact Analysis
The COVID-19 pandemic has impacted the world economy in various ways. Apart from a normal shock to business that resonated across the global economy, one of the most visible repercussions on the energy industry was a dramatic fall in demand (and corresponding price) for oil. There are short- and long-term repercussions, but clear data indicates that microgrid as a service will grow in double digits despite a terrible global crisis.
However, the expansion will be defined by unequal impacts on different market sectors and the acceptability of diverse distributed energy resources (DER) technologies. Furthermore, while project delays in 2020 are predicted to extend into 2021, COVID-19 is expected to improve the long-term outlook for microgrid as a service.
Climate change (and the accompanying extreme weather), wildfires and escalating terrorist attacks on public infrastructure are just a few of the global disruptions to business as usual.
The global microgrid as a service (MaaS) market is segmented based on grid, service, end-user and region.
Rising demand for remote microgrids in rural areas and remote areas has boosted the segmental growth of the technology
The global microgrid as a service (MaaS) market is segmented into grid-connected and remote/islanded microgrids based on the grid.
Among the mentioned grids, remote/islanded microgrid holds a dominating market share in the global microgrid as a service market. The segment allows facilities to manage distributed energy sources better and achieve greater control in meeting energy demands. Furthermore, due to unavailable and inexpensive transmission and distribution (T&D) infrastructure nearby, remote/islanded microgrids are physically disconnected from the utility grid and operate in island mode.
Renewables, such as wind and solar, often provide a more cost-effective and ecologically sustainable DER solution for the microgrid operator in these remote scenarios. In addition, several remote microgrids are contemplating battery energy storage devices for backup power instead of traditional generators.
Furthermore, remote microgrids have many advantages for utilities and their consumers, particularly when serving individuals in rural and remote areas. The utility can own the microgrid and use it as a distributed energy resource (DER), giving remote consumers the same level of reliability as non-remote customers. In addition, remote microgrids have a more consistent level of reliability than before the microgrid.
In Asia-Pacific, increased expenditures on microgrid infrastructure and growing demand for a continuous, uninterrupted, dependable power supply and electricity strengthen the microgrid as a Service (MaaS) regional market share.
The significant investments in microgrid infrastructure and the growing demand for a continuous, uninterrupted and dependable supply of power and electricity are driving the market expansion of microgrid as a service in Asia-Pacific.
Furthermore, growth in the microgrid market in the region has created huge market opportunities for the technology to grow in the forecast period. The growth is primarily ascribed to the low electrification rate and grid connectivity, coupled with the high demand for power in the region.
The market in Asia-Pacific is expected to grow rapidly during the projected period, owing to the region's growing industrialization and urbanization, particularly in China and India. Furthermore, governments in Asia-Pacific countries intend to boost distributed energy generation and microgrids to provide electricity to their citizens.
Furthermore, the North American area is expected to grow significantly during the projection period. U.S. is the largest market for microgrids as a service globally. In U.S., the market is always changing and evolving, especially in the electrical supply sector, leading to huge market growth trends in the microgrid as a service market.
The global microgrid as a service (MaaS) market is highly competitive with local and global key players. Some key players contributing to the market's growth are General Electric, Eaton Corp. PLC, Siemens AG, Pareto Energy, Engie SA, Spirae, Inc, Green Energy Corporation, Anbaric Development Partners, NRG Energy, Inc, Duke Energy Corporation and others.
The major companies are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the global growth of the microgrid as a service (MaaS) market.
For instance, in February 2018, ABB announced the delivery of an ABB Ability-enabled microgrid and storage system to integrate renewable solar and wind energy into the enormous tropical island's power supply, decreasing the fossil fuel requirement and lowering the carbon impact. ABB is a pioneer in microgrids, which are excellent for isolated places such as islands that are difficult to connect to main power grids due to their size and capacity.
Overview: General Electric Company is an international conglomerate incorporated in New York City and headquartered in Boston, Massachusetts, U.S. The company involves in the operations of the following business segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance. The company's products and services offering extends from aircraft engines, power generation, water processing and household appliances to medical imaging, business and consumer financing and industrial products
Product Portfolio: GridNode Microgrid Solutions: Electrification, decarbonization, digitization and decentralization are all global energy developments transforming the current energy scene. Microgrids are becoming more popular due to these trends and customer desire for solutions that provide increased reliability, resiliency, sustainability, energy independence and cost savings.
GridNode Microgrid Solution from GE delivers real-time control and energy optimization, allowing customers to get the most return on their investment (ROI) from their systems.
Operations management, transition management, dispatch control and energy optimization, operations planning and market involvement are all included in the GridNode Microgrid Solution's control and automation features.
On November 09, 2021, the opening of the new cutting-edge microgrid control lab at University of Central Florida was celebrated by Florida Power & Light Company (FPL) and GE Digital (UCF). The lab will be a cutting-edge research facility and control room for engineering instructors and students. The lab at UCF is co-sponsored by FPL and GE Digital. It will include control center equipment and software that students will use to mimic and test real-life grid control operations, such as identifying ways to optimize and safeguard the future grid.
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The global microgrid as a service (MaaS) market report would provide approximately 61 market data tables, 54 figures and 210 pages.
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