Global Microgrid Controller Market Size, Share & Industry Trends Analysis Report By Connectivity (Grid Connected and Off-grid Connected), By Offering (Hardware, Software and Services), By End User, By Regional Outlook and Forecast, 2022 – 2028
The Global Microgrid Controller Market size is expected to reach $12.6 billion by 2028, rising at a market growth of 21.8% CAGR during the forecast period.
A microgrid is a network of interconnected workloads and distributed energy sources that behave with the grid as a single, controllable entity. To function in island mode or grid-connected mode, it can connect to and disconnect from the grid. Distributed energy sources including generators, storage, and controllable loads can be incorporated into microgrids.
A microgrid controller is a system that manages the microgrid and specifies how and when to connect to/disconnect from the grid. When a system is islanded, actual and reactive power balance must be maintained immediately. Over a longer period, the control strategy must be used to decide how to allocate the resources. The allocation of resources is also done by a microgrid controller.
In the past, combined heat and power (CHP) systems powered by fossil fuels and generators with reciprocating engines were used to power microgrids. Nowadays, however, projects are utilizing more environmentally friendly resources, such as solar energy and energy storage. When emerging technologies like fuel cells and even small customizable nuclear reactors become commercially viable.
Microgrids can be powered by renewable energy sources, combustion turbines powered by natural gas or other sources. After weather- or protection outage hits the larger system, they can power crucial facilities. Additionally, microgrids can serve as the neighborhood's or a hospital's primary source of electricity. Many metropolitan areas are engaged in systems that can more effectively integrate generation assets and load, offer numerous users, and/or meet ecological or emergency response objectives.
COVID-19 Impact Analysis
The manufacturing and production activities across all industrial verticals have been significantly impacted by the COVID-19 outbreak. The governments of many countries have implemented a multitude of restrictions and lockdowns to deal with the problem. These elements have reduced industry employment and financial growth prospects. Due to the drop in demand for electricity, particularly for industrial operations, the necessity for microgrids and their operating systems significantly dropped during the pandemic.
Market Growth Factors
Increasing Demand For Consistent, Dependable Power Supply
Massive, distant power plants that use fossil fuels and are connected to centralized power grids produce electricity that is transmitted between different areas and nations. However, it has become more and more clear that these power plants have issues with ineffective power transmission. Conventional grids are susceptible to natural disasters, which typically cause network problems or blackouts. For instance, Typhoon Haiyan in the Philippines and Hurricane Sandy in the US, both caused widespread outages in urban centers like New York City and the Leyte Islands.
Reduced Energy Costs For Consumers And Businesses
Microgrids can help their clients save money while also generating income. Through effective energy supply management, they lower expenses. By reselling energy and services to the grid, they generate income. As a result, consumers have a new level of power in the energy markets. Through their microgrids, they can now produce and control energy as well as consume it. Prosumers are the name for these clients. Ancillary services perform grid-supporting tasks like frequency regulation and spinning reserves.
Market Restraining Factors
Changing International Standards, Laws, And Regulations
Being relatively new, microgrid technology is currently too dynamic and unpredictable for regulatory frameworks. For example, rules and guidelines for integrating microgrids into the larger grid are still being developed. The acceptability of microgrids is restricted by the current framework structure. For instance, grid-connected power inverters must shut down when they detect grid problems according to IEEE Standard 1547.
Based on connectivity, the microgrid controller market is bifurcated into grid connected and off-grid connected. The grid-connected segment acquired the highest revenue share in the microgrid controller market in 2021. Microgrids that are connected to the grid are made up of several generators, sophisticated controllers, and distribution networks. In addition to increasing grid resilience, enhancing electricity quality, and reducing environmental impact, these technologies also have a number of additional advantages that drive demand.
On the basis of offering, the microgrid controller market is divided into hardware, software, and services. The software segment witnessed a substantial revenue share in the microgrid controller market in 2021. A microgrid software is a comprehensive platform that enables project planning, visualization, and optimization for everyone from financiers to engineers and features integrated design stages.
Based on end-use application, the microgrid controller market is categorized into commercial & industrial, remote areas, military, government, utilities, manufacturing and healthcare. The military segment garnered a substantial revenue share in the microgrid controller market in 2021. For international military activities, power security is a crucial concern. Microgrids also improve physical security and cybersecurity, two major military issues, because they can run independently from the grid.
On the basis of region, the microgrid controller market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North American region garnered the highest revenue share in the microgrid controller market in 2021. The significant expansion of microgrids in the region is being fueled by third-party administration of microgrids and a tendency toward smaller (less than 5 MW) repeatable modular systems.
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Siemens AG, Honeywell International, Inc. and ABB Group are the forerunners in the Microgrid Controller Market. Companies such as Schneider Electric SE, Cummins, Inc., Emerson Electric Co. are some of the key innovators in Microgrid Controller Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, General Electric (GE) Co., Schneider Electric SE, ABB Group, Honeywell International, Inc., Eaton Corporation, Caterpillar, Inc., S&C Electric Company, Cummins, Inc., and Emerson Electric Co.
Recent Strategies Deployed in Microgrid Controller Market
Partnership, Collaboration and Agreement:
Mar-2022: Honeywell collaborated with Duke Energy Sustainable Solutions (DESS), a commercial brand of Duke Energy, American electric power and natural gas holding company. Under this collaboration, the companies aimed to jointly develop and provide complete energy resiliency solutions targeted to markets across the United States. The collaboration strengthened energy security, and concentrated on communities with pressing resiliency requirements and developing scaled solutions to reduce the impact of power outages and other grid disruptions related to climate change. The collaboration also helped the companies to manage and measure the progress of their long-term environmental, social, and governance goals.
Dec-2020: Eaton formed a partnership with Enel X, the Enel Group’s advanced energy services business line. Under this partnership, the companies aimed for microgrid development in Puerto Rico by providing better sustainable and resilient power for the community. In this partnership, Eaton offered the installation expertise and key technology for the microgrid system and Enel X built, owned, and operated the system on behalf of Eaton. The companies also looked for additional opportunities to provide a microgrid-as-a-service approach together.
Nov-2020: Honeywell entered a collaboration with Vertiv, a global leader in designing, building, and servicing critical infrastructure. From this collaboration, Honeywell aimed to create more sustainable and efficient data center operations and thus offer integrated solutions that make it easier for data center operators to distill the huge amount of data they pull from the equipments into actions that create more efficient and sustainable operations.
Sep-2020: Schneider Electric partnered with geo (Green Energy Options), the smart home energy specialist based in Cambridge. Under this partnership, Schneider Electric facilitated innovation to make sure that they are best placed to develop net zero homes. The home energy infrastructure required a technological advancement to be smarter and hence, offer homeowners with complete control over energy generation, consumption, and storage.
Product Launch and Product Expansion:
Jan-2021: Schneider Electric unveiled EcoStruxure Microgrid Solution for Small & Medium Buildings. EcoStruxure Microgrid Solution is developed to assist companies in managing the Distributed Energy Resources (DERs) across different facilities. The product is easy to deploy and cost-efficient, allowing businesses to aim on getting the most out of their energy management system.
Nov-2020: Cummins introduced the PowerCommand Microgrid Control product line for managing, coordinating, and optimizing Distributed Energy Resources (DER): the MGC300 and MGC900. The launch marked a critical milestone for the company’s existing supervisory system-level control capabilities and microgrid solutions, which offered a suite of PowerCommand Digital Master Controls for a variety of applications around the world.
Acquisition, Joint Venture and Merger:
Aug-2022: Cummins acquired Meritor, a leading global supplier of drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets. From this acquisition, the integration of Meritor’s people, products, and capabilities in the axle and brake technology positioned Cummins as a leading provider of integrated powertrain solutions across internal combustion and electric power applications. With this acquisition, Cummins and Meritor moved further and faster in developing economically viable decarbonized powertrain solutions that are better for people and the planet.
Oct-2021: Siemens Smart Infrastructure acquired Wattsense, a French startup providing a cloud-based building management platform. Through this acquisition, Siemens aimed to expand its offering in building energy management and automation in the French market. Siemens together with Wattsense would boost the adoption of IoT systems in a broader variety of buildings, thereby bringing sustainability, comfort, and cost advantages to more people and businesses.
Jan-2021: Schneider Electric acquired DC Systems, a Netherlands-based start-up. From this acquisition, Schneider Electric expanded its portfolio, to provide users with better resiliency for relevant applications like building microgrids in unreliable public grid environments or long-distance applications like public lighting with extreme simplicity.
Aug-2022: Cummins expanded its geographical footprint by launching a new microgrid test lab at the Cummins Power Generation facility in Fridley, Minnesota. The test lab allowed the company’s engineers and technical partners to assess and optimize the performance of complex microgrid systems. The test lab was built with the objective to verify and validate the solution’s capability to provide the performance and capability the customer expects.
Scope of the Study
Market Segments covered in the Report:
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