Europe Microgrid Market, By Connectivity (Off-Grid/Island/Remote, Grid Connected), Offering (Hardware, Software, Services), Pattern (Urban, Semi-Urban, Remote Island), Source (Diesel Generators, CHP, Solar Pv, Natural Gas, Others), Storage (Lithium-Ion, Lead Acid, Solar Batteries, Flywheel, Others), Grid Type (AC Microgrid, DC Microgrid, Hybrid Microgrid), Capacity (Less Than 5,000 MW, 5,001 – 10,000 MW, 10,001 – 15,000 MW, More Than 15,000 MW), Control (Primary (Local Control), Secondary, Tertiary (Optimization) Control), Application (Remote Location, Utility, Industrial, Campus, Military, Smart City, Data Center, Hospital, School, Others) - Industry Trends And Forecast to 2029.
Market Definition
A microgrid is a distinct energy system that consists of interconnected loads and distributed energy resources that are capable of operating in parallel with, or independently from the main power grid. Microgrids, in general, are smaller versions of power networks that transport electricity from generators to consumers. They help to lower overall costs and provide grid backup in the event of an outage. Microgrids are more efficient than regular electrical grids and can be integrated with a variety of renewable energy sources such as solar, wind, small hydro, geothermal, waste-to-energy, and combined heat and power (CHP) systems. batteries, distributed generators, and solar panels can also be used to power them. Furthermore, they are also a reliable source of electricity because they operate continuously during power outages.
Market Analysis and Size
Data Bridge Market Research analyses that the Europe microgrid market is expected to reach the value of USD 7,295.30 million by 2029, at a CAGR of 15.6% during the forecast period. The microgrid market report also covers pricing analysis, patent analysis, and technological advancements in depth.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customisable to 2019-2014)
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Quantitative Units
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Revenue in USD Million, Pricing in USD
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Segments Covered
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By Connectivity (Off-Grid/Island/Remote, Grid Connected), Offering (Hardware, Software, Services), Pattern (Urban, Semi-Urban, Remote Island), Source (Diesel Generators, CHP, Solar Pv, Natural Gas, Others), Storage (Lithium-Ion, Lead Acid, Solar Batteries, Flywheel, Others), Grid Type (AC Microgrid, DC Microgrid, Hybrid Microgrid), Capacity (Less Than 5,000 MW, 5,001 – 10,000 MW, 10,001 – 15,000 MW, More Than 15,000 MW), Control (Primary (Local Control), Secondary, Tertiary (Optimization) Control), Application (Remote Location, Utility, Industrial, Campus, Military, Smart City, Data Center, Hospital, School, Others)
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Countries Covered
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Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey and Rest of Europe in Europe
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Market Players Covered
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ABB, Rolls-Royce plc, Schneider Electric, Cummins Inc., Siemens, Caterpillar, General Electric, Tesla, Black & Veatch Holding Company, Honeywell International Inc., Eaton, Norvento Enerxía, InnoVentum, and Hitachi Energy Ltd.
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Microgrid Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- The shift in trends toward gas-based power generation will fuel the natural gas-based microgrid industry
The energy sector is undergoing substantial changes to promote efficiency, reduce emissions, and effectively deploy technologies to trade-off costs and benefits. One emerging solution is applying power-to-gas technology, which can be used for different purposes in electrical systems. Furthermore, favorable government norms and policies toward integrating sustainable and efficient power generation sources have boosted the microgrid infrastructure across the region.
- Increase in demand for uninterrupted and reliable power supply for various applications
In recent years, the global energy demand has increased, further fuelled by the demand in emerging economies and the growth in the overall global economy. Nowadays, massive grids are built across the region, connecting power plants to homes and businesses through the wires. Electricity generated by large, remote power plants are now connected to centralized power grids and use fossil fuels to transmit power across different regions and countries. However, the shortcomings of these power plants in terms of inefficient power transmission have become increasingly evident. Therefore, installing microgrids can improve local power supply and demand management, which can further help to defer costly investments by utilities in new power generation. Also, microgrids can deploy more zero-emission electricity sources, thereby reducing greenhouse gas emissions.
Opportunity
- Increase in demand for renewable energy across the region
The demand for clean and green energy across urban and remote areas is increasing daily. Especially microgrid projects in remote/island areas majorly operate on renewable energy sources like solar, wind, hydro, and others. Lesser availability of conventional fossil fuels in such areas contributes to the rising need for renewable energy. Governments are also working on increasing renewable energy production to reduce the carbon footprint. The growth in the renewable energy industry will therefore create new opportunities for the growth of the Europe microgrid market.
Restraints/Challenges
- Uncertainty in-laws and regulations related to distributed energy generation
Despite the rising interest in distributed energy generation, there are no clear laws, policies, or regulatory instruments associated with the repercussions of distributed generation (DG) integration into electric power systems. Clearly defined policies and regulatory instruments associated with DG grid penetration are required for these systems to thrive. The European Union doesn't have any laws and regulations for smart grids or microgrids. They have only provided directives for the implementation of microgrid solutions. Regulatory and policy uncertainty barriers, which relate to bad policy design, discontinuity, and insufficient transparency of policies and legislation, act as a restraining factor for the growth of the microgrid market in Europe.
- Lack of operating experience with microgrid configurations
There are currently several potential barriers to implementing microgrids, for which solutions are still evolving. Power and frequency control in a small, isolated system is difficult because changes in local demand and distributed generation output have a much greater relative impact on the system than large conventional systems. This makes maintaining stability a significant challenge. Protection is also a major concern because traditionally, protection systems in low voltage networks were designed for unidirectional power flows. In addition, any connected distributed generation is required to disconnect upon detection of a system fault to avoid excessive reverse power flows.
Post COVID-19 Impact on Microgrid Market
COVID-19 created a major impact on the microgrid market as almost every country has opted for the shutdown for every production facility except the ones dealing in producing the essential goods.
The COVID-19 pandemic has impacted the microgrid market to an extent in negative manner. So, the market has resulted in a lower estimated year-on-year growth rate as compared with 2019 because of the fewer amounts of activities of the sectors associated with the microgrid market. However, the growth has been high after the market has opened after COVID-19, and it is expected that there would be considerable growth in the sector owing to higher demand of distributed energy. And this factor is further expected to drive the overall growth of the market.
Manufacturers & solution providers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the microgrid. With this, the companies will bring advanced technologies to the market. In addition, government initiatives for usage of electric vehicle has led to the market's growth
Recent Developments
- In March 2022, Siemens had deployed the Middle East's first microgrid designed for industrial use, enabling Qatar Solar Energy (QSE) to reduce electricity costs, curb carbon emissions and benefit from a more stable power supply
- In January 2021, ABB had driven the deployment of microgrids on a global scale to provide smart and sustainable solutions for a world that needs a major shift toward renewables to achieve global annual greenhouse gas reduction
Europe Microgrid Market Scope
The microgrid market is segmented on the basis of connectivity, offering, pattern, source, storage, grid type, capacity, control and application.
The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Connectivity
- Off-Grid/Island/Remote
- Grid Connected
On the basis of connectivity, the Europe microgrid market is segmented into off-grid/island/remote and grid connected.
Offering
- Hardware
- Software
- Services
On the basis of offering, the Europe microgrid market has been segmented into hardware, software and services.
Pattern
- Urban
- Semi-Urban
- Remote Island
On the basis of pattern, the Europe microgrid market is segmented into urban, semi-urban and remote island.
Source
- Diesel Generators
- CHP
- Solar PV
- Natural Gas
- Others
On the basis of source, the Europe microgrid market has been segmented into diesel generators, CHP, solar PV, natural gas and others.
Storage
- Lithium-Ion
- Lead Acid
- Solar Batteries
- Flywheel
- Flow Batteries
- Others
On the basis of storage, the Europe microgrid market has been segmented into lithium-ion, lead acid, solar batteries, flywheel, flow batteries and others.
Grid Type
- AC Microgrid
- DC Microgrid
- Hybrid Microgrid
On the basis of grid type, the Europe microgrid market has been segmented into AC microgrid, DC microgrid and hybrid microgrid.
Capacity
- Less Than 5,000 MW
- 5,001 – 10,000 MW
- 10,001 – 15,000 MW
- More Than 15,000 MW
On the basis of capacity, the Europe microgrid market has been segmented into less than 5,000 MW, 5,001 – 10,000 MW, 10,001 – 15,000 MW, more than 15,000 MW.
Control
- Primary (Local Control)
- Secondary
- Tertiary (Optimization) Control
On the basis of control, the Europe microgrid market has been segmented into primary (local control), secondary and tertiary (optimization) control.
Application
- Remote Location
- Utility
- Industrial
- Campus
- Military
- Smart City
- Data Center
- Hospital
- School
- Others
On the basis of control, the Europe microgrid market has been segmented into remote location, utility, industrial, campus, military, smart city, data center, hospital, school and others.
Microgrid Market Regional Analysis/Insights
The microgrid market is analysed and market size insights and trends are provided by country, connectivity, offering, pattern, source, storage, grid type, capacity, control, application as referenced above.
The countries covered in the microgrid market report are Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey and Rest of Europe. Germany dominates the Europe region due to increasing reliance for wood has gained momentum.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Europe brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Microgrid Market Share Analysis
The microgrid market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to microgrid market.
Some of the major players operating in the microgrid market are ABB, Rolls-Royce plc, Schneider Electric, Cummins Inc., Siemens, Caterpillar, General Electric, Tesla, Black & Veatch Holding Company, Honeywell International Inc., Eaton, Norvento Enerxía, InnoVentum, Hitachi Energy Ltd. among others.
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