The microgrid control system market is expected to grow at a CAGR of 8.67%, reaching a market size of US$3,265.321 million in 2029, up from US$1,824.732 million in 2022.
The market is expanding more rapidly than previously anticipated due to the compactness of cities and urban areas and the increased rate at which renewable energy production is being taken up. Furthermore, it can be seen that there is market growth because of the increasing demand for sustainable energy sources as a result of safety concerns. The Global Microgrid Control System (MCS) Market report gives a comprehensive market assessment. The study provides a thorough examination of the market's major segments, trends, drivers, constraints, competitive environment, and other elements that are significantly influencing it.
Distribution grid operators can lower the overall energy cost of a local distribution grid by integrating and optimizing energy assets with the help of a Microgrid Control System. On a distributed scale, it is a microcosm of the larger energy network. A microgrid control system makes sure there is always electricity available, even in the event of a blackout. It distributes the load and gives the primary grid more support. Following the high penetration of distributed energy resources into power systems, the system has experienced a wave of technological development due to the integration of diverse distributed energy resources (DERs) into the power grid, which in turn has boosted the development of microgrids.
Most industries worldwide are estimated to be responsible for 23% of carbon emissions; consequently, industries everywhere are attempting to optimize their energy use to lower operating costs and carbon dioxide emissions. Because these systems have the potential to significantly lower energy costs and improve industry operational efficiency, the market for microgrid control systems is expected to grow rapidly. Additional industries are integrating more storage into micro-grid control systems to meet backup energy requirements and supply surplus energy to systems for optimal and efficient operation, to cut operating costs. Blackouts of power are commonplace in a nation like India. The entire world experiences a daily power outage of one lakh megawatts. When contrasting micro-grid control systems with conventional backup systems, it becomes evident that the former is more effective. Additionally, the explanation for how microgrids can function independently of the main grid and supply enough electricity for extended periods of time.
Different fields have started using microgrids in combination with other contemporary technologies, such as fuel cells. For this reason, there is a pressing need for dependable, effective control systems that can regulate the complexity inherent in these novel systems. This, in turn, leads to an increased requirement for well-centralized and efficient microgrid controllers. Long lines make traditional networks extremely inefficient.
In November 2022, the Department of Energy (DOE), KB Home, SunPower, Schneider Electric, Southern California Edison (SCE), and the Advanced Power and Energy Program (APEP) worked together to develop, implement, and test two microgrid communities within the Shadow Mountain master plan in Menifee. Overall, APEP will ensure that the microgrid controller satisfies the national standards (IEEE 2030.7), which are an advancement from earlier research that APEP conducted for the DOE using the UCI Microgrid as a platform.
According to the United States Environmental Protection Agency, industries account for over 23% of global carbon emissions. To reduce energy costs and carbon emissions, industries worldwide are adopting measures to reduce CO2 emissions and operating costs by optimizing their energy consumption. Thus, the demand for microgrid systems is expected to rise as adopting these systems will increase efficiency and reduce energy costs, carbon emissions, and operating costs. Several industries are further employing storage systems in the microgrid to back up supplies and reduce costs by selling surplus power, which will propel market growth.
Power blackouts and electricity outages are extremely prevalent in developing and underdeveloped countries. For instance, India faces a daily power outage of 30,000 MW. In comparison to traditional backup solutions, microgrids provide a more efficient backup solution. Microgrids can provide a backup supply for longer durations and can work independently without the main grid. Industries and households are expected to shift toward microgrid backup solutions, which will fuel the market growth for microgrid control systems.
Throughout the projected period, distributed generation systems and the rise in renewable energy are expected to drive the market. The market for conventional grids is facing growing pressure. Its deteriorating infrastructure also needs major renovations. Unprecedented greenhouse gas regulations enforced by the US EPA (Environmental Protection Agency) are propelling the market for integrated renewable energy microgrid control systems.
Furthermore, the market is anticipated to be driven by regional players' developments. For example, EcoStruxure Microgrid Flex, an industry first designed to significantly reduce project cycle times and achieve higher returns throughout the project lifecycle, was announced in May 2023 by Schneider Electric, a leader in the automation and energy management digital transformation. Schneider Electric also announced an innovative standardized microgrid solution that involves investing in in-house systems. By 2050, distributed energy resources are predicted to generate 40% of the nation's electricity, increasing the demand for microgrids to meet that demand. For microgrid systems to be configured, planned, and deployed, a substantial amount of engineering time and concentrated attention are required.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Microgrid Control Systems Market Size in 2022 | US$1,824.732 million |
| Microgrid Control Systems Market Size in 2029 | US$3,265.321 million |
| Growth Rate | CAGR of 8.67% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Microgrid Control Systems Market |
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| Customization Scope | Free report customization with purchase |
The Microgrid Control Systems Market is analyzed into the following segments: