Microgrid Control Systems Market Size, Share, Opportunities, And Trends By Component (Hardware, Software), By Grid (On-Grid, Off-Grid), By Ownership (Private, Public), And By Geography - Forecasts From 2024 To 2029

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.

Microgrid Control System Market Drivers

• High demand for energy-saving

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 micro-grid 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.

• Rising technological advancements

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.

• Increasing demand for industrial applications

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.

• Rising demand for backup solutions

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.

Microgrid Control System Market Geographical Outlook

• North America is witnessing exponential growth during the forecast period

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 Policy 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.

Microgrid Control System Market Key Launches

• In March 2023, Siemens Canada and Humber College collaborated to establish a Renewable Technology and Sustainable Microgrid Lab (SMART Lab) at Siemens Canada's North Campus. The Province of Ontario supports Humber's investments in the SMART Lab, which is based on sustainable digital technology. The microgrid control system will use gadgets like solar Smartflowers, battery energy storage systems, and electric vehicle charging stations to produce and distribute energy locally and enable more sustainable and efficient use and consumption of electricity.

 

• In March 2023, to hasten the energy transition, ABB invested in Direct Energy Partners, a Direct Current microgrid startup. This partnership further enhances ABB's technological leadership in a major future growth market, which is essential to the evolution of the energy industry and to the development of DC energy networks. Direct Energy Partners' software platform automates the DC Microgrid design and sourcing procedures.

Segmentation:

• By Component
  • Hardware
  • Software
• By Grid
  • On-Grid
  • Off-Grid
• By Ownership
  • Public
  • Private
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. MICROGRID CONTROL SYSTEM MARKET, BY COMPONENT

5.1. Introduction

5.2. Hardware

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Software

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

6. MICROGRID CONTROL SYSTEM MARKET, BY GRID

6.1. Introduction

6.2. On-Grid

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Off-Grid

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. MICROGRID CONTROL SYSTEM MARKET, BY OWNERSHIP

7.1. Introduction

7.2. Public

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Private

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

8. MICROGRID CONTROL SYSTEM MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Component

8.2.2. By Grid

8.2.3. By Ownership

8.2.4. By Country

8.2.4.1. USA

8.2.4.1.1. Market Trends and Opportunities

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Trends and Opportunities

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Trends and Opportunities

8.2.4.3.2. Growth Prospects

8.3. South America

8.3.1. By Component

8.3.2. By Grid

8.3.3. By Ownership

8.3.4. By Country 

8.3.4.1. Brazil

8.3.4.1.1. Market Trends and Opportunities

8.3.4.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1. Market Trends and Opportunities

8.3.4.2.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1. Market Trends and Opportunities

8.3.4.3.2. Growth Prospects

8.4. Europe

8.4.1. By Component

8.4.2. By Grid

8.4.3. By Ownership

8.4.4. By Country

8.4.4.1. UK

8.4.4.1.1. Market Trends and Opportunities

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Trends and Opportunities

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Trends and Opportunities

8.4.4.3.2. Growth Prospects

8.4.4.4. Spain

8.4.4.4.1. Market Trends and Opportunities

8.4.4.4.2. Growth Prospects

8.4.4.5. Others

8.4.4.5.1. Market Trends and Opportunities

8.4.4.5.2. Growth Prospects

8.5. Middle East and Africa

8.5.1. By Component

8.5.2. By Grid

8.5.3. By Ownership

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.1.1. Market Trends and Opportunities

8.5.4.1.2. Growth Prospects

8.5.4.2. Israel

8.5.4.2.1. Market Trends and Opportunities

8.5.4.2.2. Growth Prospects

8.5.4.3. Others

8.5.4.3.1. Market Trends and Opportunities

8.5.4.3.2. Growth Prospects

8.6. Asia Pacific

8.6.1. By Component

8.6.2. By Grid

8.6.3. By Ownership

8.6.4. By Country

8.6.4.1. Japan

8.6.4.1.1. Market Trends and Opportunities

8.6.4.1.2. Growth Prospects

8.6.4.2. China

8.6.4.2.1. Market Trends and Opportunities

8.6.4.2.2. Growth Prospects

8.6.4.3. India

8.6.4.3.1. Market Trends and Opportunities

8.6.4.3.2. Growth Prospects

8.6.4.4. South Korea

8.6.4.4.1. Market Trends and Opportunities

8.6.4.4.2. Growth Prospects

8.6.4.5. Others

8.6.4.5.1. Market Trends and Opportunities

8.6.4.5.2. Growth Prospects

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Eaton Corporation plc

10.2. Siemens AG

10.3. General Electric Company

10.4. Hitachi, Ltd

10.5. Exelon Corporation

10.6. Honeywell International Inc.

10.7. Spirae, LLC

10.8. Woodward, Inc.

10.9. PowerSecure, Inc.

10.10. Schneider Electric.

Eaton Corporation plc

Siemens AG

General Electric Company

Hitachi, Ltd

Exelon Corporation

Honeywell International Inc.

Spirae, LLC

Woodward, Inc.

PowerSecure, Inc.

Schneider Electric