Rise in IoT Integration to Fuel Microgrid Market Development

Triton Market Research presents the Global Microgrid Market report segmented by Component (Hardware [Power Generators, Energy Storage, Controllers], Software, Services), Utilization Type (Semi-Urban, Metropolitan, Rural), Industry Vertical (Educational Institutes, Government & Utilities, Healthcare, Commercial & Industrial, Military & Defense, Other Industry Verticals), Connectivity (Island grid, Grid Connected), and Regional Outlook (Latin America, North America, Europe, Middle East and Africa, Asia-Pacific).

The report also discusses the Market Summary, Industry Outlook, Impact of COVID-19, Key Insights, Porter’s Five Forces Analysis, Market Attractiveness Index, Vendor Scorecard, Industry Components, Key Market Strategies, Drivers, Challenges, Opportunities, Competitive Landscape, Research Methodology & Scope, Global Market Size, Forecasts & Analysis (2022-2028).

Triton’s research report states that the global microgrid market is expected to advance with a CAGR of 10.73% during the forecasting years from 2022 to 2028.

A microgrid refers to a compact grid that can function independently or in coordination with small power grids. It can be described as a distributed, dispersed, decentralized, or embedded energy generation system.

Integrating IoT with microgrids helps in the efficient remote management of DERs, such as photovoltaics, wind turbines, fuel cells, storage systems, and other systems. The grid management systems powered by IoT also assist in various vital tasks, including maintaining line voltage to reduce energy losses and line damage. This has influenced companies to revolutionize their energy distribution network with the help of the internet of things. Thus, the growing adoption of IoT in microgrids opens new avenues for the microgrid market.

However, issues arising due to stringent regulatory frameworks and high microgrid installation and maintenance costs hinder the overall market’s progression.

Asia-Pacific dominates in the microgrid market and is expected to continue its stronghold till 2028. The region’s robust growth can be attributed to the rising demand for electricity owing to a high population base. Several nations lack reliable utility grid infrastructures, a cause of concern during extreme weather events such as typhoons. As a result, governments are offering incentives to augment microgrid adoption. Hence, these factors widen the scope and growth of the microgrid market.

The notable companies listed in the microgrid market are Duke Energy Corporation, Cummins Inc, Bloom Energy, Hitachi Ltd, Eaton Corporation Plc, National Grid Plc, Fairbanks Morse, FuelCell Energy Inc, NRG Energy Inc, Exelon Corporation, Siemens AG, Schneider Electric, Power Engineers Incorporated, General Electric Company, and S&C Electric Company.

Microgrid operators are mandated to adhere to standards set forth by regulators, legislators, and grid operators. These requirements tend to change based on the location of these grids. This significantly reduces the threat of new entrants owing to difficulties associated with traversing various rules while establishing a grid. Further, the grid’s technology is evolving, making businesses focus on distinct ways to combine new software solutions. In this regard, the high geographic presence of prominent players intensifies competition. Hence, these factors indicate the threat of new players to be low while the competition among existing players to be high.