Microgrid Control Systems Market To Be Worth US$2,378.748 million in 2024
Microgrid Control System (MCS) enables distribution grid operators to integrate and optimize energy assets to reduce the overall energy cost for a local distribution grid, also known as a microgrid. The MCS provides a simple yet effective solution to integrate fossil fuel-based Distributed Energy Resources (DERs), renewable DERs and energy storage to optimize the operation of a local microgrid to minimize the total cost of operation. It helps in monitoring, controlling, and analyzing microgrid functioning. It helps in reducing the cost of energy and microgrid operation and maintains the continuous power supply. It also helps in preventing the environment as it contains mainly green gases.
Drivers Of Microgrid Control System Market
Rising investments in transmission and distribution infrastructure are driving the microgrid control systems market. Rapid urbanization is leading to the growing demand for energy and it causes a lack of space which is increasing the microgrid control system market size. Growing environmental concerns coupled with favorable government initiatives and policies to provide access to electricity in remote areas will continue to boost the market in the coming future. Increasing investment in transmission and distribution infrastructure is expected to uplift the market. Growing awareness and adaptation of renewable sources of energy is uplifting the market. Increasing demand for an effective microgrid centralized control center and the growing requirement of improving operational efficiency is further boosting the market.
Hindrances and opportunities
Stringent government laws and regulations can hamper the growth of the market. The cost of installation and maintenance of microgrid control systems are very high which acts as a restraining factor for the market growth. Resistance from utilities in managing the complexities of microgrids can hamper the growth. However, increasing government projects to provide electricity in remote areas in developing countries is expected to boost the microgrid control system market growth. Increasing government’s expenditure on microgrid projects and the need to save power for blackouts due to natural calamities are expected to boost the market. Technological advancements in the communication sector and growth in IoT are expected to open new growth opportunities for the market.
Geographically, the Asia Pacific region is expected to have a significant market share on account of increasing investments on electrification projects in the region. The demand for electricity in the region is increasing at a rapid pace and moderation & up-gradation of existing electric networks to meet the growing demand for electricity is expected to boost the market of microgrid control systems in the region. North America region is also expected to have a significant market share of the global microgrid control system market share owing to the rising need for replacement and refurbishment of the existing infrastructure of the local utility grid. Also, the US Department of Energy Smart Grid R&D has established microgrid R&D as a key focus area.
The off-grid segment is expected to have a significant market share on account of the growing electrification of remote areas, especially in developing economies. Private segment of ownership segmentation is expected to have a significant market share owing to increased primary energy demand and the government’s incentive. By component, the hardware segment is expected to grow at a rapid pace.