Microgrid Control Systems Market To Be Worth US$2,378.748 million in 2024
Introduction
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.
Market Segmentation
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.
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