The global microgrid market is expected to grow at a compound annual rate of 12.86% until 2025, says a report by Techanvio Research.
The market is expected to grow by $19.50 billion until 2025, with 28% of this growth coming from North America.In the U.S., favorable factors supporting the growth of microgrids deployment include initiatives by the government to implement energy-efficient power solutions, like providing funding and grants.
Worldwide, governments have recognized the resilience that microgrids offer, especially during natural calamities. For instance, in 2012, when the US was hit by Hurricane Sandy, millions of people, as well as several medical centers and other critical setups, were left without power. This has led to the introduction of initiatives to support microgrids growth.
However, the installation and generation of power from microgrids is a tedious and expensive process, involving new and advanced technologies. The high cost of implementation impedes the growth of this market.
While installing microgrids can be expensive, there is no fixed cost for microgrids because most of these are built on existing infrastructure and then custom-fitted to suit customer requirements.
Besides China and the U.S., the key consumer countries for market growth are China, Australia and the Russian Federation.
