2021-26 Global microgrid market grew at a CAGR of 11.4%

According to a research report released by Markets and Markets, an international market research institute, the global microgrid market size was about $24.
6 billion in 2021, and this figure is expected to increase to $42.
3 billion by 2026, with a compound annual growth rate of 11.
4%
during the period.

The growth of the microgrid market is driven by various factors such as increasing concerns about decarbonization by various end-users and governments, increasing demand for uninterrupted power supply, increasing adoption of rural electrified microgrids, and increasing
incidents of cyberattacks on energy infrastructure.
Initiatives by different governments to encourage the development of microgrids are also driving the growth
of the market.

A microgrid is a local power system
of interconnected loads and distributed energy resources connected to and synchronized with the main grid.
These grids can also work
off-grid in disconnected mode in remote areas.
Any small, localized power station with its own generation resources and loads, as well as definable power supply boundaries, can be called a microgrid
.
Microgrids can be used as backup or supplemental power to the main grid to meet the growing power needs
of end users.

According to the report, the hardware segment will gain the largest market share
during the forecast period.
Key drivers include an increase in the number of microgrid projects globally, a reduction in the cost of energy storage and renewable energy, and an increase
in government initiatives to promote the use of clean energy and minimize greenhouse gases.

By hardware type, the controller segment is expected to record a higher CAGR
during the forecast period.
Smart meters are expected to witness the growth
in global demand due to the growing demand for record maintenance by utility companies for monitoring and billing purposes.

In terms of connectivity, the grid-connected segment is expected to gain the largest market share
during the forecast period.
Grid-connected microgrids include multiple generators, distribution systems, and complex controls
.
They offer many benefits such as grid resilience, improved power quality, and low environmental impact, leading to increased
demand.
The growth of this segment can be attributed to the expansion of the global utility grid network and the large-scale utilization
of renewable energy including offshore wind energy.

In terms of end-use, the commercial and industrial segments are expected to grow
at the highest CAGR during the forecast period.
The growth of this segment can be attributed to the ongoing requirement for uninterrupted power supply for smooth industrial operations to reduce downtime, improve workforce efficiency, and reduce equipment damage
.

In terms of regional market, the Americas accounted for the largest market share
in 2020.
The region is prominent in the microgrid market during the forecast period due to the presence of numerous microgrid developers and government initiatives such as Energy Reliability and Security Smart Power Infrastructure Demonstration (SPIDERS) program to promote microgrid adoption
.