The global microgrid market will grow at a CAGR of nearly 10.6% from 2020 to 2025

According to a report released by Markets and Markets, an international market research institution, the global microgrid market will reach $28.
6 billion in 2020, and this data will increase to $47.
4 billion by 2025, with a compound annual growth rate of about 10.
6%.

The increasing demand for clean energy, the increased risk of cyberattacks on energy infrastructure, the increasing demand for reliable and accurate power supply, and the acceleration of rural electrification are the main driving forces
for the stable and rapid development of the microgrid market.

In addition, the continued growth of renewable energy in the Asia-Pacific region and the government's policy to encourage the development of microgrids will also provide more opportunities
for microgrid developers.

Grid-connected microgrids will grow
at a higher CAGR during the forecast period.
Grid-tied microgrids are connected to large utility grids and are typically used in small areas with both several houses and large areas
such as military installations.
In a grid-connected microgrid, power transmission depends on the main grid
.
Therefore, any damage to these equipment affects the entire transmission network
.

Solar photovoltaic power generation technology is mainly used in grid-connected microgrids
.
The growth in this segment can be attributed to the expansion of utility-based grid networks, as well as the large-scale use of renewable energy sources such as offshore wind
.
Grid-connected microgrids provide grid resilience with minimal
environmental impact.

From the perspective of hardware facilities, generators will account for the largest share
of the microgrid market during the forecast period.
End users worldwide are increasingly adopting microgrids to achieve energy goals, such as improving the reliability of electricity, reducing carbon emissions, reducing the cost of electricity, and generating electricity
from different energy sources.
Distributed generation is considered the basis of microgrids because it can use a variety of energy sources to generate electricity
.

The use of renewable energy sources such as photovoltaic cells, wind turbines, and hydro turbines in microgrids to generate electricity is one of the important factors driving the growth of the
microgrid hardware market.
Other advantages of integrating renewables with microgrids include reduced greenhouse gas emissions, reduced dependence on local or imported fuels, and increased
demand for energy security.

From the perspective of the regional market, the microgrid market in Asia Pacific will grow
at the highest CAGR during the forecast period.
This growth can be attributed to the high
rates of rural electrification in several countries such as India, Malaysia and the Philippines.
The lack of proper power infrastructure in many islands in Indonesia and the Philippines, as well as emerging economies, has led to the need for cost-effective microgrids in the region, as most of the region is non-electrified
.
This is expected to contribute to the growth of
the microgrid market in Asia Pacific during the forecast period.

From the vendor perspective, ABB (Switzerland), General Electric (US), Siemens (Germany), Eaton (Ireland), Schneider Electric (France), Honeywell (US), Homer Energy (US), S&C Electric (US), Exelon (US) will become one of the few leading microgrid technology suppliers
in the world during the forecast period.