Northbrook, IL 60062 -- (SBWIRE) -- 09/08/2022 -- The global microgrid controller market size is estimated to be USD 4.2 Billion in 2022 and is projected to reach USD 11.5 Billion by 2027, at a CAGR of 22.3% during the forecast period. Increasing emphasis on decarbonization by end users and governments, growing need for reliable and uninterrupted power supply, growing demand for microgrids in healthcare, military, and government sectors worldwide; and increasing government investments in microgrid projects are some of the major factors propelling the market growth.
Microgrid controllers serve as the heart of microgrids. These controllers provide reliable and cost-efficient energy management by monitoring and controlling the power supply in independent distribution grids. They offer seamless continuity, flexible communication, and maximum security, thus securing the optimal use of generation systems.
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In terms of connectivity, the grid connected segment of the microgrid controller market is projected to register the highest CAGR. Among their benefits are grid resiliency, improved power quality, and low environmental impact, thereby increasing demand. Globally, this segment has grown due to the expansion of utility-based grid networks, as well as the widespread harnessing of renewable energy sources, which includes offshore wind, and solar energy.
The hardware segment is likely to account for largest share of the microgrid controller market between 2022 and 2027. Some of the major factors contributing towards the growth of hardware segment includes growing number of microgrid projects worldwide, decreasing costs of energy storage and renewable sources of energy, and increasing government initiatives to promote the use of clean energy and minimize greenhouse gas (GHG) emissions. Hardware is among the most important part of microgrid controllers as it consists of a key components such as generation optimizer, local controllers, supervisory controllers, communications network, and a human-machine interface.
According to estimates by end-use application, the remote areas segment of the microgrid controller market will have the second largest market share in 2027. Growing government support and the surge in the deployment of microgrid projects in remote areas is driving the market growth. Emerging economies are increasingly investing in clean energy infrastructures to provide low-cost energy. This is expected to result in increased demand for microgrids in remote areas to generate power, as well as to manage and control distributed energy resources. For instance, In December 2020, Hitachi Energy was contracted by MCA to contribute to developing Sub-Saharan Africa's largest photovoltaic project, increasing access to reliable and clean energy for Angola's 30 million people.
The microgrid controller market in Asia Pacific is expected to grow at the highest CAGR between 2022 and 2027. China, Japan, Australia, India, Singapore, and other Southeast Asian countries are the key deployers of microgrids in the region. The Government of China is dedicated to distributed energy generation from renewable energy sources to address power supply issues in remote and rural areas of the country. This has led to an increase in the number of microgrid installations. Japan is also investing in its commercial and industrial sectors to ensure energy security and meet the country's increasing energy demand. This has led to an increase in the adoption of microgrids, thereby fuelling the growth of the microgrid controller market in Japan and Asia Pacific region.