Microgrid as a Service Market Forecasts to 2030 - Global Analysis By Grid Type (On-Grid, Off-Grid and Hybrid), Service Model, Technology, Application and By Geography

According to Stratistics MRC, the Global Microgrid as a Service Market is accounted for $2.9 billion in 2024 and is expected to reach $6.9 billion by 2030, growing at a CAGR of 15.5% during the forecast period. Microgrid as a Service (MaaS) enables providers to offer microgrid solutions for subscription or contractual considerations. This covers the design, implementation, management, and maintenance of microgrids-these are small-scale, localized energy systems with the potential for autonomous functioning off or on the main power grid. MaaS provides access for organizations to advanced energy solutions that assure reliability, integrating renewable energy sources without many of the high upfront costs and operational complexities of owning a microgrid.

According to the International Energy Agency (IEA), global energy investment is set to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion going to clean energy technologies and infrastructure.

Market Dynamics:

Driver:

Increasing demand for reliable and resilient energy supply

The growing demand for reliable and resilient energy supply is a key driver for the Microgrid as a Service (MaaS) market. As businesses and communities face increasing power outages due to natural disasters and grid instability, microgrids offer a solution for uninterrupted power supply. MaaS provides energy independence and security, crucial for critical infrastructure and remote locations. The ability to integrate renewable energy sources and optimize energy consumption enhances grid reliability. This driver is particularly strong in regions prone to extreme weather events or with aging grid infrastructure, as MaaS offers a cost-effective way to ensure continuous power supply and improve overall energy resilience.

Restraint:

Limited awareness and expertise

Many potential customers, including businesses and municipalities, lack understanding of microgrid benefits and implementation processes. The complexity of microgrid systems, involving integration of various energy sources and advanced control systems, requires specialized knowledge. This knowledge gap extends to regulatory frameworks and financing models for microgrids. The shortage of skilled professionals in microgrid design, installation, and maintenance further hampers market growth.

Opportunity:

Growth in renewable energy sources

As solar, wind, and other renewable technologies become more affordable and efficient, their integration into microgrids becomes increasingly attractive. MaaS providers can leverage this trend to offer environmentally friendly and cost-effective energy solutions. The ability of microgrids to balance intermittent renewable generation with energy storage and smart load management enhances grid stability and reliability. This opportunity aligns with global efforts to reduce carbon emissions and transition to clean energy. MaaS can play a crucial role in facilitating the adoption of renewable energy in both grid-connected and off-grid applications, opening new markets.

Threat:

Cybersecurity risks

Microgrids rely heavily on digital technologies for control and optimization, they become potential targets for cyberattacks. A successful attack could disrupt power supply, compromise sensitive data, or even cause physical damage to energy infrastructure. The interconnected nature of microgrids with larger grid systems increases the potential impact of security breaches. This threat creates hesitation among potential adopters, particularly in critical sectors like healthcare and defense.

Covid-19 Impact:

The Covid-19 pandemic initially slowed MaaS market growth due to project delays and economic uncertainty. However, it subsequently highlighted the importance of resilient energy systems, especially for critical facilities like hospitals. The pandemic accelerated interest in decentralized energy solutions and remote monitoring capabilities offered by MaaS. As businesses and communities sought energy independence and reliability during lockdowns, the value proposition of microgrids became more apparent, potentially driving long-term market growth.

The solar PV segment is expected to be the largest during the forecast period

The solar PV segment is anticipated to dominate the MaaS market due to the declining costs of solar technology and its widespread applicability. Solar PV systems offer scalability, making them suitable for various microgrid sizes and applications. They provide clean, renewable energy with minimal operational costs, aligning with sustainability goals. Solar PV's compatibility with energy storage solutions enhances microgrid reliability and flexibility. The segment's growth is further supported by favorable government policies and incentives for solar adoption.

The hybrid segment is expected to have the highest CAGR during the forecast period

The hybrid segment in the MaaS market is projected to experience the highest growth rate due to its ability to combine multiple energy sources, optimizing reliability and efficiency. Hybrid microgrids integrate renewable sources like solar and wind with conventional generators and energy storage systems, providing a balanced and flexible energy solution. This approach addresses the intermittency issues of renewable sources while reducing reliance on fossil fuels. Hybrid systems offer enhanced resilience against various disruptions and can adapt to changing energy needs and resource availability.

Region with largest share:

North America is expected to dominate the MaaS market due to its advanced energy infrastructure and supportive regulatory environment. The region has been at the forefront of microgrid adoption, driven by the need for grid resilience in the face of natural disasters and aging infrastructure. Strong investment in renewable energy and energy storage technologies complements MaaS growth. North America's focus on energy security and sustainability, coupled with high electricity costs in certain areas, creates a favorable market for MaaS solutions across various sectors, including military, commercial, and industrial applications.

Region with highest CAGR:

The Asia Pacific region is anticipated to witness the highest CAGR in the MaaS market due to rapid industrialization, urbanization, and increasing energy demand. The region's diverse geography, including numerous islands and remote areas, presents ideal scenarios for microgrid deployment. Increasing investments in smart city projects and the need for reliable power in manufacturing hubs further accelerate MaaS adoption. Additionally, the growing awareness of energy resilience and sustainability in developing economies contributes to the rapid expansion of the MaaS market in Asia Pacific.

Key players in the market

Some of the key players in Microgrid as a Service market include Schneider Electric, Siemens AG, ABB Group, General Electric Company, Eaton Corporation, Spirae, Anbaric Transmission, Northern Power Systems Corp., Pareto Energy, ENGIE, Ameresco, PowerSecure, Hitachi Energy Ltd, Toshiba Corp., S&C Electric Co., Aggreko, Green Energy Corp, and EnSync Energy.

Key Developments:

In May 2023, Schneider Electric, the leader in the digital transformation of energy management and automation, today announces EcoStruxure(TM) Microgrid Flex, an industry-first, innovative standardized microgrid solution designed to significantly reduce project timeline across the journey, delivering a greater return on investment for the system.

In February 2023, Eaton was awarded a contract to support AEP Ohio in enhancing the resilience of water infrastructure in Columbus through a renewable energy microgrid.

In February 2023, Siemens and Swinburne University of Technology have agreed to set up the most advanced future Energy Transition Hub of its kind in Australia in at the University's Hawthorn campus in Melbourne. Featuring some of the most advanced digital energy technology from Siemens and the technical, R&D and teaching expertise of Swinburne, the $5.2 million Hub aims to build a future energy grid laboratory accessible to students and industry.

Grid Types Covered:

• On-Grid
• Off-Grid
• Hybrid

Service Models Covered:

• Design and Engineering
• Installation and Commissioning
• Software as a Service
• Operation and Maintenance
• Financing
• Performance-Based Contracting

Technologies Covered:

• Solar PV
• Wind Power
• Bioenergy
• Fuel Cells
• Battery Storage
• Combined Heat and Power (CHP)
• Energy Management Systems

Applications Covered:

• Residential
• Commercial
• Military
• Remote Areas
• Utility-Scale Projects

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances