PUBLISHER: The Business Research Company | PRODUCT CODE: 1428417
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428417
Microgrid-as-a-Service (MaaS) is a financing mechanism that allows organizations to deploy microgrids without any upfront investment. MaaS providers facilitate the financing, operation, and maintenance of the microgrid, eliminating financial risk and complexity, thereby making the implementation of more microgrids feasible. The microgrid-as-a-service model simplifies the process and reduces financial risks, promoting the development of additional microgrids.
The primary types of microgrid-as-a-service services include engineering and design services, software as a service, monitoring and control services, and operation and maintenance services. Engineering services encompass all activities and equipment installed during land development for water, sewerage, and electricity installation, solid waste disposal, and the construction of streets, roads, and stormwater drainage systems. Microgrid types include remote or islanded types and grid-connected types, which are used in various sectors such as utility, residential and commercial, military, industrial, and others.
The microgrid-as-a-service market research report is one of a series of new reports from The Business Research Company that provides microgrid-as-a-service market statistics, including microgrid-as-a-service industry global market size, regional shares, competitors with a microgrid-as-a-service market share, detailed microgrid-as-a-service market segments, market trends and opportunities, and any further data you may need to thrive in the microgrid-as-a-service industry. This microgrid-as-a-service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The microgrid-as-a-service market size has grown rapidly in recent years. It will grow from $2.12 billion in 2023 to $2.46 billion in 2024 at a compound annual growth rate (CAGR) of 16.0%. The expansion during the historical period can be attributed to increasing energy demand, concerns about grid reliability, a rising focus on renewable energy, government initiatives and incentives, and a growing need for energy resiliency.
The microgrid-as-a-service market size is expected to see rapid growth in the next few years. It will grow to $4.19 billion in 2028 at a compound annual growth rate (CAGR) of 14.2%. The anticipated growth in the forecast period can be attributed to the transition to smart grids, a rising demand for distributed energy resources, increasing adoption of electric vehicles, a focus on sustainability and carbon reduction, and growth in the industrial and commercial sectors. Key trends expected in the forecast period include the integration of artificial intelligence in microgrid management, the rise of energy-as-a-service models, the development of blockchain in energy transactions, the emergence of community microgrids, and increased use of microgrids in critical infrastructure resilience planning.
The anticipated surge in electricity consumption is set to drive the growth of the microgrid-as-a-service market in the foreseeable future. Electricity, defined as an electrical current used for heating, lighting, and powering machinery, is experiencing an uptick in consumption. This surge is fueling the expansion of microgrid-as-a-service, offering benefits such as reduced long-term energy expenditures, cost-free upgrades to essential energy infrastructure, and enhanced energy reliability. As reported by the Energy Information Administration in April 2023, overall electricity end-use utilization in the United States for 2022 was approximately 2.6% higher than in the previous year. Additionally, industrial sector retail electricity sales in 2022 increased by around 0.7% compared to 2021. Thus, the increased electricity consumption is a key factor driving the microgrid-as-a-service market.
The growing emphasis on integrating renewable energy sources is expected to further boost the microgrid-as-a-service market. Renewable energy integration involves incorporating sources such as wind and solar into existing energy systems to meet power demands sustainably. Microgrid-as-a-Service provides a practical approach to integrating renewable energy, enhancing grid resilience, optimizing energy management, and making clean energy more accessible and cost-effective. According to the Energy Information Administration, the forecast for 2023 anticipates that 16% of total energy generation will come from renewable sources, up from 14% in 2022. This increasing focus on renewable energy integration is a significant driver of the microgrid-as-a-service market.
A noteworthy trend in the microgrid-as-a-service market is the adoption of technological advancements. Major companies in this market are concentrating on innovative product development to strengthen their market share. For instance, in January 2021, Schneider Electric SE, a France-based company specializing in microgrid-as-a-service solutions, launched the EcoStruxure Microgrid Solution. This comprehensive solution facilitates the integration of distributed energy resources (DERs) across various facilities, providing increased energy resiliency, reduced utility bills, and a lower environmental impact. It addresses the complexities of the evolving grid due to the surge in DERs, offering features such as grid connection control, off-grid mode preparation, and demand fee reduction.
Companies in the microgrid-as-a-service market are also focusing on developing resiliency services to enhance profitability. Microgrid-based resiliency services leverage microgrids to improve the resilience and reliability of electrical power supply. In April 2023, Xcel Energy Inc., a US-based electric utility company, introduced Empower Resiliency in Minnesota, expanding upon its 2021 launch in Wisconsin. This program aims to provide customers with elevated service reliability, exceeding standard benchmarks. Xcel will manage the ownership, installation, operation, and maintenance of microgrid assets, including battery storage, renewable energy sources, and backup generators, meeting resilience needs in Minnesota.
In December 2021, Yokogawa Electric Corporation, a Japan-based company specializing in microgrid control and monitoring, acquired PXiSE Energy Solutions LLC, a US-based firm offering microgrid control services. This strategic acquisition will enhance Yokogawa Electric Corporation's capabilities in monitoring and controlling power-producing facilities, aiding clients in the electricity transmission and transportation sectors in achieving their clean energy goals.
Major companies operating in the microgrid-as-a-service market report are Siemens AG, General Electric Company, Caterpillar Inc., Schneider Electric SE, NRG Energy Inc., ABB Ltd., Duke Energy Corp, NextEra Energy Inc., Eaton Corporation plc, Emerson Electric Co., Exelon Corporation, Tech Mahindra Ltd., Aggreko PLC, Solarcity Corporation, Canopy Power Pte Ltd., VECKTA Corporation, Green Energy Corp, Capstone Green Energy Corp, Bboxx Ltd., Northern Power Systems Inc., Pareto Energy Ltd., Honeywell International Inc., AIO Systems Ltd., Primus Power Corp, Spirae Inc., EnSync Energy Inc., LO3 Energy Inc., Metco Engineering Inc., Husk Power Systems Pvt Ltd., Anbaric Development Partners LLC
North America was the largest region in the microgrid-as-a-service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microgrid-as-a-service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the microgrid-as-a-service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The microgrid-as-a-service market includes revenues earned by entities by deployment of microgrid control systems, financing mechanism, system maintenance and operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Microgrid-As-A-Service Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on microgrid-as-a-service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for microgrid-as-a-service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The microgrid-as-a-service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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