The global microgrid market is projected to grow at a compound annual growth rate (CAGR) of 9.3% from 2019 to 2025, according to a new report from ResearchandMarkets.com.
The report says the market is expected to witness significant growth over the coming years, owing to the ongoing shift from conventional power stations towards distributed energy. Rising demand for uninterrupted power supply and resilient power infrastructure has paved the way for the growth of the microgrid market globally. Also, microgrids use the renewable energy mix for power generation, that would help the governments and enterprises across the globe to achieve the target to reduce global carbon footprint.
The research states that governments across several countries are actively working towards higher adoption of microgrids for power generation. Several initiatives have been taken by various governments, including Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS) program, which has augmented the large-scale deployment of microgrids in the US military sector and the Clean Power Plan would further strengthen the deployment of microgrids in the US.
In China and India, the respective governments have given emphasis to the adoption of microgrids for electricity generation with the launch of programs such as China’s Thirteenth Five Year Plan for Electricity Development and National Smart Grid Mission of India.
According to the report, one of the major benefits of microgrids is the reduction in energy loss due to the long-distance transmission of electricity as power is generated locally. As a result, the demand for microgrids is increasing across several segments. Healthcare application segment is expected to grow at a faster rate over the coming years on account of the requirement of uninterrupted power supply for critical life support systems and equipment.
Some of the key players in the global microgrid market include:
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