‘Microgrid as a Service’ Projected Annual Growth Over 15% In New Report
According to a new report from Markets and Markets, the Microgrid as a Service (MaaS) is likely to grow at a CAGR (compound annual growth rate) of 15.86% between 2015 and 2022, bringing the market from a 2015 base of 774.9 million to an expected 2,241.6 million in 2022.
The growth can be attributed to the reduction in operational costs and negligible upfront investments by MaaS end users, rising demand for MaaS from hospitals, universities, and remote regions and high investments by governments in microgrid infrastructure for improved resilience. However, dominance of customer-owned microgrids and policies, regulations, and standards are some of the key challenges in the global MaaS market. Research into standards is also being conducted for the operation of microgrids and a new generation of energy management systems is being designed to meet the challenges, in particular to meet the requirements of International Standard IEC 61970.
The microgrid software segment is expected to grow the fastest during this period. Software gives microgrid owners a single point of accountability and limit project risk, resulting in safer, more reliable, and a more cost-effective microgrid. Leading companies include Siemens AG and Green Energy Corporation, who have launched a new Microgrid Software as a Service (MaaS) platform for smaller power operators such as university campuses, industrial and commercial sites, municipalities, and utilities.
“The market in APAC is expected to grow at the highest rate during the forecast period”
In APAC, the demand for energy, particularly electricity, is growing rapidly than the rate of expansion of conventional electricity grids in the developed world. The development of industrial sector and power infrastructure in these regions offer many opportunities for market players involved in the market for microgrid as a service.
Omnigrid Micropower Company Pvt. Ltd. (India), BYD Company Ltd. (China), ABB India, Schneider Electric India, Azure Power, SELCO India, and Husk Power Systems, among others, are the major players in the ecosystem of the microgrid as a service market in APAC. Moreover, the Americas is expected to be the largest market in 2016 compared to other regions in the MaaS market.
The U.S. is considered to be the largest market for microgrids as a service, globally. The market in the U.S. is constantly undergoing changes and developments, especially in the power supply sector. Microgrids are being increasingly deployed for several government programs, private sector, and institutions. The increase in the number of successful deployments of microgrids not only indicates the benefits received over conventional grid systems but also decrease the risk of unexpected power failure.
Below is the breakdown of primary participants profile by different parameters considered:
– By Company Type: Tier 1 – 18%, Tier 2 – 50%, and Tier 3 – 32%
– By Designation: C-Level Executives – 28%, Directors – 25%, and Others – 47%
– By Region: Americas – 44%, Europe – 22%, APAC – 28%, and RoW- 6%
The major companies identified in the report operating in the global MaaS market include ABB Ltd. (Switzerland), General Electric (U.S.), Siemens AG (Germany), Eaton Corp. PLC (Ireland), Exelon Corp. (U.S.), NRG Energy, Inc. (U.S.), Anbaric Transmission (U.S.), Pareto Energy (U.S.), Spirae, Inc. (U.S.), Green Energy Corporation (U.S.), SolarCity Corporation (U.S.), Schneider Electric SE (France), Duke Energy Corporation (U.S.), and Northern Power Systems Corp. (U.S.),among others.
