The global microgrid market is set for exceptional growth in the coming years, as Europe and Asia mimic the growth that has seen the US dominate the industry, according to a recent report from research and consulting firm GlobalData.
According to the report, the global microgrid industry is anticipated to reach a value of US$18.9 billion in 2020 from a 2012 value of US$5.3 billion — demonstrating a Compound Annual Growth Rate (CAGR) of 17.2%.
The market for microgrid technologies in Europe is currently in the introductory stage, but is expected to expand rapidly in the near future as the region updates an aging electricity infrastructure and integrates a higher share of renewable energy generation. From a 2012 value of US$710 million, European industry revenue is expected to grow exponentially during the forecast period, hitting US $5.3 billion by 2020.
GlobalData believes that the Asia-Pacific microgrid industry will be driven primarily by the need to increase electrification in remote locations across countries including China, India and Malaysia. Industry revenue in the region is forecast to reach US$5.7 billion by the end of the decade, from US$600 million in 2012, with China expected to maintain its market share of almost 40% over the eight year period.
The US — the dominant force in the global microgrids market last year, holding a 68% share — will display less impressive sector growth, states the report, but is still forecast to reach revenue of US$5.7 billion by 2020 from US$3.6 billion in 2012.
For more information on the report, “Microgrid in Smart Grid – Market Size, Key Issues, Regulations and Outlook to 2020”, visit the publication’s website.
Source: GlobalData
