Microgrid Monitoring Systems Market

Global Industry Analysis (2017 – 2020), Growth Trends and Market Forecast (2021 – 2025)


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Microgrid Monitoring Systems Witness Robust Adoption for Monitoring and Inspection Purposes

The Global Energy Interconnection (GEI) that has been introduced to transform power grids has created growth opportunities for the development of major interconnections, regionally and on an inter-continental scale. This intends to enable massive growth in adoption of renewable energy technologies to meet the global energy demand. Microgrids have been a reliable alternative wherever stable power supply is required. While estimating the carbon footprint of renewable energy, feasibility of monitoring systems acts as an important factor. Moreover, multiple services provided by microgrid monitoring systems are also taken into consideration. This is because several investors and lenders are constantly seeking further refinement in guidelines on eligibility criteria for microgrid monitoring systems.

Microgrid monitoring systems help in monitoring real-time operations of microgrids and controlling all equipment as per safe and stable operational requisites. Microgrid monitoring systems consist of a wide range of products that are engineered and configured, and monitoring solutions that are standardized and assembled with essential auxiliary equipment. With extensive application of microgrid monitoring systems in military microgrids, campus microgrids, community microgrids, and remote microgrids, it is highly likely that the global microgrid monitoring systems market will witness a robust growth outlook. Adoption is predominant in military microgrids for monitoring and inspection purposes.

Concerns Regarding Asset Management Fuel Market Growth

Declining costs of renewable energy technologies and battery storage, increased focus of smart grids & asset management, increased government commitment to universal electrification, and improving policy frameworks will drive demand for microgrid monitoring systems in the next few years. Asset management remains the key driver for growth in deployment of microgrid monitoring systems. Asset management is becoming increasingly challenging across the energy sector as an increasing number of hydropower assets are nearing their life expectancy. The digitization of microgrid systems helps in control of systems and the surrounding networks, which is an emerging trend that promises optimized asset management and performance.

The digitization of microgrid systems is increasingly being implemented to allow microgrids to function along with renewable resources to offer increased flexibility and enhanced control for ancillary services (such as frequency control, balancing services). New innovations are emerging constantly in order to provide asset owners with actionable insights from data to increase the value of their hydropower assets. Other digital innovations include cybersecurity, plant and fleet optimization, outage management, condition-monitoring equipment, and energy forecasting.

Renewable Power Grid-integration Projects to Fuel Growth of Microgrid Monitoring System Market

Globally, more than 2,000 planned microgrid projects represent 24,000 MW of proposed, under development, and operational power capacity. Microgrid (and solar home system) solutions powered by renewables already provide electricity to nearly 90 million people. To achieve universal electricity access by 2030, the current pace of expansion will have to double. It is estimated that off-grid solutions will supply 50-60% of the additional generation needed to achieve universal electricity access by 2030. This is expected to benefit service providers of hardware and software solutions related to microgrid monitoring systems.

The market for microgrid monitoring systems is highly capital-intensive. This is one of the major restraints facing market participants. High capital investment poses a barrier to new market entrants. Well-established players such as Siemens AG and Caterpillar, Inc. possess high capital required to harness large-scale microgrid monitoring systems. Shortages of skilled labour required for installation of microgrid monitoring system components persist. Emergence of smart microgrids in developed countries creates competition in the microgrid monitoring systems market.

Remote Areas Generate Higher Demand for Microgrid Monitoring Systems

Currently, remote segment dominates and constitutes more than 40% of the global microgrid monitoring systems market. High share of the segment can be attributed to higher costs of these services as compared to other services. Remote microgrids provide uninterruptible backup power for critical infrastructure in remote locations such as villages, forest areas, and offshore locations. Remote microgrid systems provide uninterruptible backup power for critical infrastructure. Rapid rise in demand for power is bolstering microgrid monitoring system sales across the globe. These grids not only improve the power supply reliability but also reduce the pressure on energy conservation and environmental protection.

The Microgrid Investment Accelerator (MIA) would aid in enhancing investments in energy access and renewable energy microgrid deployment in emerging, underserved markets. MIA is an innovative energy access investment vehicle that provides both for-profit and non-profit capital management services.

Military Sector Key Consumer in Microgrid Monitoring System Market

The military microgrid segment is expected to expand at a higher growth rate. Military microgrid is projected to be an attractive segment during the forecast period owing to the rise in expenditure on data related to security and defence purpose in order to retain national interests. Microgrids offer an alternative for ensuring power reliability by integrating and automating distributed energy resources. More recently, truly self-sufficient microgrids are becoming more and more attractive as renewable energy costs decline and energy storage technology continues to advance.

Asia Pacific Stores Potential to Outweigh North American Market by 2025

North America dominated the market for microgrid monitoring systems market in 2019 owing to rising investments in microgrid network, especially for the integration of renewable power sources. In the US and Canada, major power consumer economies are looking for alternative energy sources to avoid the impact of higher fossil fuel consumption. Continuously increasing demand of microgrids with high penetration of distributed energy generators, mainly renewable energy sources, is modifying the traditional structure of electric distribution grid.

Currently, Asia Pacific is the most attractive region in microgrid monitoring systems market. Demand for microgrid monitoring systems in Asia Pacific is expected to surpass that in North America by 2025 end. The renewable energy market in India showcased healthy growth in and post-2017. Escalating need for safe and secure electricity generation, transmission, and distribution in India and China is expected to drive the market to new heights. Toshiba is one of the key players in Asia Pacific market.

Several countries in Middle East & Africa have been experiencing political unrest. The Middle East and Africa region as a whole has more than 3GW microgrid installed capacity and is currently at the third place after North America and Asia Pacific. Countries in MEA are expected to add more capacity in the next few years, which is likely to propel demand for microgrid monitoring solutions, thereby benefiting microgrid monitoring system market.

Global Microgrid Monitoring Systems Market: Competitive Landscape

Key players partaking in microgrid monitoring systems market competition include ABB Ltd., Tesla, Inc. Eaton Corporation, GE, Siemens AG, Caterpillar Inc., Exelon Corporation, Hitachi Ltd., Power Analytics Corporation, and S&C Electric Company. On November 2020, a new microgrid at the Siemens corporate headquarters in Vienna, Austria, was officially completed, with plans to provide balancing services to Austria’s electricity transmission system operator. On September 2020, Caterpillar dealer Ferreyros has been selected by Ferrenergy, Ferreycorp’s energy company in Peru to provide a microgrid power system for the Agromin La Bonita underground copper mine in Acarí, Peru.

Being a lucrative market, apart from Tesla Inc., utilities and electric vehicle (EV) battery makers such as Pacific Gas and Electric Co., Ameren, Duke Energy, LG Chem, and Schneider Electric are all showing interest in microgrids. Tesla is one of the emerging players entering the microgrid monitoring systems landscape. The company offers microgrid controller to microgrid operators. Tesla is also a leader in creating microgrids and small- and large-scale virtual power plants across the globe. The presence of a large number of small-scale players in China that offer microgrid monitoring systems at competitive price points remain the restraint for most other regional and global players.

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