According to a new research report by the market research and strategy consulting firm, Global Market Insights, Inc., North America Microgrid Market is set to reach over $7 billion by 2024. Aging grid infrastructure, coupled with stringent government policies toward adoption of sustainable power technologies, will stimulate North America microgrid market.
Economic competitiveness, low power cost and transmission losses, and reliability are key the parameters that will encourage the product penetration.
In addition, ongoing funding toward the development of distributed generation technology will enhance the industry landscape. Canada microgrid market is predicted to reach deployment of over 400-MW capacity by 2024. Growing electricity demand across remote and off grid areas, along with upsurge in investments toward the adoption of clean energy technology will complement the business growth. Furthermore, ongoing development of distributed energy sources to minimize the dependency on conventional grid will enhance the industry outlook.
In 2016, Canada government made an investment of $2.4 billion for developing wind and solar energy sources. Ongoing adoption of captive power plants across the manufacturing and industrial sector for ensuring regulated power production will foster North America microgrid market. Increasing investment toward the expansion of decentralized grid coupled with rising investments for the expansion of infrastructure and power sector will accelerate the business growth.
For instance, in 2016, the government of Canada, announced an investment of about $900 million were financed toward installation of numerous energy sources and R&D across the country. Natural gas microgrid market will grow on account of stringent government measures pertaining to the adoption of lower emission fuel as a replacement for conventional fuel sources. Ongoing investment toward exploration of unconventional fuel reserves owing to escalating gas demand will enhance the industry outlook.
Amren Corporation in 2017, developed an advanced microgrid which uses, solar, natural gas and wind energy as a source along with an integrated battery storage and automation system. Increasing high-end power consumption across the industries on account of development of new HVAC systems and heavy load machineries will foster the microgrid market.
Growing electricity demands across hospitals, retail outlets, automotive, manufacturing operations, offices and industries will encourage product penetration across commercial and industrial application. For instance, as per EIA, the commercial and industrial sector in 2017 accounted about 4.5% and 22.4 % of the primary energy consumption respectively.
Flow batteries accounted for over 5% of North America microgrid market in 2017. Ongoing investment pertaining to the integration of sustainable grid coupled with innovations toward the development of cost-effective and efficient storage technologies will propel the industry growth. key features including long lifecycle and higher efficiency will further encourage the product adoption over available substitutes.
Eminent participants in the North America microgrid market include GE, ABB, Schneider Electric, Alstom, Siemens, Honeywell, Caterpillar Inc, Tesla, Virdity Energy Solutions, EnSync Inc, Toshiba, Hitachi, Advanced Microgrid Solutions, Lockheed Martin, Exelon and Power Analytics Corporation.