Asia Pacific Microgrid Market size is predicted to expand at a CAGR of 45% from 2021 to 2027. Increasing uninterrupted and resilient energy demand coupled with rising electrification rate largely across the upcoming economies will drive the market growth. Growing inclination toward renewable energy generation along with surging investments toward the development of regional and medium scale power infrastructure will foster the market landscape.
Government efforts to expand utility-based grid to provide a sustainable electrical infrastructure coupled with large-scale adoption of renewable technology has complemented the on-grid microgrid deployment. Stringent regulatory norms to minimize the carbon footprint along with favorable government incentive which includes feed-in tariffs & tax incentives to strengthen the demand for renewable will enhance the demand for the grid-integrated sustainable establishments. For instance, the government of China pledged to reduce total carbon emissions per unit of GDP by 60%-65% between 2005 and 2030.
Asia Pacific Market, By Source
Asia Pacific solar PV based microgrid segment is estimated to grow substantially till 2027 on account of rapid industrialization, commercialization, and urbanization. In addition, the development of large sustainable power generation facilities in turn will fuel the solar energy based microgrid networks. According to the IRENA, net increase in global renewable power generation in 2019 was 176 GW out of which Asia Pacific holds 54% of total share. Furthermore, rising demand for community & isolated area-based network installation will boost the product adoption.
Asia Pacific Market, By Grid Type
AC microgrids will witness a significant surge through 2027 owing to its ability which includes lower transmission losses, flexible high-end voltage levels and lesser heat generation. In addition, these systems are highly compatible with power networks and involves no inverters for the electricity supply which further enhances the industry dynamics. Moreover, increasing installation of high & medium voltage AC power networks coupled with deployment of large CHP, solar, and wind farms will further propel the market scenario.
Asia Pacific Market, By Country
Indian microgrid industry revenue is set to observe exponential rise during the forecast period led by the rapid industrialization, urbanization and commercialization coupled with government focus toward sustainable power facilities. For instance, Government of India have introduced new renewable energy programs with a target of 175 GW by 2022. Ongoing power outages along with rising electricity demand will enhance the demand for decentralized networks which will further sway the technology adoption.
Competitive Industry Landscape
Prominent companies operational across the Asia Pacific market include Eaton Corporation, Toshiba Corporation, Schneider Electric, Hitachi ABB Power Grids, Hitachi, GE, Global Microgrid Technologies, and Siemens.