NEW
YORK, June 27, 2024 /PRNewswire/ -- The global
energy storage for microgrids market size is estimated to grow
by USD 2.09 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 22.79% during the forecast period. Increasing
government support and microgrid energy storage installation
projects is driving market growth, with a trend
towards advancements in technology. However, high
implementation costs poses a challenge. Key market players include
ABB Ltd., AEG Power Solutions BV, Aquion Energy, AT and T Inc.,
Beacon Power Systems, David MacBrayne Ltd., EnerSys, General
Electric Co., GS Yuasa International Ltd., Hitachi Ltd., LG Corp.,
Mitsubishi Heavy Industries Ltd., Morimura Bros Inc., Panasonic
Holdings Corp., S and C Electric Co., Samsung Electronics Co. Ltd.,
Shell plc, Sumitomo Electric Industries Ltd., Toshiba Corp., and
TotalEnergies SE.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Remote,
Community and utility, Institution and campus, and Military),
Battery Type (Lithium-ion batteries and Lead-acid batteries), and
Geography (North America, APAC, Europe, South America, and Middle
East and Africa)
|
Region
Covered
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
ABB Ltd., AEG Power
Solutions BV, Aquion Energy, AT and T Inc., Beacon Power Systems,
David MacBrayne Ltd., EnerSys, General Electric Co., GS Yuasa
International Ltd., Hitachi Ltd., LG Corp., Mitsubishi Heavy
Industries Ltd., Morimura Bros Inc., Panasonic Holdings Corp., S
and C Electric Co., Samsung Electronics Co. Ltd., Shell plc,
Sumitomo Electric Industries Ltd., Toshiba Corp., and TotalEnergies
SE
|
Key Market Trends Fueling Growth
The energy storage market for microgrids is experiencing
significant growth due to the increasing installation of microgrids
where central grids fail to meet power demands. Advanced
technologies are enhancing energy production quality, leading to
the development of flexible and scalable microgrids. Hybrid
microgrids, combining renewables, fossil fuels, and energy storage,
are a major advancement. The US DOE's R&D program aims to make
microgrids an integral part of the future electricity delivery
system by 2035, focusing on reliability, resilience,
decarbonization, and affordability. Expect new technologies to
enable microgrids to work in tandem with the power utility
distribution grid and transition seamlessly to autonomous power
system mode.
The Energy Storage for Microgrids market is experiencing
significant growth due to the increasing demand for reliable and
sustainable power solutions. Key players in this sector include
Capacity, Corpower, Solar, Commodity, Power, Transport, Markets,
Agilitude, Demand, Manufacturing, Grid, and Vehlco. Trends in this
market include the use of redox flow batteries, lithium-ion
batteries, and lead-acid batteries. The demand for energy storage
in microgrids is driven by the need for energy independence and the
ability to store excess renewable energy for later use.
Additionally, the integration of electric vehicles into the grid is
expected to further boost the market. The capacity to store energy
is crucial for the efficient operation of microgrids and the
integration of renewable energy sources.
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Report
Market Challenges
- Microgrids, which offer improved reliability and power quality
compared to traditional centralized grids, come with higher
implementation costs. These expenses include smart meter
installation, communication system deployment, and microgrid
control systems. Solar PV arrays, batteries, and CHP systems used
in microgrids are more expensive than standard centralized power
facilities. Integration of various microgrid components with other
technologies also increases production costs. Compliance with
mandatory utility grid interconnection standards, such as IEEE 1547
and 2030 in the US, adds to the cost. These factors pose a
significant challenge to the growth of the energy storage market
for microgrids.
- Microgrids are becoming increasingly popular for providing
reliable and sustainable power to various industries and
communities. However, integrating energy storage systems into
microgrids poses certain challenges. One challenge is the high cost
of energy storage technologies like batteries. Another challenge is
the need for efficient energy management systems to optimize the
use of stored energy and ensure grid stability. Additionally, the
size and complexity of energy storage systems can make installation
and maintenance difficult and expensive. Furthermore, the
interconnection of microgrids with the main power grid requires
regulatory compliance and standardization. Despite these
challenges, the benefits of energy storage for microgrids, such as
improved grid resilience and renewable energy integration, make it
a worthwhile investment for the future.
For more insights on driver and
challenges - Download a Sample Report
Segment Overview
This energy storage for microgrids market report extensively
covers market segmentation by
- Application
- 1.1 Remote
- 1.2 Community and Utility
- 1.3 Institution and Campus
- 1.4 Military
- Battery Type
- 2.1 Lithium-ion Batteries
- 2.2 Lead-acid Batteries
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Remote- The Energy Storage for Microgrids market is
growing due to the increasing deployment of remote microgrid
systems. These systems, often used in villages without grid access
or limited power, have an average capacity of 10 kW. India, Indonesia, and Bangladesh are key markets. Solar and wind
energy sources are used, but excess power goes to waste without
energy storage. Storage systems capture excess power for later use,
reducing fuel costs and meeting peak demand. Industrial
applications also drive demand. Solar panels' declining costs and
energy storage advances enable clean energy microgrids. The market
is expected to grow significantly as the demand for electricity
increases faster than conventional grid expansion.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
In the context of the evolving energy landscape, the Energy
Storage For Microgrids Market plays a pivotal role in enhancing
grid reliability and resilience. Solar and wind energy, key
contributors to the low-carbon economy, face intermittency
challenges. Energy storage solutions, such as stationary batteries,
address this issue by providing consistent power supply. The
transportation and industry sectors, as well as buildings and
agriculture, can benefit from microgrids and energy storage.
Commodity markets for kilowatthours and gigawatts continue to
evolve, with energy capacity from electrified powertrains and
consumer electronics adding to the demand. Commodity trading in the
transportation market and stationary market further fuels the
growth of energy storage for microgrids. Demand management and
electric vehicle adoption also contribute to the increasing
importance of energy storage in microgrids. Photovoltaics and other
renewable energy sources are integrated with energy storage to
ensure a stable power supply and improve overall grid
performance.
Market Research Overview
The Energy Storage for Microgrids market refers to the
technologies and solutions that enable the storage and release of
energy in decentralized power grids. These systems
play a crucial role in ensuring grid reliability and stability,
particularly in remote areas and during power outages. The market
is driven by the increasing adoption of renewable energy sources,
such as solar and wind, which generate intermittent power. Energy
storage solutions for microgrids include batteries, flywheels, and
pumped hydro storage, among others. The market is expected to grow
significantly due to the increasing demand for reliable and
sustainable power supplies, as well as government initiatives and
incentives to promote renewable energy and energy storage. The use
of advanced control systems and IoT technologies is also expected
to drive market growth by improving the efficiency and performance
of energy storage systems.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Remote
- Community And Utility
- Institution And Campus
- Military
- Battery Type
-
- Lithium-ion Batteries
- Lead-acid Batteries
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio