Market Outlook:

The anticipated global energy management system in microgrid market size is poised to reach USD 63.29 Billion by 2023, with a projected escalation to USD 211.80 Billion by 2032, reflecting a compound annual growth rate (CAGR) of 16.31% during the forecast period. 

The most decentralized power in microgrids is an energy management system (EMS), which is a control and optimization system made to intelligently coordinate the region's energy generation, storage, and distribution. It serves as the microgrid brain, continuously monitoring and analyzing real-time data from various energy sources, such as electronic devices, storage systems, and renewable energy systems. EMS uses advanced algorithms to balance energy supply and demand, optimizing and stabilizing schedules. By anticipating output and organizing its contribution to microgrids, it aids in the integration of renewable energy. Furthermore, EMS facilitates demand response tactics to optimize resource utilization and enhance microgrid performance during extensive network disruptions. All things considered, energy management is crucial to raising the microgrid's operational efficiency, stability, and dependability.

Market Dynamics:

Driver:

The growing need for efficient and sustainable power supply drives the growth of the energy management systems (EMS) in microgrids market. As the world moves to renewable and renewable energy sources, microgrids are becoming increasingly important and require robust energy management systems. Incorporating diverse energy sources like solar and wind power necessitates management to maximize their advantages. In addition, increasing awareness of climate change and the need for more efficient energy sources are driving the adoption of EMS in microgrids. These systems provide direct monitoring, forecasting, and intelligent control to safeguard the efficient distribution of electricity, reduce waste, and ensure grid dependability. Furthermore, while microgrids offer regional solutions for both urban and rural regions, the need for energy independence, financial savings, and the capacity to integrate new technologies with sustainable and intelligent energy solutions are all important factors in meeting the demands of EMS.

Restraint:

The high implementation cost hampers the growth of the energy management system in microgrid market. It can be costly to implement an EMS, particularly for smaller microgrids. Adoption may be hampered by the initial costs associated with software, hardware, and installation. Data collection from all distributed energy resources (DERs) in a microgrid, including solar panels, wind turbines, and battery storage systems, requires specific hardware from an EMS, such as sensors, meters, and communication gateways. These sensors might be adequate for a small microgrid, but larger or more intricate microgrids might require extra hardware to collect all the data required for the best possible control. The software platform that analyses the gathered data does optimization calculations, and delivers control signals to the several DERs in the microgrid is the brains behind the EMS.

Opportunity:

The increasing demand for response management creates a lucrative opportunity for the growth of the energy management system in microgrid market. Demand response programs, which let microgrids modify energy usage in response to changes in electricity pricing or grid circumstances, can be made easier with the help of EMS. In addition to increasing grid stability generally, this can bring in money for microgrid operators. Demand for electricity in the grid varies throughout the day, continuously. Peak hours can cause brownouts or even blackouts because everyone is using appliances and taxing the grid during these times. Programs known as "demand response" encourage businesses and households to use less electricity during peak hours. Essentially, EMS serves as a link between demand response programs and microgrids. Microgrid operators and the electrical grid both benefit from increased involvement and optimized energy utilization.

Challenge:

Cybersecurity risks are becoming a bigger worry as microgrids get increasingly complex and networked. To guard against cyberattacks that could stop microgrid operations, EMS must be reliable and secure. As microgrids become more sophisticated, a wider range of distributed energy resources (DERs) are being integrated into them, including solar panels, wind turbines, and battery storage devices. Each of these DERs adds another potential access point for cybercriminals inside the microgrid network. Microgrids are becoming increasingly built with the ability to communicate and work with other microgrids or the main grid. Due to this interconnection, there are also additional risks as a compromised microgrid might provide an attacker with access to the larger grid.

Key Players:

• ABB Power Grid (Switzerland)
• Ageto (Belgium)
• Bachmann Electronic (Germany)
• Al-Bahar/Caterpillar (UAE)
• DHybrid Power System (Denmark)
• Elgris (US)
• LADOT (US)
• Elum Energy (France)
• Energytion Power Systems (US)
• Engie EPS (France)
• GreenCom Networks (Germany)
• Lanka Electricity Company Limited (LECO) (Shri Lanka)
• Others

Recent Development:

• In June 2020, Lanka Electricity Company Limited (LECO) agreed with Dimo ​​and DHYBRID GmbH to build a microgrid at the University of Moratuwa, Sri Lanka's first grid-connected renewable energy station. The project, financed by the Asian Development Bank (ADB), will create a new trend in Sri Lanka's electricity distribution system.

• In November 2021, the Los Angeles Department of Transportation proposed a new microgrid project for electric vehicle use. The microgrid is equipped with solar + energy storage and is expected to be a charging station for the ship. The project is being developed by Proterra Energy and received a $6 million grant from the California Energy Commission. Electricity production should be approximately 7.5 MW.

Segment Insights:

By Area

The demand for energy management (EMS), particularly management in microgrids, is increased by the complexity and diversity of energy sources. A major requirement for centralized smart monitoring should arise from the integration of conventional and renewable energy systems in microgrids. The efficiency, efficacy, and dependability of the microgrid are guaranteed by real-time monitoring, analysis, and decision-making provided by EMS with monitoring capabilities. A strong energy system is needed to manage energy storage, balance supply and demand, and address associated problems as a result of the growing use of renewable energy sources like solar panels and energy storage. Furthermore, since it is crucial to the integration of several microgrids, the necessity for EMS with monitoring capabilities is greatly increased by the significance of a voluntary plan, a security objective, and the integration of technologies like the Internet of Things (IoT).

By Application

The demand for energy management systems (EMS) for microgrids in business, industry, and commerce is being driven by the pressing need to increase energy efficiency, lower operating costs, and meet sustainability targets. Businesses are becoming progressively more aware of the benefits of microgrids with cutting-edge EMS in these energy-intensive sectors. Instantaneous monitoring and improvement of energy efficiency lowers waste, improves resource utilization, and raises energy cost efficiency. Additionally, integrating renewable energy into EMS-driven microgrids and pursuing targets are essential business priorities in terms of sustainability and environmental responsibility. Commercial and industrial facilities are especially drawn to microgrids due to their flexibility and dependability in the face of grid transmission or modifications, which guarantees continuity and protection and stops critical processes. In short, the necessity for EMS in commercial and industrial microgrids stems from the desire for stability, energy efficiency, and cost reduction in an effective setting.

Regional Insights:

North America is the dominating region for the energy management system in microgrid market. The region is dominating due to its commitment to sustainability, innovation, and energy efficiency. As North America evolves to a clean energy future, EMS plays a serious role in improving energy efficiency and mixing renewable energy into the grid. Regulatory and government incentives to reduce carbon footprint further support the practice of environmental management in many sectors. To properly balance supply and demand, the nation's varied energy landscape which includes a large number of renewable resources needs management systems. Additionally, the increasing frequency of extreme weather events and the desire for a voluntary grid are encouraging investment in EMS to provide better grid management and response. North America's demand for EMS focuses on improving energy stability, reducing costs, and increasing grid reliability and reflects the response to changing energy challenges.

Segmentation:

By Connectivity

• Physical Connectivity
• Virtual Connectivity

By Area

• Supervisory Control (Centralized, Decentralized, Distributed), 
• Intelligent Technique (Genetic Algorithm, Fuzzy Logic Control, Neural network)
• Particle Swarm Optimization (Adaptive PID Controller, Adaptive Sliding Mode Controller, Reinforced Learning, MPC)
• Adaptive Technique

By Power Rating

• Less than 1 MW
• 1 to 5 MW
• 5 to 10 MW
• More than 10 MW

By Power Source

• Natural Gas
• Solar PV
• Combined Heat & Power
• Fuel Cell
• Diesel Generators
• Other Sources

By Application

• Commercial & Industrial
• Remote Areas
• Government
• Utility
• Institutions
• Other Applications

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Energy Management System in Microgrid market in the world.

2. Use PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Energy Management System in the Microgrid market.

3. Leading company profiles reveal details of key Energy Management Systems in Microgrid market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Energy Management System in Microgrid market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Energy Management System in Microgrid Market?

• The growing need for efficient and sustainable power supply drives the growth of the energy management systems (EMS) in microgrids market.  

2) What would be the CAGR of the Global Energy Management System in Microgrid Market over the forecast period?

• The Global Energy Management System in Microgrid Market is poised to grow at a CAGR of 16.31% from 2024 to 2032.

3) Which region will provide more business opportunities for the growth of Global Energy Management Systems in Microgrid Market in the future?

• The North America region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Energy Management System in Microgrid Market?

• ABB Power Grid (Switzerland), Ageto (Belgium), Bachmann Electronic (Germany), Al-Bahar/Caterpillar (UAE), DHybrid Power System (Denmark), Elgris (US), LADOT (US), Elum Energy (France), Energytion Power Systems (US), Engie EPS (France), GreenCom Networks (Germany), Lanka Electricity Company Limited (LECO) (Shri Lanka), Others.

5) What are the segments in the Global Energy Management System in Microgrid Market?

• By Power Source, By Connectivity, By Area, By Power Rating, By Application are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Energy Management System in Microgrid Market in 2032?

The estimated revenue for the Global Energy Management System in Microgrid Market in 2032 is USD 211.80 billion.