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Microgrid as a Service (MaaS) Market


Semiconductor & Electronics
Electrical System & Components

The microgrid as a service market was valued at USD 774.9 Million in 2015 and is expected to reach USD 2,241.6 Million by 2022, at a CAGR of 15.86% during the forecast period. Reduction in operational costs and negligible upfront investments by MaaS end users, rising demand from MaaS from hospitals, universities, and remote regions, and high investments by governments in microgrid infrastructure for improved resilience are expected to boost the demand for MaaS in the coming years.

The microgrid as a service (MaaS) market, on the basis of grid type, has been segmented into grid connected and remote or islanded grid types. Among these two segments, the remote or islanded type is expected to grow at the highest rate during the forecast period. Remote/islanded microgrids allow facilities to better manage distributed energy sources and achieve greater control in meeting energy demands.

The microgrid as a service market, on the basis of vertical, has been segmented into government and education, residential and commercial, industrial, military and utility. Among these segments, the market for industrial vertical is expected to grow at the highest CAGR during the forecast period. Lower energy costs, more reliable and better quality power supply, grid resiliency, access to electricity, fuel independence are some of the advantages, which have increased the adoption of microgrid technology in industrial vertical.

The microgrid as a service market, on the basis of service type, has been segmented into engineering and design service, software as a service, monitoring and control service, and operation and maintenance service. The software as a service is expected to grow at the highest rate during the forecast period followed by operation and maintenance service. With software as a service, microgrid owners have a single point of accountability and a reduced risk of project delays and failures. This results in a safer, more reliable, and more cost-efficient microgrid system.

Microgrid as a Service (MaaS) Market

The MaaS market, based on geography, has been segmented into Americas, Europe, APAC, and Rest of the World. The MaaS market in APAC is expected to grow at the highest CAGR during the forecast period. The market growth in APAC can be attributed to the high investments in the microgrid infrastructure, and increasing need for continuous, uninterrupted, and reliable supply of power and electricity.

Dominance of customer-owned microgrids and policies, regulations, and standards are some of the key challenges in the global MaaS market. Key players in this market focus on strategic partnerships, acquisitions, agreements, and new product launches and developments to increase their revenue. For instance, in August 2015, Blue Lake Rancheria (U.S.) and Humboldt State University's Schatz Energy Research Center (U.S.) partnered with Siemens to build a low-carbon community microgrid to power the government offices, economic enterprises, and critical Red Cross safety shelter-in-place facilities. This project is estimated to reduce 150 tons of carbon per year. In February 2015, Exelon Corp. entered into a partnership with Anbaric Transmission (U.S.) to create a series of microgrids in New York. The collaboration was meant for establishing microgrids ranging from 10 to 200 MW, throughout the state to secure reliability, reduce costs, and improve the efficiency of the surrounding grid.

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