A new report from Guidehouse Insights examines spending on microgrid controls by technology, region, and market segment through 2029.
The success of the microgrid market rests on the shoulders of digital control platforms that can orchestrate diverse distributed energy resources (DER) into a single optimized aggregation system. Although the costly items for any microgrid are investments in DER assets, the key to project performance and the extraction value from these same assets are the controls, which often represent less than 10% or even 5% of total projects’ cost. Click to tweet: According to a new report from @WeAreGHInsights, total annual microgrid controls spending starts at $551.5 million in 2020, increasing to almost $2.8 billion annually by 2029, at a compound annual growth rate (CAGR) of 19.8%. Cumulatively, more than $14 billion is expected to be invested in microgrid controls over the next decade.
“Microgrid controls technologies are ever-evolving and vary widely,” says Peter Asmus, research director with Guidehouse Insights. “Most often a combination of hardware and software, these controls systems are the orchestrator marshaling generation, storage, and loads to bolster resiliency and optimize DER assets to meet prescribed economic and environmental goals.”
For many controls platforms, emphasis is shifting from hardware devices and on-premise gateways to software and customization performed in the cloud. As with other microgrid trends, such as a recent focus on modular offerings with standardized hardware components, the market continues to shift and grow in diversity, application, and purpose.
The report, Market Data: Microgrid Controls, forecasts spending on microgrid controls by technology, region, and market segment. It also explores the philosophies guiding future technology development. This report shows that overall spending on microgrid controls is less in 2020 than previous forecasts showed but grows faster in revenue over the forecast horizon due to shifts in technology choices favoring cloud-native software. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges with a focus on markets and clients facing transformational change, technology-driven innovation and significant regulatory pressure. Across a range of advisory, consulting, outsourcing, and technology/analytics services, we help clients create scalable, innovative solutions that prepare them for future growth and success. Headquartered in Washington DC, the company has more than 7,000 professionals in more than 50 locations. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Microgrid Controls, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.