Microgrid revenue rose 29 percent from 2015 to 2016, reaching $6.8 billion globally, according to a report issued today by Advanced Energy Economy (AEE).
Prepared by Navigant Research, AEE’s 2017 Market Report also found that Asia Pacific led the microgrid market followed by North America.
In the United States, the microgrid market continued a five-year gallop upward. Microgrid revenue has more than doubled since 2011, reaching $2.2 billion in 2016, a 16 percent year-over-year increase from 2015 to 2016.
Energy storage, a smaller market than microgrids, made a bigger leap year-over-year. Revenue climbed 45 percent, making energy storage a $1.1 billion global market. In the U.S., the energy storage market reached $427 million, a 54 percent rise.
Charging infrastructure for plug-in electric vehicles proved to be another small, but fast growing market, rising 69 percent over 2015 to reach $864 million — a sevenfold increase compared to 2011. In the U.S. the charging market saw a 576 percent increase over five-years, reaching $182 million.
Microgrids and energy storage were the leaders for annual growth in their market segment, what AEE describes as electric delivery and management. The segment, which also includes smart grid, electric vehicle charging, and transmission and distribution, constitutes a $19 billion U.S. market and $99 billion global market.
Overall, however, electric delivery and management saw only anemic growth of three percent in the U.S., dragged down year-over-year by a fall in transmission investment (six percent) and distribution (13 percent.) Still, transmission produces the most revenue in the segment, $6.8 billion, down from $7.2 billion the previous year.
Advanced metering infrastructure also reduced the sector’s growth, with its four-year downward slope of 18 percent since 2012.
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