Africa Microgrid Market Forecast Report: CAGR of 4.8% Forecast During 2023-2029, Due to Rising Population and Government Initiative to Achieve Universal Electrification by 2040
DUBLIN, March 6, 2024 /PRNewswire/ -- The "Africa Microgrid Market (2023-2029) Value, Size, Forecast, COVID-19 IMPACT, Companies, Growth, Analysis, Revenue, Industry, Share & Trends: Market Forecast By Countries, By Connectivity, By Offering, By Power Source, By Power Rating And Competitive Landscape" report has been added to ResearchAndMarkets.com's offering.
The African Microgrid Market is majorly driven by the need for reliable energy solutions to deal with the frequent power outages, and load shedding that many parts of Africa experience such as South Africa experienced ~11,700 MW in 2022. In addition, Microgrids tend to have a lower upfront cost compared to other options such as extending grid connectivity to remote areas, making them more affordable for African businesses and consumers.
The African Microgrid market size is anticipated to grow at a CAGR of 4.8% during 2023-2029F. The African microgrid market experienced significant growth before the COVID-19 pandemic due to the continent's increasing demand for continuous electricity access, particularly in remote areas and for industrialization. Additionally, Nigeria's microgrid market saw growth in 2020 due to ongoing electrification projects across Africa. Despite the challenges posed by the pandemic, both government and private investments in the energy sector persisted. This sustained demand for electricity and the resumption of infrastructure projects contributed to the sector's growth post-pandemic.
The microgrid market in Africa is expected to witness significant growth in the upcoming period. This is due to the continent's rising population, projected to increase by 2.5 billion by 2050, coupled with government initiatives to boost the country's electricity demand and achieve universal electrification by 2040.
Furthermore, the United States Agency for International Development (USAID) launched Power Africa, aiming to create 8-10 million new electrical connections from mini and microgrids. They extended the project to target ending energy poverty by 2030. Governments and various organizations are actively utilizing renewable sources for power generation through public-private partnerships. They are deploying power plants across several African countries, including Somalia, Kenya, Tanzania, Mozambique, Zambia, Uganda, Rwanda, Benin, and Niger. Collectively, these efforts to increase energy demand will facilitate the growth of microgrids across Africa in the coming years.
Market Segmentation by Connectivity
The off-grid connectivity acquired the maximum share in the Africa Microgrid Industry in 2022 as the population in the region is not connected to grids. Moreover, owing to poor access to electricity in rural areas and communities far away from the national grid makes off-grid connectivity more viable in such situations.
Market Segmentation by Offerings
By offerings, the hardware segment holds the largest share of revenue in the microgrid market in Africa, because of its components, and grid infrastructure. Moreover, hardware forms the basis of the physical infrastructure required for microgrid deployment, making it a key area of investment and, consequently, the leading contributor to revenue.
Market Segmentation by Power Source
In 2022, Solar PV acquired the highest revenue share in the market due to the ease of access of solar grids in remote areas and the abundance presence of sunlight with ~11 hours daily. Furthermore, the country's goal to contribute to renewable energy for energy generation with aim to reach 25% by 2030 lead the Solar PV revenue share to grow in microgrids.
Market Segmentation by Power Rating
Less than 500 kW microgrid has acquired the largest share followed by 500 kW- 1 MW in power rating segment due to localized energy needs aligning with low demands and grid stability. Additionally, budget constraints and the availability of renewable sources like solar provide an ecosystem to set up smaller microgrids.
Market Segmentation by Countries
Kenya has emerged as the highest revenue shareholder in the market, owing to its major deployment of microgrids in the residential and commercial sectors. Moreover, the upcoming development of 136 microgrid projects by KPLC in Kenya is expected to drive the demand for Microgrid market in the coming years.
Key Attractiveness of the Report
- COVID-19 Impact on the Market.
- 11 Years of Market Numbers.
- Historical Data Starting from 2019 to 2022.
- Base Year: 2022
- Forecast Data until 2029.
- Key Performance Indicators Impacting the Market.
- Major Upcoming Developments and Projects.
Key Highlights of the Report
- Africa Microgrid Market Overview
- Africa Microgrid Market Outlook
- Africa Microgrid Market Forecast
- Historical Data and Forecast of Africa Microgrid Market Revenues, for the Period 2019-2029F
- Market Drivers and Restraints
- Africa Microgrid Market Trends
- Historical Market Data and Forecast of Revenue, By Connectivity, for the Period 2019-2029F
- Historical Market Data and Forecast of Revenue, By Offerings, for the Period 2019-2029F
- Historical Market Data and Forecast of Revenue, By Power Source, for the Period 2019-2029F
- Historical Market Data and Forecast of Revenue, By Power Ratings, for the Period 2019-2029F
- Historical Market Data and Forecast of Revenue, By Countries, for the Period 2019-2029F
- Market Opportunity Assessment
- Africa Microgrid Project Outlook
- Africa Microgrid Market Ranking, By Companies
- Competitive Benchmarking
- Company Profiles
- Key Strategic Recommendations
Market Scope and Segmentation
The report provides a detailed analysis of the following market segments:
By Connectivity
- Grid Connected
- Off Grid Connected
By Offerings
- Hardware
- Software
- Services
By Power Source
- Fossil Fuels
- Solar PV
- Others (Wind, Hydro Electric, Biomass, Etc)
By Power Rating
- Less than 1 MW
- 1 MW - 5 MW
- 5 MW- 10 MW
By Countries
- South Africa
- Nigeria
- Kenya
- Tanzania
- Ghana
Companies Profiled
- Engie Energy Access
- All On Inc
- Husk Power Systems Pvt. Ltd
- Arnergy
- Kenya Power and Lighting Company PLC
- Powergen Renewable Energy
- Powerhive
- RVE SOL
- ENSOL LTD
- Rural Energy Agency (REA)
- Tanzania Electric Supply Company Limited (TANESCO)
- Northern Electricity Distribution Company
- Company Profiles (Microgrid Operators)
- Schneider Electric South Africa (Pty) Ltd
- Eaton Electric (South Africa) (Pty) Ltd
- Eskom Holdings SOC Ltd
- ABB South Africa (Pty) Ltd
- Siemens Proprietary Ltd
- The SOLA Group
For more information about this report visit https://www.researchandmarkets.com/r/5hf80f
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