Energy Resilience Market Is Estimated To Witness High Growth Focus On Renewable Energy Sources – Coherent Market Insights

  • Ronak Shah
  • U.S.A
  • January 14, 2025

The Energy Resilience Market is estimated to be valued at US$ 45.57 Bn in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

The growth of the energy resilience market is expected to be driven by increasing focus on renewable energy sources coupled with rising energy demand worldwide. Renewable energy resources such as solar, wind, tidal, and hydroelectric power are witnessing high demand owing to support from various government policies and regulations to minimize dependence on fossil fuels and reduce carbon emissions. Furthermore, growing concerns regarding energy security due to fluctuating oil prices and geopolitical uncertainties is also fueling the adoption of distributed and decentralized energy solutions including microgrids, energy storage systems, and smart grids across residential, commercial and industrial sectors.

Key Market Trends: Rise in Adoption of Microgrids – The increasing adoption of microgrids is one of the key trends in the energy resilience market. Microgrids offer reliable and continuous power supply by integrating distributed energy resources such as diesel/natural gas generators, renewable energy sources, and energy storage systems. They provide several benefits such as lower emissions, grid independence, ability to operate in grid-connected and island modes, and improved power quality and reliability.

Growing Deployment of Energy Storage Technologies – Rising deployment of energy storage technologies such as lithium-ion batteries, lead-acid batteries, flywheels, and compressed air energy storage is another major trend in the energy resilience market. Energy storage helps in capturing excess energy produced from renewable sources and delivering it as per demand. It also helps in mitigating intermittency issues associated with solar and wind energy and provides backup power during grid outages. More information available in the sample copy.

Market Opportunities: Distributed Energy Systems – Distributed energy systems refer to small-scale power generation technologies installed close to the end-users of the power, such as homes, apartments, and commercial buildings. These systems allow individual buildings or microgrids to generate and share their own renewable energy. Distributed energy systems are gaining popularity as they offer more energy resilience by allowing buildings to operate independent of the main power grid during outages. They also help reduce peak energy demand and emissions.

Some examples of distributed energy systems include solar photovoltaic panels, fuel cells, micro turbines, and energy storage solutions like batteries. Solar PV is one of the most adopted distributed technologies globally due to falling prices of panels and the worldwide push for clean energy. Combined with battery storage, solar PV systems allow residential and commercial customers to generate, store, and consume their own renewable energy. Fuel cells are also seeing increased interest for distributed power applications especially in areas prone to natural disasters due to their ability provide continuous power.

Energy Management Systems – Energy management systems (EMS) enable centralized monitoring and control of energy generation, distribution, and consumption across an organization. They allow greater visibility and analytics of energy usage patterns to optimize efficiency. EMS integrate with building energy systems like HVAC, lighting and distributed energy assets. They help automate demand response programs, peak shaving, and energy cost optimization through remote real-time control of connected devices.

Advanced EMS use AI and machine learning algorithms to analyze building energy performance data over time and spot anomalies or inefficiencies. This helps take pre-emptive steps to reduce wastage, extend equipment life and maximize cost savings. EMS also provide remote access and control for quick response during outages or emergencies. Their integration with distributed energy resources further enhances energy resilience and security of supply for critical infrastructure and facilities.

Key Market Takeaways: The global energy resilience market is anticipated to witness a CAGR of 9.5% during the forecast period 2024-2031, owing growing power disruptions risks from extreme weather and intermittent renewable integration. By type, the distributed energy systems segment is expected to hold a dominant position, accounting for over 40% of global revenues by 2031 due rising adoption of solar PV and microgrids for backup power. By application, the commercial segment dominates currently but the industrial vertical is witnessing fastest gains driven by need for uninterrupted operations in manufacturing.

Regionally, North America holds the leading share currently due to supportive policies for clean distributed assets and early industrialization. However, Asia Pacific is emerging as a key market supported by rapid infrastructure growth and electrification programs across developing countries.

Key Players in the Market: Tesla INC, Siemens AG, ABB Ltd, Eaton Corporation, Schneider Electric., General Electric, Enphase Energy, Sunverge Energy, Anthropic

Recent Developments in Energy Resilience Market: In June 2023, a 20 MW solar farm was commissioned in Australia with a 10 MW/20 MWh battery energy storage system. This renewable energy microgrid will provide power to a small township and its surrounding areas, making the energy supply more resilient against wildfires and other natural disasters which often disrupt grid connectivity in the region. Announced in June 2023, California Governor Newsom signed legislation committing $50 million to fund new microgrids at critical civic buildings like emergency response centers, shelters, and water treatment facilities. The goal is to have at least 25 microgrids installed statewide by the end of 2024 to strengthen community resilience. More information available in the full report.

Summary

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