Global Revenue for Fixed Cost Microgrid O&M is Expected to Exceed $4 Billion in 2026

Navigant Research

A new report from Navigant Research examines the global market potential for the provision of operations and maintenance (O&M) services for key microgrid enabling technologies.

Implementation spending for previous microgrid projects has flowed to a diverse value chain of suppliers, technology providers, integrators, controls software vendors, and utilities. As these projects mature and as the fleet of microgrids worldwide grows over time, some vendors are eyeing ongoing O&M as an additional source of sustaining revenue.

“Because microgrids vary immensely in size, resource mix, vendor composition, and application, estimating the related O&M revenue opportunities requires careful consideration,” says Peter Asmus, principal research analyst with Navigant Research. “The revenue opportunities for fixed cost O&M are typically significantly greater than those for variable O&M—even for highly utilized generation assets with frequent asset dispatch that incur relatively high variable O&M costs.”

Today, by virtue of having the largest installed base of microgrids, North America leads the world in fixed O&M opportunities, with an estimated $412 million in annual revenue that is expected to increase to $1.6 billion by 2026. According to the report, Asia Pacific follows North America with an estimated $219 million market in 2017, expected to increase to $1.5 billion by 2026.

The report, Market Data: Microgrid O&M Revenue Opportunities, analyzes the global market potential for the provision of O&M services for key microgrid enabling technologies (MET), major microgrid market segments, major regions, and 10 selected countries. The study provides an analysis of the O&M revenue opportunity drivers in the microgrid market and the key technology trends affecting these opportunities. Global market forecasts, broken out by segment, MET, and region, extend through 2026. An Executive Summary of the report is available for free download on the Navigant Research website.

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