Africa Microgrid Market size is anticipated to grow at a CAGR of 4.8% during 2023-2029F

In terms of offerings, hardware segments registered the highest revenue share in Africa Micro Grid Market – 6Wresearch

In 2022, the hardware segment garnered the maximum revenue share in Africa Micro Grid Market as it consists of tangible components such as power generators, energy storage systems and controllers which acquires around 50%-55% of the total capital expenditure incurred in the setup, therefore owing to increase in the number of microgrid projects across the region and it is leading to increased demand for hardware in the region.

According to 6Wresearch, Africa Microgrid Market size is anticipated to grow at a CAGR of 4.8% during 2023-2029F. As renewable energy costs decline, microgrids become increasingly economically attractive compared to diesel generators and grid extensions, drawing greater private sector investment. Notably, in Africa, solar PV module prices have plummeted by over 80% since 2009, dropping from an average of $4.30/W in 2009 to $0.76/W in 2021. In Africa, small-scale wind turbines designed for microgrids experienced a substantial 15-30% cost reduction between 2010 and 2020. This decline in costs enables more off-grid communities to access basic electricity services through microgrids powered by affordable solar home systems, mini-wind, and mini-hydro solutions.

The declining costs of solar-based microgrids have led to a 2% increase in solar kit sales in East Africa from H2 2020 to H1 2022, driven by strong performances in Kenya, Ethiopia, and Zambia. In West Africa, total solar kit sales also increased by 45% from H2 2020 to H1 2022, mainly due to Nigeria's 20% growth, representing 74% of regional sales. Rising sales of solar energy kits in Africa are likely to boost microgrid growth in these regions. This trend is being driven primarily by growing awareness of the benefits of renewable energy, greater energy availability, economic viability, and the rising need for electricity to power appliances.

According to Shivankar, Research Manager, 6Wresearch, in 2022, the less than 500 kw segment acquired the maximum revenue share in the power rating segment owing to the deployment of multiple microgrids.

The Africa Micro Grid Market (2023-2029) report provides an in-depth analysis with 67 figures and 24 tables, covered 129 pages. The report comprehensively covers the market by connectivity, offerings, power source, power rating, and countries. The report provides a detailed as well as unbiased analysis of the ongoing drivers, opportunities/high growth areas, and trends of the sector which are projected to support the stakeholders to align as well as devise their market strategies as per the latest and future market dynamics.