Global Distributed Energy Generation Market Size By Technology (Micro-Turbines, Combustion Turbines, Micro-Hydropower), By End-Use (Residential, Commercial, Industrial), By Geographic Scope And Forecast

Distributed Energy Generation Market Size And Forecast

Distributed Energy Generation Market size was valued at USD 150.7 Billion in 2022 and is projected to reach USD 415.1 Billion by 2030, growing at a CAGR of 13.5% from 2023 to 2030.

Over the projected period, the market is anticipated to be driven by rising government regulations, GHG emission reduction targets, and the demand for energy. Increased R&D efforts for the creation of new technologies are also anticipated to support market expansion. The Global Distributed Energy Generation Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Distributed Energy Generation Market Definition

The term distributed generation, which is often referred to as decentralized generation or onsite generation, describes the process of producing energy onsite for independent usage. The majority of it is produced without harming the environment using methods like solar, wind, as well as other equivalent technologies. However, it mostly disregards the energy transmission required for a sizable, centralized power-producing facility to provide electricity via the electric grid, such as a coal-fired or nuclear power plant.

We really need to push distributed generators! Why? Because all of us – businesses, factories, and even our homes – are using way more power, driving up global consumption like crazy. Distributed generators can help take the pressure off those big, centralized power plants, making things more manageable. Plus, with the demand for greener electricity rising, and tons of developing countries still struggling with power access, it's a perfect fit. People are also becoming more aware of clean energy, so DEG systems are getting more popular. And let's be honest, DEG systems often cost less than those old-school power plants. So, between wanting to go green and saving money, we're expecting the market to really take off in the coming years.

Power supply in rural areas is still a significant problem for many nations throughout the world. The expansion of the electrical supply in rural areas and other locations experiencing energy scarcity is outpaced by the economic growth of already established or emerging areas due to the restrictions on the capacity to transfer power where and when it is needed. It was important to provide local options for electricity transmission as a result. As a result, there have never been better chances to implement distributed energy-generating technologies.

Global Distributed Energy Generation Market Overview

We're expecting some big changes in the market, and honestly, a lot of it boils down to governments cracking down. They're setting stricter rules and pushing for reduced GHG emissions, plus, everyone just wants more energy! Companies are really upping their R&D game to come up with new tech, and that's going to help things grow too. Government programs and incentives like feed-in tariffs in North America and Asia Pacific should really boost the market for DEG systems. These programs are helping people put these systems in all sorts of places – factories, homes, even offices. And the cool thing is, these systems can run on or off the grid, depending on where you are and what you need.

So, what's holding back investments in things like DG technologies? Well, that's pretty much the biggest hurdle to the market taking off! On top of that, switching from the old, centralized power company way of doing things to a more spread-out system is a big pain – it costs money, time, and a whole lot of effort. But honestly, a huge part of the problem is people just aren't keen on adopting the tech that lets us make energy closer to home. Why? Because these systems often take up a lot of space, and they're usually located right near where people live, which a lot of folks don't love. Plus, they raise questions about land use and, let's be honest, they're not always the prettiest things to look at, are they?

The pandemic and other trade disruptions have severely hurt the Chinese economy. Due to the lockdowns that have been implemented in various sections of the nation, China, one of the biggest exporters of DEG goods, has seen a significant reduction in the trading sector. As businesses stop making new investments and the government reduces subsidies, this is likely to have an impact on the industry.

Global Distributed Energy Generation MarketSegmentation Analysis

The Global Distributed Energy Generation Market is Segmented on the basis of Technology, End-Use, and Geography.

Distributed Energy Generation Market, By Technology

• Micro-Turbines
• Combustion Turbines
• Micro-Hydropower
• Fuel Cells
• Others

Based on Technology, the market is bifurcated into Micro-Turbines, Combustion Turbines, Micro-Hydropower, Fuel Cells, and Others. In terms of revenue, the fuel cell market segment led the Global Distributed Energy Generation Market in 2021, and it is anticipated that it will continue to hold this position throughout the forecast period. When compared to other technologies, fuel cells have a variety of benefits. Higher efficiency, fuel conversion from chemical energy to fuel, and lower pollutants are all benefits of fuel cells. They have reduced emissions and can achieve efficiencies of up to 50%.

Distributed Energy Generation Market, By End-Use

• Commercial
• Residential
• Industrial

Based on End-Use, the market is bifurcated into Residential, Commercial, and Industrial. The commercial segment dominated the market in 2021, in terms of revenue, and it is anticipated that it will maintain this position during the forecast period. Governments throughout the world are creating legislation to promote the use of renewable technologies in these applications because they offer greater efficiency, pollution reduction, and robustness than conventional energy production methods.

Distributed Energy Generation Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of a Geographical Analysis, the Global Distributed Energy Generation Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. North America dominated the globally Distributed Energy Generation Market in 2021, in terms of revenue, and it is anticipated that it will keep this position during the forecast period. Wind turbines have the biggest market share in the local North American market. However, due to declining costs, a wider global distribution of solar lease goods, and third-party ownership partners, solar PV is the market category that is expanding the fastest.

Key Players

The “Distributed Energy Generation Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Vestas Wind Systems A/S, Capstone Turbine Corp., Caterpillar, Ballard Power Systems Inc., Doosan Heavy Industries & Construction, and Rolls-Royce plc.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In June 2022, Cairn Oil & Gas announced to the conversion of its Mangala pipeline to solar power. The company is targeting to install solar rooftop PVs in all 36 AGIs by 2025.
• In June 2022, the infrastructure investment arm of Philippine billionaire Enrique Razon’s announced its plans to construct the world’s largest solar power facility by joining hands with the growing number of local companies taking up the development of renewable energy.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Distributed Energy Generation Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in the Global Distributed Energy Generation Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

Report Scope

Top Trending Reports

Research Methodology of Market Research