Distributed Energy Generation Market size was valued at USD 301.44 Billion in 2023 and is projected to reach USD 704.79 Billion by 2030, growing at a CAGR of 12.9% from 2023 to 2030.
Distributed Energy Generation Market Market Overview
Distributed generation can power a single building, like a house or business, or it can be a component of a microgrid, as at a sizable industrial complex, military base, or university campus. Examples of distributed generation technologies that produce electricity at or close to the point of use are solar photovoltaic (PV) and wind.
The term “distributed energy” refers to a variety of energy production, storage, monitoring, and control technologies. Energy storage (including electric vehicles) and distributed energy management systems are included in this. It also includes the combined generation of electricity, heat, and power. These systems can be customized to satisfy particular needs, such as cost savings, energy efficiency, supply security, and carbon emission reduction. Due to the inadequate connectivity to macro grids in some countries, the most important development in the market for distributed power generating systems is a growth in investment in microgrids. Demand for DEG systems is anticipated to increase as clean energy sources become more widely known. DEG systems are also less expensive than traditional power-producing techniques. Therefore, it is predicted that both the economic cost of the product and the desire for clean energy sources will have a beneficial impact on the market’s growth over the projected period. The market as a whole has advanced due to the way that regulatory rules are currently being developed in North America. A faster rate of DTS technology adoption in the region is being caused by factors like enhanced provincial renewable energy policies in Canada and effective energy auction implementation in Mexico. One of the major market trends for distributed energy generating systems is the growing use of rooftop photovoltaic solar panels for both commercial and residential applications.
The market for distributed energy generation (DEG) is expanding due to more stringent government regulations and goals for reducing greenhouse gas (GHG) emissions. Global market expansion is also a result of the advantages of renewable technology, including energy security, resilience, and carbon reductions. The industry is also projected to rise as a result of increased R&D initiatives to create new solar power-producing technologies. Due to the requirement for a clean energy source and the low cost of the products, DEG systems are also less expensive than conventional power-generating techniques. As a result, the market expansion is anticipated to be boosted over the anticipated period. These are a few of the distributed energy generation market trends seen around the world.
Following the price fluctuations, interest in using renewable energy sources including solar, biomass, wind, and hydropower rose. The market for distributed energy generation systems is anticipated to develop as more people turn to environmentally friendly technologies like solar, wind, hydropower, and biomass because they have very little of an adverse effect on the environment. Due to the decentralized nature of these operations, these solutions not only cut carbon emissions into the environment but also energy losses in transmission lines.
Segments Covered in the Report
- Combustion Turbines
- Reciprocating Engines
- Fuel Cells
- Wind Turbines
- Solar PV
By End Use Industry
- North America
- Latin America
- Middle East & Africa (MEA)
In 2022, the market for distributed energy-generating systems in the Asia-Pacific region held the biggest market share with more than 48%. By growing at the fastest CAGR from 2023 to 2030, the region will continue its leadership position. The main driver of market expansion is projected to be the rising demand for energy as a result of population growth and the growing urbanization of nations like India, China, Indonesia, and Malaysia. China’s metropolitan cities in particular are responsible for a large portion of the country’s product demand. The Chinese market is anticipated to benefit from the country’s rising disposable income.
The market for distributed energy generation systems in North America is anticipated to expand significantly throughout the forecasted timeframe. In this local market, the wind turbine commands the biggest market share. However, solar PV is the market category that is expanding at the fastest rate because of its lower costs, wider distribution of solar rental goods, and third-party ownership models.
Germany and Italy provide the majority of the items needed to meet the demand in the European market for distributed energy generation systems. The region’s market for photovoltaic solar panels and wind turbines is anticipated to expand quickly due to rising government targets for renewable energy sources and the number of enabling laws. By 2040, the European Commission wants to cut GHG emissions by 43%. Another significant technology employed in Europe in conjunction with cogeneration is fuel cells. Cogeneration systems are more in demand in a range of applications, including residential buildings, oil and gas production facilities, and other commercial uses, due to the advantages they offer over single-fuel generators and their ease of installation.
Key Companies & Market Share Insights
The key players in the Distributed Energy Generation Market include-
- Doosan Heavy Industries & Construction
- Toyota Turbine and Systems Inc.
- Ballard Power Systems Inc.
- Mitsubishi Electric Corp.
- Suzlon Energy Ltd.
- Vestas Wind Systems A/S
- Rolls-Royce Plc
- Capstone Turbine Corp.
- Sharp Corp.
- General Electric Company