23-Mar-2023 | Facts and Factors
According to Facts and Factors, the globally distributed energy generation market size was worth around USD 281.9 billion in 2022 and is predicted to grow to around USD 744.8 billion by 2030 with a compound annual growth rate (CAGR) of roughly 11.41% between 2023 and 2030.
The industry refers to technology systems that are used to generate energy near the point of consumption in smaller batches as opposed to the energy supplied from large power grids. It is inclusive of a wide range of technological systems including solar panels, small-scale generators, microturbines, wind turbines, and others. The industry revolves around processes that support the production, supply, installation, and operation of systems that form a part of the industry.
Browse the full “Distributed Energy Generation Market Size, Share, Growth Analysis Report By End-User (Commercial, Residential, and Industrial), By Application (Off Grid and On Grid), By Technology (Natural Gas Gensets, Fuel Cells, Solar Panels, Gas & Steam Turbine, and Diesel Gensets), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030" report at https://www.fnfresearch.com/distributed-energy-generation-market
Some of the benefits associated with the use of distributed energy generation include better and increased energy security, controlled supply and consumptions, and reduced dependency on external sources of energy supply. One of the major benefits of using these systems is a reduced rate of green gas emission which means that consumers directly contribute to assisting in reducing the impact of energy generation on the environment. The industry is growing rapidly and is expected to reach new heights in the coming years.
The global distributed energy generation market is projected to grow owing to the reduced cost of technologies that run on renewable sources. Until some years ago, generating energy by harnessing the power or renewable sources was expensive especially for the residential segment since it required a high cost of investment and maintenance. However, with ongoing research & development along with constant innovation, the prices of these systems have reduced rendering them affordable for a large segment of society.
Moreover, the industry is expected to benefit from the rising government initiatives to promote the adoption of these systems since they offer several advantages. A lot of governments offer incentives to people or companies that adopt distributed energy generation. These perks are available in the form of a tax rebate, renewable energy mandates, and feed-in tariffs. Furthermore, the growing investment toward digitization and automation in the energy sector could lead to higher growth alongside the development of microgrids and technology related to energy storage.
However, the global industry is also prone to certain growth limitations and mainly in terms of financing constraints as accessing financial help for the installation of these systems can be challenging and a complicated process for many consumers.
Furthermore, there are several technical barriers that consumers have to face once the systems are installed which can further limit product adoption. Growing concerns over reliability and lack of awareness are other forms of limitations in the industry.
The growth in emerging economies may provide growth opportunities where limited grid integration could act as a major challenge for market players.
Segmental Analysis:
The global distributed energy generation market is segmented based on end-user, application, technology, and region.
Based on end-user, the global market segments are commercial, residential, and industrial.
Based on application, the global market is divided into off grid and on grid.
- Off-grid was one of the most dominating segments for the industry in 2022. This was especially applicable in areas with limited infrastructure development that supported traditional ways of power generation
- In various emerging economies, these systems are utilized to provide energy in remote locations that do not have proper grid architecture and include technologies like wind turbines, solar panels, and micro-hydro systems
- On grid systems work best in areas that have established power generation infrastructure
- The average cost of a solar panel system in the US is around USD 2.8 per watt of energy
Based on technology, the global market is segmented into natural gas gensets, fuel cells, solar panels, gas & steam turbine, and diesel gensets
- Solar panels are the most in-demand type of technology in the DEG market
- Factors are falling costs, renewable energy focus, and easy installation are major drivers for the segmental growth
- Although the demand for other types is also high, they are generally used in specific settings and have limited applications but offer several advantages like reliability, high efficiency, and flexibility
- However, the market for these types is small compared to solar panels
- Most panels come with a warranty of 25 years
Regional Analysis:
North America is the most significant contributor to the global distributed energy generation market due to factors like favorable government policies, increasing demand for clean energy, strong economic growth, and technological innovation. Europe is projected to emerge as a significant revenue generator due to similar reasons.
The country is currently witnessing many challenges in the power sector mainly as an impact of the Russia-Ukraine war and the regional leaders are looking for ways to make Europe self-reliant in terms of energy supply. Distributed energy generation is a great source of reliable energy and may witness high investment in the coming years. Furthermore, growth in Asia-Pacific is driven by the growing demand for energy due to rising population, rapid urbanization, and industrial growth.
Report Scope
Report Attribute |
Details |
Market Size in 2022 |
USD 281.9 Billion |
Projected Market Size in 2030 |
USD 744.8 Billion |
CAGR Growth Rate |
11.41% CAGR |
Base Year |
2022 |
Forecast Years |
2023-2030 |
Key Market Players |
General Electric, Bloom Energy, Wärtsilä, Enel Green Power, Tesla, Ormat Technologies, Engie, E.ON, Cummins, Siemens Energy, ABB, Vestas, SunPowder, Schneider Electric, ACaterpillar Inc., and others. |
Key Segment |
By End-User, Application, Technology, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Competitive Analysis:
The global distributed energy generation market is led by players like General Electric, Bloom Energy, Wärtsilä, Enel Green Power, Tesla, Ormat Technologies, Engie, E.ON, Cummins, Siemens Energy, ABB, Vestas, SunPowder, Schneider Electric, ACaterpillar Inc., amongst many others.
Recent Developments:
- In August 2022, Capstone Green Energy Corporation announced that Cal Microturbine, the company’s exclusive distributor in certain parts of the US has received an order to deliver two C600 Signature Series microturbines that are equipped with the company’s heat recovery modules (HRMs)
- In October 2022, Modhera, India became the first region in the country to be completely powered by solar energy. The region promoted self-reliance, sustainability, and green energy
The global distributed energy generation market is segmented as follows:
By End-User
- Commercial
- Residential
- Industrial
By Application
By Technology
- Natural Gas Gensets
- Fuel Cells
- Solar Panels
- Gas & Steam Turbine
- Diesel Gensets
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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