Distributed Generation (DG)

Distributed Generation (DG)

Global Distributed Generation (DG) Market to Reach US$633.2 Billion by 2030

The global market for Distributed Generation (DG) estimated at US$277.0 Billion in the year 2023, is expected to reach US$633.2 Billion by 2030, growing at a CAGR of 12.5% over the analysis period 2023-2030. On-Grid Application, one of the segments analyzed in the report, is expected to record a 13.5% CAGR and reach US$391.3 Billion by the end of the analysis period. Growth in the Off-Grid Application segment is estimated at 11.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$41.6 Billion While China is Forecast to Grow at 17.0% CAGR

The Distributed Generation (DG) market in the U.S. is estimated at US$41.6 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$178.8 Billion by the year 2030 trailing a CAGR of 17.0% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.2% and 8.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.9% CAGR.

Global Distributed Generation (DG) Market - Key Trends and Drivers Summarized

Global Distributed Generation (DG) refers to the decentralized production of electricity through small-scale energy sources located close to the point of use rather than centralized large-scale power plants. This approach includes technologies such as solar photovoltaic (PV) systems, wind turbines, microturbines, fuel cells, and combined heat and power (CHP) systems. DG systems are connected to the local grid or operate independently, providing flexibility, resilience, and sustainability in energy supply. They are particularly beneficial in remote or rural areas where grid connectivity is challenging and in urban settings for reducing the load on centralized power systems.

The rise of DG has been fueled by advances in renewable energy technologies, cost reductions in solar and wind power, and the increasing efficiency of energy storage systems. Solar PV and wind turbines have seen significant technological improvements, making them more viable and attractive options for distributed energy production. Governments and regulatory bodies worldwide have also played a crucial role by implementing policies and incentives that encourage the adoption of DG. Net metering, feed-in tariffs, and tax credits are some of the measures that have spurred investment in distributed generation. Additionally, the integration of smart grid technologies has enhanced the management and distribution of electricity generated from DG sources, ensuring reliability and stability in power supply.

The growth in the Global Distributed Generation market is driven by several factors. The increasing demand for clean and sustainable energy solutions is a major driver, as both consumers and businesses seek to reduce their carbon footprint and energy costs. Technological advancements in renewable energy sources, particularly solar and wind, have made DG more affordable and efficient, prompting wider adoption. The rising prevalence of energy storage solutions, such as batteries, supports the integration of intermittent renewable sources by ensuring a stable energy supply. Additionally, the push for energy independence and resilience against grid disruptions, especially in regions prone to natural disasters or with unstable grids, drives the demand for distributed generation. Urbanization and the need for reliable power in expanding metropolitan areas also contribute to the market`s growth. Furthermore, regulatory support and financial incentives from governments worldwide play a significant role in accelerating the adoption of DG technologies, making it a pivotal component in the transition towards a more sustainable and resilient energy infrastructure.

Select Competitors (Total 52 Featured) -

• Capstone Green Energy Corporation
• Caterpillar, Inc.
• Cummins, Inc.
• Doosan Heavy Industries & Construction Co., Ltd.
• E.ON SE
• Ballard Power Systems, Inc.
• Ansaldo Energia SpA
• Ameresco, Inc.
• Bloom Energy Corporation
• ENERCON GmbH
• Convion Ltd.
• Doosan Fuel Cell America, Inc.
• EDF Renewable Energy
• Caterpillar Inc.
• Emergya Wind Technologies B.V.

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