Global Distributed Energy Generation Market 2024-2031

Global Distributed Energy Generation Market 2024-2031

Global Distributed Energy Generation Market Size, Share & Trends Analysis Report by Technology (Wind Turbine, Solar Photovoltaic, Reciprocating Engines, Fuel Cells and Gas & Steam Turbine), and by Application (Residential and Commercial & Industrial), Forecast Period (2024-2031)

The global distributed energy generation market is anticipated to grow at a CAGR of 10.3% during the forecast period (2023-2030). An increase in advancement in distributed energy generation technologies drives the growth of the market. The growing adoption of reduced transmission and distribution losses, and improved grid stability and security are the key factors supporting the growth of the market globally. Distributed generation can help support the delivery of clean, reliable power to additional customers and reduce electricity losses along transmission and distribution lines. The market players are also focusing on introducing distributed energy generation solutions that further bolster the market growth. For instance, in September 2022, TotalEnergies introduced the installation of customized photovoltaic solutions for its B2B or B2G customers on currently unused areas (rooftops, parking lot canopies or unused property).

Segmental Outlook

The global distributed energy generation market is segmented on technology, and application. Based on the technology, the market is sub-segmented into wind turbine, solar photovoltaic, reciprocating engines, fuel cells and gas & steam turbines. Further, on the basis of application, the market is sub-segmented into residential and commercial & industrial. Among the applications, the commercial & industrial sub-segment is anticipated to hold a considerable share of the market owing to the rise in the development of solar photovoltaic panels and combined heat and power systems.

The Solar Photovoltaic Sub-Segment is Anticipated to Hold a Considerable Share of the Global Distributed Energy Generation Market

Among the technologies, the solar photovoltaic sub-segment is expected to hold a considerable share of the global distributed energy generation market. The segmental growth is attributed to the growing influence of solar power in the global energy transition. Solar power enables places without reliable energy networks to leapfrog the legacy infrastructure common in developed nations and benefit from sustainable, clean and affordable power. For instance, in February 2022, Siemens and Desert Technologies launched a joint venture to develop and invest in solar and smart infrastructure in Africa, the Middle East and Asia. The venture, Capton Energy –aims to build up a portfolio of investments in projects with an aggregate capacity of more than 1 gigawatts (GW).

Regional Outlook

The global distributed energy generation market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe, owing to the government advancing policies to increase the deployment of renewable technologies.

The North America Region is Expected to Grow at a Significant CAGR in the Global Distributed Energy Generation Market

Among all regions, the North America regions is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the growing adoption of solar PV with increasing renewable energy targets and the number of supportive policies set by the governments. Distributed generation is gaining consideration and the demand for solar PV is increasing by the latest intelligence across sectors and markets. For instance, in May 2022, the Global Solar Council launched the global campaign “Empowering people with solar PV”, aimed at accelerating the uptake of solar PV at the distributed level, supporting the overall solar capacity targets on a net-zero pathway. The distributed systems in private, public or industrial buildings, can be a large part of the total renewable capacity.

Market Players Outlook

The major companies serving the distributed energy generation market include Advantech Co., Ltd., Caterpillar Energy Solutions GmbH, General Electric, Schneider Electric, Siemens AG, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2023, TECO 2030 ASA and Yokogawa Electric Corp. announced a strategic partnership and investment agreement regarding the development of technology for utilizing hydrogen fuel cells in industrial applications.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global distributed energy generation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.