Distributed Power Generation Market Size (2024 - 2029)

The distributed power generation market is experiencing growth, driven by a shift towards renewable energy sources like solar PV, supported by declining costs and favorable government policies. Despite challenges such as consumer preference for grid power due to lower initial investments, the market benefits from increasing environmental concerns and international mandates to reduce carbon emissions. Asia-Pacific dominates the market share, fueled by rising energy demands in countries with significant manufacturing sectors.

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Market Size of Distributed Power Generation Industry

Distributed Power Generation Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 8.00 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Distributed Power Generation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Distributed Power Generation Market Analysis

The distributed power generation market is expected to register a CAGR of more than 8% during the forecasted period.

COVID-19 negatively impacted the market in 2020. Currently, the market has reached pre-pandemic levels.

  • Over the medium term, the increasing shift toward renewable distributed power generation, mainly distributed solar PV installation, owing to declining renewable power generation and system costs, coupled with supportive government policies worldwide.
  • On the other hand, consumers tend to prefer grid power over off-grid power owing to the low initial investment and no space requirement to generate electricity. This is expected to hamper the growth of the distributed power generation market over the forecast period.
  • Nevertheless, the growing environmental concerns, international mandates to curb carbon emissions, and conducive policies by the governments of several countries to install renewable energy sources provide an opportunity for the distribution power generation market.
  • Asia-Pacific holds the largest market share and has witnessed increasing energy demand in countries such as China, India, and ASEAN member states. China has a widespread manufacturing sector, which creates a need for power for operations. Thus, distributed power generation is used in this region to supply uninterrupted power.

Distributed Power Generation Industry Segmentation

Distributed energy refers to the on-site generation and utilization of electricity. It is also termed the decentralized generation of electricity. The distributed generation sources typically include solar, wind, waste-to-energy, and combined heat and power. The market for decentralized energy generation is increasing since many countries are opting for distributed generation as a local option for producing electricity in areas that are not connected to the grid.

The distributed power generation market is segmented by technology and geography (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). By technology, the market is segmented into solar PV, diesel gensets, natural gas gensets, microgrids, and other technologies. The report covers the market size and forecasts for all the major regions. For each segment, market sizing and forecasts have been done based on revenue (USD million).

Technology
Solar PV
Diesel Gensets
Natural Gas Gensets
Microgrids
Other Technologies
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Distributed Power Generation Market Size Summary

The distributed power generation market is poised for significant growth, driven by a shift towards renewable energy sources, particularly solar photovoltaic installations. This transition is supported by decreasing costs in renewable power generation and favorable government policies worldwide. Despite challenges such as consumer preference for grid power due to lower initial investments and space requirements, the market is bolstered by increasing environmental concerns and international mandates to reduce carbon emissions. The Asia-Pacific region, with its burgeoning energy demands in countries like China and India, holds the largest market share. The region's focus on distributed power generation is further enhanced by its need for uninterrupted power supply in industrial and commercial sectors, particularly in China, where land prices encourage solar rooftop installations.

The residential segment of the distributed power generation market is expected to expand rapidly, driven by the adoption of off-grid rooftop solar PV systems equipped with energy battery storage. These systems provide reliable secondary power, helping consumers save on electricity bills by generating their own solar power. Technological advancements and declining costs in solar PV and battery storage systems make distributed power generation an attractive proposition, reducing transmission losses and enhancing grid resilience. The market is moderately fragmented, with key players like Ansaldo Energia SpA, Ballard Power Systems Inc., Caterpillar Inc., Siemens AG, and General Electric Company. Initiatives such as India's ambitious renewable energy targets and China's energy management contracts are expected to further propel the market's growth.

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Distributed Power Generation Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD Million, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Solar PV

      2. 2.1.2 Diesel Gensets

      3. 2.1.3 Natural Gas Gensets

      4. 2.1.4 Microgrids

      5. 2.1.5 Other Technologies

    2. 2.2 Geography

      1. 2.2.1 North America

        1. 2.2.1.1

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 South America

      5. 2.2.5 Middle-East and Africa

Distributed Power Generation Market Size FAQs

The Distributed Power Generation Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Ansaldo Energia SpA, Ballard Power Systems Inc., Caterpillar Inc., Siemens AG and General Electric Co. are the major companies operating in the Distributed Power Generation Market.

Distributed Power Generation Market Report Snapshots

Distributed Power Generation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)