Market Size of North America Distributed Power Generation Industry
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 7.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Distributed Power Generation Market Analysis
The North American distributed power generation market is expected to record a CAGR of more than 7% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.
- Over the long term, rising environmental concerns, increasing government policies for incentives and tax benefits for solar panel installation, and the high cost of grid expansion are expected to significantly drive the market.
- However, a reduced tax credit for solar power generation in the United States from 2022 is expected to slightly hamper the growth of the market during the forecast period.
- Commercial and industrial sectors are showing a growing interest in distributed solar power generation due to various economic benefits. Distributed solar power also acts as a constant source of energy to eliminate downtimes and equipment damage due to voltage fluctuations in conventional power grids. This factor is expected to create a huge opportunity for distributed power generation market in the region.
- The United States is expected to dominate the market over rising environmental concerns and economic benefits of domestic distributed power generation.
North America Distributed Power Generation Industry Segmentation
Distributed energy generation refers to various technologies that generate electricity at or near its place of use, such as solar panels and combined heat and power.
The North American distributed power generation market is segmented by type. By technology, the market is segmented by solar PV, wind, combined heat and power (CHP), and other technologies. For each segment, the installed capacity and forecasts have been done based on gigawatts (GW).
| Technology | |
| Solar PV | |
| Wind | |
| Combined Heat and Power (CHP) | |
| Other Technologies |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Distributed Power Generation Market Size Summary
The North American distributed power generation market is poised for significant growth, driven by increasing environmental concerns and supportive government policies. The market, which experienced a downturn due to the COVID-19 pandemic, has rebounded to pre-pandemic levels. Key factors propelling the market include incentives and tax benefits for solar panel installations, alongside the high costs associated with grid expansion. Despite a reduction in tax credits for solar power generation in the United States, the commercial and industrial sectors are increasingly adopting distributed solar power systems for their economic advantages. These systems provide a reliable energy source, mitigating issues like downtimes and equipment damage caused by voltage fluctuations in traditional power grids. The United States is expected to lead the market, benefiting from the economic and environmental advantages of domestic distributed power generation.
The solar photovoltaic (PV) sector is anticipated to experience robust growth, becoming the most favored form of distributed power generation due to its low setup costs and declining solar panel prices, bolstered by government subsidies. The demand for clean energy is a significant driver for the region's distributed solar power market, with substantial increases in small-scale solar capacity installations, particularly in residential areas. Rooftop solar systems offer electricity services to households without access to traditional power sources, reducing costs in remote locations. The commercial and industrial segments are also expanding, driven by cost savings on electricity bills. The United States continues to dominate the market, with states like California leading in residential solar PV installations. Individual state renewable energy targets further support market growth, alongside significant developments in solar and wind energy projects. The market remains fragmented, with major companies like Caterpillar Inc., Total SA, Siemens AG, Schneider Electric SE, and Sunrun Inc. actively participating in the sector's expansion.
North America Distributed Power Generation Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Market Dynamics
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1.4.1 Drivers
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1.4.2 Restraints
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1.5 Supply Chain Analysis
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1.6 Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Consumers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes Products and Services
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1.6.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Technology
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2.1.1 Solar PV
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2.1.2 Wind
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2.1.3 Combined Heat and Power (CHP)
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2.1.4 Other Technologies
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2.2 Geography
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2.2.1 United States
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2.2.2 Canada
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2.2.3 Rest of North America
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North America Distributed Power Generation Market Size FAQs
What is the current North America Distributed Power Generation Market size?
The North America Distributed Power Generation Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in North America Distributed Power Generation Market?
Caterpillar Inc. , Total SA , Seimens AG , Schneider Electric SE and Sunrun Inc are the major companies operating in the North America Distributed Power Generation Market.
