Global Distributed Energy Generation Market by Application (Commercial & Industrial, Residential), by Technology (Solar PV, Fuel Cells) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global distributed energy generation market was valued at USD 242.6 million in 2019. It is projected to grow at a compound annual rate (CAGR of 11.5%) between 2020 and 2027. The market will be driven by factors such as increasing environmental awareness, government policies, Greenhouse Gas (GHG), emission reduction targets, demand, and growth in the energy sector. Market growth will also be supported by increasing R&D efforts for the development and commercialization of new technologies. Government incentives, such as the feed-in tariff in North America or the Asia Pacific, will likely fuel demand for DEG systems. These systems are promoted by government schemes in order to encourage their installation across commercial, residential, and industrial applications. These systems can operate on- or off-grid, depending on their application and location. Market growth is expected to be fueled by the many benefits of DEG over traditional energy generation methods.

From 2020 to 2027, the U.S. market will experience significant growth. Since 2014, DEG technology has been deployed more frequently due to supportive government policies such as Production Tax Credit (PTC), which provides a per-kilowatt hour tax credit for electricity generated from DEG resources and Investment Tax Credit(ITC), which allows tax credits to be taken based upon the amount invested rather than the electricity produced.

The demand for DEG systems will increase as people become more aware of the benefits of renewable energy sources. DEG systems are also less expensive than traditional power generation methods. The market growth projections will be influenced by the increasing demand for clean energy and the low cost of the product.

The overall market is seeing positive developments in North American regulatory policies. A number of factors, including the improvement of Canada's renewable energy policies and the successful implementation of Mexico's energy auctions, have led to a higher deployment rate for DEG technologies. One of the key trends driving market growth is the rising use of solar PV rooftop systems for residential and commercial applications.

China's economy has been severely affected by the COVID-19 pandemic and other trade disputes. China is one of the world's largest exporters of DEG products. However, the country has seen a dramatic decline in its trading sector due to restrictions imposed in many parts of the country. This will likely impact the market because companies are withdrawing from new investments and the government is decreasing subsidies.

Technology Insights

In 2019, the market's largest share was held by the fuel cell segment, which accounted for more than 36%. There are many benefits to fuel cells over conventional technologies. The fuel cells have higher efficiency, convert chemical energy to fuel to electricity, and produce efficiencies of up to 60%. They also emit lower levels of carbon dioxide.

The highest-growing form renewable energy, solar PV technology, is expected to grow at the highest rate between 2020 and 2027. This technology uses PV modules made of semiconductor materials that are exposed to the sun's rays and create an electric current. The growing popularity of wind turbine technology in China will drive a significant increase due to the lower feed-in tariffs.

There are many applications for wind turbines in the agricultural, industrial, educational and residential sectors. Wind turbines are used in agriculture to provide energy for irrigation pivots, heating, lighting, and other processing equipment. Market growth will be slowed by challenging economic conditions and budget constraints. However, segment growth will be influenced by environmental concerns.

Standby applications are often made with diesel- or gasoline-powered reciprocating engines. They create significant pollution in terms of noise and emission. To address these pollution issues, natural-gas-fired engines are being developed.

Application Insights

Due to their low installation costs and easy access to utilities, the market share for industrial applications was over 70%. Governments around the world are pushing for policies to increase the use of renewable technologies in these types of applications. They offer higher efficiency, energy security and emission reductions, as well as higher resilience compared to traditional electricity generation methods.

Due to its quality and ability to generate clean, high-quality power, solar photovoltaics units are increasingly being used for power generation. This will drive demand for DEG systems in the future. For heavy industrial applications, large-scale solar PV systems are best, while small- and medium-scale units can meet the energy needs in commercial applications.

The DEG market is expected to grow despite frequent outages and rising electricity prices. Globally, favorable government policies and supportive regulations such as net-metering are expected to boost DEG installation.

Global demand for DEG systems has exploded due to the heating and ventilation of floors, as well as the use of cooling and cooking applications. The DEG systems, specifically solar PV systems are installed on buildings that can easily connect to the grid. These systems send excess generation to the grid during daylight and draw power from it at night.

Regional Insights

Asia Pacific accounted for 47% of the global market's total in 2019, accounting for the largest portion. It will continue to hold its dominant position and grow at the fastest CAGR between 2020-2027. Market growth will be driven by the rising demand for energy and rapid urbanization in countries like India, China, Indonesia, Malaysia, and Indonesia. China's urban centers are a major source of product demand. China's growing disposable income is expected to also drive the market.

North America is expected to experience significant growth during the forecast period. This market is dominated by the wind turbine. Solar PV is the fastest growing segment, owing to its declining costs, greater geographic distribution under the solar lease, as well as third-party ownership models.

It is Germany and Italy that are largely responsible for Europe's product demand. Due to the increasing demand for sun-powered wind turbines and renewable energy targets, the region's market is expected to expand rapidly. The European Commission has established a target of reducing GHG emissions by 40% by 2030.

CHP is also used by fuel cells, another important technology in Europe. This technology offers many benefits over a single-fueled generator, and it is cost-effectively installed. It also boosts demand for CHP systems in various applications, including residential buildings and oil & gas production plants.

Due to increased use of DEG in industrial applications, the MEA is predicted to grow at an impressive rate. Due to the increasing demand for clean energy, the solar PV market is growing rapidly, especially in South Africa. This will in turn fuel the MEA market. Diverse end-use industries are attracted to renewable energy sources because of the availability of solar and wind energy, especially in Egypt and Saudi Arabia.

Market Share Insights & Key Companies

Due to increasing competition on a global scale, the market is very competitive. This is because the technological costs are decreasing. Companies are investing in research and developing new technologies. The following are some of the most prominent players in the distributed power generation market:

• Vestas Wind Systems A/S

• Capstone Turbine Corp.

• Caterpillar

• Ballard Power Systems Inc.

• Doosan Heavy Industries & Construction

• Rolls-Royce plc.

• Suzlon Energy Ltd.

• General Electric

• Siemens

• Schneider Electric

• ENERCON GmbH

• Sharp Corp.

• First Solar

• Mitsubishi Electric Corp.

• Toyota Turbine and Systems Inc.

Up Market Research published a new report titled “Distributed Energy Generation Market research report which is segmented by Application (Commercial & Industrial, Residential), by Technology (Solar PV, Fuel Cells), By Players/Companies Vestas Wind Systems A/S, Capstone Turbine Corp, ENERCON GmbH, First Solar, Suzlon Energy Ltd, General Electric, Mitsubishi Electric Corp, Siemens, Sharp Corp, Ballard Power Systems Inc, Toyota Turbine and Systems Inc, Rolls-Royce plc, Schneider Electric, Caterpillar, Doosan Heavy Industries & Construction”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Distributed Energy Generation Market Report Segments:

The market is segmented by Application (Commercial & Industrial, Residential), by Technology (Solar PV, Fuel Cells).

Distributed Energy Generation Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Distributed Energy Generation Market

Overview of the regional outlook of the Distributed Energy Generation Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Distributed Energy Generation Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Distributed Energy Generation Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Commercial & Industrial

                2. Residential

                1. Solar PV

                2. Fuel Cells

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Distributed Energy Generation Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Distributed Energy Generation Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.