Distributed Generation Market (By Technology: Wind, Solar PV, Micro Turbines, Gas Turbines, Reciprocating Engines, and Fuel Cells; By End User: Commercial & Industrial and Residential) - Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global distributed generation market size was exhibited at USD 263.81 billion in 2022 and is projected to hit around USD 790.56 billion by 2032, growing at a CAGR of 11.6% during the forecast period of 2023–2032.

Key Pointers:

• The fuel cell segment dominated the global distributed generation market, garnering a market share of over 37.8% in 2022. 
• The commercial & industrial segment garnered a market share of around 72.19% and dominated the global distributed generation market in 2022. 
• Asia Pacific dominated the global distributed generation market, garnering a market share of over 47.9% in 2022.
• North America is estimated to witness a significant growth rate during the forecast period.

Distributed Generation Market Report Scope

 Growing demand for clean energy generation to boost the market growth

The distributed generation market is projected to grow at a high rate during the forecast period, mainly due to the growing demand for clean energy generation and renewable sources of energy. Governments around the world have developed attractive incentives, rewarding the use of renewable sources of energy, which further drives growth.

Governments all around the world have devised enticing incentives to encourage the adoption of renewable energy sources, hence accelerating growth. The market is growing as people become more aware of clean energy resources. The industry is being driven by the rising demand for distributed generation due to environmental benefits and the lower cost compared to traditional energy generation.

One or more power stations are situated close to the load in decentralized generating, which is a decentralized and relatively flexible technology. Each power station has a capacity of around 10 megawatts, and these systems can include numerous generation and storage locations. Distributed generation is made up of a variety of energy sources, most of which are renewable. Solar, wind, fuel cells, hydro, biogas, biomass, and geothermal power are all examples of renewable energy sources. Decentralized generating can assist in delivering reliable and clean energy to users while decreasing transmission losses. The centralized system currently dominates the electricity distribution system. However, it is expected that there would be significant growth, owing primarily to developed economies.

Technology Insights

Based on the technology, the fuel cell segment dominated the global distributed generation market, garnering a market share of over 37.8% in 2022. The increased adoption of the fuel cells in the distributed generation system owing to various benefits such as high efficiency, lower emissions, and capability of converting chemical energy into electrical energy has fostered the growth of this segment. The fuel cells provide 60% higher efficiencies, which is a major driver of the fuel cell segment.

The solar PV segment is expected to be the fastest-growing segment during the forecast period. The government subsidies for the adoption of solar energy and declining costs of the solar equipment over the past few years has increased the demand for the solar PV distributed generation market. Moreover, the rising government and corporate efforts to reduce carbon footprint and achieve sustainability in the long term, majority of the industries are shifting towards the adoption of solar sources of energy.

End User Insights

The commercial & industrial segment garnered a market share of around 72.19% and dominated the global distributed generation market in 2022. This is attributed to the increased government initiatives to promote the adoption of the renewable energy sources across the commercial and industrial sectors in the form of subsidies and incentives. Moreover, the reducing equipment costs and increased demand for the uninterrupted power supply has fostered the growth of this segment. Moreover, the increased efforts of the government to industrialize and urbanize the rural regions are supporting the growth of the commercial & industrial segment and hence this segment is expected to dominate throughout the forecast period.

On the other hand, the residential segment is estimated to be the most opportunistic segment during the forecast period. The rising number of big residential complexes and rapid urbanization of the rural regions are the most prominent factors that drive the growth of the residential segment. The increasing adoption of the distributed generation systems for heating, ventilation, cooling, and cooking applications is expected to spur the demand in the residential segment.

Region Insights

Asia Pacific dominated the global distributed generation market, garnering a market share of over 47.9% in 2022. This is simply attributed to the increased adoption of renewable energy sources, rising investments in the industrialization and urbanization, rapidly growing infrastructural developments, and increasing government initiatives to encourage the deployment of renewable and green & clean energy sources. Moreover, with the growing industrialization, the demand for the efficient and uninterrupted power supply is growing significantly, which is fueling the growth of the distributed generation market in Asia Pacific.

North America is estimated to witness a significant growth rate during the forecast period. The huge demand for the wind energy in North America and rapidly growing demand for the solar energy across the commercial and industrial units is expected to fuel the demand for the distributed generation technologies.

The European countries such as Germany and Italy have huge demand for the wind and solar energy. This is attributed to the strict government norms regarding the use of renewable energy. The fuel cells are witnessing huge demand in overall Europe owing to its higher energy efficiency. The increased awareness regarding the climate change and negative effects of carbon emission has resulted in the huge demand for the clean and green energy in Europe. The government has strict regulations regarding the industrial and commercial use of energy pertaining to the renewable sources, which has fueled the growth of the distributed generation market in Europe.

Some of the prominent players in the Distributed Generation Market include:

• Siemens
• General Electric
• Mitsubishi
• Schneider
• Caterpillar Power Plants
• Doosan Fuel Cell America
• Vestas Wind Systems A/S
• Rolls-Royce Power Systems AG
• Toyota Turbine and Systems Inc.
• Capstone Turbine Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Distributed Generation market.

By Technology

• Fuel Cells
• Micro-Turbines
• Wind Turbines
• Combustion Turbines
• Micro-hydropower
• Reciprocating Engines
• Solar PV
• Others

By End User

• Commercial
• Industrial
• Residential

By Application

• On-Grid
• Off-Grid

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)