Distributed Energy Generation Market Size, Trends and Insights By Technology (Micro-turbines, Combustion Turbines, Micro-hydropower, Reciprocating Engines, Fuel Cells, Wind Turbines, Solar PV, Others), By End Use Industries (Residential, Commercial, Industrial), and By Region - Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2024–2033
Report Snapshot
| Study Period: | 2022-2030 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | Europe |
Major Players
- Rolls Royce Power Systems AG
- Schneider Electric
- Mitsubishi Electric Corporation
- Others
Reports Description
The Global Distributed Energy Generation Market Size was valued at USD 296.78 Billion in 2021 and is expected to reach USD 334.11 Billion in 2022, and is estimated to reach USD 932.34 Billion by the end of 2030 at a CAGR of approximately 16.5% during the forecast period 2022-2030.
The distributed energy generation market constitutes the various distributed energy sources of electrical generation and storage. Unlike centralized power systems, distributed energy generation sources are decentralized and flexible technologies with a capacity of 10 or less than 10 Megawatt. Distributed energy sources account for environmentally friendly and feasible technologies to supply power using different sources such as solar energy, wind energy, fuel cells, etc.
The distributed sources installation and usage include fuel cells, wind generating units, biomass generators, and all other renewable energy sources. It is advantageous in developing areas still lacking central power, and installing DER units may reduce the power system cost.
The distributed energy sources are used to power a single home, company, military base, college campus, etc. There are two types of distributed energy sources which are virtual and physical. The virtual sources are made of single or mixed types of physical assets widely used for utility purposes. One of the primary benefits of the distributed energy source over traditional sources can be the control of energy usage and generation, which mitigates extra energy wastage. Along with that, the distributed sources of a wide range of benefits such as communication and controls, aggregation software, metering equipment, and synchronization and connection.
Growth Factors
The increased usage of GHG emission reduction targets and government policies are the factors that drive market growth. Apart from that, the immense benefit of renewable energy sources such as carbon reduction, energy resiliency, and energy security support global market growth.
In addition, the R&D initiatives in developing advanced Technology regarding solar power are likely to drive market growth. The rise in demand for clean energy sources and low-cost production makes DEG systems better than traditional power generation techniques. Due to such reasons, the market is likely to propel in the forecast period.
The government-driven initiatives and programs help the market growth in the industrial, commercial, and residential sectors. On the other hand, the extreme use of coal, oil, and gas in traditional energy generation has led to the rise in renewable energy sources for power generation.
The power from distributed energy sources can be produced onsite along with low-cost production and environment-friendly initiatives, which is the primary attributive factor for the market growth. The rise in demand for electric vehicles, grid-scale energy storage, and the factors such as decentralization and decarbonization has led to potential market growth.
Distributed Energy Generation Market, Segment Analysis
Distributed Energy Market Segmentation based on Technology
Based on Technology, the distributed energy generation market is segmented into Micro-turbines, Combustion Turbines, Micro-hydropower, Reciprocating Engines, Fuel Cells, Wind Turbines, Solar PV, and others. Based on revenue, the fuel cell segment accounts for the largest share of the distributed energy market in 2021, with a CAGR rate of 19%, and is expected to maintain its leadership during the forecast period. However, solar PV panel is expected to have significant growth during the forecast period since it is the fastest-growing form of renewable energy.
The fuel cells are widely used in residential, commercial, and industrial sectors for backup power generation. Unlike storage batteries, they use oxygen and air as fuel for power generation. They are a great alternate source for backup power generation in remote places, spacecraft, communication centers, remote weather stations, etc. The fuel cells are compact and lightweight, and their efficient storage capacity.
Market Segmentation based on End-Use
Based on the end-use industry, the commercial segment accounts for the largest market share in 2021, with more than third revenue of the globally distributed energy generation market. With the rapid increase of the market that accounts for the highest CAGR rate, with 18.25 %, the commercial segment is also expected to lead the market during the forecast period. This can be attributed to the low-cost installation and production rate, coupled with the rise in demand for the usage of clean and renewable sources of energy. In addition, government policies such as feed-in-tariff and net-metering promote the rapid installation of distributed energy generation power, propelling the market growth. The industrial players have also introduced key projects to enhance market growth.
Report Scope
| Feature of the Report | Details |
| Market Size in 2021 | USD 296.78 Billion |
| Projected Market Size in 2030 | USD 932.34 Billion |
| CAGR Growth Rate | 16.5% CAGR (2022-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Prominent Players | Rolls Royce Power Systems AG, Schneider Electric, Mitsubishi Electric Corporation, Caterpillar Power Plants, Capstone Turbine Corporation, Toyota Turbine and Systems Inc., Doosan Fuel Cell America, Vestas Wind Systems A/S, Siemens, GE, and Others |
| Key Segment | By Technology, End Use Industries, and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfill your requirements for research. |
Regional Insights
The market is distributed across North America, Europe, Asia Pacific, and LAMEA.
According to the analysis, the Asia Pacific accounts for the highest market share, with 47% in 2021, and continues to grow at its highest CAGR during the forecast period of 2022-2030. This can be attributed to the increased urbanization in countries like China, India, Indonesia, and Malaysia, along with the disposable income of consumers. The metropolitan cities of the nation are expected to drive market growth due to their increased product demands. The rapid installation of solar PV panels in residential and commercial industries, leading to the demand for clean and renewable energy sources, is the primary factor for the market growth across Asia.
The portable fuel cell systems have a high potential market size, accounting for up to 40% CAGR in the forecast period. These portable cells weigh less than 10 kg and have a capacity of less than 5KW. These can be widely used in cell phones, chargers, and batteries.
Key Players
- Rolls Royce Power Systems AG
- Schneider Electric
- Mitsubishi Electric Corporation
- Caterpillar Power Plants
- Capstone Turbine Corporation
- Toyota Turbine and Systems Inc.
- Doosan Fuel Cell America
- Vestas Wind Systems A/S
- Siemens
- GE
Impact of Covid -19 on the market
The sudden outbreak of the pandemic has led to the shutdown of several industries, disrupting the raw material processing and import across the globe. During that period, the product demand gradually decreased due to restricted movement and hindered industrial development, which led to a decline in market growth at the initial level. However, the market is expected to progress by the initiatives of the government and key market players towards market growth.
The implemented restriction in trade heavily impacted the market growth. China is expected to be among the top exporters of DEG-based raw materials that were disrupted during the pandemic. The Government reduced subsidies, and many corporations withdrew from their investment plans, which halted the market growth. However, the market is in a state of recovery due to the increase in clean energy demands, eased restrictions, and rise in consumer base, which led to the slow and steady market growth after the pandemic. It slowed down product execution worldwide. The wind and solar industry declined due to the lack of manufacturing of hardware devices.
Recent developments
- In July 2021, Rolls Royce announced the merger of MTU onsite energy corporation with MTU Inc. to generate power through distributed supply systems under the brand name “MTU onsite energy”.
- In January 2021, Schneider Energy revealed the energy center for distributed energy-enabled homes; due to such initiatives, home energy management, solar batteries, electric vehicle charges, etc., have become mainstream.
- In June 2022, the infrastructure department of the Philippine billionaire Enrique Razon collaborated with multiple small firms to build the world’s largest solar power plant that fulfills the high demand for renewable energy.
- In October 2022, the National Renewable Energy Laboratory introduced the ‘Distributed Generation Market Demand’ model and was later convinced that the latest version of the model could be accessible on the GitHub site.
- In June 2022, Cairn Oil and Gas took steps to convert its Mangala pipeline to solar power. By 2025, the company targets to install rooftop solar PV panels across maximum regions.
- In April 2022, Brazil’s largest fixed-line carrier, Oi SA, introduced the renewable energy-based project, which is expected to cut its operating cost by 400 million reais. The project is expected to involve 25 hydroelectric, solar mills, and biomass, holding a capacity of 123 megawatts.
Segments covered in the report
By Technology
- Micro-turbines
- Combustion Turbines
- Micro-hydropower
- Reciprocating Engines
- Fuel Cells
- Wind Turbines
- Solar PV
- Others
By End Use Industries
- Residential
- Commercial
- Industrial
On the basis of Geography
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Contents
- Chapter 1. Preface
- 1.1 Report Description and Scope
- 1.2 Research scope
- 1.3 Research methodology
- 1.3.1 Market Research Type
- 1.3.2 Market research methodology
- Chapter 2. Executive Summary
- 2.1 Global Distributed Energy Generation Market, (2022 – 2030) (USD Billion)
- 2.2 Global Distributed Energy Generation Market : snapshot
- Chapter 3. Global Distributed Energy Generation Market – Industry Analysis
- 3.1 Distributed Energy Generation Market: Market Dynamics
- 3.2 Market Drivers
- 3.2.1 The Increased Usage Of GHG Emission Reduction
- 3.2.2 Government Policies
- 3.2.3 Energy Security Support
- 3.2.4 Benefit Of Renewable Energy Sources
- 3.3 Market Restraints
- 3.4 Market Opportunities
- 3.5 Market Challenges
- 3.6 Porter’s Five Forces Analysis
- 3.7 Market Attractiveness Analysis
- 3.7.1 Market attractiveness analysis By Technology
- 3.7.2 Market attractiveness analysis By End Use Industries
- Chapter 4. Global Distributed Energy Generation Market- Competitive Landscape
- 4.1 Company market share analysis
- 4.1.1 Global Distributed Energy Generation Market: company market share, 2021
- 4.2 Strategic development
- 4.2.1 Acquisitions & mergers
- 4.2.2 New Product launches
- 4.2.3 Agreements, partnerships, cullaborations, and joint ventures
- 4.2.4 Research and development and Regional expansion
- 4.3 Price trend analysis
- 4.1 Company market share analysis
- Chapter 5. Global Distributed Energy Generation Market – Technology Analysis
- 5.1 Global Distributed Energy Generation Market overview: By Technology
- 5.1.1 Global Distributed Energy Generation Market share, By Technology, 2021 and 2030
- 5.2 Micro-turbines
- 5.2.1 Global Distributed Energy Generation Market by Micro-turbines, 2022 – 2030 (USD Billion)
- 5.3 Combustion Turbines
- 5.3.1 Global Distributed Energy Generation Market by Combustion Turbines, 2022 – 2030 (USD Billion)
- 5.4 Micro-hydropower
- 5.4.1 Global Distributed Energy Generation Market by Micro-hydropower, 2022 – 2030 (USD Billion)
- 5.5 Reciprocating Engines
- 5.5.1 Global Distributed Energy Generation Market by Reciprocating Engines, 2022 – 2030 (USD Billion)
- 5.6 Fuel Cells
- 5.6.1 Global Distributed Energy Generation Market by Fuel Cells, 2022 – 2030 (USD Billion)
- 5.7 Wind Turbines
- 5.7.1 Global Distributed Energy Generation Market by Wind Turbines, 2022 – 2030 (USD Billion)
- 5.8 Solar PV
- 5.8.1 Global Distributed Energy Generation Market by Solar PV, 2022 – 2030 (USD Billion)
- 5.1 Global Distributed Energy Generation Market overview: By Technology
- Chapter 6. Global Distributed Energy Generation Market – End Use Industries Analysis
- 6.1 Global Distributed Energy Generation Market overview: By End Use Industries
- 6.1.1 Global Distributed Energy Generation Market share, By End Use Industries, 2021 and 2030
- 6.2 Residential
- 6.2.1 Global Distributed Energy Generation Market by Residential, 2022 – 2030 (USD Billion)
- 6.3 Commercial
- 6.3.1 Global Distributed Energy Generation Market by Commercial, 2022 – 2030 (USD Billion)
- 6.4 Industrial
- 6.4.1 Global Distributed Energy Generation Market by Industrial, 2022 – 2030 (USD Billion)
- 6.1 Global Distributed Energy Generation Market overview: By End Use Industries
- Chapter 7. Distributed Energy Generation Industry – Regional Analysis
- 7.1 Global Distributed Energy Generation Industry Regional Overview
- 7.2 Global Distributed Energy Generation Industry Share, by Region, 2021 & 2030 (USD Billion)
- 7.3. North America
- 7.3.1 North America Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.3.1.1 North America Distributed Energy Generation Industry, by Country, 2022 – 2030 (USD Billion)
- 7.3.1 North America Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.4 North America Distributed Energy Generation Industry, by Technology, 2022 – 2030
- 7.4.1 North America Distributed Energy Generation Industry, by Technology, 2022 – 2030 (USD Billion)
- 7.5 North America Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030
- 7.5.1 North America Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030 (USD Billion)
- 7.6. Europe
- 7.6.1 Europe Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.6.1.1 Europe Distributed Energy Generation Industry, by Country, 2022 – 2030 (USD Billion)
- 7.6.1 Europe Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.7 Europe Distributed Energy Generation Industry, by Technology, 2022 – 2030
- 7.7.1 Europe Distributed Energy Generation Industry, by Technology, 2022 – 2030 (USD Billion)
- 7.8 Europe Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030
- 7.8.1 Europe Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030 (USD Billion)
- 7.9. Asia Pacific
- 7.9.1 Asia Pacific Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.9.1.1 Asia Pacific Distributed Energy Generation Industry, by Country, 2022 – 2030 (USD Billion)
- 7.9.1 Asia Pacific Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.10 Asia Pacific Distributed Energy Generation Industry, by Technology, 2022 – 2030
- 7.10.1 Asia Pacific Distributed Energy Generation Industry, by Technology, 2022 – 2030 (USD Billion)
- 7.11 Asia Pacific Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030
- 7.11.1 Asia Pacific Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030 (USD Billion)
- 7.12. Latin America
- 7.12.1 Latin America Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.12.1.1 Latin America Distributed Energy Generation Industry, by Country, 2022 – 2030 (USD Billion)
- 7.12.1 Latin America Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.13 Latin America Distributed Energy Generation Industry, by Technology, 2022 – 2030
- 7.13.1 Latin America Distributed Energy Generation Industry, by Technology, 2022 – 2030 (USD Billion)
- 7.14 Latin America Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030
- 7.14.1 Latin America Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030 (USD Billion)
- 7.15. The Middle-East and Africa
- 7.15.1 The Middle-East and Africa Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.15.1.1 The Middle-East and Africa Distributed Energy Generation Industry, by Country, 2022 – 2030 (USD Billion)
- 7.15.1 The Middle-East and Africa Distributed Energy Generation Industry, 2022 – 2030 (USD Billion)
- 7.16 The Middle-East and Africa Distributed Energy Generation Industry, by Technology, 2022 – 2030
- 7.16.1 The Middle-East and Africa Distributed Energy Generation Industry, by Technology, 2022 – 2030 (USD Billion)
- 7.17 The Middle-East and Africa Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030
- 7.17.1 The Middle-East and Africa Distributed Energy Generation Industry, by End Use Industries, 2022 – 2030 (USD Billion)
- Chapter 8. Company Profiles
- 8.1 Rolls Royce Power Systems AG
- 8.1.1 Overview
- 8.1.2 Financials
- 8.1.3 Product Portfolio
- 8.1.4 Business Strategy
- 8.1.5 Recent Developments
- 8.2 Schneider Electric
- 8.2.1 Overview
- 8.2.2 Financials
- 8.2.3 Product Portfolio
- 8.2.4 Business Strategy
- 8.2.5 Recent Developments
- 8.3 Mitsubishi Electric Corporation
- 8.3.1 Overview
- 8.3.2 Financials
- 8.3.3 Product Portfolio
- 8.3.4 Business Strategy
- 8.3.5 Recent Developments
- 8.4 Caterpillar Power Plants
- 8.4.1 Overview
- 8.4.2 Financials
- 8.4.3 Product Portfolio
- 8.4.4 Business Strategy
- 8.4.5 Recent Developments
- 8.5 Capstone Turbine Corporation
- 8.5.1 Overview
- 8.5.2 Financials
- 8.5.3 Product Portfolio
- 8.5.4 Business Strategy
- 8.5.5 Recent Developments
- 8.6 Toyota Turbine and Systems Inc.
- 8.6.1 Overview
- 8.6.2 Financials
- 8.6.3 Product Portfolio
- 8.6.4 Business Strategy
- 8.6.5 Recent Developments
- 8.7 Doosan Fuel Cell America
- 8.7.1 Overview
- 8.7.2 Financials
- 8.7.3 Product Portfolio
- 8.7.4 Business Strategy
- 8.7.5 Recent Developments
- 8.8 Vestas Wind Systems A/S
- 8.8.1 Overview
- 8.8.2 Financials
- 8.8.3 Product Portfolio
- 8.8.4 Business Strategy
- 8.8.5 Recent Developments
- 8.9 Siemens
- 8.9.1 Overview
- 8.9.2 Financials
- 8.9.3 Product Portfolio
- 8.9.4 Business Strategy
- 8.9.5 Recent Developments
- 8.10 GE
- 8.10.1 Overview
- 8.10.2 Financials
- 8.10.3 Product Portfolio
- 8.10.4 Business Strategy
- 8.10.5 Recent Developments
- 8.1 Rolls Royce Power Systems AG
List Of Figures
Figures No 1 to 24
List Of Tables
Tables No 1 to 52
Report Methodology
In order to get the most precise estimates and forecasts possible, Custom Market Insights applies a detailed and adaptive research methodology centered on reducing deviations. For segregating and assessing quantitative aspects of the market, the company uses a combination of top-down and bottom-up approaches. Furthermore, data triangulation, which examines the market from three different aspects, is a recurring theme in all of our research reports. The following are critical components of the methodology used in all of our studies:
Preliminary Data Mining
On a broad scale, raw market information is retrieved and compiled. Data is constantly screened to make sure that only substantiated and verified sources are taken into account. Furthermore, data is mined from a plethora of reports in our archive and also a number of reputed & reliable paid databases. To gain a detailed understanding of the business, it is necessary to know the entire product life cycle and to facilitate this, we gather data from different suppliers, distributors, and buyers.
Surveys, technological conferences, and trade magazines are used to identify technical issues and trends. Technical data is also gathered from the standpoint of intellectual property, with a focus on freedom of movement and white space. The dynamics of the industry in terms of drivers, restraints, and valuation trends are also gathered. As a result, the content created contains a diverse range of original data, which is then cross-validated and verified with published sources.
Statistical Model
Simulation models are used to generate our business estimates and forecasts. For each study, a one-of-a-kind model is created. Data gathered for market dynamics, the digital landscape, development services, and valuation patterns are fed into the prototype and analyzed concurrently. These factors are compared, and their effect over the projected timeline is quantified using correlation, regression, and statistical modeling. Market forecasting is accomplished through the use of a combination of economic techniques, technical analysis, industry experience, and domain knowledge.
Short-term forecasting is typically done with econometric models, while long-term forecasting is done with technological market models. These are based on a synthesis of the technological environment, legal frameworks, economic outlook, and business regulations. Bottom-up market evaluation is favored, with crucial regional markets reviewed as distinct entities and data integration to acquire worldwide estimates. This is essential for gaining a thorough knowledge of the industry and ensuring that errors are kept to a minimum.
Some of the variables taken into account for forecasting are as follows:
• Industry drivers and constraints, as well as their current and projected impact
• The raw material case, as well as supply-versus-price trends
• Current volume and projected volume growth through 2030
We allocate weights to these variables and use weighted average analysis to determine the estimated market growth rate.
Primary Validation
This is the final step in our report’s estimating and forecasting process. Extensive primary interviews are carried out, both in-person and over the phone, to validate our findings and the assumptions that led to them.
Leading companies from across the supply chain, including suppliers, technology companies, subject matter experts, and buyers, use techniques like interviewing to ensure a comprehensive and non-biased overview of the business. These interviews are conducted all over the world, with the help of local staff and translators, to overcome language barriers.
Primary interviews not only aid with data validation, but also offer additional important insight into the industry, existing business scenario, and future projections, thereby improving the quality of our reports.
All of our estimates and forecasts are validated through extensive research work with key industry participants (KIPs), which typically include:
• Market leaders
• Suppliers of raw materials
• Suppliers of raw materials
• Buyers.
The following are the primary research objectives:
• To ensure the accuracy and acceptability of our data.
• Gaining an understanding of the current market and future projections.
Data Collection Matrix
| Perspective | Primary research | Secondary research |
| Supply-side |
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| Demand-side |
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Market Analysis Matrix
| Qualitative analysis | Quantitative analysis |
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Key Players
- Rolls Royce Power Systems AG
- Schneider Electric
- Mitsubishi Electric Corporation
- Caterpillar Power Plants
- Capstone Turbine Corporation
- Toyota Turbine and Systems Inc.
- Doosan Fuel Cell America
- Vestas Wind Systems A/S
- Siemens
- GE
- Others
FAQs
“Asia Pacific” region will lead the global Distributed Energy Generation market during the forecast period 2022 to 2030.
The key factors driving the market are The Increased Usage Of GHG Emission Reduction, Government Policies, Energy Security Support, and Benefit Of Renewable Energy Sources.
The key players operating in the Distributed Energy Generation market are Rolls Royce Power Systems AG, Schneider Electric, Mitsubishi Electric Corporation, Caterpillar Power Plants, Capstone Turbine Corporation, Toyota Turbine and Systems Inc., Doosan Fuel Cell America, Vestas Wind Systems A/S, Siemens, GE.
The global Distributed Energy Generation market is expanding growth with a CAGR of approximately 16.5% during the forecast period (2022 to 2030).
The global Distributed Energy Generation market size was USD 296.78 Billion in 2021 and is estimated to reach USD 932.34 Billion by the end of 2030