Global Distributed Generation (DG) Market Report 2022-2026 - Robust Demand for Electricity Closer to the Point of Consumption Drives Proliferation of DG Technologies

DUBLIN, May 4, 2022 /PRNewswire/ -- The "Distributed Generation (DG) - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Distributed Generation (DG) Market to Reach US$386.7 Billion by the Year 2026

The global market for Distributed Generation (DG) estimated at US$217.8 Billion in the year 2020, is projected to reach a revised size of US$386.7 Billion by 2027, growing at a CAGR of 10.6% over the analysis period.

Distributed generation, also termed as Embedded Generation refers to small-to-medium scale modular power generation plants that are embedded into the distribution network at a point closer to the site of consumption than the central station power generators.

Liberalization and deregulation of energy markets, and the accelerated restructuring of electric power utilities, along with commercial factors such as simpler land acquisition, reduced construction time of modular distributed power generation modules, and lower transmission costs are primary factors driving the trend towards distributed power.

The huge void created by power plant retirements in developed economies in North America and Western Europe, and the ever-growing requirement for electric power from populous emerging economies, is unlocking new opportunities for distributed power generation.

Rapidly growing demand for energy worldwide and escalating cost of grid network expansion are fueling growth in the market. Also favoring the market is the growing success of R&D initiatives, demonstration projects and field trials, which are leading to a reduction in cost of distributed energy technologies and hence fueling their adoption.

Fuel Cells, one of the segments analyzed in the report, is projected to grow at a 9.6% CAGR to reach US$68.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Solar PV Cells segment is readjusted to a revised 12.4% CAGR for the next 7-year period.

This segment currently accounts for a 31.7% share of the global Distributed Generation (DG) market. Distributed fuel cell generation systems, with their sophisticated attributes deliver low emissions, high reliability and help commercial customers save costs. Factors such as federal emission standards and deregulation of the energy industry spur growth in the segment.

The adoption of strict regulations on carbon emissions, growing awareness about pollution attributed to conventional energy sources, and provision of financial incentives in the form of tax credits, rebates, net metering and feed-in-tariffs, are all leading to high growth in solar PV DG market.

The U.S. Market is Estimated at $36.7 Billion in 2021, While China is Forecast to Reach $97.7 Billion by 2026

The Distributed Generation (DG) market in the U.S. is estimated at US$36.7 Billion in the year 2021. The country currently accounts for a 16% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$97.7 Billion in the year 2026 trailing a CAGR of 14.7% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.9% and 7.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.6% CAGR while Rest of European market (as defined in the study) will reach US$116.2 Billion by the end of the analysis period.

Rising demand for energy from industrial, commercial and residential sectors is leading to strong growth of DG systems in the North America region. Favorable government policies, incentives such as tax credits and focus on renewable energy are expected to foster market growth. The macro goal of achieving a resilient energy union in the EU and the early mover advantage that the region experienced is expected to drive market expansion in Europe.

The growing drive for rural electrification in developing economies is driving demand for distributed generation. The fast pace industrialization in developing economies and the rising demand for quality and reliable power from energy intensive industries are also enhancing importance of DG systems.

Wind Turbines Segment to Reach $83.5 Billion by 2026

Wind turbine technology is also expected to post strong growth in the years ahead, with increasing focus on environmental protection driving its adoption. Technological advancements that have decreased the cost and increased the size of large wind turbines, and favorable government policies have driven widespread installation of wind farms with large-scale wind turbines of range 1 to 10MW capacity in recent years. 

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

• COVID-19 Impact, Market Reset & the New Normal: Beyond the Current Challenges, The Pandemic Will Fuel Energy Transition
• Recommendations for the Power & Energy Sector in the Post-Pandemic Era
• The Pandemic Speeds up Demand Side Management Application through DERs
• Distributed Generation: A Prelude
• Types of Distributed Generation Resources
• Major Distributed Generation Technologies with Typical Installed Capacity Range
• Categorization of Distributed Generation Technologies by Capacity Installations
• Fuel Cells
• Solar Photovoltaic (PV) Systems
• Distributed Wind Turbines
• Gas Turbines
• Reciprocating Engines
• Microturbines
• Microhydroelectric Generators
• Distributed Power Generation: A Game Changer for the Electric Power Industry
• Solar Photovoltaic Technology Leading the Growth Run
• Commercial Segment: Largest End Use Market
• Europe: The Largest Regional Market
• Developing Regions Exhibit Fast Paced Growth
• Key Trends in the Distributed Energy Resources Market
• Major Factors Driving Deployment of Distributed Generation in Developed and Developing Economies
• Environmental Benefits
• Utility Benefits
• Reliability and Energy Security Benefits
• Grid Expansion and Equipment Benefits
• Favorable Government Regulations and Policies: Critical for Market Penetration
• Domestic Targets for Greenhouse Gas Emissions of Select Regions/Countries
• Distributed Solar: The High Growth Segment
• Distributed Wind Power Becoming a More Accessible Option for Farmers in the US
• Growing Interest in Distributed Fuel Cell Generation Systems to Benefit Stationary Fuel Cells
• SOFCs: Ideal for Distributed Power Generation
• Natural Gas Offers Significant Opportunities in Distributed Generation of Electricity
• Reciprocating Combustion Engines (RCEs) Apt for Flexible Peaking
• Growing Prominence of Distributed Power Generation Benefits Market Prospects for Combustion Turbines
• Distributed Power Technologies: Brief Details on Power Technology, Size Range, Power Efficiency Range, Fuel Options and Applications
• Micro Turbines Witness Increasing Deployment in Distributed Energy Generation
• Competitive Scenario
• Recent Market Activity
• Select Global Brands

2. FOCUS ON SELECT PLAYERS (Total 52 Featured) 

• ABB Limited
• Ameresco, Inc.
• Ansaldo Energia S.p.A.
• Bergey WindPower Company
• Bloom Energy Corporation
• Canadian Solar Inc.
• Capstone Green Energy Corporation
• Caterpillar, Inc.
• Clarke Energy
• Cummins, Inc.
• E.ON SE
• Emergya Wind Technologies B.V.
• Flex Energy Solutions
• FuelCell Energy, Inc.
• GE Power
• Huawei Technologies Co., Ltd.
• Mitsubishi Heavy Industries Ltd.
• Schneider Electric
• Siemens AG
• SMA Solar Technology AG
• Vestas Wind Systems A/S
• Wartsila Corporation

3. MARKET TRENDS & DRIVERS

• Robust Demand for Electricity Closer to the Point of Consumption Drives Proliferation of DG Technologies
• Inefficiencies in Traditional Power Generation Model: Foundation for Market Growth
• High DG Penetration in the Long Run to Lead to Utility Companies' 'Death Spiral'
• Growing Focus on Renewable Energy: A Strong Growth Driver
• Leading Wind Power Countries Worldwide: Ranking Based on Key Wind Power Facts
• Smart Grids to Complement Integration of DG Resources in Electric Utility Network
• Innovative Application of Smart Grid in Enabling Energy Security
• Distributed Generation: A Key Enabler of Smart Cities
• Microgrids and Distributed Generation Transform Electricity Management Forever
• DG Prosumers Continue to Depend on Utility Grids, Equitable Cost Sharing a Major Priority
• Virtual Power Plants (VPPs): The DG Technology with Tremendous Growth Potential
• Affordable, Efficient Energy Storage Technologies to Magnify the Disruptive Effect of DG
• Commercialization of Stationary Fuel Cells to Revolutionize DG Market
• Solar PV Attains Grid Parity: A Major Milestone for DG
• Surging Demand from Telecom Network Operators Augurs Well for the DG Market
• Favorable Demographic and Urbanization Trends Strengthens Market Prospects
• Rapid Urbanization: A Mega Growth Driver for Distributed Generation
• Key Challenges Hampering Large Scale Deployment of Distributed Generation
• Technical Barriers
• Lower Energy-Efficiency, Higher Costs of DG Equipment

4. GLOBAL MARKET PERSPECTIVE

III. REGIONAL MARKET ANALYSIS

IV. COMPETITION

For more information about this report visit https://www.researchandmarkets.com/r/21z2or

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