Distributed Generation (DG) Market Size, Share, Growth, and Industry Growth, By Type (Solar Photovoltaic, Wind Turbine, Reciprocating Engines, Micro Turbines, Fuel Cells, and Distributed Generation (DG)), By Application (Residential, Commercial, and Industrial), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Distributed Generation (DG) Market REPORT OVERVIEW

• 
• Request a Free Sample to learn more about this report

The global distributed generation (DG) market size was USD 62970 million in 2022 and market is projected to touch USD 111047 million by 2031, at a CAGR of 6.5% during the forecast period.

Distributed generation (DG) is also known as an on-site, district, and distributed energy. It is an electrical generation and storage done by various small distribution systems or grid-connected connected devices. Conventional power, such as gas, coal-fired, nuclear-powered plants, large-scale, and hydroelectric dams, are centralized and often require energy to be transmitted to a distance. 

On-site generation, often referred to as distributed generation, decentralized generation, or on-site generation, refers to energy production for private use on-site. With the aid of solar panels, wind turbines, and several other similar techniques, it is mostly produced pollution-free and environmentally responsible. It mostly ignores the need for energy transmission from sizable, centralized power-producing facilities, such as coal-fired or nuclear power plants, through the electric grid. Nowadays, it's important to encourage distributed generations to reduce and regulate centralized power loads because global power consumption has significantly increased due to commercial, industrial, and residential application. The bulk of the developing world's areas also continue to be deficient in

COVID-19 Impact: Lack of Raw Materials Hindered Market Growth

Numerous other economic disruptions have been brought on by the COVID-19 epidemic, which has wreaked havoc on the global economy. China, one of the major exporters of DEG goods, has suffered a huge decline in its trading sector due to trade restrictions enacted in several regions of the nation. Market effects are likely if businesses stop making new investments and the government cuts subsidies. However, it is projected that the loosening of limitations, rising energy demand, and increased consumer awareness of green energy will aid in regaining the market.

LATEST TRENDS

"Rising Government Focus on Adoption of Renewable Technology to Drive Market Trend"

During the projected period, the expansion of the distributed energy generation market is being driven by an increase in government limitations and greenhouse gas (GHG) emission reduction targets. The advantages of renewable technology, such as resiliency, energy security, and carbon reductions, are prompting several states and municipal governments to advance laws to encourage the expanded deployment of renewable technologies. Additionally, it is anticipated that expanded R&D efforts to create new technologies will fuel market expansion. Additionally, distributed generation (DG) systems are more affordable than conventional power generation methods. Because of this, the need for a clean energy source and the inexpensive rate of the products would positively affect market growth during the anticipated period. 

Distributed Generation (DG) Market Segmentation

• 
• Request a Free Sample to learn more about this report  

• By Type Analysis

By type, the market is segmented into solar photovoltaic, wind turbine, reciprocating engines, micro turbines, fuel cells, and distributed generation (DG).

• By Application Analysis

Based on application, the market is classified into residential, commercial, and industrial.

DRIVING FACTORS

"Rising Electricity Demand to Prosper Product Demand"

The primary drivers of the global distributed producing market are the rising demand for electricity, increased governmental efforts to minimize greenhouse gas emissions and declining solar energy costs. Concurrent power generation and consumption are referred to as "distributed energy." The ability of distributed generation to satisfy a specific residential or commercial unit's energy requirements is what drives demand for distributed energy. The growing demand for a reliable and efficient power supply is a major driver of the distributed generation market. The expansion of the global distributed generation (DG) market growth is being aided by the growing government initiatives and policies to limit the emission of greenhouse gases and the expanding use of green energy.

"Affordability of the Product to Bolster Market Growth"

Distributed generation (DG) is cheaper than conventional energy generation systems that favor the adoption of DG. Moreover, it is more accessible and less expensive than conventional energy generation systems. Further encouraging the development of distributed generation systems in the industrial and residential sectors is the accessibility of a greater range of sources, including wind, solar, micro turbines, gas turbines, reciprocating engines, and fuel cells. The market for distributed generation is expected to increase as a result of a number of key factors, including the rising urbanization and industrialization of the world. 

RESTRAINING FACTORS

"Higher Cost of Initial Investments to Hamper Market Growth"

The expensive initial cost of the equipment and technology investment costs may hinder the distributed generation (DG) market growth. The growing government policies and activities are estimated to retard growth in the global market. 

Distributed Generation (DG) Market REGIONAL INSIGHTS

• 
• Request a Free Sample to learn more about this report

"Europe to Lead the Market Due to the Rising Energy Consumption in the Region"

Europe is forecasted to dominate the distributed generation (DG) market share owing to the constant rise in energy consumption. The commercial and industrial sectors are the major consumer of energy, which is estimated to propel regional growth.

Asia Pacific is forecasted to show significant growth in the global market due to the rising use of solar PV rooftops for residential and commercial applications. Additionally, China is the major supplier of raw materials used in distributed generation (DG) manufacturing. 

KEY INDUSTRY PLAYERS

"Key Players Focusing On Gaining Collaborations and Partnerships to Expand "

Important market developments and inorganic and organic growth strategies are included in the studies. Many businesses are focusing on organic business growth, including product launches, product approvals, and other initiatives like patents and events. The market's inorganic growth tactics included acquisitions, partnerships, and collaborations. Market participants now have more opportunities to grow their clientele and businesses thanks to the efforts above. Industry participants in the market should soon benefit from significant growth prospects due to the expanding demand for filter products on the global market.

List of Market Players Profiled

• Alstom (France)
• E.On. Se (Germany)
• Caterpillar Power Plants (U.S.)
• Siemens Energy (Germany)
• Doosan Fuel Cell America (U.S.)
• Ballard Power Systems (Canada)
• General Electrical Power (U.S.)
• Sharp Corporation (Japan)
• Enercon (Germany)
• Bloom Energy (U.S.)
• Capstone Turbine Corporation (U.S.)
• Fuel Cell Energy (U.S.)
• Opra Turbines (Netherlands)
• Rolls-Royce Power Systems (Germany)
• Mitsubishi Hitachi Power Systems (Japan)

INDUSTRY DEVELOPMENT

• "July 2021"- Rolls-Royce revealed that it would be an employer and corporate brand. MTU brand will be supported as the sole solution and product brand. 

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for various factors to show potential investment areas. From 2022 through 2031, the market is objectively assessed to determine its financial viability. The report's data was compiled using a variety of primary and secondary sources.